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HomeMy WebLinkAbout10-05-22 Board PacketOTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY BOARD OF DIRECTORS MEETING 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY October 5, 2022 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. SAN DIEGO COUNTY WATER AUTHORITY FEDERAL LEGISLATIVE UPDATE (MEGGAN VALENCIA) AND BROWNSTEIN HYATT FARBER SCHRECK STATE LEGISLATIVE UPDATE (RUY LAREDO) 5. WATER CONSERVATION GARDEN UPDATE (JENNIFER PILLSBURY) 6. WATTON SCHOLARSHIP UPDATE (TENILLE OTERO) 7. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU- RISDICTION BUT NOT AN ITEM ON TODAY’S AGENDA 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-direc- tors/agenda-and-minutes/board-agenda/ PUBLIC HEARING 8. PUBLIC HEARING ON RATES AND CHARGES - PROPOSITION 218 HEARING THE BOARD WILL BE HOLDING A PUBLIC HEARING TO CONSIDER THE PRO- POSED RATES AND CHARGES TO BE IMPLEMENTED IN THE FISCAL YEAR 2022-2023 OPERATING AND CAPITAL BUDGET, WHICH WILL BE EFFECTIVE ON JANUARY 1, 2023; AND TO AUTHORIZE, FOR A PERIOD OF FIVE YEARS, THE PASS-THROUGH OF COST INCREASES OR DECREASES FROM WATER WHOLESALERS AND ENERGY SUPPLIERS, AND DISTRICT RATE INCREASES NOT-TO-EXCEED THE ANNUAL INCREASE IN THE CONSUMER PRICE INDEX- U FOR THE SAN DIEGO-CARLSBAD AREA ANNUALLY FOR ALL COSTS OTHER THAN PASS-THROUGH COSTS. THE BOARD INVITES THE PUBLIC TO PROVIDE COMMENTS ON THE PROPOSED RATES AND CHARGES a) APPROVE THE PROPOSED RATES AND CHARGES TO BE IMPLE- MENTED IN THE FISCAL YEAR 2022-2023 OPERATING AND CAPITAL BUDGET; ADOPT ORDINANCE NO. 586 AMENDING THE TABLE OF CON- TENTS; SECTION 9, ANNEXATION AND DETACHMENTS; SECTION 25, CONDITIONS FOR WATER SERVICE; SECTION 31, TEMPORARY WATER SERVICE; SECTION 38, SERVICE FOR FIRE PROTECTION SYSTEMS; AND APPENDIX A, SCHEDULE OF DISTRICT’S CODE OF ORDINANCES; b) AUTHORIZE FOR A PERIOD OF FIVE-YEARS, THE PASS-THROUGH OF COST INCREASES OR DECREASES FROM WATER WHOLESALERS AND ENERGY SUPPLIERS; AND AUTHORIZE, FOR A PERIOD OF FIVE-YEARS, DISTRICT RATE INCREASES NOT-TO-EXCEED THE ANNUAL INCREASE IN THE CONSUMER PRICE INDEX-U FOR THE SAN DIEGO-CARLSBAD AREA ANNUALLY, FOR ALL COSTS OTHER THAN PASS-THROUGH COSTS (KOEPPEN) CONSENT CALENDAR 9. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PAR- TICULAR ITEM a) ADOPT RESOLUTION NO. 4417 TO AUTHORIZE A FINANCIAL ASSIS- TANCE APPLICATION FOR A GRANT AGREEMENT FROM THE STATE WATER RESOURCES CONTROL BOARD (SWRCB) FOR THE PLANNING OF THE JOINT SWEETWATER AUTHORITY (SWA) – OTAY WATER DIS- TRICT (OWD) RECYCLED WATER INTERTIE PROJECT b) ADOPT RESOLUTION NO. 4418, THE ANNEXATION OF THE PROPERTY OF FREDRICK MEJOS RESIDENCE WATER ANNEXATION, 0 PROCTOR VALLEY ROAD, CHULA VISTA, CA 91914, APN: 595-020-47-00 TO THE OTAY WATER DISTRICT AND TO WATER IMPROVEMENT DISTRICT (ID) NO. 22/27 c) ADOPT RESOLUTION NO. 4419 APPROVING THE ANNEXATION OF THE PROPERTY OWNED BY ROBINSON FAMILY TRUST (APN 519-281-02-00; 3110 SUNFLOWER GLEN COURT, JAMUL, CA 91935) TO OTAY WATER DISTRICT SEWER IMPROVEMENT DISTRICT (ID) NO. 18 d) DECLARE 0.787 ACRES OF REAL ESTATE PROPERTY LOCATED ALONG THE FUTURE ALIGNMENT OF ALTA ROAD ON OTAY MESA AS SURPLUS AND AUTHORIZE THE GENERAL MANAGER TO ACCEPT AN OFFER FROM CH REALTY X-ELC I OTAY MESA BUSINESS PARK, L.P, A DELA- WARE LIMITED PARTNERSHIP (CH REALTY) TO PURCHASE 0.43 ACRES OF THE LAND FOR $168,000.00 AND ACCEPT A GRANT OF EASEMENT THAT SECURES THE OTAY WATER DISTRICT’S PRIOR PROPERTY RIGHTS e) AUTHORIZE THE GENERAL MANAGER TO ISSUE PURCHASE ORDERS OF UP TO THE BUDGETED AMOUNT, AND ANY INFLATION ADJUST- MENTS IN ADDITION TO THE BUDGETED AMOUNTS, WHEN PRICING AND VEHICLES ARE AVAILABLE, FOR THE PURCHASE OF SEVEN FLEET VEHICLES AND ONE EXCAVATOR IN AN OVERALL COST OF $882,500.00 f) AUTHORIZE THE GENERAL MANAGER TO CONTINUE WITH SUN LIFE, THE DISTRICT’S CURRENT PROVIDER, AND ENTER A TWO-YEAR AGREEMENT TO PROVIDE LIFE, ACCIDENTAL DEATH AND DISMEMBER- MENT (AD&D), AND SHORT/LONG-TERM DISABILITY INSURANCE FROM JANUARY 1, 2023, THROUGH DECEMBER 31, 2024, IN AN AMOUNT AP- PROXIMATE TO $85,000 – BASED ON CURRENT CENSUS INFORMATION AND SUBJECT TO CHANGE ACTION ITEMS 10. BOARD a) AUTHORIZE STAFF TO CONDUCT REMOTE TELECONFERENCE MEET- INGS OF THE BOARD OF DIRECTORS, INCLUDING COMMITTEE MEET- INGS, PURSUANT TO RESOLUTION NO. 4401 WHICH THE BOARD ADOPTED AT A SPECIAL BOARD MEETING ON SEPTEMBER 27, 2021, AND IN ACCORDANCE WITH THE PROVISIONS OF GOVERNMENT CODE § 54953(e) FOR THE NEXT 30 DAYS BECAUSE (1) A STATE OF EMER- GENCY RELATED TO COVID-19 IS CURRENTLY IN EFFECT; (2) LOCAL OFFICIALS IN SAN DIEGO COUNTY HAVE IMPOSED OR RECOMMENDED MEASURES TO PROMOTE SOCIAL DISTANCING IN CONNECTION WITH COVID-19; AND (3) DUE TO THE COVID-19 EMERGENCY, MEETING IN PERSON WOULD PRESENT IMMINENT RISKS TO THE HEALTH AND SAFETY OF ATTENDEES (MARTINEZ) b) DISCUSSION OF 2022 BOARD MEETING CALENDAR (TITA RAMOS- KROGMAN) 11. FINANCE a) AWARD A CONTRACT TO RAFTELIS FINANCIAL CONSULTANTS, INC. (RAFTELIS) AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CONTRACT WITH RAFTELIS FOR WATER AND SEWER COST OF SER- VICE STUDIES IN AN AMOUNT NOT-TO-EXCEED $99,975 (KOEPPEN) INFORMATIONAL ITEMS 12. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMA- TIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) SOCIAL MEDIA AND WEBSITE ANALYTICS UPDATE (SALMERON) b) ETHICS POLICY UPDATE (MARTINEZ) c) ANNUAL DIRECTORS’ EXPENSE REPORT FOR FISCAL YEAR 2022 (PIN- ION) d) FISCAL YEAR 2022 YEAR-END REPORT FOR THE DISTRICT’S FISCAL YEAR 2019-2022 STRATEGIC PLAN (KERR) REPORTS 13. GENERAL MANAGER’S REPORT 14. SAN DIEGO COUNTY WATER AUTHORITY UPDATE 15. DIRECTORS' REPORTS/REQUESTS 16. PRESIDENT’S REPORT/REQUESTS RECESS TO CLOSED SESSION 17. CLOSED SESSION a) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION [GOV- ERNMENT CODE § 54956.9(b)] MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, CASE NO. 37-2015- 00400000-CU-MC-CTL b) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE § 54956.9] 1 MATTER RETURN TO OPEN SESSION 18. 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 19. NO MATTERS TO DISCUSS 20. ADJOURNMENT All items appearing on this agenda, whether or not expressly listed for action, may be de- liberated 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. Certification of Posting I certify that on September 30, 2022, 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 Sec- tion §54954.2). Executed at Spring Valley, California on September 30, 2022. /s/ Tita Ramos-Krogman, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 SUBMITTED BY: Kevin Koeppen, Assistant Chief of Finance PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Public Hearing Concerning the Implementation of Rate Changes as Proposed for the Fiscal Year 2022-2023 Operating and Capital Budget; (1) Adoption of Ordinance No. 586 Approving the Methodologies Used in the Cost of Service Study; Adopting the Rates and Charges Developed Using the Methodologies as Set Forth in the Cost of Service Study; (2) Authorizing, for a Period of Five Years, Adjustments to the Rates, Fees, and Charges to Cover All Future Pass-through Costs and Cost Increases or Decreases from the District’s Water and Energy Suppliers; and (3) Authorizing, for a Period of Five Years, Adjustments to the Rates, Fees, and Charges to Cover Overall Non-pass-through Cost Increases, in Addition to the Pass- through Increases, Not to Exceed the Annual Increase in the Consumer Price Index-U for the San Diego-Carlsbad Area Each Year GENERAL MANAGER’S RECOMMENDATION: That the Board hold a public hearing on the proposed rates and charges; and if no majority protest is received: 1)Adopt Ordinance No. 586 approving the methodologies used in the Cost of Service Study and adopting the rates and charges developed using the methodologies as set forth in the Cost of Service Study to meet the District's revenue requirements as proposed in the FY 2022-2023 Operating and Capital Budget; and amending the following sections of the District’s Code of Ordinances to conform with those changes: a.Table of Contents b.Section 9, Annexation and Detachments; c.Section 25, Conditions for Water Service; d.Section 31, Temporary Water Service; e.Section 38, Service for Fire Protection Systems; and AGENDA ITEM 8 f. Appendix A, Schedule of Fees 2) Authorize, for a period of five years, adjustments to the rates, fees, and charges to cover all future pass-through costs and cost increases or decreases from the District’s water and energy suppliers; and 3) Authorize, for a period of five years, adjustments to the rates, fees, and charges to cover overall non-pass-through cost increases, in addition to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad area each year. PURPOSE: To request that the Board adopt Ordinance No. 586 to approve the methodologies used in the Cost of Service Study and to adopt the water rates and charges developed using these methodologies as proposed in the FY 2022-2023 Operating and Capital Budget, authorize for a period of five years adjustments to the rates, fees, and charges to cover all pass-through increases or decreases from the District’s water and energy suppliers, and authorize for a period of five years adjustments to the rates, fees, and charges to cover overall non-pass-through cost increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad area each year. Following are the sections of the District's Code of Ordinances requiring amendments due to rate structure changes, rate increases, or updating code sections: Table of Contents Section 9 Annexations and Detachments Section 25 Conditions for Water Service Section 31 Temporary Water Service Section 38 Service for Fire Protection Systems Appendix A Schedule of Fees ANALYSIS: On April 27, 2022, staff presented to the Board the results of the Water Cost of Service Study and the Board directed staff to prepare the FY 2022-2023 Budget using the recommended rate structure. The rates presented today are based on the results of that cost of service study. The final Water Cost of Service Study report prepared by Raftelis has been included as Attachment E to this staff report. On June 8, 2022, the Fiscal Year 2022-2023 Operating Budget containing the proposed rates and rate structures was approved and Resolution No. 4410 was adopted. The proposed rates are set in order to recover a 4.1% overall revenue demand increase, which was not described in the cost of service study but was approved by the Board as part of the June 8 Budget approval. The revenue demand increase was excluded from the cost of service study as the necessary increase was unknown at the time the study was completed. Reconciliations from the cost of service study rates to the proposed potable and recycled rates are included as Attachments F and G to this staff report, respectively. In compliance with the Proposition 218 requirements, notices were sent to all customers to inform them of their option to protest rate changes. The required public hearing is set for the October 5, 2022 Board Meeting where the Board will be able to consider protests. As of September 21, 2022, the protest letters that have been received are attached and will be delivered to the Board. Any additional protest letters will be tabulated and presented at the Board meeting. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The Fiscal Year 2022-2023 Budget covers increases from water wholesalers, supports the CIP plan, and meets the District’s targeted reserve and debt service coverage levels. The FY 2022-2023 adopted budget does have an overall 4.1% water revenue demand increase to be effective on January 1, 2023 and implements the recommended changes to the rate structures presented to the Board on April 27. STRATEGIC GOAL: Through well-established financial policies and wise management of funds, the District will continue to guarantee fiscal responsibility to its ratepayers and the community at large. LEGAL IMPACT: None. Attachments: A) Ordinance No. 586 Exhibit 1 – Table of Contents Strike-through Exhibit 2 – Table of Contents Proposed Exhibit 3 - Section 9 Strike-through Exhibit 4 – Section 9 Proposed Exhibit 5 – Section 25 Strike-through Exhibit 6 – Section 25 Proposed Exhibit 7 – Section 31 Strike-through Exhibit 8 – Section 31 Proposed Exhibit 9 - Section 38 Strike-through Exhibit 10 - Section 38 Proposed Exhibit 11 - Appendix A Strike-through Exhibit 12 - Appendix A Proposed B) Protest Letters C) Presentation D) Proposition 218 Notices E) Raftelis Water Cost of Service Study F) Cost of Service Study Potable Rate Reconciliation G) Cost of Service Study Recycled Rate Reconciliation 1 ORDINANCE NO. 586 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT SETTING RATES AND CHARGES AND AMENDING THE TABLE OF CONTENTS; SECTION 9 - ANNEXATION AND DETACHMENTS; SECTION 25 - CONDITIONS FOR WATER SERVICE; SECTION 31 – TEMPORARY WATER SERVICE; SECTION 38 – SERVICE FOR FIRE PROTECTION SYSTEMS; AND APPENDIX A - SCHEDULE OF FEES OF THE DISTRICT’S CODE OF ORDINANCES The Board of Directors of the Otay Water District is empowered by the provisions of the Water Code and other applicable provisions of law to establish rates, fees, and charges for the provision of water and sewer services. In compliance with the provisions of the Water Code and in compliance with the provisions of Article XIIID of the California Constitution (Proposition 218), the District has calculated the amount of the rate, fee, or charge proposed to be imposed upon each parcel. In compliance with the provisions of Article XIIID of the California Constitution, the District provided written notice by mail of the proposed rate, fee, or charge to the record owner of each identified parcel within the District upon which the rate, fee, or charge is proposed for imposition, the amount of the rate, fee, or charge proposed to be imposed, the basis upon which the amount of the proposed rate, fee, or charge was Attachment A 2 calculated, the reason for the rate, fee, or charge, and the date, time, and location of a public hearing on the proposed rate, fee, or charge, and has given the record owner of each parcel the opportunity to file a protest against the proposed rates, fees, and charges. The Board has held a public hearing, at which it considered all protests against the proposed rate, fee, or charge. There was not a majority protest. The Board of Directors has reviewed and considered the projected expenses and revenues of the District, and has found and determined that revenues derived from the changes to the rate, fee, or charge are not projected to exceed either the funds required to provide water and sewer services or the proportional cost of the service attributable to the parcel, and that therefore approval of the changes to the rates, fees and charges for water and sewer services as outlined in the rate notices is necessary and in the best interests of the District. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Otay Water District as follows: Section 1. The foregoing recitals are true and correct and are incorporated herein by reference. Section 2. The 2023 proposed schedules of rates, fees, and charges reflected on the notices that were mailed to the record owner of each identified parcel within the District, and 3 presented to this Board of Directors are hereby approved and adopted. Section 3. For a period of five years, the pass-through of cost increases from the District’s water wholesalers is hereby approved. Section 4. The Board hereby approves and authorizes that, for a period of five years, the District’s rates, fees, and charges will be periodically adjusted by an amount not to exceed the Consumer Price Index-U for the San Diego-Carlsbad Area each year for all costs that are non-pass-through costs, including those costs related to labor, benefits, materials, energy, maintenance, administrative expenses, and other operational costs of providing water service including, but not limited to, amounts required to meet bond covenants and to maintain adequate reserves are hereby approved. Section 5. The language of the District’s Code of Ordinances contained in the Table of Contents; Section 9 – Annexations and Detachments; Section 25 - Conditions for Water Service; Section 31 – Temporary Water Service; Section 38 – Service for Fire Protection Systems; and Appendix A – Schedule of Fees, are hereby amended, as set forth in the attached copies of those sections, to reflect the revised rates, fees, and charges hereby approved. 4 Section 6. All ordinances, resolutions, or administrative procedures of the District, or parts thereof that are inconsistent with any provision of this Ordinance are hereby superseded, but only to the extent of such inconsistency. Section 7. If any section, subsection, clause, or phrase in this Ordinance is for any reason held invalid, the validity of the remainder of this Ordinance shall not be affected thereby. Section 8. The General Manager, the District Secretary, the Chief Financial Officer, and their designees shall take all actions required to carry out the purpose of this Ordinance including, but not limited to, replacing the amended sections of the Code of Ordinances. Section 9. This Ordinance becomes effective upon adoption, and the amendments to the Code of Ordinances being incorporated into the Table of Contents, Sections 9, 25, 31, 38, and Appendix A concerning water rates, charges, and fees, become effective on January 1, 2023. Rates, fees, and charges billed on or after January 1, 2023 may include services provided as early as December 2022. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 5th day of October 2022, by the following roll call vote: AYES: NOES: ABSENT: 5 ABSTAIN: ________________________________ President ATTEST: _____________________________ Secretary i OTAY WATER DISTRICT CODE OF ORDINANCES TABLE OF CONTENTS ARTICLE I DISTRICT ADMINISTRATION CHAPTER 1 GENERAL PROVISIONS SECTION 0 Definitions and Miscellaneous Provisions 0.01 Title - Reference to Code 0.02 Definitions 0.03 Effect of Heading 0.04 Notices 0.05 Validity of Code 0.06 Time Limit for Seeking Review of Administrative Decisions CHAPTER 2 ADMINISTRATION OF DISTRICT SECTION 1 Board of Directors and Officers 1.01 Governing Body 1.02 Officers 1.03 Election of Board Officers 1.04 Board Vacancies 1.05 Duties of President 1.06 Duties of Vice President 1.07 Duties of Secretary 1.08 Meetings of the Board 1.09 Public Hearings 1.10 Robert's Rules of Order 1.11 Seal of the District SECTION 2 Management of the District 2.01 Authority of the General Manager 2.02 Order of Succession CHAPTER 3 DISTRICT FINANCIAL MATTERS SECTION 3 District Banking and Other Financial Matters 3.01 Designation of Depository 3.02 Deposit of Cash 3.03 Types of Accounts and Investment Accounts 3.04 Classes of Bank Accounts 3.05 Transfer of Funds From One Account to Another 3.06 Withdrawal of Funds 3.07 Directions Pertaining to Demand Deposits Exhibit 1 ii 3.08 Fiscal Year 3.09 Closing of Books of Account 3.10 Appointment of an Auditor for Annual Audit of Books of Account CHAPTER 4 PURCHASING SECTION 4 Purchases and Payments 4.01 Purchases of Property or Services 4.02 Payment of Invoices 4.03 Petty Cash Purchases 4.04 Public Works Contracts 4.05 Disposal of Surplus Property CHAPTER 5 PERSONNEL PRACTICES SECTION 5 Employer-Employee Relations 5.01 Purpose 5.02 Definitions 5.03 District Authority 5.04 Employee Rights 5.05 Establishment of Representation Units 5.06 Certification of Employee Organizations 5.07 Employee Organizations' Rights 5.08 Impasse Procedures 5.09 Decertification Procedure 5.10 Individual Representation 5.11 Employer-Employee Communications 5.12 Information Requests 5.13 Interpretation 5.14 Amendments 5.15 Severability SECTION 6 Conflict of Interest Code 6.01 Definitions 6.02 Designated Employees 6.03 Disclosure Categories 6.04 Statements of Economic Interests: Place of Filing 6.05 Statements of Economic Interests: Time of Filing 6.06 Statements for Persons Who Resign Prior to Assuming Office 6.07 Contents Of and Period Covered by Statements of Economic Interests 6.08 Manner of Reporting 6.09 Prohibition on Receipt of Honoraria 6.10 Prohibition on Receipt of Gifts in Excess of Amount Established by Law 6.11 Loans to Public Officials 6.12 Loan Terms iii 6.13 Personal Loans 6.14 Disqualification 6.15 Legally Required Participation 6.16 Disqualification of State Officers and Employees 6.17 Disclosure of Disqualifying Interest 6.18 Assistance of the Commission and Counsel 6.19 Violations 6.20 Prohibited Transactions 6.21 Incompatible Activities SECTIONS 7 AND 8 (RESERVED) CHAPTER 6 MISCELLANEOUS ADMINISTRATION PROCEDURES SECTION 9 Annexations and Detachments 9.01 Requirement of Annexation for Service 9.02 Annexations to or Detachments from Improvement Districts 9.03 Annexations to or Detachments from the District through LAFCO 9.04 Fees and Charges for Annexations or Detachments 9.05 Taxation of Property after Annexation to Improvement District 9.06 Other Conditions of Annexation SECTION 10 Application for Waiver or Modification of Ordinance Requirements 10.01 Filing of Petition 10.02 Review by Board of Directors SECTIONS 11 THROUGH 20 (RESERVED) ARTICLE II DISTRICT OPERATIONS CHAPTER 1 WATER SERVICE SECTION 21 Rules and Regulations for Water Service SECTION 22 District Water Systems 22.01 Control and Operation of Systems 22.02 Installation or Removal of Meters 22.03 Turn-on or Turn-off of Water Service 22.04 Inspection of Customer Premises SECTION 23 Non-Responsibility of District 23.01 Interruptions of Water Service 23.02 Privately-Owned Water Lines 23.03 Water Pressure Regulation iv 23.04 Cross-Connections and Backflow Devices 23.05 Water Service for Steam Boilers 23.06 Electrical Ground Connections SECTION 24 Certain Service Limitations 24.01 Non-Service Areas 24.02 Reserved 24.03 Reserved 24.04 Fire Hydrants and Certain Other Facilities SECTION 25 Conditions for Water Service 25.01 Service Area 25.02 Definition of "H.C.F." and "Unit of Water" 25.03 Definition of Water Service Categories, Water Rates, Charges and Fees 25.04 Deposits by Lessees or Non-Owners of Property 25.05 Service to Subsequent Customers SECTION 26 Water Recycling Plan and Implementing Procedures 26.01 Findings 26.02 Use of Recycled Water 26.03 Definitions 26.04 Water Reclamation Master Plan 26.05 Procedures 26.06 Regulation of Waste Discharge to Sewerage Systems 26.07 Sanctions 26.08 Validity SECTION 27 Requirements and Limitations for Obtaining Water Service 27.01 Requirement for Water/Sewer Permit and Payment of Fees, Charges, and Deposits 27.02 Size of Water Meter 27.03 Manufacturers Recommended Maximum Flow Rate for District Meters 27.04 Resale or Distribution of Water 27.05 Conservation and Local Supply Use Requirements SECTION 28 Connection Fees and Charges for Potable or Recycled Water Service 28.01 Collection of Fees and Charges 28.02 Installation Charges for Water Meter and Water Service Laterals 28.03 Meter Fee Refund v SECTION 29 (RESERVED) SECTION 30 Non-Permanent Irrigation Water Service 30.01 Definition of Non-Permanent Irrigation Water Service 30.02 Conditions for Non-Permanent Irrigation Water Service SECTION 31 Temporary Construction Water Service 31.01 Definition of Temporary Construction Service 31.02 Requirement of Temporary Construction Meter for Service 31.03 Fees and Charges for Temporary Construction Meters 31.04 Payment of Capacity, New Water Supply, and Annexation Fees for Temporary Construction Meters SECTION 33 General Regulations for Use of Water Meters 33.01 Furnished and Installed Only by District 33.02 Ownership of Meters 33.03 Relocation of Meters 33.04 Meter Turn-Off Requested by Customer 33.05 Removal of Meters 33.06 Reading of Meters 33.07 Adjustment for Meter Inaccuracies 33.08 Reserved SECTION 34 Issuance and Payment of Water Bills 34.01 Issuance, Due Date and Final Payment Date of Statement of Charges for Service 34.02 Delinquent Accounts SECTION 35 Repealed on 2/3/10 (consolidated into Section 72) SECTION 36 Location of Water Lines and Easements 36.01 Location of Water Lines 36.02 District Water Line Easements 36.03 Encroachment in District Easements 36.04 Concurrent Use of District Easements SECTION 37 Fire Hydrants 37.01 Charges for Installation 37.02 Use of District Fire Hydrants vi SECTION 38 Service for Fire Protection Systems 38.01 Service for Commercial or Industrial Purposes 38.02 Rules and Regulations for Fire Hydrant and/or Fire Sprinkler Service for Commercial or Industrial Purposes on Private Property 38.03 Services for Residential Fire Protection SECTION 39 Drought Response Consvervation Program 39.01 Declaration of Necessity and Intent 39.02 Definitions Applicable to the Program 39.03 Application 39.04 Drought Response Level 1 39.05 Drought Response Level 2 39.06 Drought Response Level 3 – Drought Critical Condition 39.07 Drought Response Level 4 39.08 Drought Response Level 5 39.09 Drought Response Level 6 39.10 Procedures for Determination and Notification of Drought Response Level 39.11 Hardship Variance 39.12 Violations and Penalties ADDED SECTION 40 State Drought Response 40.01 Declaration of Necessity and Intent 40.02 Conservation Regulations Related to Executive Order B-29-15 SECTIONS 41 THROUGH 49 (RESERVED) CHAPTER 2 SEWER SERVICE SECTION 50 Rules and Regulations for Sewer Service SECTION 51 District Sewer System 51.01 Control and Operation of System 51.02 Connections and Disconnections to Sewer System 51.03 Inspection of Customer Premises 51.04 Reserved 51.05 Permit Revocated or Suspended SECTION 52 Waste Disposal 52.01 Definitions of "Sewer System," "Sewage" and "Industrial Wastes" 52.02 Federal and State Statutes and Regulations Applicable to District Sewer Service vii 52.03 Enforcement of District Rules and Regulations 52.04 Prohibitions Against Discharge of Objectionable Wastes 52.05 Guidelines to Determine Acceptability of Wastes 52.06 Discharge of Industrial Waste SECTION 53 Conditions for Sewer Service 53.01 Conditions for Acquisition of Sewer Service Capacity 53.02 Service Areas 53.03 Acquisition of Sewer Connections for Service 53.04 Charges for Installation of Sewer Laterals 53.05 Payment of Fees 53.06 Sewer Service Use Changes Resulting in Increased System Utilization 53.07 Wastewater Discharge Permit Issuance and Limitation 53.08 Basis for Determination of Equivalent Dwelling Units (EDUs) 53.09 Transfer, Assignment or Resale of Sewer Connection Rights 53.10 Definitions of Residential and Multi- Residential Sewer Service Rates, Charges and Fees 53.11 Definitions of Commercial and Industrial Sewer Service Rates, Charges and Fees 53.12 Issuance and Payment of Sewer Bills 53.13 Delinquent Accounts SECTION 54 Deposit by Lessees or Non-Owners of Property 54.01 Amount of Deposit 54.02 Refund of Deposit 54.03 Letter of Credit SECTION 55 Issuance and Payment of Sewer Bills 55.01 Issuance, Due Date and Final Payment Date of Statement of Charges for Service SECTION 56 Location of Sewer Lines and Easements 56.01 Location of Sewer Lines 56.02 District Sewer Line Easements 56.03 Encroachment in District Easements 56.04 Concurrent Use of District Easements SECTIONS 57 THROUGH 59 (RESERVED) ARTICLE III SUBDIVISION AND PARCEL MAP DEVELOPMENTS viii CHAPTER 1 WATER AND SEWER SYSTEMS FOR SUBDIVISIONS AND PARCEL MAPS SECTION 60 Utility Facilities for Subdivisions and Parcel Map Developments 60.01 Installation by District 60.02 Installation by Developers 60.03 Issuance of Availability Letters for Water and/or Sewer Service 60.04 Requirement for a Subarea Master Plan (SAMP) 60.05 Requirement for a Tentative Map 60.06 Requirement of Easement or Right-of-Way for Utility Facilities 60.07 Requirement for Annexation 60.08 Requirement for Approved Plans and Construction Agreement 60.09 Requirement for District Inspection 60.10 Requirements for Use of Utilities for Occupancy Prior to District Acceptance 60.11 Requirement for Final Acceptance by the General Manager 60.12 Requirement for One Year Warranty Period SECTION 61 (RESERVED) SECTION 62 Extent of Systems for Subdivisions and Parcel Maps 62.01 Location and Scope of System 62.02 Request for Variance ARTICLE IV PROHIBITED ACTIVITIES; REMEDIES AND ENFORCEMENT CHAPTER 1 GENERAL PROVISIONS SECTION 70 Definitions 70.01 Reference to Article 70.02 Definitions SECTION 71 Violations; Prohibited Activities CHAPTER 2 DISTRICT REMEDIES SECTION 72 Penalties and Damages 72.01 General 72.02 Certain Specific Operational Violations 72.03 Violation of Conservation or Other Water Use Restriction Provisions 72.04 Violations Involving District Real Property 72.05 Administrative Fines ix SECTION 73 Additional District Remedies 73.01 Other Remedies of District 73.02 Notice to District Concerning Violations 73.03 Severability APPENDIX A Charges and Fee Matrix i OTAY WATER DISTRICT CODE OF ORDINANCES TABLE OF CONTENTS ARTICLE I DISTRICT ADMINISTRATION CHAPTER 1 GENERAL PROVISIONS SECTION 0 Definitions and Miscellaneous Provisions 0.01 Title - Reference to Code 0.02 Definitions 0.03 Effect of Heading 0.04 Notices 0.05 Validity of Code 0.06 Time Limit for Seeking Review of Administrative Decisions CHAPTER 2 ADMINISTRATION OF DISTRICT SECTION 1 Board of Directors and Officers 1.01 Governing Body 1.02 Officers 1.03 Election of Board Officers 1.04 Board Vacancies 1.05 Duties of President 1.06 Duties of Vice President 1.07 Duties of Secretary 1.08 Meetings of the Board 1.09 Public Hearings 1.10 Robert's Rules of Order 1.11 Seal of the District SECTION 2 Management of the District 2.01 Authority of the General Manager 2.02 Order of Succession CHAPTER 3 DISTRICT FINANCIAL MATTERS SECTION 3 District Banking and Other Financial Matters 3.01 Designation of Depository 3.02 Deposit of Cash 3.03 Types of Accounts and Investment Accounts 3.04 Classes of Bank Accounts 3.05 Transfer of Funds From One Account to Another 3.06 Withdrawal of Funds 3.07 Directions Pertaining to Demand Deposits Exhibit 2 ii 3.08 Fiscal Year 3.09 Closing of Books of Account 3.10 Appointment of an Auditor for Annual Audit of Books of Account CHAPTER 4 PURCHASING SECTION 4 Purchases and Payments 4.01 Purchases of Property or Services 4.02 Payment of Invoices 4.03 Petty Cash Purchases 4.04 Public Works Contracts 4.05 Disposal of Surplus Property CHAPTER 5 PERSONNEL PRACTICES SECTION 5 Employer-Employee Relations 5.01 Purpose 5.02 Definitions 5.03 District Authority 5.04 Employee Rights 5.05 Establishment of Representation Units 5.06 Certification of Employee Organizations 5.07 Employee Organizations' Rights 5.08 Impasse Procedures 5.09 Decertification Procedure 5.10 Individual Representation 5.11 Employer-Employee Communications 5.12 Information Requests 5.13 Interpretation 5.14 Amendments 5.15 Severability SECTION 6 Conflict of Interest Code 6.01 Definitions 6.02 Designated Employees 6.03 Disclosure Categories 6.04 Statements of Economic Interests: Place of Filing 6.05 Statements of Economic Interests: Time of Filing 6.06 Statements for Persons Who Resign Prior to Assuming Office 6.07 Contents Of and Period Covered by Statements of Economic Interests 6.08 Manner of Reporting 6.09 Prohibition on Receipt of Honoraria 6.10 Prohibition on Receipt of Gifts in Excess of Amount Established by Law 6.11 Loans to Public Officials 6.12 Loan Terms iii 6.13 Personal Loans 6.14 Disqualification 6.15 Legally Required Participation 6.16 Disqualification of State Officers and Employees 6.17 Disclosure of Disqualifying Interest 6.18 Assistance of the Commission and Counsel 6.19 Violations 6.20 Prohibited Transactions 6.21 Incompatible Activities SECTIONS 7 AND 8 (RESERVED) CHAPTER 6 MISCELLANEOUS ADMINISTRATION PROCEDURES SECTION 9 Annexations and Detachments 9.01 Requirement of Annexation for Service 9.02 Annexations to or Detachments from Improvement Districts 9.03 Annexations to or Detachments from the District through LAFCO 9.04 Fees and Charges for Annexations or Detachments 9.05 Taxation of Property after Annexation to Improvement District 9.06 Other Conditions of Annexation SECTION 10 Application for Waiver or Modification of Ordinance Requirements 10.01 Filing of Petition 10.02 Review by Board of Directors SECTIONS 11 THROUGH 20 (RESERVED) ARTICLE II DISTRICT OPERATIONS CHAPTER 1 WATER SERVICE SECTION 21 Rules and Regulations for Water Service SECTION 22 District Water Systems 22.01 Control and Operation of Systems 22.02 Installation or Removal of Meters 22.03 Turn-on or Turn-off of Water Service 22.04 Inspection of Customer Premises SECTION 23 Non-Responsibility of District 23.01 Interruptions of Water Service 23.02 Privately-Owned Water Lines 23.03 Water Pressure Regulation iv 23.04 Cross-Connections and Backflow Devices 23.05 Water Service for Steam Boilers 23.06 Electrical Ground Connections SECTION 24 Certain Service Limitations 24.01 Non-Service Areas 24.02 Reserved 24.03 Reserved 24.04 Fire Hydrants and Certain Other Facilities SECTION 25 Conditions for Water Service 25.01 Service Area 25.02 Definition of "H.C.F." and "Unit of Water" 25.03 Definition of Water Service Categories, Water Rates, Charges and Fees 25.04 Deposits by Lessees or Non-Owners of Property 25.05 Service to Subsequent Customers SECTION 26 Water Recycling Plan and Implementing Procedures 26.01 Findings 26.02 Use of Recycled Water 26.03 Definitions 26.04 Water Reclamation Master Plan 26.05 Procedures 26.06 Regulation of Waste Discharge to Sewerage Systems 26.07 Sanctions 26.08 Validity SECTION 27 Requirements and Limitations for Obtaining Water Service 27.01 Requirement for Water/Sewer Permit and Payment of Fees, Charges, and Deposits 27.02 Size of Water Meter 27.03 Manufacturers Recommended Maximum Flow Rate for District Meters 27.04 Resale or Distribution of Water 27.05 Conservation and Local Supply Use Requirements SECTION 28 Connection Fees and Charges for Potable or Recycled Water Service 28.01 Collection of Fees and Charges 28.02 Installation Charges for Water Meter and Water Service Laterals 28.03 Meter Fee Refund v SECTION 29 (RESERVED) SECTION 30 Non-Permanent Irrigation Water Service 30.01 Definition of Non-Permanent Irrigation Water Service 30.02 Conditions for Non-Permanent Irrigation Water Service SECTION 31 Construction Water Service 31.01 Definition of Construction Service 31.02 Requirement of Construction Meter for Service 31.03 Fees and Charges for Construction Meters 31.04 Payment of Capacity, New Water Supply, and Annexation Fees for Construction Meters SECTION 33 General Regulations for Use of Water Meters 33.01 Furnished and Installed Only by District 33.02 Ownership of Meters 33.03 Relocation of Meters 33.04 Meter Turn-Off Requested by Customer 33.05 Removal of Meters 33.06 Reading of Meters 33.07 Adjustment for Meter Inaccuracies 33.08 Reserved SECTION 34 Issuance and Payment of Water Bills 34.01 Issuance, Due Date and Final Payment Date of Statement of Charges for Service 34.02 Delinquent Accounts SECTION 35 Repealed on 2/3/10 (consolidated into Section 72) SECTION 36 Location of Water Lines and Easements 36.01 Location of Water Lines 36.02 District Water Line Easements 36.03 Encroachment in District Easements 36.04 Concurrent Use of District Easements SECTION 37 Fire Hydrants 37.01 Charges for Installation 37.02 Use of District Fire Hydrants SECTION 38 Service for Fire Protection Systems vi 38.01 Service for Commercial or Industrial Purposes 38.02 Rules and Regulations for Fire Hydrant and/or Fire Sprinkler Service for Commercial or Industrial Purposes on Private Property 38.03 Services for Residential Fire Protection SECTION 39 Drought Response Conservation Program 39.01 Declaration of Necessity and Intent 39.02 Definitions Applicable to the Program 39.03 Application 39.04 Drought Response Level 1 39.05 Drought Response Level 2 39.06 Drought Response Level 3 – Drought Critical Condition 39.07 Drought Response Level 4 39.08 Drought Response Level 5 39.09 Drought Response Level 6 39.10 Procedures for Determination and Notification of Drought Response Level 39.11 Hardship Variance 39.12 Violations and Penalties ADDED SECTION 40 State Drought Response 40.01 Declaration of Necessity and Intent 40.02 Conservation Regulations Related to Executive Order B-29-15 SECTIONS 41 THROUGH 49 (RESERVED) CHAPTER 2 SEWER SERVICE SECTION 50 Rules and Regulations for Sewer Service SECTION 51 District Sewer System 51.01 Control and Operation of System 51.02 Connections and Disconnections to Sewer System 51.03 Inspection of Customer Premises 51.04 Reserved 51.05 Permit Revocated or Suspended SECTION 52 Waste Disposal 52.01 Definitions of "Sewer System," "Sewage" and "Industrial Wastes" 52.02 Federal and State Statutes and Regulations Applicable to District Sewer Service 52.03 Enforcement of District Rules and Regulations vii 52.04 Prohibitions Against Discharge of Objectionable Wastes 52.05 Guidelines to Determine Acceptability of Wastes 52.06 Discharge of Industrial Waste SECTION 53 Conditions for Sewer Service 53.01 Conditions for Acquisition of Sewer Service Capacity 53.02 Service Areas 53.03 Acquisition of Sewer Connections for Service 53.04 Charges for Installation of Sewer Laterals 53.05 Payment of Fees 53.06 Sewer Service Use Changes Resulting in Increased System Utilization 53.07 Wastewater Discharge Permit Issuance and Limitation 53.08 Basis for Determination of Equivalent Dwelling Units (EDUs) 53.09 Transfer, Assignment or Resale of Sewer Connection Rights 53.10 Definitions of Residential and Multi- Residential Sewer Service Rates, Charges and Fees 53.11 Definitions of Commercial and Industrial Sewer Service Rates, Charges and Fees 53.12 Issuance and Payment of Sewer Bills 53.13 Delinquent Accounts SECTION 54 Deposit by Lessees or Non-Owners of Property 54.01 Amount of Deposit 54.02 Refund of Deposit 54.03 Letter of Credit SECTION 55 Issuance and Payment of Sewer Bills 55.01 Issuance, Due Date and Final Payment Date of Statement of Charges for Service SECTION 56 Location of Sewer Lines and Easements 56.01 Location of Sewer Lines 56.02 District Sewer Line Easements 56.03 Encroachment in District Easements 56.04 Concurrent Use of District Easements SECTIONS 57 THROUGH 59 (RESERVED) ARTICLE III SUBDIVISION AND PARCEL MAP DEVELOPMENTS CHAPTER 1 WATER AND SEWER SYSTEMS FOR SUBDIVISIONS AND PARCEL MAPS viii SECTION 60 Utility Facilities for Subdivisions and Parcel Map Developments 60.01 Installation by District 60.02 Installation by Developers 60.03 Issuance of Availability Letters for Water and/or Sewer Service 60.04 Requirement for a Subarea Master Plan (SAMP) 60.05 Requirement for a Tentative Map 60.06 Requirement of Easement or Right-of-Way for Utility Facilities 60.07 Requirement for Annexation 60.08 Requirement for Approved Plans and Construction Agreement 60.09 Requirement for District Inspection 60.10 Requirements for Use of Utilities for Occupancy Prior to District Acceptance 60.11 Requirement for Final Acceptance by the General Manager 60.12 Requirement for One Year Warranty Period SECTION 61 (RESERVED) SECTION 62 Extent of Systems for Subdivisions and Parcel Maps 62.01 Location and Scope of System 62.02 Request for Variance ARTICLE IV PROHIBITED ACTIVITIES; REMEDIES AND ENFORCEMENT CHAPTER 1 GENERAL PROVISIONS SECTION 70 Definitions 70.01 Reference to Article 70.02 Definitions SECTION 71 Violations; Prohibited Activities CHAPTER 2 DISTRICT REMEDIES SECTION 72 Penalties and Damages 72.01 General 72.02 Certain Specific Operational Violations 72.03 Violation of Conservation or Other Water Use Restriction Provisions 72.04 Violations Involving District Real Property 72.05 Administrative Fines SECTION 73 Additional District Remedies ix 73.01 Other Remedies of District 73.02 Notice to District Concerning Violations 73.03 Severability APPENDIX A Charges and Fee Matrix 9-1 CHAPTER 6 MISCELLANEOUS ADMINISTRATION PROCEDURES SECTION 9 ANNEXATIONS AND DETACHMENTS 9.01 REQUIREMENT OF ANNEXATION FOR SERVICE Except as provided elsewhere in this Code, whenever utility service is requested for land outside the bounda- ries of an improvement district, the land to be serviced must first be annexed to an improvement district(s). If the land is located outside the boundaries of the District, the land must also be annexed to the District. 9.02 ANNEXATIONS TO OR DETACHMENTS FROM IMPROVEMENTS DISTRICTS An owner or owners of land within the District desir- ing to annex to or detach land from an improvement district within the District must file a petition for such proceed- ing with the District. Annexation proceedings shall be conducted pursuant to Chapter I (commencing with Section 72670) of Part 11, Division 20 of the California Water Code. Detachment or exclusion proceedings shall be conducted pursuant to Part 8.5 (commencing with Section 72080) of Division 20 of the California Water Code. If the land proposed to be annexed is outside the boundaries of the territory served by the Metropolitan Water District of Southern California and the territory served by the San Diego County Water Authority, and no local sources of water are available to serve such land, the District will require that the land be annexed to those entities as well. 9.03 ANNEXATIONS TO OR DETACHMENTS FROM THE DISTRICT THROUGH LAFCO 1.Application Process Options An owner or owners desiring to annex land to or to detach land from the District may either (i)file a petition directly with the Local Agency Formation Commission (LAFCO) for the annexation or detachment or (ii)request the District file a petition with LAFCO for such annexation or detachment. Any such proceeding for annexation or detachment, which is deemed a change of organization or reorganization pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, shall be initiated, conducted and completed pursuant to Title 6, Division 1 (commencing with Section Exhibit 3 9-2 56000) of the California Government Code. By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including without limitation any conservation or local supply use requirements. 2.Board Approval Process for a request the District file the LAFCO petition a.The Board, or any standing committee of the Board reviewing an annexation request will consider the request at the next regular meeting taking place no earlier than 60 days after the receipt by the District of the request for the annexation and all accompanying required information. b.A request for annexation shall include: (1)A legal description and a detailed map of the area proposed to be annexed, clearly indicating the metes and bounds of the area and the gross and net acreage for the area with sufficient documentation to support the gross and net acreage specified; (2)A certificate from the assessor of the county within which the area proposed to be annexed is situated setting forth the assessed valuation of each parcel included within the area; (3)Identification of the ownership of each parcel included within the area proposed to be annexed; (4)For each parcel included in the area proposed to be annexed, a description of: •The present use of each of the parcels •Existing or proposed development plans •An estimate of the total annual and peak demands for water service, including an estimate of the proportion of those demands to be supplied by Otay Water District 9-3 •Any infrastructure requirements for servicing the proposed annexation area •A plan for implementing all current water use efficiency and restrictions •All appropriate California Environmental Quality Act (CEQA), and if applicable, National Environmental Policy Act (NEPA) documents •Payment of all applicable fees. c.The Water District shall consider its current and planned water supplies, the above-listed information, whether annexing the property would diminish the District’s ability to serve its current obligations. d.The Otay Water District will submit a petition to LAFCO for annexation or detachment following District approval of the request for annexation or detachment and upon payment of all applicable fees by the owners and representatives of the annexing or detaching land. 9.04 FEES AND CHARGES FOR ANNEXATIONS OR DETACHMENTS A petitioner requesting an annexation to or detachment from the District or within the District shall pay the following applicable fees and charges: A.Administrative Processing Fees 1.District Processing Fee. A District processing fee (see Appendix A, Section 9 for fee) shall be paid to the District for each annexation or detachment proceeding, regardless of the number of parcels involved, provided all parcels are included in one proceeding. This fee shall constitute the "base rate" on March 3, 1997. The base rate shall be adjusted annually for fluctuations in the Consumer Price Index (Urban Wage Earners and Clerical Workers - Los Angeles) and subsequent cost-of- living adjustment (COLA). 2.Additional Processing Fees or Charges. The peti- tioner shall pay all processing fees and charges due LAFCO, the State Board of Equalization and any other applicable government agency. 3.Concurrent Annexations to or Detachments from the District and an Existing Improvement District. 9-4 No additional processing costs or fees will be charged to a petitioner for an annexation to or detachment from an existing improvement district when the proceeding is part of an annexation to or detachment from the District. 4.Payment of Fees and Charges. The District processing fees and charges shall be paid to the District at the time the petition for such proceeding is filed. Where a petition is filed with LAFCO, the District shall notify LAFCO that payment of all required fees and charges to the District shall be a condition for District approval of the annexation or detachment. B.Water Annexation Fees. The annexation fee (see Appendix A, Section 9) shall constitute the "base rate" on June 7, 2017). The base rate shall be adjusted on the first day of each calendar quarter for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 11,555.03 on April 1, 2017 shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from April 1, 2017 to the date of payment. 1.No water annexation fee shall be required for existing and future agricultural water service furnished by the District under the COMMERCIAL AGRICULTURAL category of Section 25 of the Code. 2.Non-permanent irrigation water service furnished by the District under Section 30 of the Code shall be available without payment of a water annexation fee. 3.Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a water improvement district. 4.Water Meter Type Exclusions. Annexation fees shall be collected on all water meters sold except for temporary construction water meters, water tank truck meters, nonpermanent irrigation water meters, and outside user meters, all as defined elsewhere in this Code. 5.Effective Date. Annexation fees shall be col- lected on all lands annexing into the Otay Water District boundaries on or after March 5, 1997. 9-5 6.Basis for Determination. For annexations of land into the Otay Water District boundaries, the petitioner shall pay an annexation fee. The fee shall be paid at the time of petition to be annexed. There shall be no water annexation fee charged for parcels already within District boundaries that are applying to be annexed into a water ID. For permanent water meters, except for commercial agricultural meters, the annexation fee shall be determined on the basis of the demand to be placed on the District-wide water system. The fee will be determined on the basis of the size of the water meter required, as set forth in Section 27 of the Code. The fee shall be determined by multiplying the demand factor for the meter size, as set forth in Section 28 of the Code, by the annexation fee per EDU. See Appendix A, Section 9 for fees. C.Sewer Annexation Fees 1.Improvement District Annexation. All annexation for sewer service shall be into Improvement District No. 18 on or after December 16, 1998. 2.Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a sewer improvement district. 3.Effective Date. Annexation fees shall be collected on all lands annexing to a sewer improvement district on or after December 16, 1998. 4.Basis for Determination. For annexations of land to a sewer improvement district within the Dis- trict, the petitioner shall pay an annexation fee. The fee shall be determined on the basis of the demand to be placed on the District sewer system. The fee shall be paid at the time of sewer service connection request or General Manager's approval of plans, whichever occurs earlier. The extent of the demand will be determined on the basis of each equivalent dwelling unit (EDU) of service which is to be connected to the District sewer system. The number of EDUs prescribed in Section 53 of the Code shall be the basis for computation of the amount of the annexation fee. The fee will be determined by multiplying the number of EDUs by 9-6 the annexation fee per EDU. See Appendix A, Section 9 for fees. This annexation fee shall constitute the "base rate" on June 7, 2017. The base rate shall be adjusted on the first of each calendar quarter for fluctuations in construction costs as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 11,555.03 (as of April 1, 2017) shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from April 1, 2017 to the date of payment. D.Detachment Fees For each detachment of land from an improvement district, the petitioner shall pay such fees as the General Manager determines are appropriate for the detachment. Determinations shall be made by the General Manager on a case-by-case basis. 9.05 TAXATION OF PROPERTY AFTER ANNEXATION TO IMPROVEMENT DISTRICT Where property is annexed by a petitioner, other than a tax-exempt agency, the property in the annexed area shall be subject to taxation after the annexation thereof for the purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district authorized and outstanding at the time of the annexation. The Board of Directors shall provide as a condition of the annexation that the annexed area shall be subject to taxation as if the property had always been a part of the improvement district. 9.06 OTHER CONDITIONS OF ANNEXATION 1.By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including without limitation any conservation or local supply use requirements. 2.Proposals which create an unannexed area entirely surrounded by an annexed area shall not be 9-7 approved unless the Board determines that the Water District’s interests will not be adversely affected by the existence of the encompassed area. 3.An annexed area shall be subject to all applicable water use efficiency guidelines. 9.07 ANNEXATION OF TRIBAL LANDS Annexation of Tribal Lands may be approved where an agreement with the Tribal government to assure implementation and annexation conditions and requirements has been signed, in accordance with Water Code section 71611.5(b). The agreement shall include, among other items, payment to the Water Authority in lieu of taxes, assessments, and other charges from which the tribal lands would otherwise be exempt, and a tribal government waiver of sovereign immunity from suit for the purposes of enforcement of the contractual agreement. The waiver of sovereign immunity from suit for the purposes of enforcement of the contractual agreement shall specify that suit shall proceed in either the Superior Court of the State of California, or the proper jurisdiction of the Federal Court, whichever is proper, and be subject to California and/or Federal law. 9-1 CHAPTER 6 MISCELLANEOUS ADMINISTRATION PROCEDURES SECTION 9 ANNEXATIONS AND DETACHMENTS 9.01 REQUIREMENT OF ANNEXATION FOR SERVICE Except as provided elsewhere in this Code, whenever utility service is requested for land outside the bounda- ries of an improvement district, the land to be serviced must first be annexed to an improvement district(s). If the land is located outside the boundaries of the District, the land must also be annexed to the District. 9.02 ANNEXATIONS TO OR DETACHMENTS FROM IMPROVEMENTS DISTRICTS An owner or owners of land within the District desir- ing to annex to or detach land from an improvement district within the District must file a petition for such proceed- ing with the District. Annexation proceedings shall be conducted pursuant to Chapter I (commencing with Section 72670) of Part 11, Division 20 of the California Water Code. Detachment or exclusion proceedings shall be conducted pursuant to Part 8.5 (commencing with Section 72080) of Division 20 of the California Water Code. If the land proposed to be annexed is outside the boundaries of the territory served by the Metropolitan Water District of Southern California and the territory served by the San Diego County Water Authority, and no local sources of water are available to serve such land, the District will require that the land be annexed to those entities as well. 9.03 ANNEXATIONS TO OR DETACHMENTS FROM THE DISTRICT THROUGH LAFCO 1.Application Process Options An owner or owners desiring to annex land to or to detach land from the District may either (i)file a petition directly with the Local Agency Formation Commission (LAFCO) for the annexation or detachment or (ii)request the District file a petition with LAFCO for such annexation or detachment. Any such proceeding for annexation or detachment, which is deemed a change of organization or reorganization pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, shall be initiated, conducted and completed pursuant to Title 6, Division 1 (commencing with Section Exhibit 4 9-2 56000) of the California Government Code. By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including without limitation any conservation or local supply use requirements. 2.Board Approval Process for a request the District file the LAFCO petition a.The Board, or any standing committee of the Board reviewing an annexation request will consider the request at the next regular meeting taking place no earlier than 60 days after the receipt by the District of the request for the annexation and all accompanying required information. b.A request for annexation shall include: (1)A legal description and a detailed map of the area proposed to be annexed, clearly indicating the metes and bounds of the area and the gross and net acreage for the area with sufficient documentation to support the gross and net acreage specified; (2)A certificate from the assessor of the county within which the area proposed to be annexed is situated setting forth the assessed valuation of each parcel included within the area; (3)Identification of the ownership of each parcel included within the area proposed to be annexed; (4)For each parcel included in the area proposed to be annexed, a description of: •The present use of each of the parcels •Existing or proposed development plans •An estimate of the total annual and peak demands for water service, including an estimate of the proportion of those demands to be supplied by Otay Water District 9-3 •Any infrastructure requirements for servicing the proposed annexation area •A plan for implementing all current water use efficiency and restrictions •All appropriate California Environmental Quality Act (CEQA), and if applicable, National Environmental Policy Act (NEPA) documents •Payment of all applicable fees. c.The Water District shall consider its current and planned water supplies, the above-listed information, whether annexing the property would diminish the District’s ability to serve its current obligations. d.The Otay Water District will submit a petition to LAFCO for annexation or detachment following District approval of the request for annexation or detachment and upon payment of all applicable fees by the owners and representatives of the annexing or detaching land. 9.04 FEES AND CHARGES FOR ANNEXATIONS OR DETACHMENTS A petitioner requesting an annexation to or detachment from the District or within the District shall pay the following applicable fees and charges: A.Administrative Processing Fees 1.District Processing Fee. A District processing fee (see Appendix A, Section 9 for fee) shall be paid to the District for each annexation or detachment proceeding, regardless of the number of parcels involved, provided all parcels are included in one proceeding. This fee shall constitute the "base rate" on March 3, 1997. The base rate shall be adjusted annually for fluctuations in the Consumer Price Index (Urban Wage Earners and Clerical Workers - Los Angeles) and subsequent cost-of- living adjustment (COLA). 2.Additional Processing Fees or Charges. The peti- tioner shall pay all processing fees and charges due LAFCO, the State Board of Equalization and any other applicable government agency. 3.Concurrent Annexations to or Detachments from the District and an Existing Improvement District. 9-4 No additional processing costs or fees will be charged to a petitioner for an annexation to or detachment from an existing improvement district when the proceeding is part of an annexation to or detachment from the District. 4.Payment of Fees and Charges. The District processing fees and charges shall be paid to the District at the time the petition for such proceeding is filed. Where a petition is filed with LAFCO, the District shall notify LAFCO that payment of all required fees and charges to the District shall be a condition for District approval of the annexation or detachment. B.Water Annexation Fees. The annexation fee (see Appendix A, Section 9) shall constitute the "base rate" on June 7, 2017). The base rate shall be adjusted on the first day of each calendar quarter for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 11,555.03 on April 1, 2017 shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from April 1, 2017 to the date of payment. 1.No water annexation fee shall be required for existing and future agricultural water service furnished by the District under the COMMERCIAL AGRICULTURAL category of Section 25 of the Code. 2.Non-permanent irrigation water service furnished by the District under Section 30 of the Code shall be available without payment of a water annexation fee. 3.Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a water improvement district. 4.Water Meter Type Exclusions. Annexation fees shall be collected on all water meters sold except for construction water meters, water tank truck meters, nonpermanent irrigation water meters, and outside user meters, all as defined elsewhere in this Code. 5.Effective Date. Annexation fees shall be col- lected on all lands annexing into the Otay Water District boundaries on or after March 5, 1997. 9-5 6.Basis for Determination. For annexations of land into the Otay Water District boundaries, the petitioner shall pay an annexation fee. The fee shall be paid at the time of petition to be annexed. There shall be no water annexation fee charged for parcels already within District boundaries that are applying to be annexed into a water ID. For permanent water meters, except for commercial agricultural meters, the annexation fee shall be determined on the basis of the demand to be placed on the District-wide water system. The fee will be determined on the basis of the size of the water meter required, as set forth in Section 27 of the Code. The fee shall be determined by multiplying the demand factor for the meter size, as set forth in Section 28 of the Code, by the annexation fee per EDU. See Appendix A, Section 9 for fees. C.Sewer Annexation Fees 1.Improvement District Annexation. All annexation for sewer service shall be into Improvement District No. 18 on or after December 16, 1998. 2.Open Space to be Annexed. Open space lands shall not be excluded from annexations of land to a sewer improvement district. 3.Effective Date. Annexation fees shall be collected on all lands annexing to a sewer improvement district on or after December 16, 1998. 4.Basis for Determination. For annexations of land to a sewer improvement district within the Dis- trict, the petitioner shall pay an annexation fee. The fee shall be determined on the basis of the demand to be placed on the District sewer system. The fee shall be paid at the time of sewer service connection request or General Manager's approval of plans, whichever occurs earlier. The extent of the demand will be determined on the basis of each equivalent dwelling unit (EDU) of service which is to be connected to the District sewer system. The number of EDUs prescribed in Section 53 of the Code shall be the basis for computation of the amount of the annexation fee. The fee will be determined by multiplying the number of EDUs by 9-6 the annexation fee per EDU. See Appendix A, Section 9 for fees. This annexation fee shall constitute the "base rate" on June 7, 2017. The base rate shall be adjusted on the first of each calendar quarter for fluctuations in construction costs as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 11,555.03 (as of April 1, 2017) shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from April 1, 2017 to the date of payment. D.Detachment Fees For each detachment of land from an improvement district, the petitioner shall pay such fees as the General Manager determines are appropriate for the detachment. Determinations shall be made by the General Manager on a case-by-case basis. 9.05 TAXATION OF PROPERTY AFTER ANNEXATION TO IMPROVEMENT DISTRICT Where property is annexed by a petitioner, other than a tax-exempt agency, the property in the annexed area shall be subject to taxation after the annexation thereof for the purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district authorized and outstanding at the time of the annexation. The Board of Directors shall provide as a condition of the annexation that the annexed area shall be subject to taxation as if the property had always been a part of the improvement district. 9.06 OTHER CONDITIONS OF ANNEXATION 1.By annexing to the District the owners and representatives of the annexing land agree, on behalf of themselves and all future owners and occupants of the annexed lands, to comply with all laws, statutes, policies, plans, conditions and requirements applicable to the services provided by the District to such lands, including without limitation any conservation or local supply use requirements. 2.Proposals which create an unannexed area entirely surrounded by an annexed area shall not be 9-7 approved unless the Board determines that the Water District’s interests will not be adversely affected by the existence of the encompassed area. 3.An annexed area shall be subject to all applicable water use efficiency guidelines. 9.07 ANNEXATION OF TRIBAL LANDS Annexation of Tribal Lands may be approved where an agreement with the Tribal government to assure implementation and annexation conditions and requirements has been signed, in accordance with Water Code section 71611.5(b). The agreement shall include, among other items, payment to the Water Authority in lieu of taxes, assessments, and other charges from which the tribal lands would otherwise be exempt, and a tribal government waiver of sovereign immunity from suit for the purposes of enforcement of the contractual agreement. The waiver of sovereign immunity from suit for the purposes of enforcement of the contractual agreement shall specify that suit shall proceed in either the Superior Court of the State of California, or the proper jurisdiction of the Federal Court, whichever is proper, and be subject to California and/or Federal law. 25-1 25 SECTION 25 CONDITIONS FOR WATER SERVICE 25.01 SERVICE AREA Water service shall be furnished by the District only to property within (annexed to) a water improvement district within the District’s service area. Water service to property located outside an improvement district may be furnished only upon prior approval of the Board of Directors. Temporary water service to property located outside an improvement district may be furnished, in accordance with Section 25.03 D.125., upon the approval of the General Manager. 25.02 DEFINITION OF "HCF" AND "UNIT OF WATER" As used in the Code the terms "HCF" and "unit of water" are interchangeable, and each shall mean 100 cubic feet or 748 gallons of water. 25.03 DEFINITIONS OF WATER SERVICE CATEAGORIES, WATER RATES, CHARGES AND FEES Water service furnished by the District shall be under the categories of services and at the rates, charges and fees as set forth in Appendix A, Section 25. All District water rates, charges and fees are subject to Board approval of rate increases beginning January 1, 202318 and periodically thereafter through December 31, 20272. The increases shall be the amount sufficient to cover pass-through costs from wholesale water and energy suppliers, and increases in overall non-supplier costs, in addition to increases in pass- through costs, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year.cost increases related to operations and maintenance, but not to exceed 10% per year. Five-year Pperiodic Ppass–through Rrate Iincreases or Ddecreases from District Wwholesalers – All District water rates, charges and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 201823 through December 31, 20227. A.Set-up Fees for Accounts A set-up fee shall be charged for each account transferred to another customer. See Appendix A, 25.03 A. for charges. A deposit will be required of all customers who do not own the property to be served. See Appendix A, 25.04 A. for deposit amounts. B.Monthly Fixed MWD & CWA Charges Each potable water service customer shall pay a monthly MWD and CWA fixed system charge, as set forth in Appendix A, 25.03 B. Proceeds of the charge will be used to pay for operating and Exhibit 5 25-2 maintenance costs, including the following: MWD Readiness- to-Serve Charge and Capacity Reservation Charge; CWA Infrastructure Access Charge, Customer Service Charge, Emergency Storage Charge, and Supply Reliability Charge. The MWD & CWA charge is based on the size of the water meter(s) in service with the exception of upsizing the meter for individually metered residential fire service, as described in Section 38.03 of the Code. The MWD & CWA charge shall start upon installation of the meter. C.Monthly Fixed System Charges Each water service customer shall pay a monthly fixed system charge, as set forth in Appendix A, 25.03 C. Proceeds of the charge will be used to pay for water system replacement, maintenance, and operation expenses. The system charge is based on the customer class and the size of the water meter(s) in service. For individually metered residential fire service, as outlined in Section 38.03 of the Code, the size and fee would be set based on water use requirements without additional fire capacity. The system charge shall start upon installation of the meter. D.Categories of Water Service The definitions and rates and charges for water service furnished by the District shall be as follows: 1.DOMESTIC RESIDENTIAL WATER (a)Defined as: Water service for single residential and individually metered attached households as well as other domestic uses (other than that provided for in Paragraph 2.(a)). (b) Base Rate: The tiered base rates of water furnished under this category shall be set forth in Appendix A, 25.03 D.1.(b). (c) Monthly system charge: The monthly system charge for water service is set forth in Appendix A, 25.03 C.1. 2.MULTI-RESIDENTIAL WATER (a)Defined as: Master metered water service for multiple residential households, for example, duplexes, townhomes, apartments, and mobile homes. (b)Base Rate: The tiered base rates of water furnished for each dwelling unit under each block of service in this category shall be as set forth in Appendix A, 25.03 D.2.(b). 25-3 (c) Monthly system charge: The monthly system charge for water service is set forth in Appendix A, 25.03 C.2. 3.BUSINESS AND PUBLICLY-OWNEDCOMMERCIAL WATER (a)Defined as: Potable water service for commercial and, industrial establishments and publicly-owned establishments. (b)Base Rate: The base rate for water furnished under this category shall be determined as set forth in Appendix A, 25.03 D.3.(b). (c) Monthly system charge: The monthly system charge for water service is set forth in Appendix A, 25.03 C.3. 4.NON-PUBLIC IRRIGATION AND COMMERCIAL AGRICULTUREAL USING POTABLE WATER (a)Non-public Iirrigation is potable water service provided solely for irrigation of landscape or landscaping, as defined in Section 0.02 of this CodeA. (b) Commercial agricultural engaged in the growing or raising of livestock, in conformity with recognized practices of husbandry, for the purpose of commerce, trade or industry, or for the use by public educational or correctional institutions or agricultural horticultural or floricultural products and produced, (i) for human consumption or for the market, or (ii)for the feeding of fowl or livestock produced for human consumption or for the market, or (iii) for feeding fowl or livestock for the purpose of obtaining their products for human consumption or for the market, such products to be grown or raised on a parcel of land having an area of not less than one acre utilized exclusively therefore. (c)Base Rate: The base rate for water furnished under this category shall be determined as set forth in Appendix A, 25.03 D.4.(c). 25-4 (d) Monthly system charge: The monthly system charge for water service is set forth in Appendix A, 25.03 C.4. 5.PUBLICLY-OWNED WATER (a)Defined as: Potable water service for publicly- owned establishments and/or entities exempt from District property taxes. (b)Base Rate: The base rate for water furnished under this category shall be determined as set forth in Appendix A, 25.03 D.5.(b). (c) Monthly system charge: The monthly system charge for water service is set forth in Appendix A, 25.03 C.5. 6.PUBLIC IRRIGATION WATER (a)Defined as: Potable water service provided solely for irrigation of publicly-owned landscape or landscaping as defined in Section 0.02 of this Code and/or entities exempt from District property taxes. (b)Base Rate: The base rate for water furnished under this category shall be determined as set forth in Appendix A, 25.03 D.6.(b). (c) Monthly system charge: The monthly system charge for water service is set forth in Appendix A, 25.03 C.6. 7.CONSTRUCTION WATER (a)Defined as: Potable water service for construction or for temporary purposes pursuant to Section 31 of this Code. (b)The rates for water furnished under this category is set forth in Appendix A, 25.03 D.7.(b). (c) Monthly system charge: The monthly system charge for water service is set forth in Appendix A, 25.03 C.7. 85.RECYCLED WATER – NON-PUBLIC LANDSCAPE IRRIGATION, CONSTRUCTION, AND CERTAIN NON-IRRIGATION PURPOSES (a)Defined as: Non-potable and recycled water service provided for irrigation of landscaping, as defined in Section 0.02 A. of the Code, and certain non- irrigation purposes, other than domestic use, in 25-5 compliance with federal, state, and local laws and regulations regarding use of recycled water. (b)The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c)Base Rate: The base rate for water furnished under this category shall be determined as set forth in Appendix A, 25.03 D.85.(c). (d) Monthly system charge: The monthly system charge for recycled water service is set forth in Appendix A, 25.03 C.85. 96.RECYCLED WATER - COMMERCIAL (a)Defined as: Non-potable and recycled water service provided for commercial customers, as defined in Section 0.02 A. of the Code, and certain non- irrigation purposes, other than domestic use, in compliance with federal, state, and local laws and regulations regarding use of recycled water. (b)The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c)Base Rate: The base rate for water furnished under this category shall be determined as set forth in Appendix A, 25.03 D.96.(c). (d) Monthly system charge: The monthly system charge for recycled commercial water service is set forth in Appendix A, 25.03 C.86. 10.RECYCLED WATER – PUBLIC IRRIGATION (a)Defined as: Non-potable and recycled water service provided for irrigation of publicly-owned landscaping, as defined in Section 0.02 of the Code, and/or entities exempt from District property taxes, and certain non-irrigation purposes, other than domestic use, in compliance with federal, state, and local laws and regulations regarding use of recycled water. (b)The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, 25-6 including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c)Base Rate: The base rate for water furnished under this category shall be determined as set forth in Appendix A, 25.03 D.10.(c). (d) Monthly system charge: The monthly system charge for recycled water service is set forth in Appendix A, 25.03 C.8. 117.POTABLE TEMPORARY AND CONSTRUCTIONINTERIM BUSINESS AND COMMERCIAL WATER SERVICE (a) Defined as: Potable water service provided by the District on a temporary basis , pursuant to Section 31 of this Code.to business and commercial customers in Improvement District 7 (ID 7) pursuant to individual agreements. (b)If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 D.117.(b). (c)If the customer has paid equivalent capacity and annexation fees, the rates and charges for water furnished under this category shall be the rates and charges billed customers in the same category of service on a permanent meter basis.set forth in Appendix A, 25.03 D.3.(b). (d)The applicable monthly system charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C.35. (e)Conversion to Permanent Service. At such time as use expires, the customer shall be required to pay all unpaid fees in effect at the time the permanent use is implemented. 12.POTABLE INTERIM NON-PUBLIC IRRIGATION AND COMMERCIAL AGRICULTURE WATER (a) Defined as: Potable water service provided by the District on a temporary basis to non-public irrigation and commercial agriculture customers in Improvement District 7 (ID 7). (b)If capacity fees have not been paid by the customer, the rates for water furnished under 25-7 this category is set forth in Appendix A, 25.03 D.12.(b). (c)If the customer has paid capacity and annexation fees, the rates and charges for water furnished under this category shall be the rates set forth in Appendix A, 25.03 D.4.(c). (d)The applicable monthly system charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C.4. (e)Conversion to Permanent Service. At such time as use expires, the customer shall be required to pay all unpaid fees in effect at the time the permanent use is implemented. 8.RECYCLED TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Recycled water service provided by the District on a temporary basis, pursuant to Section 31 of this Code. (b)If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 D.8(b). (c)If the customer has paid capacity and annexation fees, the rates and charges for water furnished under this category shall be the rates and charges billed customers in the same category of service on a permanent meter basis. (d)The applicable monthly system charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C.5 103.TANK TRUCKS (a)Defined as: Water service provided for the filling of tanks on motor vehicles transporting water used for other than earth grading purposes, which service shall be made only through a portable meter issued by the District to a customer specifically for use in accordance with the provisions herein for such service. (b)The rate for metered water furnished under this category is reflected in Appendix A, 25.03.D.130. 25-8 (b), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C.4. (c)Requirements for Use of Water Meter (1)To receive such service, the customer must make a deposit for the use a water meter furnished by the District. The fee is set forth in Appendix A, 31.03 A.1. (2)Upon termination of the service, the Dis- trict will refund the amount of deposit remaining after making the following deductions: (i)Cost of repairing or replacing the meter, fire hydrant and/or any fittings damaged or lost while in use; and (ii)Unpaid charges for water or other applicable charges. (3)Prior to the end of each six month period following issuance of a meter under this section, or at the request of the District, whichever is earlier, the customer shall return the meter to the District for inspection, repair, or calibration as deemed necessary by the District. (4)Payment for water service under this cate- gory shall be made as follows: (i)The bill shall be based on the amount of water actually used, which shall be determined by the District’s reading of the meter or by a report made by the customer to the District in the manner prescribed by the District. (ii) Where the actual amount of water used cannot be determined as provided in (i), the District will issue a bill based on a District estimate of the amount of water used, as determined by the District. Such estimates shall be reconciled with actual amounts used when the customer returns the meter to the District as provided in paragraph 3 above. (iii)Payments shall be made as specified on the bill. 141.WATER SERVICE OUTSIDE DISTRICT BOUNDARIES 25-9 (a)Defined as: Water service for real property outside the service area of the District. (b)This service will be provided only upon prior approval of the General Manager when there is a surplus of water over and above the existing needs for service in the District. This service is temporary and may be terminated upon written notice from the District. Customers for this service are sometimes referred to as "outside users." (c)Customers applying for this category of service shall pay an application fee as set forth in Appendix A, 25.03 D.141.(c). (d)The rate for metered water furnished under this category shall be charged the rate as described in Appendix A, 25.03 D.114.(d), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C.54. (e)Customers requesting only fire service or a fire hydrant under this category shall be charged a capacity fee based on one (1) EDU for a permanent meter in the improvement district from which the fire service derives its flow, plus a monthly system charge at the rate set forth in Appendix A, 25.03 D.136.(c). 152.WATER SERVICE OUTSIDE AN IMPROVEMENT DISTRICT (a)Defined as: Water service for property located within the boundaries of the District, but not within a water improvement district. Customers for this service are sometimes referred to as "outside users." (b)Customers applying for this service shall pay an application fee as set forth in Appendix A, 25.03 D.125.(b). The District will review the application to determine whether the land to be served should be annexed to an improvement district. If it is determined that annexation is not practical, the Board of Directors may authorize service as an outside user. This service will be reviewed periodically until it is determined that the property must be annexed to an improvement district or that service must be terminated. (c) The rate for metered water furnished under this category is as set forth in Appendix A, 25.03 25-10 D.125.(c), plus a monthly system charge as set forth in Appendix A, 25.03 C.54. (d)Upon approval of the Board of Directors, a cus- tomer, who has paid all construction costs for facilities necessary to serve the customer's property in lieu of annexation to a water improvement district, shall be exempt from the provision for this category of service. 163.SERVICE FOR FIRE PROTECTION (a)Defined as: Water service provided by the Dis- trict solely to feed fire hydrants or fire sprinkler systems from lines or laterals con- nected to District water mains. (b)The District will not make a charge for the quantity of water used for fire protection purposes. (c)The monthly system charge for this category of service is set forth in Appendix A, 25.03 D.165.(c) for each connection to a District water main made for fire protection service. 917.WATER SERVICE UNDER SPECIAL AGREEMENTS (a)Defined as: Water service provided under express agreements approved by the Board of Directors for service to golf courses and other entities, which service may be curtailed or interrupted by the District under conditions provided in such agreements. (b)For water service under this category the base rate shall be determined on a case-by-case basis. 15.INTERIM WATER SERVICE IN IMPROVEMENT DISTRICT 7 (a) Definition of Interim Service. This is water Service furnished to a customer in Improvement District 7 (ID 7) for temporary use. (b) Rates for Interim Service. Customers applying for interim service in ID 7 shall not be required to pay the ID 7 water capacity fee and San Diego County Water Authority fee, as required under Section 28.01 of this Code. The water rate is set forth in Appendix A, 25.03D.15.(b). (a)The rate for metered water furnished under this category is as set forth in Appendix A, 25.03 25-11 D.12 (c), plus a monthly system charge as set forth in Appendix A, 25.03 C.4. (d)Conversion to Permanent Service. At such time as use expires, the customer shall be required to pay all fees in effect at the time the permanent use is implemented. E.Energy Charges for Pumping Water In addition to water rates and other charges provided for in this Section 25.03, customers shall be charged an energy pumping charge based on the quantity of water used and the elevation to which the water has been lifted to provide service. The energy pumping charge shall be made at the rate set forth in Appendix A, 25.03 E. 1.Potable Water Energy Pumping Charge: The energy pumping charge for potable water shall be made at the rate set forth in Appendix A, 25.03 E.1. 2.Recycled Water Energy Pumping Charge: The energy pumping charge for recycled water shall be made at the rate set forth in Appendix A, 25.03 E.2. 25.04 DEPOSITS BY LESSEES OR NON-OWNERS OF PROPERTY A.AMOUNT OF DEPOSIT The customer's deposit shall be applied to reduce or satisfy any delinquent payment or other amount due the District at the time of termination of water service to the customer. Any portion of the deposit remaining, after satisfaction of the amount due, shall be refunded to the customer that made the deposit. The deposits listed per Appendix A, 25.04 A. may be waived for a new residential applicant where the applicant demonstrates credit worthiness based upon prior utility payments or a non-delinquent water account for one year or other similar evidence of credit. B.REFUND OF DEPOSIT Where funds have been on deposit for twelve months in a domestic service account and there has been no more than one delinquent payment on that account during that period, the District will apply a credit to the water account in the amount of the deposit. C.LETTER OF CREDIT 25-12 A letter of credit, in a form approved by the General Manager or Department Head of Finance, may be submitted to the District to satisfy the deposit requirements. 25.05 SERVICE TO SUBSEQUENT CUSTOMERS After a water meter has been installed for a customer and all fees and charges have been paid, water service may be furnished to a subsequent customer through the water meter installed without payment of further charges, except for the set-up fee for transferred accounts, payment of delinquent charges for the applicant's service or other deposits that may be required by this Code. 25-1 25 SECTION 25 CONDITIONS FOR WATER SERVICE 25.01 SERVICE AREA Water service shall be furnished by the District only to property within (annexed to) a water improvement district within the District’s service area. Water service to property located outside an improvement district may be furnished only upon prior approval of the Board of Directors. Temporary water service to property located outside an improvement district may be furnished, in accordance with Section 25.03 D.15., upon the approval of the General Manager. 25.02 DEFINITION OF "HCF" AND "UNIT OF WATER" As used in the Code the terms "HCF" and "unit of water" are interchangeable, and each shall mean 100 cubic feet or 748 gallons of water. 25.03 DEFINITIONS OF WATER SERVICE CATEGORIES, WATER RATES, CHARGES AND FEES Water service furnished by the District shall be under the categories of services and at the rates, charges and fees as set forth in Appendix A, Section 25. All District water rates, charges and fees are subject to Board approval of rate increases beginning January 1, 2023 and periodically thereafter through December 31, 2027. The increases shall be the amount sufficient to cover pass-through costs from wholesale water and energy suppliers, and increases in overall non-supplier costs, in addition to increases in pass- through costs, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. Five-year periodic pass–through rate increases or decreases from District wholesalers – All District water rates, charges and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2023 through December 31, 2027. A.Set-up Fees for Accounts A set-up fee shall be charged for each account transferred to another customer. See Appendix A, 25.03 A. for charges. A deposit will be required of all customers who do not own the property to be served. See Appendix A, 25.04 A. for deposit amounts. B.Monthly Fixed MWD & CWA Charges Each potable water service customer shall pay a monthly MWD and CWA fixed system charge, as set forth in Appendix A, 25.03 B. Proceeds of the charge will be used to pay for operating and maintenance costs, including the following: MWD Readiness- Exhibit 6 25-2 to-Serve Charge and Capacity Reservation Charge; CWA Infrastructure Access Charge, Customer Service Charge, Emergency Storage Charge, and Supply Reliability Charge. The MWD & CWA charge is based on the size of the water meter(s) in service with the exception of upsizing the meter for individually metered residential fire service, as described in Section 38.03 of the Code. The MWD & CWA charge shall start upon installation of the meter. C.Monthly Fixed System Charges Each water service customer shall pay a monthly fixed system charge, as set forth in Appendix A, 25.03 C. Proceeds of the charge will be used to pay for water system replacement, maintenance, and operation expenses. The system charge is based on the customer class and the size of the water meter(s) in service. For individually metered residential fire service, as outlined in Section 38.03 of the Code, the size and fee would be set based on water use requirements without additional fire capacity. The system charge shall start upon installation of the meter. D.Categories of Water Service The definitions and rates and charges for water service furnished by the District shall be as follows: 1.DOMESTIC RESIDENTIAL WATER (a)Defined as: Water service for single residential and individually metered attached households as well as other domestic uses (other than that provided for in Paragraph 2.(a)). (b) Base Rate: The tiered base rates of water furnished under this category shall be set forth in Appendix A, 25.03 D.1.(b). (c) Monthly system charge: The monthly system charge for water service is set forth in Appendix A, 25.03 C.1. 2.MULTI-RESIDENTIAL WATER (a)Defined as: Master metered water service for multiple residential households, for example, duplexes, townhomes, apartments, and mobile homes. (b)Base Rate: The tiered base rates of water furnished for each dwelling unit in this category shall be as set forth in Appendix A, 25.03 D.2.(b). (c) Monthly system charge: The monthly system charge for water service is set forth in Appendix A, 25.03 C.2. 25-3 3.BUSINESS AND COMMERCIAL WATER (a)Defined as: Potable water service for commercial and industrial establishments. (b)Base Rate: The base rate for water furnished under this category shall be determined as set forth in Appendix A, 25.03 D.3.(b). (c) Monthly system charge: The monthly system charge for water service is set forth in Appendix A, 25.03 C.3. 4.NON-PUBLIC IRRIGATION AND COMMERCIAL AGRICULTURE USING POTABLE WATER (a)Non-public irrigation is potable water service provided solely for irrigation of landscape or landscaping, as defined in Section 0.02 of this Code. (b) Commercial agricultural engaged in the growing or raising of livestock, in conformity with recognized practices of husbandry, for the purpose of commerce, trade or industry, or agricultural horticultural or floricultural products and produced, (i) for human consumption or for the market, or (ii)for the feeding of fowl or livestock produced for human consumption or for the market, or (iii) for feeding fowl or livestock for the purpose of obtaining their products for human consumption or for the market, such products to be grown or raised on a parcel of land having an area of not less than one acre utilized exclusively therefore. (c)Base Rate: The base rate for water furnished under this category shall be determined as set forth in Appendix A, 25.03 D.4.(c). (d) Monthly system charge: The monthly system charge for water service is set forth in Appendix A, 25.03 C.4. 5.PUBLICLY-OWNED WATER (a)Defined as: Potable water service for publicly- owned establishments and/or entities exempt from District property taxes. 25-4 (b)Base Rate: The base rate for water furnished under this category shall be determined as set forth in Appendix A, 25.03 D.5.(b). (c) Monthly system charge: The monthly system charge for water service is set forth in Appendix A, 25.03 C.5. 6.PUBLIC IRRIGATION WATER (a)Defined as: Potable water service provided solely for irrigation of publicly-owned landscape or landscaping as defined in Section 0.02 of this Code and/or entities exempt from District property taxes. (b)Base Rate: The base rate for water furnished under this category shall be determined as set forth in Appendix A, 25.03 D.6.(b). (c) Monthly system charge: The monthly system charge for water service is set forth in Appendix A, 25.03 C.6. 7.CONSTRUCTION WATER (a)Defined as: Potable water service for construction or for temporary purposes pursuant to Section 31 of this Code. (b)The rates for water furnished under this category is set forth in Appendix A, 25.03 D.7.(b). (c)Monthly system charge: The monthly system charge for water service is set forth in Appendix A, 25.03 C.7. 8.RECYCLED WATER – NON-PUBLIC IRRIGATION, CONSTRUCTION, AND CERTAIN NON-IRRIGATION PURPOSES (a)Defined as: Non-potable and recycled water service provided for irrigation of landscaping, as defined in Section 0.02 of the Code, and certain non- irrigation purposes, other than domestic use, in compliance with federal, state, and local laws and regulations regarding use of recycled water. (b)The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. 25-5 (c)Base Rate: The base rate for water furnished under this category shall be determined as set forth in Appendix A, 25.03 D.8.(c). (d) Monthly system charge: The monthly system charge for recycled water service is set forth in Appendix A, 25.03 C.8. 9.RECYCLED WATER - COMMERCIAL (a)Defined as: Non-potable and recycled water service provided for commercial customers, as defined in Section 0.02 of the Code, and certain non-irrigation purposes, other than domestic use, in compliance with federal, state, and local laws and regulations regarding use of recycled water. (b)The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c)Base Rate: The base rate for water furnished under this category shall be determined as set forth in Appendix A, 25.03 D.9.(c). (d) Monthly system charge: The monthly system charge for recycled water service is set forth in Appendix A, 25.03 C.8. 10.RECYCLED WATER – PUBLIC IRRIGATION (a)Defined as: Non-potable and recycled water service provided for irrigation of publicly-owned landscaping, as defined in Section 0.02 of the Code, and/or entities exempt from District property taxes, and certain non-irrigation purposes, other than domestic use, in compliance with federal, state, and local laws and regulations regarding use of recycled water. (b)The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c)Base Rate: The base rate for water furnished under this category shall be determined as set forth in Appendix A, 25.03 D.10.(c). 25-6 (d) Monthly system charge: The monthly system charge for recycled water service is set forth in Appendix A, 25.03 C.8. 11.POTABLE INTERIM BUSINESS AND COMMERCIAL WATER (a) Defined as: Potable water service provided by the District on a temporary basis to business and commercial customers in Improvement District 7 (ID 7) pursuant to individual agreements. (b)If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 D.11.(b). (c)If the customer has paid equivalent capacity and annexation fees, the rates and charges for water furnished under this category shall be the rates set forth in Appendix A, 25.03 D.3.(b). (d)The applicable monthly system charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C.3. (e)Conversion to Permanent Service. At such time as use expires, the customer shall be required to pay all unpaid fees in effect at the time the permanent use is implemented. 12.POTABLE INTERIM NON-PUBLIC IRRIGATION AND COMMERCIAL AGRICULTURE WATER (a) Defined as: Potable water service provided by the District on a temporary basis to non-public irrigation and commercial agriculture customers in Improvement District 7 (ID 7). (b)If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 D.12.(b). (c)If the customer has paid capacity and annexation fees, the rates and charges for water furnished under this category shall be the rates set forth in Appendix A, 25.03 D.4.(c). (d)The applicable monthly system charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C.4. (e)Conversion to Permanent Service. At such time as 25-7 use expires, the customer shall be required to pay all unpaid fees in effect at the time the permanent use is implemented. 13.TANK TRUCKS (a)Defined as: Water service provided for the filling of tanks on motor vehicles transporting water used for other than earth grading purposes, which service shall be made only through a portable meter issued by the District to a customer specifically for use in accordance with the provisions herein for such service. (b)The rate for metered water furnished under this category is reflected in Appendix A, 25.03.D.13. (b), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C.4. (c)Requirements for Use of Water Meter (1)To receive such service, the customer must make a deposit for the use a water meter furnished by the District. The fee is set forth in Appendix A, 31.03 A.1. (2)Upon termination of the service, the Dis- trict will refund the amount of deposit remaining after making the following deductions: (i)Cost of repairing or replacing the meter, fire hydrant and/or any fittings damaged or lost while in use; and (ii)Unpaid charges for water or other applicable charges. (3)Prior to the end of each six month period following issuance of a meter under this section, or at the request of the District, whichever is earlier, the customer shall return the meter to the District for inspection, repair, or calibration as deemed necessary by the District. (4)Payment for water service under this cate- gory shall be made as follows: (i)The bill shall be based on the amount of water actually used, which shall be determined by the District’s reading of the meter or by a report made by the customer to the District in the manner prescribed by the District. 25-8 (ii) Where the actual amount of water used cannot be determined as provided in (i), the District will issue a bill based on a District estimate of the amount of water used, as determined by the District. Such estimates shall be reconciled with actual amounts used when the customer returns the meter to the District as provided in paragraph 3 above. (iii)Payments shall be made as specified on the bill. 14.WATER SERVICE OUTSIDE DISTRICT BOUNDARIES (a)Defined as: Water service for real property outside the service area of the District. (b)This service will be provided only upon prior approval of the General Manager when there is a surplus of water over and above the existing needs for service in the District. This service is temporary and may be terminated upon written notice from the District. Customers for this service are sometimes referred to as "outside users." (c)Customers applying for this category of service shall pay an application fee as set forth in Appendix A, 25.03 D.14.(c). (d)The rate for metered water furnished under this category shall be charged the rate as described in Appendix A, 25.03 D.14.(d), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C.5. (e)Customers requesting only fire service or a fire hydrant under this category shall be charged a capacity fee based on one (1) EDU for a permanent meter in the improvement district from which the fire service derives its flow, plus a monthly system charge at the rate set forth in Appendix A, 25.03 D.16.(c). 15.WATER SERVICE OUTSIDE AN IMPROVEMENT DISTRICT (a)Defined as: Water service for property located within the boundaries of the District, but not within a water improvement district. Customers for this service are sometimes referred to as "outside users." 25-9 (b)Customers applying for this service shall pay an application fee as set forth in Appendix A, 25.03 D.15.(b). The District will review the application to determine whether the land to be served should be annexed to an improvement district. If it is determined that annexation is not practical, the Board of Directors may authorize service as an outside user. This service will be reviewed periodically until it is determined that the property must be annexed to an improvement district or that service must be terminated. (c) The rate for metered water furnished under this category is as set forth in Appendix A, 25.03 D.15.(c), plus a monthly system charge as set forth in Appendix A, 25.03 C.5. (d)Upon approval of the Board of Directors, a cus- tomer, who has paid all construction costs for facilities necessary to serve the customer's property in lieu of annexation to a water improvement district, shall be exempt from the provision for this category of service. 16.SERVICE FOR FIRE PROTECTION (a)Defined as: Water service provided by the Dis- trict solely to feed fire hydrants or fire sprinkler systems from lines or laterals con- nected to District water mains. (b)The District will not make a charge for the quantity of water used for fire protection purposes. (c)The monthly system charge for this category of service is set forth in Appendix A, 25.03 D.16.(c) for each connection to a District water main made for fire protection service. 17.WATER SERVICE UNDER SPECIAL AGREEMENTS (a)Defined as: Water service provided under express agreements approved by the Board of Directors for service to golf courses and other entities, which service may be curtailed or interrupted by the District under conditions provided in such agreements. (b)For water service under this category the base rate shall be determined on a case-by-case basis. E.Energy Charges for Pumping Water 25-10 In addition to water rates and other charges provided for in this Section 25.03, customers shall be charged an energy pumping charge based on the quantity of water used and the elevation to which the water has been lifted to provide service. 1.Potable Water Energy Pumping Charge: The energy pumping charge for potable water shall be made at the rate set forth in Appendix A, 25.03 E.1. 2.Recycled Water Energy Pumping Charge: The energy pumping charge for recycled water shall be made at the rate set forth in Appendix A, 25.03 E.2. 25.04 DEPOSITS BY LESSEES OR NON-OWNERS OF PROPERTY A.AMOUNT OF DEPOSIT The customer's deposit shall be applied to reduce or satisfy any delinquent payment or other amount due the District at the time of termination of water service to the customer. Any portion of the deposit remaining, after satisfaction of the amount due, shall be refunded to the customer that made the deposit. The deposits listed per Appendix A, 25.04 A. may be waived for a new residential applicant where the applicant demonstrates credit worthiness based upon prior utility payments or a non-delinquent water account for one year or other similar evidence of credit. B.REFUND OF DEPOSIT Where funds have been on deposit for twelve months in a domestic service account and there has been no more than one delinquent payment on that account during that period, the District will apply a credit to the water account in the amount of the deposit. C.LETTER OF CREDIT A letter of credit, in a form approved by the General Manager or Department Head of Finance, may be submitted to the District to satisfy the deposit requirements. 25.05 SERVICE TO SUBSEQUENT CUSTOMERS After a water meter has been installed for a customer and all fees and charges have been paid, water service may be furnished to a subsequent customer through the water meter installed without payment of further charges, except for the set-up fee 25-11 for transferred accounts, payment of delinquent charges for the applicant's service or other deposits that may be required by this Code. 31-1 SECTION 31 TEMPORARYCONSTRUCTION WATER SERVICE 31.01 DEFINITION OF TEMPORARYCONSTRUCTION SERVICE TemporaryConstruction water service is water service provided for a limited period of time not to exceed 365 days, and used for temporary purposes such as construction, hydrotesting water systems, vegetation of slopes, and other uses noted in this section. TemporaryConstruction water service shall not be provided to residential dwellings or commercial business enterprises, which are covered under Section 60 of this Code. 31.02 REQUIREMENT OF TEMPORARYCONSTRUCTION METER FOR SERVICE TemporaryConstruction water service may be provided after installation of a temporaryconstruction meter pursuant to a customer's written application for such service. Temporary Wwater service by means of a "jumper" or other unauthorized connection to the District water system is prohibited and subject to penalties as set forth in Section 72. A.Size and Location. 1.The size and location of temporaryconstruction meters will be determined solely by the District. 2.For temporaryconstruction water service from a fire hydrant, a meter of at least 4-inch in size will be required. Only one 2½-inch fire hydrant port per fire hydrant shall be occupied by a temporaryconstruction meter at one time. B.TemporaryConstruction water service from a fire hydrant shall be limited to the following applications: 1.Filling of water trucks and drop tanks. 2.General construction requirements, such as backfill and compaction, guniting and stuccoing, and block wallbuilding. 3.Flushing of storm drains and sewer lines. 4.Filling, hydrotesting, chlorination, and flushing of newly constructed potable and reclaimed water lines. 5.Filling, flushing, hydrotesting, and the initialoperational coverage testing of reclaimed water irrigation systems. Temporary Service provided for this application shall be limited to a maximum of 60 days. 6.Operation of landscape irrigation for the Exhibit 7 31-2 establishment of vegetation on slopes or other planted areas. Temporary Service provided for this application shall be limited to a maximum of 180 days. Items 5 and 6 above shall require the installation by the customer of a District approved and tested reduced pressure backflow device prior to the temporary service being established. The backflow device shall be installed in plain view and within 3 feet of the temporary hydrant construction meter. C.TemporaryConstruction service to construction trailers or other temporary construction buildings may be provided as follows: 1.Through a temporaryconstruction meter connected to the 1 or 2-inch service lateral for the lot the trailer is placed on. 2.Where Item 1 above is not possible, through a temporaryconstruction meter connected to appurtenances other than a fire hydrant, such as a blow off. 3.Where either Item 1 or 2 above is not possible, from a temporaryconstruction 4-inch meter connected to a fire hydrant. Service to construction trailers or other temporary construction buildings shall require the installation by the customer of a District approved and tested reduced pressure backflow device prior to the temporary service being established. The backflow device shall be installed in accordance with District requirements. D.If any unauthorized connection, disconnection, or relocation of a temporaryconstruction meter, or other connection device is made by other than District employees, District may discontinue further water service to the entire project and impose penalties as set forth in Section 72. E.Extensions to the time limits referenced in this section may be made by the General Manager. Requests for time extensions shall be made by the customer in writing. F.Temporary Recycled Construction Water Service may be provided as follows: 1.Through a temporaryan irrigation meter connection to a 2-inch recycled service lateral for the parcel proposed to be irrigated with recycled water. 2.Through a 3-inch or larger meter connected to an 31-3 appropriate recycled appurtenance as approved by Otay Water District. 3.Permitted use of temporaryconstruction recycled water shall be limited to construction site dust control and soil hydration as approved by Otay Water District. 4.Use of temporaryconstruction recycled water shall be in accordance with the requirements of Section 26 “Water Recycling Plan and Implementing Procedures” of the Code of Ordinances. 31.03 FEES AND CHARGES FOR TEMPORARYCONSTRUCTION METERS A.TemporaryConstruction Water Service. TemporaryConstruction water service shall be furnished to the property owner or the owner’s authorized agent only and shall be provided under the following conditions: Requirement of Deposit. At the time application is made for temporaryconstruction service, the customer shall deposit with the District the amount set forth in Appendix A, 31.03 A.1. 31.03 A.1. 1.Delinquency. No temporaryconstruction meters shall be furnished to any person with a delinquent account with the District. 2.Refund of Deposit or Additional Payment. Upon cancellation or termination of the temporaryconstruction service, the District will refund the amount of deposit remaining after making the following deductions: a)cost of installing, moving, and removing the meter; b)cost of repairing or replacing the meter, fire hydrant, and/or any fittings damaged or lost while in use; and c)unpaid charges for water used or other applicable charges. 3.TemporaryConstruction Meter Set-up & Removal. Thecharges to set- up and remove a temporaryconstruction meter are set forth in Appendix A, 31.03 A.4. 4.TemporaryConstruction Meter Move Fee. If a meter needs to be moved from one location to another see Appendix A., 31.03 A.5. 31-4 B.Rates for TemporaryConstruction Water Service. The minimum category of service for TemporaryConstruction Water Service from a hydrant shall be a meter size of 4-inches. Payment for temporaryconstruction water service shall be in accordance with rates and charges set forth in Section 25.03. 31.04 PAYMENT OF CAPACITY AND ANNEXATION FEES FOR TEMPORARYCONSTRUCTION METERS A.Customers, whose property has been annexed into an Improvement District, may elect to pay the capacity and annexation fees in addition to the deposit amount shown in Appendix A, 31.03 .A.1. B.Capacity and annexation fees for this type of temporarywater service shall be calculated in accordance with Sections 9 and 28. C.Payment for this type of temporary water service shall be in accordance with the rates and charges set forth in Section 25.03 D.7. and based on water use type. D.Customers electing this type of temporarywater service shall be credited the number of equivalent dwelling units they have previously purchased when the meter(s) is returned to the District. The credit shall be applicable to permanent meters purchased within the same subdivision or development where the temporaryconstruction meter was used. 31-1 SECTION 31 CONSTRUCTION WATER SERVICE 31.01 DEFINITION OF CONSTRUCTION SERVICE Construction water service is water service provided for a limited period of time not to exceed 365 days, and used for temporary purposes such as construction, hydrotesting water systems, vegetation of slopes, and other uses noted in this section. Construction water service shall not be provided to residential dwellings or commercial business enterprises, which are covered under Section 60 of this Code. 31.02 REQUIREMENT OF CONSTRUCTION METER FOR SERVICE Construction water service may be provided after installation of a construction meter pursuant to a customer's written application for such service. Temporary water service by means of a "jumper" or other unauthorized connection to the District water system is prohibited and subject to penalties as set forth in Section 72. A.Size and Location. 1.The size and location of construction meters willbe determined solely by the District. 2.For construction water service from a fire hydrant, a meter of at least 4-inch in size will be required. Only one 2½-inch fire hydrant port per fire hydrant shall be occupied by a construction meter at one time. B.Construction water service from a fire hydrant shall be limited to the following applications: 1.Filling of water trucks and drop tanks. 2.General construction requirements, such as backfill and compaction, guniting and stuccoing, and block wall building. 3.Flushing of storm drains and sewer lines. 4.Filling, hydrotesting, chlorination, and flushing of newly constructed potable and reclaimed water lines. 5.Filling, flushing, hydrotesting, and the initial operational coverage testing of reclaimed water irrigation systems. Service provided for thisapplication shall be limited to a maximum of 60 days. 6.Operation of landscape irrigation for the establishment of vegetation on slopes or other plantedareas. Service provided for this application shall be Exhibit 8 31-2 limited to a maximum of 180 days. Items 5 and 6 above shall require the installation by the customer of a District approved and tested reduced pressure backflow device prior to the service being established. The backflow device shall be installed in plain view and within 3 feet of the hydrant construction meter. C.Construction service to construction trailers or other temporary construction buildings may be provided as follows: 1.Through a construction meter connected to the 1 or 2- inch service lateral for the lot the trailer is placed on. 2.Where Item 1 above is not possible, through a construction meter connected to appurtenances other than a fire hydrant, such as a blow off. 3.Where either Item 1 or 2 above is not possible, from a construction 4-inch meter connected to a fire hydrant. Service to construction trailers or other temporary construction buildings shall require the installation by the customer of a District approved and tested reduced pressure backflow device prior to the service being established. The backflow device shall be installed in accordance with District requirements. D.If any unauthorized connection, disconnection, or relocation of a construction meter, or other connection device is made by other than District employees, District may discontinue further water service to the entire project and impose penalties as set forth in Section 72. E.Extensions to the time limits referenced in this section may be made by the General Manager. Requests for time extensions shall be made by the customer in writing. F.Recycled Construction Water Service may be provided as follows: 1.Through an irrigation meter connection to a 2-inch recycled service lateral for the parcel proposed to be irrigated with recycled water. 2.Through a 3-inch or larger meter connected to an appropriate recycled appurtenance as approved by Otay Water District. 3.Permitted use of construction recycled water shall be limited to construction site dust control and soil hydration as approved by Otay Water District. 31-3 4.Use of construction recycled water shall be in accordance with the requirements of Section 26 “Water Recycling Plan and Implementing Procedures” of the Code of Ordinances. 31.03 FEES AND CHARGES FOR CONSTRUCTION METERS A. Construction Water Service. Construction water service shall be furnished to the property owner or the owner’s authorized agent only and shall be provided under the following conditions: Requirement of Deposit. At the time application is made for construction service, the customer shall deposit with the District the amount set forth in Appendix A, 31.03 A.1. 1.Delinquency.No construction meters shall be furnished to any person with a delinquent account with the District. 2.Refund of Deposit or Additional Payment. Upon cancellation or termination of the construction service, the District will refund the amount of deposit remaining after making the following deductions: a)cost of installing, moving, and removing the meter; b)cost of repairing or replacing the meter, fire hydrant, and/or any fittings damaged or lost while in use; and c)unpaid charges for water used or other applicable charges. 3.Construction Meter Set-up & Removal.The charges to set- up and remove a construction meter are set forth in Appendix A, 31.03 A.4. 4.Construction Meter Move Fee. If a meter needs to be moved from one location to another see Appendix A., 31.03 A.5. B.Rates for Construction Water Service. The minimum category of service for Construction Water Service from a hydrant shall be a meter size of 4-inches. Payment for construction water service shall be in accordance with rates and charges set forth in Section 25.03. 31.04 PAYMENT OF CAPACITY AND ANNEXATION FEES FOR CONSTRUCTION 31-4 METERS A.Customers, whose property has been annexed into an Improvement District, may elect to pay the capacity and annexation fees in addition to the deposit amount shown in Appendix A, 31.03 A.1. B.Capacity and annexation fees for this type of water service shall be calculated in accordance with Sections 9 and 28. C.Payment for this type of water service shall be in accordance with the rates and charges set forth in Section 25.03 D.7. D.Customers electing this type of water service shall be credited the number of equivalent dwelling units they have previously purchased when the meter(s) is returned to the District. The credit shall be applicable to permanent meters purchased within the same subdivision or development where the construction meter was used. 38-1 SECTION 38 SERVICE FOR FIRE PROTECTION SYSTEMS 38.01 SERVICE FOR COMMERCIAL OR INDUSTRIAL PURPOSES The District will provide water service for fire pro- tection systems for commercial or industrial developments within the District. Such service shall be available only in accordance with the rules and regulations provided in this Code. 38.02 RULES AND REGULATIONS FOR FIRE HYDRANT AND/OR FIRE SPRINKLER SERVICE FOR COMMERCIAL OR INDUSTRIAL PURPOSES, OR MULTI-FAMILY RESIDENCES, ON PRIVATE PROPERTY A.All fire hydrant and/or fire sprinkler service mains installed for commercial or industrial purposes, or multi-family residences, on privately-owned land shall be owned and maintained by the land owner; except for fire hydrants installed for developments where the District has accepted an easement for such service mains. B.Where service is provided for fire hydrant or fire sprinkler service on privately-owned land under Paragraph A above, the service shall be provided by the District at the property line of the land to be served. The property owner or developer shall be responsible to construct and maintain the remainder of the facilities to pro- vide fire protection to the property. Each such facilities installation shall include a reduced pressure principle assembly backflow device installed in accordance with District specifica- tions on the fire main on the customer side of the property line. C.Water furnished for fire hydrant or fire sprin- kler service shall be used only for fire protec- tion purposes. Water service for domestic, business, commercial or irrigation purposes, or multi-family residences, shall be furnished only after a meter or meters have been installed on laterals connected to the District main in the street pursuant to requirements of this Code. Exhibit 9 38-2 D.Upon application for installation of one or more fire service connections to an existing District water main, the customer shall pay such charges as shall be determined on the basis of actual costs incurred by the District in performing the work. At the time of application for the installation, the District will estimate the total costs to be incurred in performing the work. The customer shall deposit the estimated amount with the District prior to commencement of the work. The work shall be performed by the District under a District Water/Sewer Order. If actual costs incurred by the District are less than the amount deposited, the District shall refund the balance of the deposit to the customer. If the costs incurred exceed the amount deposited, the customer shall reimburse the District for the additional costs. Where the fire service connection is to be made to a water main to be constructed in a street by the owner or developer, the costs for such connection shall be covered under the standard developer's agreement with the District for installation of the water facilities for the development project. E.Water for fire protection services shall be pro- vided in accordance with District fees and charges set forth in Section 25.03 D.163.(c) of this Code. F.The District shall have no responsibility for the proper function of the fire service system or for the availability of water from its mains for fire protection in the event of emergency. While the District undertakes at all times to have adequate supplies available in its system for ordinary uses, it is not a guarantor of continual service in quantities adequate for all purposes however, and each customer shall specifically agree that as a condition of the fire service connection contracted for that the District shall incur no liability or be subject to any damages resulting from a failure or malfunctioning of the fire sprinkler lateral or fire sprinkler system or from a lack of water in 38-3 adequate quantity or pressure to make it fully effective. 38.03 SERVICES FOR INDIVIDUALLY METERED RESIDENTIAL FIRE PROTECTION When a single-family residential water meter is required to provide standby capacity for a fire sprinkler system, the capacity charge may be determined according to the size of the meter necessary to meet the water use requirements for the property. Additional capacity fees for upsizing the single-family residential meter to meet fire flow requirements will be waived. Standby capacity to provide water for a fire sprinkler system is required when (1) the fire sprinkler system is required by law, including any requirement imposed as a condition of development, permit, or occupancy, and (2) the fire chief, fire marshal, or building official of the city, county, or special district responsible for fire protection service to the property has a requirement for additional meter size due to fire protection. The determination, under this section, shall be made at the time the meter is first obtained, or at the time a meter is replaced with one of greater size due to the later installation of a fire protection system. When a separate meter is required, water for fire protection services shall be provided in accordance with District fees and charges set forth in Section 25.03 D.163.(c) of this Code. 38.04 FIRE SPRINKLER SERVICE FOR COMBINED MULTI & SINGLE FAMILY SITES A.Master metered residential sites that contain both multi-family and single-family units, as designated by the fire department with jurisdiction, shall design and install the multi-family portion of the project in accordance with Section 38.02 (A through F). Portions of the site designated as single-family shall design and install fire sprinklers as required by the fire agency with jurisdiction. 38-4 The District encourages the use of passive purge design in single-family home construction. 38-1 SECTION 38 SERVICE FOR FIRE PROTECTION SYSTEMS 38.01 SERVICE FOR COMMERCIAL OR INDUSTRIAL PURPOSES The District will provide water service for fire pro- tection systems for commercial or industrial developments within the District. Such service shall be available only in accordance with the rules and regulations provided in this Code. 38.02 RULES AND REGULATIONS FOR FIRE HYDRANT AND/OR FIRE SPRINKLER SERVICE FOR COMMERCIAL OR INDUSTRIAL PURPOSES, OR MULTI-FAMILY RESIDENCES, ON PRIVATE PROPERTY A.All fire hydrant and/or fire sprinkler service mains installed for commercial or industrial purposes, or multi-family residences, on privately-owned land shall be owned and maintained by the land owner; except for fire hydrants installed for developments where the District has accepted an easement for such service mains. B.Where service is provided for fire hydrant or fire sprinkler service on privately-owned land under Paragraph A above, the service shall be provided by the District at the property line of the land to be served. The property owner or developer shall be responsible to construct and maintain the remainder of the facilities to pro- vide fire protection to the property. Each such facilities installation shall include a reduced pressure principle assembly backflow device installed in accordance with District specifica- tions on the fire main on the customer side of the property line. C.Water furnished for fire hydrant or fire sprin- kler service shall be used only for fire protec- tion purposes. Water service for domestic, business, commercial or irrigation purposes, or multi-family residences, shall be furnished only after a meter or meters have been installed on laterals connected to the District main in the street pursuant to requirements of this Code. Exhibit 10 38-2 D.Upon application for installation of one or more fire service connections to an existing District water main, the customer shall pay such charges as shall be determined on the basis of actual costs incurred by the District in performing the work. At the time of application for the installation, the District will estimate the total costs to be incurred in performing the work. The customer shall deposit the estimated amount with the District prior to commencement of the work. The work shall be performed by the District under a District Water/Sewer Order. If actual costs incurred by the District are less than the amount deposited, the District shall refund the balance of the deposit to the customer. If the costs incurred exceed the amount deposited, the customer shall reimburse the District for the additional costs. Where the fire service connection is to be made to a water main to be constructed in a street by the owner or developer, the costs for such connection shall be covered under the standard developer's agreement with the District for installation of the water facilities for the development project. E.Water for fire protection services shall be pro- vided in accordance with District fees and charges set forth in Section 25.03 D.16.(c) of this Code. F.The District shall have no responsibility for the proper function of the fire service system or for the availability of water from its mains for fire protection in the event of emergency. While the District undertakes at all times to have adequate supplies available in its system for ordinary uses, it is not a guarantor of continual service in quantities adequate for all purposes however, and each customer shall specifically agree that as a condition of the fire service connection contracted for that the District shall incur no liability or be subject to any damages resulting from a failure or malfunctioning of the fire sprinkler lateral or fire sprinkler system or from a lack of water in 38-3 adequate quantity or pressure to make it fully effective. 38.03 SERVICES FOR INDIVIDUALLY METERED RESIDENTIAL FIRE PROTECTION When a single-family residential water meter is required to provide standby capacity for a fire sprinkler system, the capacity charge may be determined according to the size of the meter necessary to meet the water use requirements for the property. Additional capacity fees for upsizing the single-family residential meter to meet fire flow requirements will be waived. Standby capacity to provide water for a fire sprinkler system is required when (1) the fire sprinkler system is required by law, including any requirement imposed as a condition of development, permit, or occupancy, and (2) the fire chief, fire marshal, or building official of the city, county, or special district responsible for fire protection service to the property has a requirement for additional meter size due to fire protection. The determination, under this section, shall be made at the time the meter is first obtained, or at the time a meter is replaced with one of greater size due to the later installation of a fire protection system. When a separate meter is required, water for fire protection services shall be provided in accordance with District fees and charges set forth in Section 25.03 D.16.(c) of this Code. 38.04 FIRE SPRINKLER SERVICE FOR COMBINED MULTI & SINGLE FAMILY SITES A.Master metered residential sites that contain both multi-family and single-family units, as designated by the fire department with jurisdiction, shall design and install the multi-family portion of the project in accordance with Section 38.02 (A through F). Portions of the site designated as single-family shall design and install fire sprinklers as required by the fire agency with jurisdiction. 38-4 The District encourages the use of passive purge design in single-family home construction. Section #Code #Fee Description Meter Size 9 9.04 A.1.District Annexation Processing Fee $898.01 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4"$2,295.23 1"$5,738.08 1-1/2"$11,476.15 2"$18,361.84 3"$36,723.68 4"$57,380.75 6"$114,761.50 8"$183,618.40 10"$263,951.45 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,255.58 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Third Notification (hand delivered)$45.00 - Reconnection $50.00 - Reconnection (if test performed with technician present)$150.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers)Annually $10.00 25 25.03 A. Set-up Fees for Accounts $15.00 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1)3/4"$17.00 1"$31.57 1-1/2"$71.36 2"$121.39 3"$258.17 Otay Water District Appendix A Charges (1)All Water used in December and billed in January 2022. Exhibit 11 Section #Code #Fee Description Meter Size Charges 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1) (continued)4"$413.41 6"$846.28 8"$1,366.65 10"$1,967.12 25 25.03 C.1. Domestic Residential Monthly Fixed System Charges (1)3/4"$20.08 1"$28.39 1-1/2"$49.11 2"$73.98 25 25.03 C.2. Multi-Residential Monthly Fixed System Charges (1)3/4"$44.17 1"$62.37 1-1/2"$107.92 2"$162.53 3"$308.22 4"$472.17 6"$927.63 8"$1,474.12 10"$2,111.67 25 25.03 C.3. Business and Publicly-Owned Monthly Fixed System Charges (1)3/4"$41.61 1"$58.75 1-1/2"$101.66 2"$153.11 3"$290.34 4"$444.76 6"$873.81 8"$1,388.56 10"$1,989.08 25 25.03 C.4. Irrigation and Commercial Agricultural Monthly Fixed System Charges (1)3/4"$35.13 1"$49.62 1-1/2"$85.86 2"$129.28 3"$245.19 4"$375.63 6"$737.94 8"$1,172.69 10"$1,679.86 (1)All Water used in December and billed in January 2022. Section #Code #Fee Description Meter Size Charges 25 25.03 C.5. - Irrigation 3/4"$36.93 1"$52.16 1-1/2"$90.25 2"$135.90 3"$257.73 4"$394.84 6"$787.55 8"$1,232.66 10"$1,765.77 25 25.03 C.6. - Commercial 3/4"$43.74 1"$61.76 1-1/2"$106.89 2"$160.98 3"$305.28 4"$467.65 6"$918.73 8"$1,459.97 10"$2,091.41 25 25.03 D.1.(b) Domestic Residential Water Rates (1)Unit Charge 1-10 $3.52 11-22 $6.30 23 or more $8.12 25 25.03 D.2.(b) Multi-Residential Water Rates - Per Dwelling Unit (1)0-4 $3.29 5-9 $5.97 10 or more $7.35 25 25.03 D.3.(b) Business and Publicly-Owned Water Rates (1)All Units $4.17 25 25.03 D.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)All Units $6.09 25 25.03 D.5.(c)Recycled Irrigation Water Rates (1)All Units $5.05 25 25.03 D.6.(c)Recycled Commercial Water Rates (1)All Units $3.58 Recyled Monthly Fixed System Charges (1) (1)All Water used in December and billed in January 2022. Recyled Monthly Fixed System Charges (1) Section #Code #Fee Description Meter Size Charges 25 25.03 D.7.(b) Potable Temporary and Construction Water Service Rates (1)All Units $12.18 25 25.03 D.8.(b) Recycled Temporary and Construction Water Service Rates (1)All Units $10.10 25 25.03 D.10.(b) Tank Trucks Water Rates (1)All Units $12.18 25 25.03 D.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 D.11.(d) Water Rate for Service Outside District Boundaries (1)All Units $12.18 25 25.03 D.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 D.12.(c) Water Rate for Service Outside Improvement District (1)All Units $12.18 25 25.03 D.13.(c) Fire Service Monthly Charge ≤ 3"$24.00 ≥ 4"$32.34 25 25.03 D.14.(b)Government Per Unit $0.43 25 25.03 D.15.(b)Interim Service Water Rate(1)All Units $12.18 25 25.03 E.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.063 25 25.04 A.Deposits for Non-Property Owners 3/4"$100.00 1"$200.00 1-1/2"$250.00 2"$400.00 3"$1,000.00 4"$1,350.00 6"$3,300.00 8"$7,000.00 10"$10,000.00 (1)All Water used in December and billed in January 2022. Section #Code #Fee Description Meter Size Charges 28 28.01 B.1.Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4"$12,095.99 1"$30,239.98 1-1/2"$60,479.95 2"$96,767.92 3"$193,535.84 4"$302,399.75 6"$604,799.50 8"$967,679.20 10"$1,391,038.85 - TRIAD 3/4"$9,071.99 1"$22,679.98 1 -1/2"$45,359.95 2"$72,575.92 3"$145,151.84 4"$226,799.75 6"$453,599.50 8"$725,759.20 10"$1,043,278.85 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation)3/4" x 7.5"$257.70 $122.29 $379.99 $103.82 3/4" x 9"$274.38 $122.29 $396.67 $103.82 1"$332.55 $122.29 $454.84 $103.82 1.5"$540.52 $122.29 $662.81 $235.36 2"$774.50 $122.29 $896.79 $235.36 3"$2,413.66 $736.30 $3,149.96 $4,198.44 4"$4,192.15 $736.30 $4,928.45 $4,198.44 6"$7,240.97 $1,163.05 $8,404.02 $4,198.44 8"$9,047.06 $1,783.42 $10,830.48 $6,022.97 10"$13,011.36 $1,783.42 $14,794.78 $6,022.97 Section #Code #Fee Description Meter Size Charges 28 28.02 Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable/Recycled Irrigation 3/4" x 7.5"$257.70 $122.29 $379.99 $264.59 3/4" x 9"$274.38 $122.29 $396.67 $264.59 1"$332.55 $122.29 $454.84 $264.59 1.5"$540.52 $122.29 $662.81 $264.59 2"$774.50 $122.29 $896.79 $264.59 3"$1,670.50 $736.30 $2,406.80 $4,198.44 4"$3,252.20 $736.30 $3,988.50 $4,198.44 6"$5,855.02 $1,163.05 $7,018.07 $4,198.44 8"$7,799.93 $1,783.42 $9,583.35 $6,022.97 10"$11,068.70 $1,783.42 $12,852.12 $6,022.97 - Combined Fire and Domestic 4"$9,973.48 $736.30 $10,709.78 $4,198.44 6"$13,273.84 $1,163.05 $14,436.89 $4,198.44 8"$19,299.20 $1,783.42 $21,082.62 $6,022.97 10"$26,337.04 $1,783.42 $28,120.46 $6,022.97 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4"$156.85 1"$184.78 1-1/2"$379.62 2"$2,046.00 4"$1,986.00 6"$2,465.00 - Construction Trailer Temporary Meter 2"$2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2"$850.00 31 31.03 A.4.Temporary Meter Install & Removal 3/4" - 4" (on hydrant)$150.00 4" - 6"$806.00 8" - 10"Actual Cost 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 4"(on hydrant)$150.00 4" - 6"$806.00 8" - 10"Actual Cost 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$60.00 1-1/2" & 2 "$120.00 3" & Larger $300.00 34 34.01 D.2. Returned Check Charges $25.00 Installation and Water Meter Charges (continued) Section #Code #Fee Description Meter Size Charges 34 34.02 C Meter Lock Charge $50.00 53 53.03 A.1.Sewer Capacity Fee within an ID $6,550.53 53 53.03 A.2.Sewer Capacity Fee per EDU outside an ID $9,060.96 53 53.03 B.1.Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2.Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $15.00 53 53.10 Residential Sewer Rates (2) Rate multiplied by 3-year winter average units $3.25 53 53.10 Residential Monthly Fixed Sewer System Charges (2)5/8", 3/4" & larger $18.13 53 53.10 A.4. Residential Sewer Without Consumption History 5/8", 3/4" & larger $48.81 53 53.10 B.2.Multi-Residential Sewer Rates (2) Rate multiplied by 3-year winter average units $3.25 53 53.10 B.2. Multi-Residential Monthly Fixed Sewer System Charges (2).75"$18.13 1"$45.30 1.5"$90.58 2"$144.92 3"$271.74 4"$452.90 6"$905.79 8"$1,449.29 10"$2,083.35 (2)Sewer billed beginning January 1, 2023. Section #Code #Fee Description Meter Size Charges 53 53.10 B.3. Monthly Multi-Residential Sewer Rates without Consumption History (2)Per dwelling unit $21.82 53 53.11 Commercial and Industrial Sewer Rates Rate multiplied by Low Strength $3.25 annual avg.Medium Strength $3.69 units High Strength $5.20 53 53.11 Commercial and Industrial Monthly Fixed Sewer System Charges (2).75"$18.13 1"$45.30 1.5"$90.58 2"$144.92 3"$271.74 4"$452.90 6"$905.79 8"$1,449.29 10"$2,083.35 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$200.00 - Broken Curbstop or Tabs 3/4" - 1"Actual Cost - If Customer uses Jumper 3/4" - 1"Actual Cost - Broken Lock/Locking Device 3/4" - 1"$68.00 - Broken Curbstop or Tabs 1.5" - 2"Actual Cost - To Pull and Reset Meter 3"Actual Cost - To Pull and Reset Meter 4"Actual Cost - To Pull and Reset Meter 6"Actual Cost - To Pull and Reset Meter 8"Actual Cost - To Pull and Reset Meter 10"Actual Cost 72 72.05 D. Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 (2)Sewer billed beginning January 1, 2023. Section #Code #Fee Description Meter Size Charges 72 72.05 D. Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5B Copies of Identifiable Public Records $0.20/page 54 Late Payment Charge 5% of Delinquent Balance 54 Lien Processing Fee $50.00 Less than one-acre Outside I.D. and greater than one mile from District facilities. Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 22 The cost for all other copy sizes is the direct cost of duplication. Will not exceed per each day the violation is identified or continues. Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 18 Per acre I.D. 18 8 1/2" x 11" Per $1000 of assessed value for I.D. 27 Section #Code #Fee Description Meter Size Charges 54 Delinquent Tax Roll Fee $40.00 54 Delinquency Tag $25.00 Section #Code #Fee Description Meter Size 9 9.04 A.1.District Annexation Processing Fee $898.01 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4"$2,295.23 1"$5,738.08 1-1/2"$11,476.15 2"$18,361.84 3"$36,723.68 4"$57,380.75 6"$114,761.50 8"$183,618.40 10"$263,951.45 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,255.58 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Third Notification (hand delivered)$45.00 - Reconnection $50.00 - Reconnection (if test performed with technician present)$150.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers)Annually $10.00 25 25.03 A. Set-up Fees for Accounts $15.00 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1)3/4"$16.33 1"$27.22 1-1/2"$54.42 2"$87.06 3"$190.45 4"$342.81 6"$761.79 8"$1,305.91 10"$2,067.69 Otay Water District Appendix A Charges (1)Water billed beginning January 1, 2023, which may include water used December 2022. Exhibit 12 Section #Code #Fee Description Meter Size Charges 25 25.03 C.1. Domestic Residential Monthly Fixed System Charges (1)3/4" $18.07 1" $22.47 1-1/2" $33.73 2" $47.04 25 25.03 C.2. Multi-Residential Monthly Fixed System Charges (1)3/4" $16.67 1" $20.14 1-1/2" $29.06 2" $39.58 3" $83.59 4" $140.85 6" $276.38 8" $426.72 10" $654.34 25 25.03 C.3. Business and Commercial Monthly Fixed System Charges (1)3/4" $18.22 1" $22.72 1-1/2" $34.22 2" $47.82 3" $101.62 4" $173.30 6" $348.50 8" $550.37 10" $850.11 25 25.03 C.4.3/4" $16.13 1" $19.24 1-1/2" $27.26 2" $36.69 3" $77.26 4" $129.48 6" $251.10 8" $383.41 10"$585.74 25 25.03 C.5.3/4" $16.97 1" $20.64 1-1/2" $30.06 2" $41.18 3" $87.08 4" $147.14 6" $290.36 8" $450.72 10"$692.32 Publicly Owned Monthly Fixed System Charges (1) (1) Water billed beginning January 1, 2023, which may include water used December 2022. Non-Public Irrigation and Commercial Agriculture Monthly Fixed System Charges (1) Section #Code #Fee Description Meter Size Charges 25 25.03 C.6.3/4" $16.13 1" $19.24 1-1/2" $27.26 2" $36.69 3" $77.26 4" $129.48 25 25.03 C.7.3/4" $16.58 1" $19.98 1-1/2" $28.75 2" $39.09 3" $82.51 4" $138.91 6" $272.08 8" $419.37 10"$642.67 25 25.03 C.8. 3/4" $36.06 1" $48.83 1-1/2" $81.22 2" $119.74 3" $262.42 4" $458.00 6" $953.41 8" $1,547.17 10" $2,411.52 25 25.03 D.1.(b) Domestic Residential Water Rates (1)Unit Charge 0-9 $5.26 10-12 $5.71 13 or more $6.35 25 25.03 D.2.(b) Multi-Residential Water Rates - Per Dwelling Unit (1)0-9 $5.22 10-12 $5.65 13 or more $5.85 Public Irrigation Monthly Fixed System Charges (1) (1) Water billed beginning January 1, 2023, which may include water used December 2022. Construction Monthly Fixed System Charges (1) Recycled Monthly Fixed System Charges (1) Section #Code #Fee Description Meter Size Charges 25 25.03 D.3.(b) Business and Commercial Water Rates (1)All Units $5.52 25 25.03 D.4.(c) Non-Public Irrigation and Commercial Agriculture Using Potable Water Rates (1)All Units $6.36 25 25.03 D.5.(b) Publicly-Owned Water Rates (1)All Units $6.08 25 25.03 D.6.(b) Public Irrigation Water Rates (1)All Units $6.94 25 25.03 D.7.(b) Construction Water Rates (1)All Units $6.32 25 25.03 D.8.(c)Recycled Non-Public Irrigation Water Rates (1)All Units $5.36 25 25.03 D.9.(c)Recycled Commercial Water Rates (1)All Units $4.92 25 25.03 D.10.(c)Recycled Public Irrigation Water Rates (1)All Units $5.47 25 25.03 D.11.(b) Potable Interim Business and Commercial Water Rates (1)All Units $11.04 25 25.03 D.12.(b) Potable Interim Non-Public Irrigation and Commercial Agriculture Water Rates (1)All Units $12.72 (1) Water billed beginning January 1, 2023, which may include water used December 2022. Section #Code #Fee Description Meter Size Charges 25 25.03 D.13.(b) Tank Trucks Water Rates (1)All Units $6.32 25 25.03 D.14.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 D.14.(d) Water Rate for Service Outside District Boundaries (1)All Units $12.16 25 25.03 D.15.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 D.15.(c) Water Rate for Service Outside Improvement District (1)All Units $12.16 25 25.03 D.16.(c) Fire Service Monthly Charge 3/4"$2.60 1"$2.68 1-1/2"$2.94 2"$3.38 3"$4.99 4"$7.75 6"$17.69 8"$34.83 10"$60.61 25 25.03 E.1.Energy Charges for Pumping Potable Water (1) Per 100 ft of lift over 450 ft per unit $0.068 25 25.03 E.2. Energy Charges for Pumping Recycled Water (1) Per 100 ft of lift over 450 ft per unit $0.077 25 25.04 A.Deposits for Non-Property Owners 3/4"$100.00 1"$200.00 1-1/2"$250.00 2"$400.00 3"$1,000.00 4"$1,350.00 6"$3,300.00 8"$7,000.00 10"$10,000.00 (1) Water billed beginning January 1, 2023, which may include water used December 2022. Section #Code #Fee Description Meter Size Charges 28 28.01 B.1.Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4" $12,095.99 1" $30,239.98 1-1/2" $60,479.95 2" $96,767.92 3" $193,535.84 4" $302,399.75 6" $604,799.50 8" $967,679.20 10" $1,391,038.85 - TRIAD 3/4" $9,071.99 1" $22,679.98 1 -1/2" $45,359.95 2" $72,575.92 3" $145,151.84 4" $226,799.75 6" $453,599.50 8" $725,759.20 10" $1,043,278.85 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation)3/4" x 7.5"$257.70 $122.29 $379.99 $103.82 3/4" x 9"$274.38 $122.29 $396.67 $103.82 1"$332.55 $122.29 $454.84 $103.82 1.5"$540.52 $122.29 $662.81 $235.36 2"$774.50 $122.29 $896.79 $235.36 3"$2,413.66 $736.30 $3,149.96 $4,198.44 4"$4,192.15 $736.30 $4,928.45 $4,198.44 6"$7,240.97 $1,163.05 $8,404.02 $4,198.44 8"$9,047.06 $1,783.42 $10,830.48 $6,022.97 10"$13,011.36 $1,783.42 $14,794.78 $6,022.97 Section #Code #Fee Description Meter Size Charges 28 28.02 Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable/Recycled Irrigation 3/4" x 7.5"$257.70 $122.29 $379.99 $264.59 3/4" x 9"$274.38 $122.29 $396.67 $264.59 1"$332.55 $122.29 $454.84 $264.59 1.5"$540.52 $122.29 $662.81 $264.59 2"$774.50 $122.29 $896.79 $264.59 3"$1,670.50 $736.30 $2,406.80 $4,198.44 4"$3,252.20 $736.30 $3,988.50 $4,198.44 6"$5,855.02 $1,163.05 $7,018.07 $4,198.44 8"$7,799.93 $1,783.42 $9,583.35 $6,022.97 10"$11,068.70 $1,783.42 $12,852.12 $6,022.97 - Combined Fire and Domestic 4"$9,973.48 $736.30 $10,709.78 $4,198.44 6"$13,273.84 $1,163.05 $14,436.89 $4,198.44 8"$19,299.20 $1,783.42 $21,082.62 $6,022.97 10"$26,337.04 $1,783.42 $28,120.46 $6,022.97 31 31.03 A.1.Requirement of Deposit for Temporary Meters 3/4"$156.85 1"$184.78 1-1/2"$379.62 2"$2,046.00 4"$1,986.00 6"$2,465.00 - Construction Trailer Temporary Meter 2"$2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2"$850.00 31 31.03 A.4.Temporary Meter Install & Removal 3/4" - 4" (on hydrant)$150.00 4" - 6"$806.00 8" - 10"Actual Cost 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 4"(on hydrant)$150.00 4" - 6" $806.00 8" - 10"Actual Cost 33 33.07 A.Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$60.00 1-1/2" & 2 "$120.00 3" & Larger $300.00 Installation and Water Meter Charges (continued) Section #Code #Fee Description Meter Size Charges 34 34.01 D.2. Returned Check Charges $25.00 34 34.02 C Meter Lock Charge $50.00 53 53.03 A.1.Sewer Capacity Fee within an ID $6,550.53 53 53.03 A.2.Sewer Capacity Fee per EDU outside an ID $9,060.96 53 53.03 B.1.Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2.Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $15.00 53 53.10 Residential Sewer Rates (2) Rate multiplied by 3-year winter average units $3.25 53 53.10 Residential Monthly Fixed Sewer System Charges (2)5/8", 3/4" & larger $18.13 53 53.10 A.4.Residential Sewer Without Consumption History 5/8", 3/4" & larger $48.81 53 53.10 B.2.Multi-Residential Sewer Rates (2) Rate multiplied by 3-year winter average units $3.25 53 53.10 B.2. Multi-Residential Monthly Fixed Sewer System Charges (2).75"$18.13 1"$45.30 1.5"$90.58 2"$144.92 3"$271.74 4"$452.90 6"$905.79 8" $1,449.29 10"$2,083.35 (2) Sewer billed beginning January 1, 2023. Section #Code #Fee Description Meter Size Charges 53 53.10 B.3. Monthly Multi-Residential Sewer Rates without Consumption History (2) Per dwelling unit $21.82 53 53.11 Commercial and Industrial Sewer Rates Rate multiplied by Low Strength $3.25 annual avg.Medium Strength $3.69 units High Strength $5.20 53 53.11 Commercial and Industrial Monthly Fixed Sewer System Charges (2).75"$18.13 1"$45.30 1.5"$90.58 2"$144.92 3"$271.74 4"$452.90 6"$905.79 8" $1,449.29 10"$2,083.35 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$200.00 - Broken Curbstop or Tabs 3/4" - 1"Actual Cost - If Customer uses Jumper 3/4" - 1"Actual Cost - Broken Lock/Locking Device 3/4" - 1"$68.00 - Broken Curbstop or Tabs 1.5" - 2"Actual Cost - To Pull and Reset Meter 3"Actual Cost - To Pull and Reset Meter 4"Actual Cost - To Pull and Reset Meter 6"Actual Cost - To Pull and Reset Meter 8"Actual Cost - To Pull and Reset Meter 10"Actual Cost 72 72.05 D. Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 (2) Sewer billed beginning January 1, 2023. Section #Code #Fee Description Meter Size Charges 72 72.05 D. Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5B Copies of Identifiable Public Records $0.20/page 54 Late Payment Charge 5% of Delinquent Balance 54 Lien Processing Fee $50.00 54 Delinquent Tax Roll Fee $40.00 54 Delinquency Tag $25.00 The cost for all other copy sizes is the direct cost of duplication. Per acre I.D. 18 8 1/2" x 11" Per $1000 of assessed value for I.D. 27 Will not exceed per each day the violation is identified or continues. Per acre in I.D. 22 Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 18 Less than one-acre Outside I.D. and greater than one mile from District facilities. Fine up to amount specified per each day the violation is identified or continues. Less than one-acre all I.D.s & Outside an I.D. Fine up to amount specified per each day the violation is identified or continues. Div. 1 Attachment B Div. 1 September 16,2022 Board of Directors General Manager Otay Water District 2554 Sweetwater Springs Road Spring Valley, CA 91978 Dear Board members, I am writing regarding the Notice of a Public Hearing on October 5, 2022. I want to register my opposition to the second item on the Notice: it indicates that the Board will be asked to authorize for a period of 5 years the “pass through” costs and increases/decreases for costs and charges of the District’s suppliers. You are asking your customers to write blank checks for rate increases for the next five years. The cost of doing business includes these costs from your suppliers – this is not new, it has always factored into rate increases. Each time you increase rates, no matter what causes the increase, your customers have a right to a public hearing to see proposed rate increases. Do not hide behind terminology like pass through oosts. That is part of what affects rates. As one of your customers, I respectfully request that you vote no or do not consider the automatic rate increases for the next 5 years. To approve such automatic increases flies in the face of the intent of a public agency to conduct its business in public and to allow its rate payers to weigh in on rate increases. Sincerely, Lynn Young Lynnyoung2786@gmail.com Div. 2 Div. 3 Div. 3 Div. 4 Div. 5 Otay Water District Proposition 218 Hearing on Water Rates Attachment C October 5, 2022 Today’s Agenda Review changes in the water rate structure Hear public comments After close of public hearing •Adopt Ordinance No. 586 approving the methodologies used in the cost of service study and adopt rates, fees, and charges set forth using those methodologies to the water billed beginning January 1, 2023, and may apply to usage as early as the beginning of December 2022. •Authorize for a period of 5 years, all future pass‐through increases or decreases to cover changes to water and energy rates, fees, or charges from the District’s water and energy suppliers. •Authorize for a period of 5 years, overall non-pass-through cost increases in addition to the pass-through increases, not to exceed the San Diego CPI- U index for the San Diego-Carlsbad area each year.2 Proposition 218 and Rate Setting Proposition 218 is a constitutional amendment designed to protect taxpayers by limiting the methods by which local governments can create or increase taxes, fees, and charges without taxpayer consent Proposition 218 is not prescriptive in defining a “cost-based” rate In part, Proposition 218 requires that •Fees shall not exceed the reasonable cost of providing the service •Fees shall not exceed the proportional cost of providing the service 3 Timeline April 27, 2022 Staff presented the Water Cost of Service Study results to the Board June 8, 2022 FY 2022-2023 Budget approved and direction to mail 218 notices •Board approved the 2023 budget prepared using the rate structure recommended in the cost of service study October 5, 2022 Proposition 218 hearing January 1, 2023 Rate structure changes effective for water billed beginning January 1, 2023, and may apply to usage as early as the beginning of December 2022 4 Overall proposed revenue demand increase of 4.1% on January 1, 2023 Proposed rates were established using the methodologies as set forth in the cost of service study Average residential customer monthly volume remained at 11 units Adjusted tier breakpoints based on actual current customer usage Established separate rate structures for commercial and public customers 5 Water Rate and Structure Highlights Water Rate Components –Effective January 1, 2023 Usage Fee –Variable fee per unit of water consumption System Fee –District fixed fee based on meter size CWA/MWD Fixed Fee –CWA/MWD fixed fee pass- through based on meter size Energy Fee –Variable fee per 100 feet of lift above 450 feet* 6* There is no energy surcharge for customers below 450 feet of elevation as the District receives water from its wholesale supplier at a pressure capable of delivering water up to 450 feet of elevation. 7 Potable Usage Fees (per HCF) 0 - 10 units 3.52$ 0 - 9 units 5.26$ 11 - 22 units 6.30 10 - 12 units 5.71 23 or more units 8.12 13 or more units 6.35 0 - 4 units 3.29$ 0 - 9 units 5.22$ 5 - 9 units 5.97 10 - 12 units 5.65 10 or more units 7.35 13 or more units 5.85 Current 4.17$ Proposed 5.52$ Current 6.09$ Proposed 6.36$ Current 4.17$ Proposed 6.36$ Current 6.09$ Proposed 6.94$ Current 12.18$ Proposed 6.32$ Residential Multi-Residential Current Proposed Business and Commercial Publicly Owned Non-Public Irrigation and Commercial Agricultural Construction Current Proposed Public Irrigation 8 Potable System Fees Current Proposed Current Proposed Current Proposed Current Proposed 0.75 20.08$ 18.07$ 44.17$ 16.67$ 41.61$ 18.22$ 35.13$ 16.13$ 1.00 28.39 22.47 62.37 20.14 58.75 22.72 49.62 19.24 1.50 49.11 33.73 107.92 29.06 101.66 34.22 85.86 27.26 2.00 73.98 47.04 162.53 39.58 153.11 47.82 129.28 36.69 3.00 308.22 83.59 290.34 101.62 245.19 77.26 4.00 472.17 140.85 444.76 173.30 375.63 129.48 6.00 927.63 276.38 873.81 348.50 737.94 251.10 8.00 1,474.12 426.72 1,388.56 550.37 1,172.69 383.41 10.00 2,111.67 654.34 1,989.08 850.11 1,679.86 585.74 Meter Size Residential Multi-Residential Business and Commercial Non Public Irrigation and Commercial Agriculture 9 Potable System Fees (continued) Current Proposed Current Proposed Current Proposed Current Proposed 0.75 41.61$ 16.97$ 35.13$ 16.13$ 35.13$ 16.58$ 24.00$ 2.60$ 1.00 58.75 20.64 49.62 19.24 49.62 19.98 24.00 2.68 1.50 101.66 30.06 85.86 27.26 85.86 28.75 24.00 2.94 2.00 153.11 41.18 129.28 36.69 129.28 39.09 24.00 3.38 3.00 290.34 87.08 245.19 77.26 245.20 82.51 24.00 4.99 4.00 444.76 147.14 375.63 129.48 375.63 138.91 32.34 7.75 6.00 873.81 290.36 737.90 272.08 32.34 17.69 8.00 1,388.56 450.72 1,172.69 419.37 32.34 34.83 10.00 1,989.08 692.32 1,679.86 642.67 32.34 60.61 Meter Size Publicly Owned Public Irrigation Construction Fire Services 10 Other Fees CWA/MWD Fees Meter Size Current Proposed 0.75 17.00$ 16.33$ 1.00 31.57 27.22 1.50 71.36 54.42 2.00 121.39 87.06 3.00 258.17 190.45 4.00 413.41 342.81 6.00 846.28 761.79 8.00 1,366.65 1,305.91 10.00 1,967.12 2,067.69 Current 0.063$ Proposed 0.068$ Current 0.43$ Proposed -$ Energy Fee Government Fee Average Monthly Bill -Residential 11 12 *At the time of the survey in August 2022, the member agency’s FY 2023 rate was unavailable. The estimated increase is equal to the average FY 2023 rate increase. Survey of Member Agency Water Rates 13 Recycled Usage Fees (per HCF) Current $ 5.05 Proposed $ 5.36 Current $ 3.58 Proposed $ 4.92 Current $ 5.05 Proposed $ 5.47 Recycled Commerical Recycled Non Public Irrigation Recycled Public Irrigation 14 Recycled System Fees Non Public Irrigation Commercial Public Irrigation All Proposed Rate 0.75 35.07$ 41.54$ 36.85$ 36.06$ 1.00 49.53 58.65 52.04 48.83 1.50 85.71 101.51 90.06 81.22 2.00 129.06 152.88 135.63 119.74 3.00 244.76 289.91 257.21 262.42 4.00 374.97 444.11 394.01 458.00 6.00 747.91 872.49 774.07 953.41 8.00 1,170.62 1,459.97 1,230.08 1,547.17 10.00 1,676.89 2,091.41 1,762.08 2,411.52 Current Rate Meter Size Recommendations Adopt Ordinance No. 586 approving the methodologies used in the cost of service study and adopt rates, fees, and charges set forth using those methodologies to the water billed beginning January 1, 2023, and may apply to usage as early as the beginning of December 2022. Authorize for a period of 5 years, all future pass‐through increases or decreases to cover changes to water rates, fees, or charges from the District’s suppliers. Authorize for a period of 5 years, overall average water rate increases in addition to the pass-through increases, not to exceed San Diego CPI-U index each year for all costs other than pass‐through costs.15 NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR RESIDENTIAL WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1)the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Attachment D a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. The table below shows the itemized charges that determine a monthly water bill for a customer who uses 11 Hundred Cubic Feet (HCF) or units of water per month. Your bill will vary based on your meter size, your water consumption in units, and your geographic location. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. MWD/CWA1 System Charges1 Water Rate2,3 Energy Charges4 Total5 Current $17.00 $20.08 $41.50 $2.41 $80.99 Proposed $16.33 $18.07 $58.76 $2.60 $95.76 $14.77Increase in monthly water bill (at 11 units or HCF) Typical Bill Using 11 HCF (or Units) of Water per Month This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"$20.08 $18.07 $18.94 $19.85 $20.80 $21.80 1"$28.39 $22.47 $23.55 $24.68 $25.86 $27.10 1 1/2"$49.11 $33.73 $35.34 $37.04 $38.82 $40.68 2"$73.98 $47.04 $49.30 $51.67 $54.15 $56.75 Otay Fixed System Charges1 - 2023 Proposed and 2024-2027 Projected6 Consumption Blocks (in units)Current Rate Consumption Blocks (in units)2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 0 - 10 $3.52 0 - 9 $5.26 $5.51 $5.77 $6.05 $6.34 11 - 22 $6.30 10 - 12 $5.71 $5.98 $6.27 $6.57 $6.89 23 or more $8.12 13 or more $6.35 $6.65 $6.97 $7.30 $7.65 Consumption Blocks in Units2 and Water Rates2,3 2024-2027 Projected6ProposedCurrent Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 1"$31.57 $27.22 $28.53 $29.90 $31.34 $32.84 1 1/2"$71.36 $54.42 $57.03 $59.77 $62.64 $65.65 2"$121.39 $87.06 $91.24 $95.62 $100.21 $105.02 MWD & CWA Charges1 - 2023 Proposed and 2024-2027 Projected6 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 0.063$ 0.068$ 0.071$ 0.074$ 0.078$ 0.082$ Energy Charges4 (per unit) - 2023 Proposed and 2024-2027 Projected6 Footnotes 1. The Fixed System Charges, based on meter size, ensure that customers pay their propor�onate share of the water system replacement, maintenance, and opera�ng expenses. MWD and CWA charges are based on meter size and match, in total, the cost charged by wholesale water suppliers. The changes in the fixed charges are based on the results of the cost of service study. 2. This cost varies based on water usage and can be calculated using the consumption block tables. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). The changes in the water rates are based on the results of the cost of service study. 3. Currently, District customers outside the service area or outside an Improvement District pay a usage fee equivalent to two times the District’s irrigation usage fee, plus other fees associated with the irrigation class posted online: https://otaywater.gov/customer-service/billing-information/water-and-sewer- rates/. 4. The Energy Charge represents the cost of the energy required to pump or lift each unit of water 100 feet in elevation. This is charged proportionately for every 100 feet of elevation over 450 feet. 5. Charges collected through the property tax roll (availability fees and general obligation debt) are not included in this total. 6. Projections are for informational purposes only. Increases to water rate and fixed charges are based on a projected 4.8 percent inflator. Actual water rate and fixed system charges in each of the projected years may differ. Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT RESIDENTIAL WATER SERVICE PRESORT STD U.S. POSTAGE PAID Dedicated to Community Service OTAYWATER.GOV NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT RESIDENTIAL WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1)the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR MULTI-RESIDENTIAL WATER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on meter size, water consumption in units, and geographic location. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Footnotes 1. Consumption is the water usage divided by the number of dwellings served. This cost varies based on water usage and can be calculated using the consumption block tables. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). The following example depicts the monthly variable water consumption charge based on a multi-residential property with 22 dwellings served and monthly usage of 231 HCF, or 10.5 HCF per dwelling (231 HCF ÷ 22 dwellings = 10.5 HCF per dwelling): Consumption Block Average Consumption (Units of Water per Dwelling) Water Rates ($ per unit of water) Variable Consumption Charge (per dwelling) Total Monthly Variable Water Consumption Charge* 0-9 9 x $5.22 = $46.98 10-12 1.5 x $5.65 = $8.48 13 or more 0 x $5.85 = $0.00 Total 10.5 $55.46 $1,220.12 *Variable consumption charge per dwelling times the number of dwellings served. 2. Projections are for informational purposes only. Increases to water rate and fixed charges are based on a projected 4.8 percent inflator. Actual water rate and fixed system charges in each of the projected years may differ. 3. The Fixed System Charges, based on meter size, ensure that customers pay their proportionate share of the water system replacement, maintenance, and operating expenses. MWD and CWA charges are based on meter size and match, in total, the cost charged by wholesale water suppliers. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in elevation. This is charged proportionately for every 100 feet of elevation over 450 feet. 5. Fire Service requires a separate meter and is a monthly charge based on service size. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges see the Otay Water District’s Code of Ordinances at otaywater.gov. Consumption Blocks (in units) Current Rate Consumption Blocks (in units) 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 0 - 4 $3.29 0 - 9 $5.22 $5.47 $5.73 $6.01 $6.30 5 - 9 $5.97 10 - 12 $5.65 $5.92 $6.20 $6.50 $6.81 10 or more $7.35 13 or more $5.85 $6.13 $6.42 $6.73 $7.05 Consumption Blocks in Units and Water Rates1 2024-2027 Projected2ProposedCurrent Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"$44.17 $16.67 $17.47 $18.31 $19.19 $20.11 3/4"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 1"$62.37 $20.14 $21.11 $22.12 $23.18 $24.29 1"$31.57 $27.22 $28.53 $29.90 $31.34 $32.84 1 1/2"$107.92 $29.06 $30.45 $31.91 $33.44 $35.05 1 1/2"$71.36 $54.42 $57.03 $59.77 $62.64 $65.65 2"$162.53 $39.58 $41.48 $43.47 $45.56 $47.75 2"$121.39 $87.06 $91.24 $95.62 $100.21 $105.02 3"$308.22 $83.59 $87.60 $91.80 $96.21 $100.83 3"$258.17 $190.45 $199.59 $209.17 $219.21 $229.73 4"$472.17 $140.85 $147.61 $154.70 $162.13 $169.91 4"$413.41 $342.81 $359.26 $376.50 $394.57 $413.51 6"$927.63 $276.38 $289.65 $303.55 $318.12 $333.39 6"$846.28 $761.79 $798.36 $836.68 $876.84 $918.93 8"$1,474.12 $426.72 $447.20 $468.67 $491.17 $514.75 8"$1,366.65 $1,305.91 $1,368.59 $1,434.28 $1,503.13 $1,575.28 10"$2,111.67 $654.34 $685.75 $718.67 $753.17 $789.32 10"$1,967.12 $2,067.69 $2,166.94 $2,270.95 $2,379.96 $2,494.20 Otay Fixed System Charges3 - 2023 Proposed and 2024-2027 Projected2 MWD & CWA Charges3 - 2023 Proposed and 2024-2027 Projected2 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 0.063$ 0.068$ 0.071$ 0.074$ 0.078$ 0.082$ Energy Charges4 - 2023 Proposed and 2024-2027 Projected2 Service Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"24.00$ 2.60$ 2.72$ 2.85$ 2.99$ 3.13$ 1"24.00$ 2.68$ 2.81$ 2.94$ 3.08$ 3.23$ 1 1/2"24.00$ 2.94$ 3.08$ 3.23$ 3.39$ 3.55$ 2"24.00$ 3.38$ 3.54$ 3.71$ 3.89$ 4.08$ 3"24.00$ 4.99$ 5.23$ 5.48$ 5.74$ 6.02$ 4"32.34$ 7.75$ 8.12$ 8.51$ 8.92$ 9.35$ 6"32.34$ 17.69$ 18.54$ 19.43$ 20.36$ 21.34$ 8"32.34$ 34.83$ 36.50$ 38.25$ 40.09$ 42.01$ 10"32.34$ 60.61$ 63.52$ 66.57$ 69.77$ 73.12$ Fire Service System Charges5 Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT MULTI-RESIDENTIAL WATER SERVICE PRESORT STD U.S. POSTAGE PAID Dedicated to Community Service OTAYWATER.GOV NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT MULTI-RESIDENTIAL WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR BUSINESS AND COMMERCIAL WATER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on meter size, water consumption in units, and geographic location. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Units1 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected All Units $4.17 $5.52 $5.78 $6.06 $6.35 $6.65 Business and Commercial Water Rates1 - 2023 Proposed and 2024-2027 Projected2 Service Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"24.00$ 2.60$ 2.72$ 2.85$ 2.99$ 3.13$ 1"24.00$ 2.68$ 2.81$ 2.94$ 3.08$ 3.23$ 1 1/2"24.00$ 2.94$ 3.08$ 3.23$ 3.39$ 3.55$ 2"24.00$ 3.38$ 3.54$ 3.71$ 3.89$ 4.08$ 3"24.00$ 4.99$ 5.23$ 5.48$ 5.74$ 6.02$ 4"32.34$ 7.75$ 8.12$ 8.51$ 8.92$ 9.35$ 6"32.34$ 17.69$ 18.54$ 19.43$ 20.36$ 21.34$ 8"32.34$ 34.83$ 36.50$ 38.25$ 40.09$ 42.01$ 10"32.34$ 60.61$ 63.52$ 66.57$ 69.77$ 73.12$ Fire Service System Charges5 Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"$41.61 $18.22 $19.09 $20.01 $20.97 $21.98 3/4"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 1"$58.75 $22.72 $23.81 $24.95 $26.15 $27.41 1"$31.57 $27.22 $28.53 $29.90 $31.34 $32.84 1 1/2"$101.66 $34.22 $35.86 $37.58 $39.38 $41.27 1 1/2"$71.36 $54.42 $57.03 $59.77 $62.64 $65.65 2"$153.11 $47.82 $50.12 $52.53 $55.05 $57.69 2"$121.39 $87.06 $91.24 $95.62 $100.21 $105.02 3"$290.34 $101.62 $106.50 $111.61 $116.97 $122.58 3"$258.17 $190.45 $199.59 $209.17 $219.21 $229.73 4"$444.76 $173.30 $181.62 $190.34 $199.48 $209.06 4"$413.41 $342.81 $359.26 $376.50 $394.57 $413.51 6"$873.81 $348.50 $365.23 $382.76 $401.13 $420.38 6"$846.28 $761.79 $798.36 $836.68 $876.84 $918.93 8"$1,388.56 $550.37 $576.79 $604.48 $633.50 $663.91 8"$1,366.65 $1,305.91 $1,368.59 $1,434.28 $1,503.13 $1,575.28 10"$1,989.08 $850.11 $890.92 $933.68 $978.50 $1,025.47 10"$1,967.12 $2,067.69 $2,166.94 $2,270.95 $2,379.96 $2,494.20 Otay Fixed System Charges3 - 2023 Proposed and 2024-2027 Projected2 MWD & CWA Charges3 - 2023 Proposed and 2024-2027 Projected2 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 0.063$ 0.068$ 0.071$ 0.074$ 0.078$ 0.082$ Energy Charges4 - 2023 Proposed and 2024-2027 Projected2 Footnotes 1. This per unit charge is based on the units of consumption. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). Currently, District customers outside the service area or outside an Improvement District pay a usage fee equivalent to two �mes the District’s irriga�on usage fee, plus other fees associated with the irriga�on class posted online: htps://otaywater.gov/customer-service/billing-informa�on/water-and-sewer-rates/. The changes in the water rates are based on the results of the cost of service study. 2. Projections are for informational purposes only. Increases to water rate and fixed charges are based on a projected 4.8 percent inflator. Actual water rate and fixed system charges in each of the projected years may differ. 3. The Fixed System Charges, based on meter size, ensure that customers pay their propor�onate share of the water system replacement, maintenance, and opera�ng expenses. MWD and CWA charges are based on meter size and match, in total, the cost charged by wholesale water suppliers. The changes in the fixed charges are based on the results of the cost of service study. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in eleva�on. This is charged propor�onately for every 100 feet eleva�on over 450 feet. 5. Fire Service requires a separate meter and is a monthly fee based on service size. Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT BUSINESS AND COMMERCIAL WATER SERVICE PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Dedicated to Community Service OTAYWATER.GOV NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT BUSINESS AND COMMERCIAL WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR BUSINESS AND COMMERCIAL WATER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on meter size, water consumption in units, and geographic location. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Units1 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected All Units $4.17 $5.52 $5.78 $6.06 $6.35 $6.65 Business and Commercial Water Rates1 - 2023 Proposed and 2024-2027 Projected2 Service Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"24.00$ 2.60$ 2.72$ 2.85$ 2.99$ 3.13$ 1"24.00$ 2.68$ 2.81$ 2.94$ 3.08$ 3.23$ 1 1/2"24.00$ 2.94$ 3.08$ 3.23$ 3.39$ 3.55$ 2"24.00$ 3.38$ 3.54$ 3.71$ 3.89$ 4.08$ 3"24.00$ 4.99$ 5.23$ 5.48$ 5.74$ 6.02$ 4"32.34$ 7.75$ 8.12$ 8.51$ 8.92$ 9.35$ 6"32.34$ 17.69$ 18.54$ 19.43$ 20.36$ 21.34$ 8"32.34$ 34.83$ 36.50$ 38.25$ 40.09$ 42.01$ 10"32.34$ 60.61$ 63.52$ 66.57$ 69.77$ 73.12$ Fire Service System Charges5 Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"$41.61 $18.22 $19.09 $20.01 $20.97 $21.98 3/4"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 1"$58.75 $22.72 $23.81 $24.95 $26.15 $27.41 1"$31.57 $27.22 $28.53 $29.90 $31.34 $32.84 1 1/2"$101.66 $34.22 $35.86 $37.58 $39.38 $41.27 1 1/2"$71.36 $54.42 $57.03 $59.77 $62.64 $65.65 2"$153.11 $47.82 $50.12 $52.53 $55.05 $57.69 2"$121.39 $87.06 $91.24 $95.62 $100.21 $105.02 3"$290.34 $101.62 $106.50 $111.61 $116.97 $122.58 3"$258.17 $190.45 $199.59 $209.17 $219.21 $229.73 4"$444.76 $173.30 $181.62 $190.34 $199.48 $209.06 4"$413.41 $342.81 $359.26 $376.50 $394.57 $413.51 6"$873.81 $348.50 $365.23 $382.76 $401.13 $420.38 6"$846.28 $761.79 $798.36 $836.68 $876.84 $918.93 8"$1,388.56 $550.37 $576.79 $604.48 $633.50 $663.91 8"$1,366.65 $1,305.91 $1,368.59 $1,434.28 $1,503.13 $1,575.28 10"$1,989.08 $850.11 $890.92 $933.68 $978.50 $1,025.47 10"$1,967.12 $2,067.69 $2,166.94 $2,270.95 $2,379.96 $2,494.20 Otay Fixed System Charges3 - 2023 Proposed and 2024-2027 Projected2 MWD & CWA Charges3 - 2023 Proposed and 2024-2027 Projected2 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 0.063$ 0.068$ 0.071$ 0.074$ 0.078$ 0.082$ Energy Charges4 - 2023 Proposed and 2024-2027 Projected2 Footnotes 1. This per unit charge is based on the units of consumption. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). Currently, District customers outside the service area or Interim Users as defined in Sec�on 25 of the District’s Code of Ordinances pay a usage fee equivalent to two �mes the District’s irriga�on usage fee, plus other fees associated with the irriga�on class posted online: htps://otaywater.gov/customer-service/billing-informa�on/water-and-sewer-rates/. Customers outside the service area or Interim Users as defined in Sec�on 25 of the District’s Code of Ordinances will pay a usage fee equivalent to two �mes the listed usage fee, plus other fees associated with the Business and Commercial class. The changes in the water rates are based on the results of the cost of service study. 2. Projections are for informational purposes only. Increases to water rate and fixed charges are based on a projected 4.8 percent inflator. Actual water rate and fixed system charges in each of the projected years may differ. 3. The Fixed System Charges, based on meter size, ensure that customers pay their propor�onate share of the water system replacement, maintenance, and opera�ng expenses. MWD and CWA charges are based on meter size and match, in total, the cost charged by wholesale water suppliers. The changes in the fixed charges are based on the results of the cost of service study. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in eleva�on. This is charged propor�onately for every 100 feet eleva�on over 450 feet. 5. Fire Service requires a separate meter and is a monthly fee based on service size. NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR CONSTRUCTION WATER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on meter size, water consumption in units, and geographic location. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Units1 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected All Units $12.18 $6.32 $6.62 $6.94 $7.27 $7.62 Construction Water Rates1 - 2023 Proposed and 2024-2027 Projected2 Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"$35.13 $16.58 $17.38 $18.21 $19.08 $20.00 3/4"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 1"$49.62 $19.98 $20.94 $21.95 $23.00 $24.10 1"$31.57 $27.22 $28.53 $29.90 $31.34 $32.84 1 1/2"$85.86 $28.75 $30.13 $31.58 $33.10 $34.69 1 1/2"$71.36 $54.42 $57.03 $59.77 $62.64 $65.65 2"$129.28 $39.09 $40.97 $42.94 $45.00 $47.16 2"$121.39 $87.06 $91.24 $95.62 $100.21 $105.02 3"$245.19 $82.51 $86.47 $90.62 $94.97 $99.53 3"$258.17 $190.45 $199.59 $209.17 $219.21 $229.73 4"$375.63 $138.91 $145.58 $152.57 $159.89 $167.56 4"$413.41 $342.81 $359.26 $376.50 $394.57 $413.51 6"$737.94 $272.08 $285.14 $298.83 $313.17 $328.20 6"$846.28 $761.79 $798.36 $836.68 $876.84 $918.93 8"$1,172.69 $419.37 $439.50 $460.60 $482.71 $505.88 8"$1,366.65 $1,305.91 $1,368.59 $1,434.28 $1,503.13 $1,575.28 10"$1,679.86 $642.67 $673.52 $705.85 $739.73 $775.24 10"$1,967.12 $2,067.69 $2,166.94 $2,270.95 $2,379.96 $2,494.20 Otay Fixed System Charges3 - 2023 Proposed and 2024-2027 Projected2 MWD & CWA Charges3 - 2023 Proposed and 2024-2027 Projected2 Footnotes 1. This per unit charge is based on the units of consumption. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). Currently, District customers outside the service area or outside an Improvement District pay a usage fee equivalent to two �mes the District’s irriga�on usage fee, plus other fees associated with the irriga�on class posted online: htps://otaywater.gov/customer-service/billing-informa�on/water-and-sewer-rates/. The changes in the water rates are based on the results of the cost of service study. 2. Projections are for informational purposes only. Increases to water rate and fixed charges are based on a projected 4.8 percent inflator. Actual water rate and fixed system charges in each of the projected years may differ. 3. The Fixed System Charges, based on meter size, ensure that customers pay their propor�onate share of the water system replacement, maintenance, and opera�ng expenses. MWD and CWA charges are based on meter size and match, in total, the cost charged by wholesale water suppliers. The changes in the fixed charges are based on the results of the cost of service study. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in eleva�on. This is charged propor�onately for every 100 feet eleva�on over 450 feet. 5. Fire Service requires a separate meter and is a monthly fee based on service size. Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 0.063$ 0.068$ 0.071$ 0.074$ 0.078$ 0.082$ Energy Charges4 - 2023 Proposed and 2024-2027 Projected2 Service Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"24.00$ 2.60$ 2.72$ 2.85$ 2.99$ 3.13$ 1"24.00$ 2.68$ 2.81$ 2.94$ 3.08$ 3.23$ 1 1/2"24.00$ 2.94$ 3.08$ 3.23$ 3.39$ 3.55$ 2"24.00$ 3.38$ 3.54$ 3.71$ 3.89$ 4.08$ 3"24.00$ 4.99$ 5.23$ 5.48$ 5.74$ 6.02$ 4"32.34$ 7.75$ 8.12$ 8.51$ 8.92$ 9.35$ 6"32.34$ 17.69$ 18.54$ 19.43$ 20.36$ 21.34$ 8"32.34$ 34.83$ 36.50$ 38.25$ 40.09$ 42.01$ 10"32.34$ 60.61$ 63.52$ 66.57$ 69.77$ 73.12$ Fire Service System Charges5 Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT CONSTRUCTION WATER SERVICE PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Dedicated to Community Service OTAYWATER.GOV NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT CONSTRUCTION WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR NON-PUBLIC IRRIGATION AND COMMERCIAL AGRICULTURE WATER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on meter size, water consumption in units, and geographic location. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Units1 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected All Units $6.09 $6.36 $6.67 $6.99 $7.33 $7.68 Non-Public Irrigation and Commercial Agriculture Water Rates1 - 2023 Proposed and 2024-2027 Projected2 Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"$35.13 $16.13 $16.90 $17.71 $18.56 $19.45 3/4"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 1"$49.62 $19.24 $20.16 $21.13 $22.14 $23.20 1"$31.57 $27.22 $28.53 $29.90 $31.34 $32.84 1 1/2"$85.86 $27.26 $28.57 $29.94 $31.38 $32.89 1 1/2"$71.36 $54.42 $57.03 $59.77 $62.64 $65.65 2"$129.28 $36.69 $38.45 $40.30 $42.23 $44.26 2"$121.39 $87.06 $91.24 $95.62 $100.21 $105.02 3"$245.19 $77.26 $80.97 $84.86 $88.93 $93.20 3"$258.17 $190.45 $199.59 $209.17 $219.21 $229.73 4"$375.63 $129.48 $135.70 $142.21 $149.04 $156.19 4"$413.41 $342.81 $359.26 $376.50 $394.57 $413.51 6"$737.94 $251.10 $263.15 $275.78 $289.02 $302.89 6"$846.28 $761.79 $798.36 $836.68 $876.84 $918.93 8"$1,172.69 $383.41 $401.81 $421.10 $441.31 $462.49 8"$1,366.65 $1,305.91 $1,368.59 $1,434.28 $1,503.13 $1,575.28 10"$1,679.86 $585.74 $613.86 $643.33 $674.21 $706.57 10"$1,967.12 $2,067.69 $2,166.94 $2,270.95 $2,379.96 $2,494.20 Otay Fixed System Charges3 - 2023 Proposed and 2024-2027 Projected2 MWD & CWA Charges3 - 2023 Proposed and 2024-2027 Projected2 Service Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"24.00$ 2.60$ 2.72$ 2.85$ 2.99$ 3.13$ 1"24.00$ 2.68$ 2.81$ 2.94$ 3.08$ 3.23$ 1 1/2"24.00$ 2.94$ 3.08$ 3.23$ 3.39$ 3.55$ 2"24.00$ 3.38$ 3.54$ 3.71$ 3.89$ 4.08$ 3"24.00$ 4.99$ 5.23$ 5.48$ 5.74$ 6.02$ 4"32.34$ 7.75$ 8.12$ 8.51$ 8.92$ 9.35$ 6"32.34$ 17.69$ 18.54$ 19.43$ 20.36$ 21.34$ 8"32.34$ 34.83$ 36.50$ 38.25$ 40.09$ 42.01$ 10"32.34$ 60.61$ 63.52$ 66.57$ 69.77$ 73.12$ Fire Service System Charges5 Footnotes 1. This per unit charge is based on the units of consumption. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). Currently, District customers outside the service area or outside an Improvement District pay a usage fee equivalent to two �mes the District’s irriga�on usage fee, plus other fees associated with the irriga�on class posted online: htps://otaywater.gov/customer-service/billing-informa�on/water-and-sewer-rates/. The changes in the water rates are based on the results of the cost of service study. 2. Projections are for informational purposes only. Increases to water rate and fixed charges are based on a projected 4.8 percent inflator. Actual water rate and fixed system charges in each of the projected years may differ. 3. The Fixed System Charges, based on meter size, ensure that customers pay their propor�onate share of the water system replacement, maintenance, and opera�ng expenses. MWD and CWA charges are based on meter size and match, in total, the cost charged by wholesale water suppliers. The changes in the fixed charges are based on the results of the cost of service study. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in eleva�on. This is charged propor�onately for every 100 feet eleva�on over 450 feet. 5. Fire Service requires a separate meter and is a monthly fee based on service size. Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 0.063$ 0.068$ 0.071$ 0.074$ 0.078$ 0.082$ Energy Charges4 (per unit) - 2023 Proposed and 2024-2027 Projected2 Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT NON-PUBLIC IRRIGATION AND COMMERCIAL AGRICULTURE WATER SERVICE PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Dedicated to Community Service OTAYWATER.GOV NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT NON-PUBLIC IRRIGATION AND COMMERCIAL AGRICULTURE WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR NON-PUBLIC IRRIGATION AND COMMERCIAL AGRICULTURE WATER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on meter size, water consumption in units, and geographic location. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Units1 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected All Units $6.09 $6.36 $6.67 $6.99 $7.33 $7.68 Non-Public Irrigation and Commercial Agriculture Water Rates1 - 2023 Proposed and 2024-2027 Projected2 Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"$35.13 $16.13 $16.90 $17.71 $18.56 $19.45 3/4"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 1"$49.62 $19.24 $20.16 $21.13 $22.14 $23.20 1"$31.57 $27.22 $28.53 $29.90 $31.34 $32.84 1 1/2"$85.86 $27.26 $28.57 $29.94 $31.38 $32.89 1 1/2"$71.36 $54.42 $57.03 $59.77 $62.64 $65.65 2"$129.28 $36.69 $38.45 $40.30 $42.23 $44.26 2"$121.39 $87.06 $91.24 $95.62 $100.21 $105.02 3"$245.19 $77.26 $80.97 $84.86 $88.93 $93.20 3"$258.17 $190.45 $199.59 $209.17 $219.21 $229.73 4"$375.63 $129.48 $135.70 $142.21 $149.04 $156.19 4"$413.41 $342.81 $359.26 $376.50 $394.57 $413.51 6"$737.94 $251.10 $263.15 $275.78 $289.02 $302.89 6"$846.28 $761.79 $798.36 $836.68 $876.84 $918.93 8"$1,172.69 $383.41 $401.81 $421.10 $441.31 $462.49 8"$1,366.65 $1,305.91 $1,368.59 $1,434.28 $1,503.13 $1,575.28 10"$1,679.86 $585.74 $613.86 $643.33 $674.21 $706.57 10"$1,967.12 $2,067.69 $2,166.94 $2,270.95 $2,379.96 $2,494.20 Otay Fixed System Charges3 - 2023 Proposed and 2024-2027 Projected2 MWD & CWA Charges3 - 2023 Proposed and 2024-2027 Projected2 Service Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"24.00$ 2.60$ 2.72$ 2.85$ 2.99$ 3.13$ 1"24.00$ 2.68$ 2.81$ 2.94$ 3.08$ 3.23$ 1 1/2"24.00$ 2.94$ 3.08$ 3.23$ 3.39$ 3.55$ 2"24.00$ 3.38$ 3.54$ 3.71$ 3.89$ 4.08$ 3"24.00$ 4.99$ 5.23$ 5.48$ 5.74$ 6.02$ 4"32.34$ 7.75$ 8.12$ 8.51$ 8.92$ 9.35$ 6"32.34$ 17.69$ 18.54$ 19.43$ 20.36$ 21.34$ 8"32.34$ 34.83$ 36.50$ 38.25$ 40.09$ 42.01$ 10"32.34$ 60.61$ 63.52$ 66.57$ 69.77$ 73.12$ Fire Service System Charges5 Footnotes 1. This per unit charge is based on the units of consumption. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). Currently, District customers outside the service area or Interim Users as defined in Sec�on 25 of the District’s Code of Ordinances pay a usage fee equivalent to two �mes the District’s irriga�on usage fee, plus other fees associated with the irriga�on class posted online: htps://otaywater.gov/customer-service/billing-informa�on/water-and-sewer-rates/. Customers outside the service area or Interim Users as defined in Sec�on 25 of the District’s Code of Ordinances will pay a usage fee equivalent to two �mes the listed usage fee, plus other fees associated with the Non-Public Irriga�on and Commercial Agriculture class. The changes in the water rates are based on the results of the cost of service study. 2. Projections are for informational purposes only. Increases to water rate and fixed charges are based on a projected 4.8 percent inflator. Actual water rate and fixed system charges in each of the projected years may differ. 3. The Fixed System Charges, based on meter size, ensure that customers pay their propor�onate share of the water system replacement, maintenance, and opera�ng expenses. MWD and CWA charges are based on meter size and match, in total, the cost charged by wholesale water suppliers. The changes in the fixed charges are based on the results of the cost of service study. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in eleva�on. This is charged propor�onately for every 100 feet eleva�on over 450 feet. 5. Fire Service requires a separate meter and is a monthly fee based on service size. Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 0.063$ 0.068$ 0.071$ 0.074$ 0.078$ 0.082$ Energy Charges4 (per unit) - 2023 Proposed and 2024-2027 Projected2 NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR PUBLIC IRRIGATION WATER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on meter size, water consumption in units, and geographic location. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Footnotes 1. This per unit charge is based on the units of consumption. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). Currently, District customers outside the service area or outside an Improvement District pay a usage fee equivalent to two �mes the District’s irriga�on usage fee, plus other fees associated with the irriga�on class posted online: htps://otaywater.gov/customer-service/billing-informa�on/water-and-sewer-rates/. The changes in the water rates are based on the results of the cost of service study. 2. Projections are for informational purposes only. Increases to water rate and fixed charges are based on a projected 4.8 percent inflator. Actual water rate and fixed system charges in each of the projected years may differ. 3. The Fixed System Charges, based on meter size, ensure that customers pay their propor�onate share of the water system replacement, maintenance, and opera�ng expenses. MWD and CWA charges are based on meter size and match, in total, the cost charged by wholesale water suppliers. The changes in the fixed charges are based on the results of the cost of service study. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in eleva�on. This is charged propor�onately for every 100 feet eleva�on over 450 feet. 5. The Government Fee is a per unit charge, as a result your bill will vary based on water consump�on. This charge is in lieu of tax revenues paid by nongovernment customers. Effec�ve January 1, 2023, the Government Fee will be eliminated. 6. Fire Service requires a separate meter and is a monthly fee based on service size. Units1 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected All Units $6.09 $6.94 $7.27 $7.62 $7.99 $8.37 Public Irrigation Water Rates1 - 2023 Proposed and 2024-2027 Projected2 Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 5/8"$35.13 $16.13 $16.90 $17.71 $18.56 $19.45 5/8"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 3/4"$35.13 $16.13 $16.90 $17.71 $18.56 $19.45 3/4"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 1"$49.62 $19.24 $20.16 $21.13 $22.14 $23.20 1"$31.57 $27.22 $28.53 $29.90 $31.34 $32.84 1 1/2"$85.86 $27.26 $28.57 $29.94 $31.38 $32.89 1 1/2"$71.36 $54.42 $57.03 $59.77 $62.64 $65.65 2"$129.28 $36.69 $38.45 $40.30 $42.23 $44.26 2"$121.39 $87.06 $91.24 $95.62 $100.21 $105.02 3"$245.19 $77.26 $80.97 $84.86 $88.93 $93.20 3"$258.17 $190.45 $199.59 $209.17 $219.21 $229.73 4"$375.63 $129.48 $135.70 $142.21 $149.04 $156.19 4"$413.41 $342.81 $359.26 $376.50 $394.57 $413.51 Otay Fixed System Charges3 - 2023 Proposed and 2024-2027 Projected2 MWD & CWA Charges3 - 2023 Proposed and 2024-2027 Projected2 Other Charges Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Energy Charges4 0.063$ 0.068$ 0.071$ 0.074$ 0.078$ 0.082$ Government Fee5 0.43$ -$ -$ -$ -$ -$ Other Charges - 2023 Proposed and 2024-2027 Projected2 Service Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 5/8"24.00$ 2.60$ 2.72$ 2.85$ 2.99$ 3.13$ 3/4"24.00$ 2.60$ 2.72$ 2.85$ 2.99$ 3.13$ 1"24.00$ 2.68$ 2.81$ 2.94$ 3.08$ 3.23$ 1 1/2"24.00$ 2.94$ 3.08$ 3.23$ 3.39$ 3.55$ 2"24.00$ 3.38$ 3.54$ 3.71$ 3.89$ 4.08$ 3"24.00$ 4.99$ 5.23$ 5.48$ 5.74$ 6.02$ 4"32.34$ 7.75$ 8.12$ 8.51$ 8.92$ 9.35$ 6"32.34$ 17.69$ 18.54$ 19.43$ 20.36$ 21.34$ 8"32.34$ 34.83$ 36.50$ 38.25$ 40.09$ 42.01$ 10"32.34$ 60.61$ 63.52$ 66.57$ 69.77$ 73.12$ Fire Service System Charges6 Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT PUBLIC IRRIGATION WATER SERVICE PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Dedicated to Community Service OTAYWATER.GOV NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT PUBLIC IRRIGATION WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR PUBLICLY-OWNED WATER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on meter size, water consumption in units, and geographic location. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Units1 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected All Units $4.17 $6.08 $6.37 $6.68 $7.00 $7.34 Publicly Owned Water Rates1 - 2023 Proposed and 2024-2027 Projected2 Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 5/8"$41.61 $16.97 $17.78 $18.63 $19.52 $20.46 5/8"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 3/4"$41.61 $16.97 $17.78 $18.63 $19.52 $20.46 3/4"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 1"$58.75 $20.64 $21.63 $22.67 $23.76 $24.90 1"$31.57 $27.22 $28.53 $29.90 $31.34 $32.84 1 1/2"$101.66 $30.06 $31.50 $33.01 $34.59 $36.25 1 1/2"$71.36 $54.42 $57.03 $59.77 $62.64 $65.65 2"$153.11 $41.18 $43.16 $45.23 $47.40 $49.68 2"$121.39 $87.06 $91.24 $95.62 $100.21 $105.02 3"$290.34 $87.08 $91.26 $95.64 $100.23 $105.04 3"$258.17 $190.45 $199.59 $209.17 $219.21 $229.73 4"$444.76 $147.14 $154.20 $161.60 $169.36 $177.49 4"$413.41 $342.81 $359.26 $376.50 $394.57 $413.51 6"$873.81 $290.36 $304.30 $318.91 $334.22 $350.26 6"$846.28 $761.79 $798.36 $836.68 $876.84 $918.93 8"$1,388.56 $450.72 $472.35 $495.02 $518.78 $543.68 8"$1,366.65 $1,305.91 $1,368.59 $1,434.28 $1,503.13 $1,575.28 10"$1,989.08 $692.32 $725.55 $760.38 $796.88 $835.13 10"$1,967.12 $2,067.69 $2,166.94 $2,270.95 $2,379.96 $2,494.20 Otay Fixed System Charges3 - 2023 Proposed and 2024-2027 Projected2 MWD & CWA Charges3 - 2023 Proposed and 2024-2027 Projected2 Other Charges Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Energy Charges4 0.063$ 0.068$ 0.071$ 0.074$ 0.078$ 0.082$ Government Fee5 0.43$ -$ -$ -$ -$ -$ Other Charges (per unit) - 2023 Proposed and 2024-2027 Projected2 Service Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 5/8"24.00$ 2.60$ 2.72$ 2.85$ 2.99$ 3.13$ 3/4"24.00$ 2.60$ 2.72$ 2.85$ 2.99$ 3.13$ 1"24.00$ 2.68$ 2.81$ 2.94$ 3.08$ 3.23$ 1 1/2"24.00$ 2.94$ 3.08$ 3.23$ 3.39$ 3.55$ 2"24.00$ 3.38$ 3.54$ 3.71$ 3.89$ 4.08$ 3"24.00$ 4.99$ 5.23$ 5.48$ 5.74$ 6.02$ 4"32.34$ 7.75$ 8.12$ 8.51$ 8.92$ 9.35$ 6"32.34$ 17.69$ 18.54$ 19.43$ 20.36$ 21.34$ 8"32.34$ 34.83$ 36.50$ 38.25$ 40.09$ 42.01$ 10"32.34$ 60.61$ 63.52$ 66.57$ 69.77$ 73.12$ Fire Service System Charges6 Footnotes 1. This per unit charge is based on the units of consumption. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). Currently, District customers outside the service area or outside an Improvement District pay a usage fee equivalent to two �mes the District’s irriga�on usage fee, plus other fees associated with the irriga�on class posted online: htps://otaywater.gov/customer-service/billing-informa�on/water-and-sewer-rates/. The changes in the water rates are based on the results of the cost of service study. 2. Projections are for informational purposes only. Increases to water rate and fixed charges are based on a projected 4.8 percent inflator. Actual water rate and fixed system charges in each of the projected years may differ. 3. The Fixed System Charges, based on meter size, ensure that customers pay their propor�onate share of the water system replacement, maintenance, and opera�ng expenses. MWD and CWA charges are based on meter size and match, in total, the cost charged by wholesale water suppliers. The changes in the fixed charges are based on the results of the cost of service study. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in eleva�on. This is charged propor�onately for every 100 feet eleva�on over 450 feet. 5. The Government Fee is a per unit charge, as a result your bill will vary based on water consump�on. This charge is in lieu of tax revenues paid by nongovernment customers. Effec�ve January 1, 2023, the Government Fee will be eliminated. 6. Fire Service requires a separate meter and is a monthly fee based on service size. Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT PUBLICLY-OWNED WATER SERVICE PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Dedicated to Community Service OTAYWATER.GOV NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT PUBLICLY-OWNED WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR PUBLICLY-OWNED WATER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on meter size, water consumption in units, and geographic location. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Units1 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected All Units $4.17 $6.08 $6.37 $6.68 $7.00 $7.34 Publicly Owned Water Rates1 - 2023 Proposed and 2024-2027 Projected2 Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 5/8"$41.61 $16.97 $17.78 $18.63 $19.52 $20.46 5/8"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 3/4"$41.61 $16.97 $17.78 $18.63 $19.52 $20.46 3/4"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 1"$58.75 $20.64 $21.63 $22.67 $23.76 $24.90 1"$31.57 $27.22 $28.53 $29.90 $31.34 $32.84 1 1/2"$101.66 $30.06 $31.50 $33.01 $34.59 $36.25 1 1/2"$71.36 $54.42 $57.03 $59.77 $62.64 $65.65 2"$153.11 $41.18 $43.16 $45.23 $47.40 $49.68 2"$121.39 $87.06 $91.24 $95.62 $100.21 $105.02 3"$290.34 $87.08 $91.26 $95.64 $100.23 $105.04 3"$258.17 $190.45 $199.59 $209.17 $219.21 $229.73 4"$444.76 $147.14 $154.20 $161.60 $169.36 $177.49 4"$413.41 $342.81 $359.26 $376.50 $394.57 $413.51 6"$873.81 $290.36 $304.30 $318.91 $334.22 $350.26 6"$846.28 $761.79 $798.36 $836.68 $876.84 $918.93 8"$1,388.56 $450.72 $472.35 $495.02 $518.78 $543.68 8"$1,366.65 $1,305.91 $1,368.59 $1,434.28 $1,503.13 $1,575.28 10"$1,989.08 $692.32 $725.55 $760.38 $796.88 $835.13 10"$1,967.12 $2,067.69 $2,166.94 $2,270.95 $2,379.96 $2,494.20 Otay Fixed System Charges3 - 2023 Proposed and 2024-2027 Projected2 MWD & CWA Charges3 - 2023 Proposed and 2024-2027 Projected2 Other Charges Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Energy Charges4 0.063$ 0.068$ 0.071$ 0.074$ 0.078$ 0.082$ Government Fee5 0.43$ -$ -$ -$ -$ -$ Other Charges (per unit) - 2023 Proposed and 2024-2027 Projected2 Service Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 5/8"24.00$ 2.60$ 2.72$ 2.85$ 2.99$ 3.13$ 3/4"24.00$ 2.60$ 2.72$ 2.85$ 2.99$ 3.13$ 1"24.00$ 2.68$ 2.81$ 2.94$ 3.08$ 3.23$ 1 1/2"24.00$ 2.94$ 3.08$ 3.23$ 3.39$ 3.55$ 2"24.00$ 3.38$ 3.54$ 3.71$ 3.89$ 4.08$ 3"24.00$ 4.99$ 5.23$ 5.48$ 5.74$ 6.02$ 4"32.34$ 7.75$ 8.12$ 8.51$ 8.92$ 9.35$ 6"32.34$ 17.69$ 18.54$ 19.43$ 20.36$ 21.34$ 8"32.34$ 34.83$ 36.50$ 38.25$ 40.09$ 42.01$ 10"32.34$ 60.61$ 63.52$ 66.57$ 69.77$ 73.12$ Fire Service System Charges6 Footnotes 1. This per unit charge is based on the units of consumption. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). Currently, District customers outside the service area or Interim Users as defined in Sec�on 25 of the District’s Code of Ordinances pay a usage fee equivalent to two �mes the District’s irriga�on usage fee, plus other fees associated with the irriga�on class posted online: htps://otaywater.gov/customer-service/billing-informa�on/water-and-sewer-rates/. Customers outside the service area or Interim Users as defined in Sec�on 25 of the District’s Code of Ordinances will pay a usage fee equivalent to two �mes the listed usage fee, plus other fees associated with the Publicly-Owned class. The changes in the water rates are based on the results of the cost of service study. 2. Projections are for informational purposes only. Increases to water rate and fixed charges are based on a projected 4.8 percent inflator. Actual water rate and fixed system charges in each of the projected years may differ. 3. The Fixed System Charges, based on meter size, ensure that customers pay their propor�onate share of the water system replacement, maintenance, and opera�ng expenses. MWD and CWA charges are based on meter size and match, in total, the cost charged by wholesale water suppliers. The changes in the fixed charges are based on the results of the cost of service study. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in eleva�on. This is charged propor�onately for every 100 feet eleva�on over 450 feet. 5. The Government Fee is a per unit charge, as a result your bill will vary based on water consump�on. This charge is in lieu of tax revenues paid by nongovernment customers. Effec�ve January 1, 2023, the Government Fee will be eliminated. 6. Fire Service requires a separate meter and is a monthly fee based on service size. NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR RECYCLED NON-PUBLIC IRRIGATION WATER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on meter size, water consumption in units, customer class, and geographic location. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"$36.93 $36.06 $37.79 $39.60 $41.50 $43.49 1"$52.16 $48.83 $51.17 $53.63 $56.20 $58.90 1 1/2"$90.25 $81.22 $85.12 $89.21 $93.49 $97.98 2"$135.90 $119.74 $125.49 $131.51 $137.82 $144.44 3"$257.73 $262.42 $275.02 $288.22 $302.05 $316.55 4"$394.84 $458.00 $479.98 $503.02 $527.16 $552.46 6"$787.55 $953.41 $999.17 $1,047.13 $1,097.39 $1,150.06 8"$1,232.66 $1,547.17 $1,621.43 $1,699.26 $1,780.82 $1,866.30 10"$1,765.77 $2,411.52 $2,527.27 $2,648.58 $2,775.71 $2,908.94 Otay Fixed System Charge3 - 2023 Proposed and 2024-2027 Projected2 Units1 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected All Units $5.05 $5.36 $5.62 $5.89 $6.17 $6.47 Recycled Non-Public Irrigation Water Rates1 - 2023 Proposed and 2024-2027 Projected2 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 0.063$ 0.077$ 0.081$ 0.085$ 0.089$ 0.093$ Energy Charges4 - 2023 Proposed and 2024-2027 Projected2 Footnotes 1. This per unit charge is based on the units of consumption. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). Currently, District customers outside the service area or outside an Improvement District pay a usage fee equivalent to two �mes the District’s irriga�on usage fee, plus other fees associated with the irriga�on class posted online: htps://otaywater.gov/customer-service/billing-informa�on/water-and-sewer-rates/. The changes in the water rates are based on the results of the cost of service study. 2. Projections are for informational purposes only. Increases to water rate and fixed charges are based on a projected 4.8 percent inflator. Actual water rate and fixed system charges in each of the projected years may differ. 3. The Fixed System Charges, based on meter size, ensure that customers pay their propor�onate share of the water system replacement, maintenance, and opera�ng expenses. The changes in the fixed charges are based on the results of the cost of service study. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in eleva�on. This is charged propor�onately for every 100 feet eleva�on over 450 feet. Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT RECYCLED NON-PUBLIC IRRIGATION WATER SERVICE PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Dedicated to Community Service OTAYWATER.GOV NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT RECYCLED NON-PUBLIC IRRIGATION WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR RECYCLED PUBLIC IRRIGATION WATER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on meter size, water consumption in units, customer class, and geographic location. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 5/8"$36.93 $36.06 $37.79 $39.60 $41.50 $43.49 3/4"$36.93 $36.06 $37.79 $39.60 $41.50 $43.49 1"$52.16 $48.83 $51.17 $53.63 $56.20 $58.90 1 1/2"$90.25 $81.22 $85.12 $89.21 $93.49 $97.98 2"$135.90 $119.74 $125.49 $131.51 $137.82 $144.44 3"$257.73 $262.42 $275.02 $288.22 $302.05 $316.55 4"$394.84 $458.00 $479.98 $503.02 $527.16 $552.46 6"$787.55 $953.41 $999.17 $1,047.13 $1,097.39 $1,150.06 8"$1,232.66 $1,547.17 $1,621.43 $1,699.26 $1,780.82 $1,866.30 10"$1,765.77 $2,411.52 $2,527.27 $2,648.58 $2,775.71 $2,908.94 Otay Fixed System Charge3 - 2023 Proposed and 2024-2027 Projected2 Units1 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected All Units $5.05 $5.47 $5.73 $6.01 $6.30 $6.60 Recycled Public Irrigation Water Rates1 - 2023 Proposed and 2024-2027 Projected2 Other Charges Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Energy Charges4 0.063$ 0.077$ 0.081$ 0.085$ 0.089$ 0.093$ Government Fee5 0.43$ -$ -$ -$ -$ -$ Other Charges - 2023 Proposed and 2024-2027 Projected2 Footnotes 1. This per unit charge is based on the units of consumption. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). Currently, District customers outside the service area or outside an Improvement District pay a usage fee equivalent to two �mes the District’s irriga�on usage fee, plus other fees associated with the irriga�on class posted online: htps://otaywater.gov/customer-service/billing-informa�on/water-and-sewer-rates/. The changes in the water rates are based on the results of the cost of service study. 2. Projections are for informational purposes only. Increases to water rate and fixed charges are based on a projected 4.8 percent inflator. Actual water rate and fixed system charges in each of the projected years may differ. 3. The Fixed System Charges, based on meter size, ensure that customers pay their propor�onate share of the water system replacement, maintenance, and opera�ng expenses. The changes in the fixed charges are based on the results of the cost of service study. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in eleva�on. This is charged propor�onately for every 100 feet eleva�on over 450 feet. 5. The Government Fee is a per unit charge, as a result your bill will vary based on water consump�on. This charge is in lieu of tax revenues paid by nongovernment customers. Effec�ve January 1, 2023, the Government Fee will be eliminated. Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT RECYCLED PUBLIC IRRIGATION WATER SERVICE PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Dedicated to Community Service OTAYWATER.GOV NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT RECYCLED PUBLIC IRRIGATION WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR RECYCLED COMMERCIAL WATER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on meter size, water consumption in units, customer class, and geographic location. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 3/4"$36.93 $36.06 $37.79 $39.60 $41.50 $43.49 1"$52.16 $48.83 $51.17 $53.63 $56.20 $58.90 1 1/2"$90.25 $81.22 $85.12 $89.21 $93.49 $97.98 2"$135.90 $119.74 $125.49 $131.51 $137.82 $144.44 3"$257.73 $262.42 $275.02 $288.22 $302.05 $316.55 4"$394.84 $458.00 $479.98 $503.02 $527.16 $552.46 6"$787.55 $953.41 $999.17 $1,047.13 $1,097.39 $1,150.06 8"$1,232.66 $1,547.17 $1,621.43 $1,699.26 $1,780.82 $1,866.30 10"$1,765.77 $2,411.52 $2,527.27 $2,648.58 $2,775.71 $2,908.94 Otay Fixed System Charge3 - 2023 Proposed and 2024-2027 Projected2 Units1 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected All Units $3.58 $4.92 $5.16 $5.41 $5.67 $5.94 Recycled Commercial Water Rates1 - 2023 Proposed and 2024-2027 Projected2 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 0.063$ 0.077$ 0.081$ 0.085$ 0.089$ 0.093$ Energy Charges4 - 2023 Proposed and 2024-2027 Projected2 Footnotes 1. This per unit charge is based on the units of consumption. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). Currently, District customers outside the service area or outside an Improvement District pay a usage fee equivalent to two �mes the District’s irriga�on usage fee, plus other fees associated with the irriga�on class posted online: htps://otaywater.gov/customer-service/billing-informa�on/water-and-sewer-rates/. The changes in the water rates are based on the results of the cost of service study. 2. Projections are for informational purposes only. Increases to water rate and fixed charges are based on a projected 4.8 percent inflator. Actual water rate and fixed system charges in each of the projected years may differ. 3. The Fixed System Charges, based on meter size, ensure that customers pay their propor�onate share of the water system replacement, maintenance, and opera�ng expenses. The changes in the fixed charges are based on the results of the cost of service study. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in eleva�on. This is charged propor�onately for every 100 feet eleva�on over 450 feet. Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT RECYCLED COMMERCIAL WATER SERVICE PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Dedicated to Community Service OTAYWATER.GOV NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT RECYCLED COMMERCIAL WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR WATER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT WATER SERVICE PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Dedicated to Community Service OTAYWATER.GOV NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT WATER SERVICE Water Cost of Service and Rate Design Study Draft Report / July 28, 2022 Otay Water District Attachment E 445 S Figueroa St, Suite 1925 Los Angeles CA 90071 www.raftelis.com August 18, 2022 Mr. Joe Beachem Chief Financial Officer Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978 Subject: Water Cost of Service and Rate Design Study Dear Mr. Beachem, Raftelis is pleased to provide this Water Cost of Service and Rate Study Report to the Otay Water District. The study’s purpose was to review and update the District’s potable and recycled water rates. This report provides a detailed cost of service analysis that reasonably allocates cost to District customers and proposes a water rate schedule that recovers the cost to serve those customers. It has been a pleasure working with you and we thank you, Kevin Koeppen and other District staff for the support provided to Raftelis during this study. Sincerely, Steve Gagnon, PE (AZ) Sr. Manager WATER COST OF SERVICE AND RATE DESIGN STUDY Table of Contents 1. EXECUTIVE SUMMARY................................................................................................................... 1 1.1. Study Overview ................................................................................................................................. 1 1.2. Proposed Rate Structure Changes ................................................................................................... 1 1.2.1. Revised SFR and MFR Tier Definitions ............................................................................................ 1 1.2.2. Creation of Distinct Commercial and Public Customer Classes ....................................................... 2 1.2.3. Creation of Construction Customer Class ......................................................................................... 2 1.3. Proposed Water Rates ...................................................................................................................... 2 1.4. Bill Impacts ........................................................................................................................................ 6 2. INTRODUCTION ............................................................................................................................... 7 2.1. Agency Overview ............................................................................................................................... 7 2.2. Study Overview ................................................................................................................................. 7 2.3. Current Water Rates .......................................................................................................................... 7 2.4. Proposed Rate Structure Changes ................................................................................................... 9 2.4.1. Revised SFR and MFR Tier Definitions ............................................................................................ 9 2.4.2. Creation of Distinct Commercial and Public Customer Classes ..................................................... 10 2.4.3. Creation of Construction Customer Class ....................................................................................... 10 3. LEGAL REQUIREMENTS .............................................................................................................. 11 4. RATE-SETTING METHODOLOGY ................................................................................................ 11 4.1. Rate Setting Process ....................................................................................................................... 11 4.2. Cost of Service Analysis .................................................................................................................. 12 4.2.1. Peaking and Maximum Day Water Use .......................................................................................... 12 4.2.2. Peaking Factor Calculation ............................................................................................................. 13 5. POTABLE COST OF SERVICE ANALYSIS .................................................................................. 15 5.1. Units of Service ............................................................................................................................... 15 5.1.1. Water Use and Peaking Units ......................................................................................................... 15 5.1.2. Customer Units ................................................................................................................................ 16 5.1.3. Fire Protection Units ........................................................................................................................ 18 5.1.4. Units of Service Summary ............................................................................................................... 20 5.2. Revenue Requirement..................................................................................................................... 21 5.3. Functionalization and Allocation of Expenses ................................................................................. 21 5.3.1. O&M Expense Allocation ................................................................................................................. 22 5.3.2. Capital Allocation ............................................................................................................................. 25 5.3.3. Revenue Offset Allocation ............................................................................................................... 27 5.4. Cost of Service Allocation ............................................................................................................... 29 OTAY WATER DISTRICT 5.4.1. Preliminary Cost of Service Allocation ............................................................................................ 29 5.4.2. Adjustments to Cost of Service ....................................................................................................... 30 5.4.3. Final Cost of Service Allocation ....................................................................................................... 30 5.5. Unit Cost Development.................................................................................................................... 31 5.6. Customer Class Costs ..................................................................................................................... 32 5.7. Customer Class Comparison .......................................................................................................... 33 6. PROPOSED POTABLE WATER RATES ...................................................................................... 35 6.1. Proposed Fixed Charges ................................................................................................................. 35 6.1.1. Proposed System Fees ................................................................................................................... 36 6.1.2. Proposed CWA / MWD Charges ..................................................................................................... 37 6.1.3. Proposed Private Fire Line Charges ............................................................................................... 37 6.2. Proposed Volume Rates ................................................................................................................. 39 6.2.1. Commodity Rate Component .......................................................................................................... 39 6.2.2. Demand Rate Component ............................................................................................................... 40 6.2.3. Tax OFfset Rate Component .......................................................................................................... 42 6.2.4. Total Proposed Volume Rate .......................................................................................................... 44 6.2.5. Energy Surcharge ............................................................................................................................ 44 6.3. Monthly Bill Impacts ......................................................................................................................... 44 7. RECYCLED COST OF SERVICE ANALYSIS ............................................................................... 47 7.1. Units of Service ............................................................................................................................... 47 7.1.1. Water Use and Peaking Units ......................................................................................................... 47 7.1.2. Customer Units ................................................................................................................................ 47 7.1.3. Units of Service Summary ............................................................................................................... 50 7.2. Revenue Requirement..................................................................................................................... 51 7.3. Functionalization and Allocation of Expenses ................................................................................. 51 7.3.1. O&M Expense Allocation ................................................................................................................. 52 7.3.2. Capital Allocation ............................................................................................................................. 55 7.3.3. Revenue Offset Allocation ............................................................................................................... 57 7.4. Cost of Service Allocation ............................................................................................................... 59 7.4.1. Preliminary Cost of Service Allocation ............................................................................................ 59 7.4.2. Adjustments to Cost of Service ....................................................................................................... 59 7.4.3. Final Cost of Service Allocation ....................................................................................................... 59 7.5. Unit Cost Development.................................................................................................................... 61 7.6. Customer Class Costs ..................................................................................................................... 62 7.7. Customer Class Comparison .......................................................................................................... 63 8. PROPOSED RECYCLED WATER RATES.................................................................................... 64 WATER COST OF SERVICE AND RATE DESIGN STUDY 8.1. Proposed Fixed Charges ................................................................................................................. 64 8.1.1. Proposed System Fees ................................................................................................................... 64 8.2. Proposed Volume Rates ................................................................................................................. 65 8.2.1. Commodity Rate Component .......................................................................................................... 65 8.2.2. Demand Rate Component ............................................................................................................... 66 8.2.3. Total Proposed Volume Rate .......................................................................................................... 66 8.3. Monthly Bill Impacts ......................................................................................................................... 66 OTAY WATER DISTRICT List of Tables Table 1-1: Proposed Residential and Multi-Residential Tier Changes ......................................................................... 2 Table 1-2: Proposed Rates ........................................................................................................................................... 3 Table 2-1: Current FY 2022 System Fees .................................................................................................................... 8 Table 2-2: MWD / CWA Fixed Charges ........................................................................................................................ 8 Table 2-3: FY 2022 Volume Rates ............................................................................................................................... 9 Table 2-4: Proposed Tier Changes ............................................................................................................................. 10 Table 4-1: Peaking Factors ......................................................................................................................................... 14 Table 5-1: Water Use and Peaking Units ................................................................................................................... 16 Table 5-2: Customer Accounts ................................................................................................................................... 17 Table 5-3: Equivalent Meter Ratios ............................................................................................................................ 17 Table 5-4: AWWA Capacity Equivalent Meters .......................................................................................................... 18 Table 5-5: Cost Equivalent Meters ............................................................................................................................. 18 Table 5-6: Fire Protection Requirements .................................................................................................................... 19 Table 5-7: Public and Private Fire Connections ......................................................................................................... 19 Table 5-8: Units of Service Summary ......................................................................................................................... 20 Table 5-9: FY 2023 Projected Revenue Required from Rates ................................................................................... 21 Table 5-10: Summary of O&M Expenses by Functional Category ............................................................................. 23 Table 5-11: Allocation of O&M Expenses to Cost Causation Components ............................................................... 24 Table 5-12: Summary of Capital Assets by Functional Category ............................................................................... 25 Table 5-13: Allocation of Functionalized Capital Assets to Cost Causation Components\ ........................................ 26 Table 5-14: Allocation of Capital Costs to Cost Causation Components ................................................................... 26 Table 5-15: Non-Rate Revenue Allocations ............................................................................................................... 28 Table 5-16: Cost of Service Allocation ........................................................................................................................ 29 Table 5-17: Fire Cost Reallocation ............................................................................................................................. 30 Table 5-18: Development of Unit Costs ...................................................................................................................... 31 Table 5-19: Customer Class Cost of Service .............................................................................................................. 32 Table 5-20: Public Fire Reallocation ........................................................................................................................... 33 Table 5-21: Cost of Service Comparison .................................................................................................................... 34 Table 6-1: Fixed Charge Components ........................................................................................................................ 35 Table 6-2: System Fees .............................................................................................................................................. 36 Table 6-3: Public Fire Protection................................................................................................................................. 36 Table 6-4: Total System Fees ..................................................................................................................................... 37 Table 6-5: CWA / MWD Charges ................................................................................................................................ 37 Table 6-6: Private Fire Charges .................................................................................................................................. 38 Table 6-7: Commodity Rate Component .................................................................................................................... 39 Table 6-8: Demand Rate Component ......................................................................................................................... 42 Table 6-9: Tax Offset Rate Component ...................................................................................................................... 43 Table 6-10: Total Proposed Volume Rates ................................................................................................................. 44 Table 6-11: Energy Surcharge .................................................................................................................................... 44 Table 6-12: SFR Bill Impacts ...................................................................................................................................... 45 Table 6-13: MFR Bill Impacts...................................................................................................................................... 45 Table 6-14: Commercial Bill Impacts .......................................................................................................................... 45 Table 6-15: Commercial Irrigation Bill Impacts ........................................................................................................... 45 Table 6-16: Construction Bill Impacts ......................................................................................................................... 46 Table 6-17: Temporary Construction Bill Impacts....................................................................................................... 46 Table 6-18: Public Bill Impacts .................................................................................................................................... 46 Table 6-19: Public Irrigation Bill Impacts .................................................................................................................... 46 Table 7-1: Water Use and Peaking Units ................................................................................................................... 47 WATER COST OF SERVICE AND RATE DESIGN STUDY Table 7-2: Customer Accounts ................................................................................................................................... 48 Table 7-3: AWWA Capacity Equivalent Meters .......................................................................................................... 48 Table 7-4: Cost Equivalent Meters ............................................................................................................................. 49 Table 7-5: Units of Service Summary ......................................................................................................................... 50 Table 7-6: FY 2023 Projected Revenue Required from Rates ................................................................................... 51 Table 7-7: Summary of O&M Expenses by Functional Category ............................................................................... 52 Table 7-8: Allocation of O&M Expenses to Cost Causation Components .................................................................. 54 Table 7-9: Summary of Capital Assets by Functional Category ................................................................................. 55 Table 7-10: Allocation of Functionalized Capital Assets to Cost Causation Components\ ........................................ 56 Table 7-11: Allocation of Capital Costs to Cost Causation Components ................................................................... 56 Table 7-12: Non-Rate Revenue Allocations ............................................................................................................... 58 Table 7-13: Cost of Service Allocation ........................................................................................................................ 60 Table 7-14: Development of Unit Costs ...................................................................................................................... 61 Table 7-15: Customer Class Cost of Service .............................................................................................................. 62 Table 7-16: Cost of Service Comparison .................................................................................................................... 63 Table 8-1: Fixed Charge Components ........................................................................................................................ 64 Table 8-2: System Fees .............................................................................................................................................. 65 Table 8-3: Commodity Rate Component .................................................................................................................... 65 Table 8-4: Demand Rate Component ......................................................................................................................... 66 Table 8-5: Total Proposed Volume Rates ................................................................................................................... 66 Table 8-6: Recycled Bill Impacts................................................................................................................................. 66 Table 8-7: Public Recycled Bill Impacts ...................................................................................................................... 67 Table 8-8: Recycled Commercial Bill Impacts ............................................................................................................ 67 List of Figures Figure 1-1: SFR Bill Impacts ......................................................................................................................................... 6 Figure 6-1: Pipe Sizes Required for Average, Max Day and Max Hour Flows ........................................................... 41 OTAY WATER DISTRICT This page intentionally left blank to facilitate two-sided printing. WATER COST OF SERVICE AND RATE DESIGN STUDY 1 1. Executive Summary 1.1. Study Overview Public water agencies in California typically conduct cost-of-service and rate studies to ensure there is a strong nexus between rates charged to customers and costs incurred to provide service, as required by Proposition 218. The District engaged Raftelis in 2021 to conduct this Water Cost of Service and Rate Design Study to establish a proposed water rate structure based on FY 2023 test data. Note that the rates in this report do not include an annual revenue adjustment (or rate increase) for FY 2023. The proposed rates herein will be updated at a later date by District staff according to the revenue adjustment approved by the District Board of Directors. 1.2. Proposed Rate Structure Changes After reviewing the District’s current rates and cost structure, Raftelis recommends several changes to the proposed rate structure. All proposed changes to the rates and rate structure are revenue neutral. In other words, the proposed rates detailed in this report are designed to collect the same revenue as the currently effective rates. 1.2.1. REVISED SFR AND MFR TIER DEFINITIONS Raftelis conducted a detailed review of the District’s billing data for all customer classes, with a special emphasis on single family residential (SFR) and multifamily residential (MFR) customers in FY 2019, which staff considers to be a typical year with normal usage patterns before the pandemic altered commercial and residential use. Raftelis and the rate study team proposes to update the tier breakpoints to those shown in Table 1-11. The volumetric rate tier breakpoint for MFR is per dwelling unit, not per account, while the MFR system fee is per account. The billing data analysis showed that the average monthly water used by the combined SFR and MFR classes on an annual basis is 9 Ccf. Tier 1 is set at the average residential use. The average monthly bill during the summer months (June, July, and August) is 12 Ccf per month. Tier 2 is set at this maximum summer use. Thus the tiers were set at the average use and maximum summer use which is correlates with the Commodity Demand method in which costs are separated into costs to serve water during average flows and maximum (peak) flows. All additional use will be charged in the third tier. 1 The SFR and MFR residential classes were combined because census data for Spring Valley, CA shows that the housing density (people per home or apartment) for MFR and SFR have similar number of people per home or apartment and therefore should not be treated differently for the purpose setting tier breakpoints. Furthermore, most MFR accounts have separate irrigation meters for outdoor water use. 2 OTAY WATER DISTRICT Table 1-1: Proposed Residential and Multi-Residential Tier Changes 1.2.2. CREATION OF DISTINCT COMMERCIAL AND PUBLIC CUSTOMER CLASSES The District currently has one rate for commercial and public customers. However, there is an additional government surcharge of 42 cents per Ccf applied to water used by public accounts to recognize that public entities do not pay property taxes while all other customers do (the District receives a share of property taxes); the surcharge is intended to equalize the overall revenue (rate and property tax revenue) collected between public and non-public customers. Raftelis recommends eliminating the government surcharge; however, public customers will not receive a tax revenue offset, yielding rates that are slightly higher than the commercial classes. This recommendation also applies to the separation of commercial and public irrigation accounts within the currently combined irrigation and commercial agriculture rate. 1.2.3. CREATION OF CONSTRUCTION CUSTOMER CLASS Water used by permanent construction accounts is currently charged the irrigation rate, while water used by temporary construction accounts is charged two times the irrigation rate. Raftelis recommends creating a new Construction customer class that encompasses both types of customers and proposes a separate rate based on their own water use characteristics. 1.3. Proposed Water Rates Table 1-2 shows the proposed rate schedule, arranged by customer class. All potable customers are subject to the proposed MWD/CWA fixed charges. SFR 1 Tier 1 1 - 10 1 - 9 2 Tier 2 11 - 22 10 - 12 3 Tier 3 > =23 > =13 MFR 4 Tier 1 1 - 4 1 - 9 5 Tier 2 5 - 9 10 - 12 6 Tier 3 > = 10 > =13 Line Customer Class Current Tiers (Ccf) Proposed Tiers (Ccf) WATER COST OF SERVICE AND RATE DESIGN STUDY 3 Table 1-2: Proposed Rates A B C D E F G H Current Proposed $ Change % Change Current Proposed $ Change % Change Volume Rate Volume Rate 1 Tier 1 3.52$ 5.03$ 1.51$ 42.9% 1 Tier 1 3.29$ 4.99$ 1.70$ 51.7% 2 Tier 2 6.30 5.46 (0.84) -13.3% 2 Tier 2 5.97 5.41 (0.56) -9.4% 3 Tier 3 8.12 6.08 (2.04) -25.1% 3 Tier 3 7.35 5.60 (1.75) -23.8% System Fee System Fee 4 5/8" 20.08$ 17.29$ (2.79)$ -13.9% 4 5/8" 44.17$ 15.95$ (28.22)$ -63.9% 5 3/4" 20.08 17.29 (2.79) -13.9% 5 3/4" 44.17 15.95 (28.22) -63.9% 6 1" 28.39 21.50 (6.89) -24.3% 6 1" 62.37 19.27 (43.10) -69.1% 7 1 1/2" 49.11 32.27 (16.84) -34.3% 7 1 1/2" 107.92 27.81 (80.11) -74.2% 8 2" 73.98 45.01 (28.97) -39.2% 8 2" 162.53 37.87 (124.66) -76.7% 9 3" 308.22 79.98 (228.24) -74.1% 10 4" 472.17 134.77 (337.40) -71.5% 11 6" 927.63 264.45 (663.18) -71.5% 12 8" 1,474.12 408.31 (1,065.81) -72.3% 13 10" 2,111.67 626.10 (1,485.57) -70.4% Line SFR Rates Line MFR Rates 4 OTAY WATER DISTRICT A B C D E F G H Current Proposed $ Change % Change Current Proposed $ Change % Change 14 Volume Rate 4.17$ 5.28$ 1.11$ 26.6% 14 Volume Rate 6.09$ 6.09$ -$ 0.0% System Fee System Fee 15 5/8" 41.61$ 17.43$ (24.18)$ -58.1% 15 5/8" 35.13$ 15.43$ (19.70)$ -56.1% 16 3/4" 41.61 17.43 (24.18) -58.1% 16 3/4" 35.13 15.43 (19.70) -56.1% 17 1" 58.75 21.74 (37.01) -63.0% 17 1" 49.62 18.41 (31.21) -62.9% 18 1 1/2" 101.66 32.74 (68.92) -67.8% 18 1 1/2" 85.86 26.08 (59.78) -69.6% 19 2" 153.11 45.76 (107.35) -70.1% 19 2" 129.28 35.11 (94.17) -72.8% 20 3" 290.34 97.23 (193.11) -66.5% 20 3" 245.19 73.93 (171.26) -69.8% 21 4" 444.76 165.82 (278.94) -62.7% 21 4" 375.63 123.89 (251.74) -67.0% 22 6" 873.81 333.46 (540.35) -61.8% 22 6" 737.94 240.26 (497.68) -67.4% 23 8" 1,388.56 526.62 (861.94) -62.1% 23 8" 1,172.69 366.86 (805.83) -68.7% 24 10" 1,989.08 813.42 (1,175.66) -59.1% 24 10" 1,679.86 560.46 (1,119.40) -66.6% A B C D E F G H Current Proposed $ Change % Change Current Proposed $ Change % Change 25 Volume Rate*4.59$ 5.82$ 1.23$ 26.8% 25 Volume Rate* 6.51$ 6.64$ 0.13$ 2.0% System Fee System Fee 26 5/8" 41.61$ 16.24$ (25.37)$ -61.0% 26 5/8" 35.13$ 15.43$ (19.70)$ -56.1% 27 3/4" 41.61 16.24 (25.37) -61.0% 27 3/4" 35.13 15.43 (19.70) -56.1% 28 1" 58.75 19.75 (39.00) -66.4% 28 1" 49.62 18.41 (31.21) -62.9% 29 1 1/2" 101.66 28.76 (72.90) -71.7% 29 1 1/2" 85.86 26.08 (59.78) -69.6% 30 2" 153.11 39.40 (113.71) -74.3% 30 2" 129.28 35.11 (94.17) -72.8% 31 3" 290.34 83.32 (207.02) -71.3% 31 3" 245.19 73.93 (171.26) -69.8% 32 4" 444.76 140.79 (303.97) -68.3% 32 4" 375.63 123.89 (251.74) -67.0% 33 6" 873.81 277.83 (595.98) -68.2% 33 6" 737.94 240.26 (497.68) -67.4% 34 8" 1,388.56 431.27 (957.29) -68.9% 34 8" 1,172.69 366.86 (805.83) -68.7% 35 10" 1,989.08 662.44 (1,326.64) -66.7% 35 10" 1,679.86 560.46 (1,119.40) -66.6% * Current Rate Includes Government Surcharge Line Public Rates Line Public Irrigation Rates Line Commercial Rates Line Commercial Irrigation Rates A B C D A B C D Current Proposed $ Change % Change Current Proposed $ Change % Change 36 Volume Rate 12.18$ 6.05$ (6.13)$ -50.3% 36 0.063$ 0.068$ 0.005$ 7.9% System Fee 37 5/8" 35.13$ 15.86$ (19.27)$ -54.9% 38 3/4" 35.13 15.86 (19.27) -54.9% 39 1" 49.62 19.12 (30.50) -61.5% 40 1 1/2" 85.86 27.51 (58.35) -68.0% 41 2" 129.28 37.40 (91.88) -71.1% 42 3" 245.19 78.95 (166.24) -67.8% 43 4" 375.63 132.92 (242.71) -64.6% 44 6" 737.94 260.34 (477.60) -64.7% 45 8" 1,172.69 401.27 (771.42) -65.8% 46 10" 1,679.86 614.94 (1,064.92) -63.4% Volume Rate, per 100 ft Line Construction Rates Line Potable Energy Charge WATER COST OF SERVICE AND RATE DESIGN STUDY 5 E F G H Current Proposed $ Change % Change CWA/MWD Fee 47 5/8" 17.00$ 16.49$ (0.51)$ -3.0% 48 3/4" 17.00 16.49 (0.51) -3.0% 49 1" 31.57 27.49 (4.08) -12.9% 50 1 1/2" 71.36 54.97 (16.39) -23.0% 51 2" 121.39 87.94 (33.45) -27.6% 52 3" 258.17 192.37 (65.80) -25.5% 53 4" 413.41 346.27 (67.14) -16.2% 54 6" 846.28 769.48 (76.80) -9.1% 55 8" 1,366.65 1,319.10 (47.55) -3.5% 56 10" 1,967.12 2,088.58 121.46 6.2% Line CWA/MWD Fees A B C D A B C D Current Proposed $ Change % Change Current Proposed $ Change % Change 57 Volume Rate 5.05$ 5.10$ 0.05$ 1.0% 57 Volume Rate 5.48$ 5.20$ (0.28)$ -5.1% System Fee System Fee 58 5/8" 36.93$ 34.31$ (2.62)$ -7.1% 58 5/8" 36.93$ 34.31$ (2.62)$ -7.1% 59 3/4" 36.93 34.31 (2.62) -7.1% 59 3/4" 36.93 34.31 (2.62) -7.1% 60 1" 52.16 46.46 (5.70) -10.9% 60 1" 52.16 46.46 (5.70) -10.9% 61 1 1/2" 90.25 77.28 (12.97) -14.4% 61 1 1/2" 90.25 77.28 (12.97) -14.4% 62 2" 135.90 113.93 (21.97) -16.2% 62 2" 135.90 113.93 (21.97) -16.2% 63 3" 257.73 249.69 (8.04) -3.1% 63 3" 257.73 249.69 (8.04) -3.1% 64 4" 394.84 435.78 40.94 10.4% 64 4" 394.84 435.78 40.94 10.4% 65 6" 787.55 907.15 119.60 15.2% 65 6" 787.55 907.15 119.60 15.2% 66 8" 1,232.66 1,472.09 239.43 19.4% 66 8" 1,232.66 1,472.09 239.43 19.4% 67 10" 1,765.77 2,294.50 528.73 29.9% 67 10" 1,765.77 2,294.50 528.73 29.9% Line Recycled Line Recycled Public A B C D A B C D Current Proposed $ Change % Change Current Proposed $ Change % Change 68 Volume Rate 3.58$ 4.68$ 1.10$ 30.7% 68 0.063$ 0.082$ 0.019$ 30.2% System Fee 69 5/8" 43.74$ 34.31$ (9.43)$ -21.6% 70 3/4" 43.74 34.31 (9.43) -21.6% 71 1" 61.76 46.46 (15.30) -24.8% 72 1 1/2" 106.89 77.28 (29.61) -27.7% 73 2" 160.98 113.93 (47.05) -29.2% 74 3" 305.28 249.69 (55.59) -18.2% 75 4" 467.65 435.78 (31.87) -6.8% 76 6" 918.73 907.15 (11.58) -1.3% 77 8" 1,459.97 1,472.09 12.12 0.8% 78 10" 2,091.41 2,294.50 203.09 9.7% Volume Rate, per 100 ft Line Recycled Commercial Line Recycled Energy Charge 6 OTAY WATER DISTRICT 1.4. Bill Impacts Figure 1-1 compares proposed SFR monthly bills with current bills at various water use levels. Many residential customers will see a bill increase due to the higher Tier 1 volume rate; however, this is partially offset by the reduction in the fixed meter charge. The average monthly bill for a SFR customer is 11 Ccf; this customer will see a bill increase of approximately 14.5 percent, before adjusting for the additional cost of service to be collected through the January 1, 2023 proposed rate increase. Additional bill impacts for other customer classes can be found in Section 5. Figure 1-1: SFR Bill Impacts WATER COST OF SERVICE AND RATE DESIGN STUDY 7 2.Introduction 2.1. Agency Overview Otay Water District is a water, recycled water, and sewer service provider. The State Legislature authorized the establishment of the Otay Water District in 1956 as a California Special District under the provisions of the Municipal Water District Law of 1911, Division 20 (commencing with Section 71000) of the Water Code of the State of California. Otay Water District is a public agency that does not make a profit, where each end user pays only his or her fair share of the District’s costs to operate and maintain the public water, recycled water, or sewer facilities. Five directors, elected by voters to serve respective divisions, set the District’s ordinances, policies, taxes, and rates for service. Members of the Board of Directors serve four-year terms of office. The Board of Directors typically meets in open public session on the first Wednesday of each month at 3:30 p.m. at District headquarters. The public is welcome to attend these meetings. The District provides water service to customers within roughly 125 square miles of southeastern San Diego County, California. Its facilities serve the water, recycled water, and the sewer needs of customers residing in the communities of Spring Valley, La Presa, Rancho San Diego, Jamul, eastern Chula Vista, and eastern Otay Mesa along the international border with Mexico. The potable water delivered by Otay Water District is purchased from the San Diego County Water Authority (CWA) or the Helix Water District through an exchange agreement with Helix and CWA. Imported water is a mix of waters from the Colorado River and Northern California. Most of the water is originally purchased from the region’s primary importer, the Metropolitan Water District of Southern California (MWD). 2.2. Study Overview Public water agencies in California typically conduct cost-of-service and rate studies to ensure that there is a strong nexus between rates charged to customers and costs incurred to provide service, as required by Proposition 218. The District engaged Raftelis in 2021 to conduct this Water Cost of Service and Rate Design Study to establish a proposed water rate structure. Proposed rates presented in this study report may not be implemented until formally adopted by the District Board of Directors after a public hearing. 2.3. Current Water Rates District customers are currently subject to two types of charges: 1) fixed monthly System Fees and 2) Volume Charges per hundred cubic feet (Ccf)2 of water delivered. System Fees vary based on meter size and customer class; customers with a larger meter pay a higher System Fee each month. Larger meters impose larger demand, are more expensive to install, maintain, and replace than smaller meters, and require greater capacity within the water system. The current System Fees are shown in Table 2-1. 2 One HCF equals approximately 748 gallons. 8 OTAY WATER DISTRICT Table 2-1: Current FY 2022 System Fees All customers also pay an additional monthly fixed charge to recover certain fixed costs from the District’s wholesale water provider, shown in Table 2-2. These costs are passed-through directly from MWD/CWA to the District’s customers. Table 2-2: MWD / CWA Fixed Charges Current volume rates are shown in Table 2-3. Single Family Residential customers are subject to a three-tier structure. The first 10 Ccf used each month is charged at the lowest rate, the next 12 Ccf at an intermediate rate, and additional use at the highest rate. Multi Family customers have a similar tiered structure with tiers per dwelling unit, shown below. All other customers pay a uniform volume rate for all units of water used. Currently, Public customers (such as cities, counties, or schools) are also subject to a government surcharge because these customers do not pay property taxes, which the District receives a share of. Finally, the District’s energy surcharge applies to all customers based on their elevation and water use; customers pay 6.3 cents per Ccf for every 100 feet SFR MFR Commercial Irrigation Construction Private Fire Service System Fee 1 5/8" 20.08$ 44.17$ 41.61$ 35.13$ 35.13$ 24.00$ 2 3/4" 20.08 44.17 41.61 35.13 35.13 24.00 3 1" 28.39 62.37 58.75 49.62 49.62 24.00 4 1 1/2" 49.11 107.92 101.66 85.86 85.86 24.00 5 2" 73.98 162.53 153.11 129.28 129.28 24.00 6 3" 308.22 290.34 245.19 245.19 24.00 7 4" 472.17 444.76 375.63 375.63 32.34 8 6" 927.63 873.81 737.94 737.94 32.34 9 8" 1,474.12 1,388.56 1,172.69 1,172.69 32.34 10 10" 2,111.67 1,989.08 1,679.86 1,679.86 32.34 Line Description Customer Class MWD / CWA 1 5/8" 17.00$ 2 3/4" 17.00 3 1" 31.57 4 1 1/2" 71.36 5 2" 121.39 6 3" 258.17 7 4" 413.41 8 6" 846.28 9 8" 1,366.65 10 10" 1,967.12 Line Description Current Rates WATER COST OF SERVICE AND RATE DESIGN STUDY 9 of elevation of their pumping zone above 450 feet of elevation. There is no energy surcharge for customers below 450 feet of elevation as the District receives water from its wholesale supplier at a pressure capable of delivering water up to 450 feet of elevation. For customers over 450 feet of elevation; the District incurs additional pumping charges to deliver water which are reflected in the energy surcharge. See section 6.2.5 for details regarding the energy surcharge calculation. Table 2-3: FY 2022 Volume Rates 2.4.Proposed Rate Structure Changes Raftelis recommends a few changes to the proposed rate structure. All proposed changes to the rates and rate structure are revenue neutral. In other words, the proposed rates detailed in this report are designed to collect the same revenue as the currently effective rates. 2.4.1. REVISED SFR AND MFR TIER DEFINITIONS Raftelis conducted a detailed review of the District’s billing data for all customers, with a special emphasis on single family residential (SFR) and multifamily residential (MFR) customers in FY 2019, which staff considers to be a typical year with normal usage patterns. Raftelis and the rate study team proposes to update the tier breakpoints to those shown in Table 1-13. The volumetric rate tier breakpoint for MFR is per dwelling unit, not per account, while the MFR system fee is per account. The billing data analysis showed that the average monthly water used by the combined SFR and MFR classes on an annual basis is 9 Ccf. Tier 1 is set at the average 3 The SFR and MFR residential classes were combined because census data for Spring Valley, CA shows that the housing density (people per home or apartment) for MFR is more than SFR and thus MFR customers should get an equal amount of water in Tier 1. Furthermore, most MFR accounts have separate irrigation meters for outdoor water use. SFR 1 Tier 1 1 - 10 3.52$ 2 Tier 2 11 - 22 6.30 3 Tier 3 > =23 8.12 MFR 4 Tier 1 1 - 4 3.29$ 5 Tier 2 5 - 9 5.97 6 Tier 3 > = 10 7.35 7 Commercial / Public Uniform 4.17$ 8 Irrigation Uniform 6.09 9 Temp. Construction Uniform 12.18 10 Construction Uniform 6.09 11 Gov. Surcharge Uniform 0.42$ 12 Energy Charge Elevation 0.063$ Line Customer Class Tiers (Ccf) Current Rates 10 OTAY WATER DISTRICT residential use. The average monthly bill during the summer months (June, July, and August) is 12 Ccf per month. Tier 2 is set at this maximum summer use. Thus the tiers were set at the average use and maximum summer use which is correlates with the Commodity Demand method in which costs are separated into costs to serve water during average flows and maximum (peak) flows. All additional use will be charged in the third tier. Table 2-4: Proposed Tier Changes 2.4.2. CREATION OF DISTINCT COMMERCIAL AND PUBLIC CUSTOMER CLASSES The District currently has a single, unified set of rates for commercial and public customers. However, there is an additional government surcharge of 42 cents per Ccf applied to water used by public accounts in recognition of the fact that public entities do not pay property taxes while all other customers do (the District receives a share of property taxes); the surcharge is intended to equalize the overall revenue collected between the public and non- public customers. Raftelis proposes to eliminate the government surcharge; however, public customers will not receive a tax revenue offset, yielding rates that are slightly higher than other classes. More detail on this calculation can be found in Section 6.2.3. This recommendation also applies to the separation of commercial and public irrigation accounts within the currently combined irrigation and commercial agriculture rate. 2.4.3. CREATION OF CONSTRUCTION CUSTOMER CLASS Water used by permanent construction accounts is currently charged the irrigation rate, while water used by temporary construction accounts is charged two times the irrigation rate. Raftelis recommends creating a new Construction customer class that encompasses both of these types of customers and allows them a separate rate based on their own water use characteristics. SFR 1 Tier 1 1 - 10 1 - 9 2 Tier 2 11 - 22 10 - 12 3 Tier 3 > =23 > =13 MFR 4 Tier 1 1 - 4 1 - 9 5 Tier 2 5 - 9 10 - 12 6 Tier 3 > = 10 > =13 Line Customer Class Current Tiers (Ccf) Proposed Tiers (Ccf) WATER COST OF SERVICE AND RATE DESIGN STUDY 11 3.Legal Requirements Proposition 218, reflected in the California Constitution as Article XIII D, was enacted in 1996 to ensure that rates and fees are reasonable and proportional to the cost of providing service. The principal requirements, as they relate to public water service are as follows: 1. A property-related charge (such as water rates) imposed by a public agency on a parcel shall not exceed the costs required to provide the property-related service. 2. Revenues derived by the charge shall not be used for any purpose other than that for which the charge was imposed. 3. The amount of the charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel. 4. No charge may be imposed for a service unless that service is actually used or immediately available to the owner of property. 5. A written notice of the proposed charge shall be mailed to the owner of record of each parcel at least 45 days prior to the public hearing, when the agency considers all written protests against the charge. As stated in the American Water Works Association’s (AWWA) Principles of Water Rates, Fees, and Charges: Manual of Water Supply Practices - M1 Seventh Edition (Manual M1), “water rates and charges should be recovered from classes of customers in proportion to the cost of serving those customers.” Raftelis follows industry standard rate setting methodologies set forth by the AWWA Manual M1 to ensure this study meets Proposition 218 requirements and establishes rates that do not exceed the proportionate cost of providing water services on a parcel basis. The methodology in the Manual M1 is a nationally recognized water industry ratemaking standard. 4.Rate-Setting Methodology 4.1.Rate Setting Process This study was conducted using industry-standard principles outlined by the AWWA Manual M1. The resulting cost of service analysis and rate design process follows four key steps, outlined below, to determine proposed rates that meet industry standards and comply with relevant regulations. 1. Revenue Requirement Determination: The rate-making process begins by determining the revenue requirement for the test year, also known as the rate-setting year. The revenue requirement represents the full cost that the District must recover from ratepayers in order to reliably provide water service. The revenue requirement includes the District’s operating costs, annual debt service, capital expenditures, and reserve funding as projected based on the annual budget, including any miscellaneous revenues that offset costs by reducing the total revenue that must be collected from rates. The test year for this study is FY 2023, using the projected FY 2023 budget before adjusting for the additional cost of service to be collected through the January 1, 2023 proposed rate increase. The revenue requirement in this study was previously determined through the District’s internal financial planning process and provided to Raftelis. 2. Cost of Service Analysis: The net annual cost of providing water service, or the revenue requirement, is then distributed to customer classes and tiers commensurate with their use of and burden on the water system. More detail on this process is provided below. 12 OTAY WATER DISTRICT 3. Rate Design: After allocating the revenue requirement to each customer class, we design and calculate rates. This process also includes a rate impact analysis and sample customer bill impacts. 4. Administrative Record Preparation and Rate Adoption: The final step in a rate study is to develop the administrative record in conjunction with the rate adoption process. This report serves as the administrative record for this study. The administrative record documents the study results and presents the methodologies, rationale, justifications, and calculations used to determine the proposed rates. A thorough and methodological administrative record serves two important functions: maintaining defensibility in a stringent legal environment and communicating the rationale for revenue adjustments and proposed rates to customers and key stakeholders. 4.2.Cost of Service Analysis The framework and methodology utilized to develop the COS analysis and to apportion the revenue requirement to each customer class and tier is informed by the framework of Proposition 218 and the processes outlined in the AWWA Manual M1. COS analyses are tailored specifically to meet the unique needs of each water system. However, there are five distinct steps in every COS analysis to recover costs from customers in a proportional and defensible manner: 1. Development of Units of Service: Each class has unit demand characteristics that determine their share of costs in later steps. These units include annual water use, maximum day (peaking) water use, number of accounts, number of ¾” equivalent capacity meters, number of ¾” equivalent cost meters, and annual water use weighted by elevation. 2. Cost functionalization: O&M expenses and capital assets are categorized by their function in the system. Sample functions may include supply, treatment, distribution, transmission, customer service, etc. 3. Cost causation component allocation: Functionalized costs are then allocated to cost causation components based on their burden on the system. The cost causation components include commodity, demand, meter service, customer service, amongst others. The revenue requirement is allocated accordingly to the cost causation components and results in the total revenue requirement for each cost causation component. 4. Unit cost development: The revenue requirement for each cost causation component is divided by the appropriate units of service to determine the unit cost for each cost causation component. The unit cost for a given cost component is the same for all customers.. 5. Revenue requirement distribution: The unit cost is utilized to distribute the revenue requirement for each cost causation component to customer classes based on each customer class’s individual service units. Section 5 of this report provides the full calculation of each of the steps described above. 4.2.1. PEAKING AND MAXIMUM DAY WATER USE An cost of service study recognitions the fact that water systems are designed to deliver water to customers to meet both average and peak usage demands. If all customers used the same amount of water each day, evenly throughout the year, system facilities could be sized to provide exactly that amount of water at any given time. However, very few customers use water in such a uniform manner. Commercial and industrial customers may have busier sales or production periods, irrigation customers generally use very little or no water in the winter months and large quantities of water on the hottest days of the summer, and residential customers may go on vacation and use no water for a period or may also water their lawns in a similar pattern as irrigation customers. WATER COST OF SERVICE AND RATE DESIGN STUDY 13 In this way, a water system is analogous to a highway system. Like a highway, a water system must be designed not only to meet average demands (such as in the middle of the day), but also peak demands (such as during rush hour traffic). The water system must be designed in such a way that it can reliably supply water to all customers simultaneously on the single highest demand day of the year (the maximum day). This often means that system infrastructure must be significantly larger than a system designed to meet average day demand. Larger systems are more expensive to build and operate... Therefore, max day capacity is an additional cost incurred above and beyond a system designed for average flows at the same rate every day and throughout the day. Put another way, if no peak demand existed, a much smaller, less costly system could be built to serve customers. Given that additional costs are incurred to provide this additional capacity, how should costs be recovered from the users of the water system. The Commodity-Demand Method assigns costs to users in proportion to both their average day demands and their peak (max day) capacity demands. An important part of estimating maximum day use is the peaking factor, which is a ratio relating average day use to maximum day use. For example, a hypothetical peaking factor of 2.0 for a given customer class means that the maximum day use for that class is two times higher than the average day use. Peaking factors are used to assign costs to each customer class. The Demand cost causation component includes all costs related to providing service on the peak day; the units of service for this component are each class or tier’s maximum day use. The total costs are divided by the total maximum day use to derive the unit cost, which is then distributed back to the customer classes and tier by multiplying the unit cost by the unique units of service. More detail on this process is shown in Sections 5.3 and 5.5. The end goal being that each class pays in proportion to their contribution to peaks in water demand (max day demand). In this way, water users pay their proportionate share of the system upsizing to serve their peak demand. 4.2.2.PEAKING FACTOR CALCULATION Table 4-1 shows the calculation of the maximum day peaking factor for each customer class and tier. The basis for this calculation is monthly billing data provided by the District. Column E shows the water volumes in the highest month of use; this is converted to a daily average for the month in Column F. A preliminary monthly peaking factor is calculated in Column G by dividing average daily water use in the highest month (Column F) by the average daily water use in the year (Column D). However, this preliminary factor does not yet represent the highest day of water use. Industry guidelines require that this factor be scaled up using daily total system water use data. The highest day of system use in the year is divided by the average daily use in the highest system month of they year. This factor, shown in Column H, is then applied to each of the monthly class peaking factors to derive the final maximum day estimate in Column I. The resulting peaking factors are applied to average day use for each class and tier to derive the estimated maximum day use in Section 4.2.1. 14 OTAY WATER DISTRICT Table 4-1: Peaking Factors A B C D E F G H I Annual Use Avg. Day Max Month Avg. Day in Max Month ADMM / Avg. Day System MD / ADMM Max Day Peak Units Ccf Ccf Ccf Ccf Ratio Ratio Ratio SFR 1 Tier 1 0 9 3,992,200 10,938 354,993 11,833 1.08 1.16 1.26 2 Tier 2 10 12 701,000 1,921 76,824 2,561 1.33 1.16 1.55 3 Tier 3 13 + 1,798,100 4,926 252,089 8,403 1.71 1.16 1.98 4 Subtotal 6,491,300 17,784 683,118 22,771 1.28 1.16 1.49 MFR 5 Tier 1 0 9 1,611,600 4,415 139,485 4,650 1.05 1.16 1.22 6 Tier 2 10 12 93,600 256 10,045 335 1.31 1.16 1.52 7 Tier 3 13 + 152,700 418 17,808 594 1.42 1.16 1.65 8 Subtotal 1,857,900 5,090 166,755 5,559 1.09 1.16 1.27 9 Commercial 1,132,700 3,103 114,370 3,812 1.23 1.16 1.43 10 Irrigation 1,131,900 3,101 159,448 5,315 1.71 1.16 1.99 11 Construction 286,500 785 39,787 1,326 1.69 1.16 1.96 12 Public 744,900 2,041 77,791 2,593 1.27 1.16 1.48 13 Public Irr.262,700 720 38,027 1,268 1.76 1.16 2.05 14 Recycled Irrigation 834,700 2,287 113,033 3,706 1.62 1.60 2.59 15 Recycled Public 581,700 1,594 83,153 2,726 1.71 1.60 2.73 16 Recycled Commercial 155,900 1.25 1.60 1.99 Water Use Statistics Uniform Uniform Uniform Uniform Uniform Ccf Uniform Uniform Uniform Line Tier Boundaries WATER COST OF SERVICE AND RATE DESIGN STUDY 15 5. Potable Cost of Service Analysis Section 5 details the cost of service (COS) analysis performed for FY 2023. The COS analysis allocates the overall rate revenue requirement to customer classes based on their proportion of use of and burden on the District’s water system. The COS analysis is the basis for the proposed water rates. 5.1. Units of Service The first step of the cost of service process is to determine the units of service that will be used to assign costs to each customer class. Each customer class has unique water use characteristics that are quantified and used to assign costs, ensuring that each class pays their share of costs in proportion to the impacts their water use characteristics place on the water system. 5.1.1. WATER USE AND PEAKING UNITS Table 5-1 shows the water use and peaking characteristics for each proposed customer class. The annual use in Column A is the total water, measured in Ccf, forecast to be purchased in FY 2023. This amount is divided by 365 days in column B to calculate the average daily use. Unique peaking factors shown in Column C are multiplied by the average daily use to estimate the water use of each customer class on the highest use day of the year. Detail on the derivation of these peaking factors can be found in Appendix A. Elevation adjusted volumes were determined for each customer account by analyzing the height above sea level for each pumping zone. There is no energy surcharge for customers below 450 feet of elevation as the District receives water from its wholesale supplier at a pressure capable of delivering water up to 450 feet of elevation. For customers over 450 feet of elevation; the District incurs additional pumping charges to deliver water which are reflected in the energy surcharge. The District charges the energy surcharge on each unit of water sold for every 100 feet above 450 feet in elevation. For example, a customer at an elevation of 820 feet would have an “elevation adjustment factor” of four (820-450 /100 = 3.7, rounded to 4). All of this customer’s annual water use is multiplied by four to determine the elevation adjusted Ccf; this process was repeated for each customer in the District’s billing data to determine the total elevation adjusted Ccf. The class level results are shown in Column E of Table 5-1. These units are used to allocate power costs related to pumping water. 16 OTAY WATER DISTRICT Table 5-1: Water Use and Peaking Units 5.1.2. CUSTOMER UNITS Customer units include the number of accounts and number of ¾” equivalent meters for each customer class and are used to develop the District’s monthly System Fees. Table 5-2 shows a forecast of the number of accounts by customer class for FY 2023, provided to Raftelis. Table 5-3 shows the meter equivalent ratio calculation, which is used to allocate meter-related costs appropriately and equitably. Larger meters impose larger demand, are more expensive to install, maintain, and replace than smaller meters, and require greater capacity within the water system. Equivalent meter units in this study are based on AWWA-rated hydraulic capacities and are calculated to represent the potential demand on the water system relative to a base meter size. Capacity ratios are calculated by dividing larger meter capacities by the base meter capacity. The base meter in this study is a 3/4-inch meter. AWWA capacity ratios (Column B) are calculated by dividing the capacity of each meter size (Column A) by the capacity of a 3/4-inch meter (Column A, Line 1). Cost equivalent meter ratios are calculated in a similar way in Column D using the actual cost the District incurs to purchase a meter of each size, shown in Column C. The capacity equivalent ratio, developed in Table 5-3 , is multiplied by the number of accounts in Table 5-2 to determine the number of equivalent meter units in Table 5-4. For example, 1,207 1” SFR accounts (Table 4-2, Column A, Line 3) are multiplied by the capacity equivalent factor of approximately 1.7 (Table 4-3, Column B, Line 3) to derive 2,012 ¾” capacity equivalent meters. The process is repeated using cost equivalent ratios shown in Column D of Table 5-3 to yield the cost equivalent meters shown in Table 4-5. A B C D E Annual Use Average Day Use Max Day Peak Factor Max Day Use Elev. Adj. Ccf SFR 1 Tier 1 3,992,200 10,938 1.26 13,749 14,312,806 2 Tier 2 701,000 1,921 1.55 2,975 2,564,051 3 Tier 3 1,798,100 4,926 1.98 9,763 7,443,277 MFR 4 Tier 1 1,611,600 4,415 1.22 5,402 5,338,420 5 Tier 2 93,600 256 1.52 389 311,241 6 Tier 3 152,700 418 1.65 690 20,578 7 Commercial 1,132,700 3,103 1.43 4,429 4,541,016 8 Irrigation 1,131,900 3,101 1.99 6,175 4,512,290 9 Construction 286,500 785 1.96 1,541 473,143 10 Public 744,900 2,041 1.48 3,013 2,933,246 11 Public Irr.262,700 720 2.05 1,473 719,979 Line Customer Class WATER COST OF SERVICE AND RATE DESIGN STUDY 17 Table 5-2: Customer Accounts Table 5-3: Equivalent Meter Ratios A B C D E F G H SFR MFR Commercial Irrigation Construction Public Public Irr. Total Meter Size 1 5/8" - - - - - - - - 2 3/4" 45,412 37 311 111 6 34 9 45,920 3 1" 1,207 190 308 270 4 64 29 2,072 4 1 1/2" 19 249 277 326 3 32 61 967 5 2" 4 267 304 314 1 84 134 1,108 6 3" - 68 30 - - 11 3 112 7 4" - 69 13 2 172 16 3 275 8 6" - 7 3 2 - 6 - 18 9 8" - 3 - - 3 - - 6 10 10" - - - - - 5 - 5 11 Total 46,642 890 1,246 1,025 189 252 239 50,483 12 Percent 92.4% 1.8% 2.5% 2.0% 0.4% 0.5% 0.5% 100.0% Customer AccountsLine A B C D Capacity Ratio to 3/4" Cost Ratio to 3/4" Meter Size 1 5/8" 20 1.0 259.01$ 1.0 2 3/4" 30 1.0 259.01 1.0 3 1" 50 1.7 334.23 1.3 4 1 1/2" 100 3.3 543.26 2.1 5 2" 160 5.3 778.43 3.0 6 3" 350 11.7 2,425.90 9.4 7 4" 630 21.0 4,213.39 16.3 8 6" 1,400 46.7 7,277.67 28.1 9 8" 2,400 80.0 9,092.91 35.1 10 10" 3,800 126.7 13,077.31 50.5 Line Meter Equivalency AWWA Hydraulic Capacity Otay Meter Cost 18 OTAY WATER DISTRICT Table 5-4: AWWA Capacity Equivalent Meters Table 5-5: Cost Equivalent Meters 5.1.3. FIRE PROTECTION UNITS Water systems provide two types of fire protection: public fire protection for firefighting (i.e. fire hydrants) and private fire protection (i.e. fire lines for private structures with sprinkler systems for fire suppression). Raftelis performed a fire demand analysis to determine Fire Protection peaking units, used to determine the total cost to provide fire protection service, and analyzed the number of public fire hydrants and private fire connections in order to allocate the total fire cost between the two. The District provided Raftelis with a count of fire hydrants and private fire line connections. 5.1.3.1.Fire Protection Demand Table 5-6 shows a methodology4 used to calculate peaking units of service associated with Fire Protection based on assumptions regarding the duration and water use rate associated with typical fires. Line 3 of Table 4-6 is calculated as: Max Day Requirements (Ccf/day) = Duration of Fire (hrs) × Water Use Rate (gpm) × 60 mins/hr ÷ 748.05 gallons/Ccf 4 Per the AWWA Manual M1. A B C D E F G H SFR MFR Commercial Irrigation Construction Public Public Irr. Total Meter Size 1 5/8" - - - - - - - - 2 3/4" 45,412 37 311 111 6 34 9 45,920 3 1" 2,012 317 513 450 7 107 48 3,453 4 1 1/2" 63 830 923 1,087 10 107 203 3,223 5 2" 21 1,424 1,621 1,675 5 448 715 5,909 6 3" - 793 350 - - 128 35 1,307 7 4" - 1,449 273 42 3,612 336 63 5,775 8 6" - 327 140 93 - 280 - 840 9 8" - 240 - - 240 - - 480 10 10" - - - - - 633 - 633 11 Total 47,508 5,417 4,132 3,458 3,880 2,073 1,073 67,541 12 Percent 70.3% 8.0% 6.1% 5.1% 5.7% 3.1% 1.6% 100.0% Line Capacity Equivalent Meters A B C D E F G H SFR MFR Commercial Irrigation Construction Public Public Irr. Total Meter Size 1 5/8" - - - - - - - - 2 3/4" 45,412 37 311 111 6 34 9 45,920 3 1" 1,558 245 397 348 5 83 37 2,674 4 1 1/2" 40 522 581 684 6 67 128 2,028 5 2" 12 802 914 944 3 252 403 3,330 6 3" - 637 281 - - 103 28 1,049 7 4" - 1,122 211 33 2,798 260 49 4,474 8 6" - 197 84 56 - 169 - 506 9 8" - 105 - - 105 - - 211 10 10" - - - - - 252 - 252 11 Total 47,021 3,668 2,780 2,176 2,924 1,220 654 60,443 12 Percent 77.8% 6.1% 4.6% 3.6% 4.8% 2.0% 1.1% 100.0% Line Cost Equivalent Meters WATER COST OF SERVICE AND RATE DESIGN STUDY 19 This study assumes that the water system could need to support fighting two simultaneous fires, corresponding to the expected firefighting water demand at a typical single-family residential home and a fire at a school or hospital as defined by the District’s master plan. The total capacity requirement in Column D, Line 3 represents a peak demand, similar to the maximum day peaking costs for other classes determined in Table 5-1 Table 5-6: Fire Protection Requirements 5.1.3.2. Public and Private Fire Connections Table 5-7 shows the calculation of equivalent fire demand associated with public hydrants and private fire lines. Each connection size has a fire flow demand factor similar to the hydraulic capacity factor of a water meter. The diameter of the connection (in inches) is raised to the 2.63 power to determine the fire flow demand factor (Column F).5 The fire flow demand factor is multiplied by the number of connections by size (Columns A and C) to calculate equivalent fire demand (Columns B and D). Total equivalent fire demand is shown for public hydrants and private fire lines are shown in Lines 11, column D and B, respectively. Table 5-7: Public and Private Fire Connections 5 Hazen-Williams equation and AWWA Manual M1 A B C D Units Fire 1 Fire 2 Total 1 Fire Duration Hours 2 5 2 Flow Rate Gal. / Minute 1,500 5,000 3 MD Capacity Ccf / Day 241 2,005 2,246 Line Fire Service Requirement A B C D E F Units Accounts 6" Eq. Accounts 6" Eq. Meter Size 1 5/8" - - - 0.003 2 3/4" 2 0.0 - 0.0 0.004 3 1" 7 0.1 - 0.1 0.009 4 1 1/2" - - - 0.026 5 2" 20 1.1 - 1.1 0.056 6 3" 2 0.3 - 0.3 0.162 7 4" 87 30.0 - 30.0 0.344 8 6" 170 170.0 7,131 7,131 7,301.0 1.000 9 8" 488 1,039.9 - 1,039.9 2.131 10 10" 112 429.2 - 429.2 3.832 11 Total 888 1,670.6 7,131 7,131 8,801.6 12 Percent 19.0% 81.0% Line Fire Protection Units of Service Public Hydrants Demand Factor Total 6" Eq. Meters Private Fire Connections 20 OTAY WATER DISTRICT 5.1.4.UNITS OF SERVICE SUMMARY Table 5-8 summarizes the units of service developed above and assigns them to each cost causation component. Commodity units in Columns A and J are from Table 5-1, Column A; public and public irrigation classes are not assigned units in the Tax Offset component (Column J) to avoid giving them the benefit of property taxes paid by other customers, as discussed in Section 2.4.2. Demand units (Column B) for most classes are from Table 5-1, Column D. Public and private fire demand units are derived by multiplying the total fire demand (Table 5-6, Column D, Line 3) by the percentages derived in Table 5-7, Line 12. Accounts (Column C) were previously shown in Table 5-2, cost meters (Column D) in Table 5-5, and capacity meters (Column E) in Table 5-4. Costs related to CWA/MWD fixed charges (Column F) are also distributed using capacity meters, as discussed in more detail in Section 5.1.2. Finally, public and private fire equivalent meters (Columns G and H) are from Table 5-7, Line 11. Table 5-8: Units of Service Summary A B C D E F G H I J Commodity Demand Accounts Cost Meters Cap. Meters CWA/MWD Public Fire Private Fire Energy Tax Offset Ccf Ccf/Day Accounts 3/4" Eq. 3/4" Eq. 3/4" Eq. 6" Eq. 6" Eq. Elev. Adj. Ccf Ccf SFR 1 Tier 1 3,992,200 13,749 14,312,806 3,992,200 2 Tier 2 701,000 2,975 2,564,051 701,000 3 Tier 3 1,798,100 9,763 7,443,277 1,798,100 4 Customer 46,642 47,021 47,508 47,508 5 Subtotal 6,491,300 26,487 46,642 47,021 47,508 47,508 - - 24,320,134 6,491,300 MFR 6 Tier 1 1,611,600 5,402 5,338,420 1,611,600 7 Tier 2 93,600 389 311,241 93,600 8 Tier 3 152,700 690 20,578 152,700 9 Customer 890 3,668 5,417 5,417 10 Subtotal 1,857,900 6,481 890 3,668 5,417 5,417 - - 5,670,239 1,857,900 11 Commercial 1,132,700 4,429 1,246 2,780 4,132 4,132 4,541,016 1,132,700 12 Irrigation 1,131,900 6,175 1,025 2,176 3,458 3,458 4,512,290 1,131,900 13 Construction 286,500 1,541 189 2,924 3,880 3,880 473,143 286,500 14 Public 744,900 3,013 252 1,220 2,073 2,073 2,933,246 - 15 Public Irrigation 262,700 1,473 239 654 1,073 1,073 719,979 - 16 Public Fire - 1,820 - - - 7,131 - 17 Private Fire - 426 - - - 1,671 - - 18 Total Units of Service 11,907,900 51,845 50,483 60,443 67,541 67,541 7,131 1,671 43,170,047 10,900,300 19 Units of Service less Fire 11,907,900 49,599 50,483 60,443 67,541 67,541 43,170,047 10,900,300 Line Units of Service Units WATER COST OF SERVICE AND RATE DESIGN STUDY 21 5.2. Revenue Requirement Table 5-9 shows the forecasted rate revenue requirement for FY 2023 (also referred to as the test year or rate-setting year). The revenue requirement is split into operating and capital categories (Columns A and B), which are later allocated based on O&M expenses and capital assets respectively. The expenses (Lines 1-3) are equal to FY 2023 forecast expenses. The miscellaneous revenue (Line 5) includes interest earnings, late fees, tax revenue, and other miscellaneous revenues that are applied as offsets to the final rate revenue requirement. The contribution to reserves adjustment (Line 6) is equal to FY 2023 projected net cash change and represents the increase in the rate revenue requirement resulting from a projected addition to reserves in FY 2023. All aforementioned values are from the District’s internal financial planning forecast for FY 2023 in absence of any additional rate increase. The final rate revenue requirement (Line 9) is calculated as follows: Total revenue required from rates (Line 9) = Revenue requirements (Line 4) + Non-Rate Revenue (Line 5) + Adjustments (Line 8) Table 5-9: FY 2023 Projected Revenue Required from Rates 5.3. Functionalization and Allocation of Expenses After determining the revenue requirement, the next step of the COS analysis is to first functionalize the O&M expenses and capital assets and then allocate the functionalized expenses to cost components. Cost functionalization is required to best allocate costs to the cost components. The cost components are then distributed to customer classes in proportion to how each class uses the system. This study uses the following functional categories: » Supply: Purchased water from Metropolitan Water District (MWD) and San Diego County Water Authority (CWA), as well as other minor miscellaneous supply costs » Treatment: costs associated with the District’s water treatment system » Transmission: costs associated with the District’s water transmission system A B C Operating Capital Total Expenses 1 Operating Expenses 93,437,200$ 93,437,200$ 2 Debt Service 8,169,700 8,169,700 3 Rate Funded Capital 10,114,100 10,114,100 4 Subtotal 93,437,200$ 18,283,800$ 111,721,000$ 5 Non-Rate Revenue (8,904,123)$ (10,928,100)$ (19,832,223)$ Adjustments 6 Contribution to Reserves -$ 1,157,223$ 1,157,223$ 7 Mid-Year Increase - - - 8 Subtotal -$ 1,157,223$ 1,157,223$ 9 Total Revenue Required 84,533,077$ 8,512,923$ 93,046,000$ Revenue RequirementLine 22 OTAY WATER DISTRICT » Distribution: costs associated with the District’s water distribution system » Pumping: costs related to operating the District’s water pumping stations » Storage: costs related to the District’s water storage system » Customer Service: costs of meter reading, billing, and other customer services » Meters and Services: costs of meter maintenance/repair » Direct Public Fire: Costs related to maintenance of fire hydrants » Direct Private Fire: Costs of maintaining backflow devices associated with private fire connections » Energy: Power purchases associated with operating pumping stations » General: costs for general administration and operational expenses or any other costs that do not clearly relate to a specific functional category After functionalization of costs, we allocate the functionalized costs to cost causation components. Allocating the functional costs to the cost components recovers costs from classes based on water use behavior. Each cost causation component is a cost center that is recovered from users based on how they cause the costs in each cost center. Some cost causation components correspond directly to a functional category listed above. The cost causation components include: » Commodity: costs associated with providing water under average water demand conditions, primarily consisting of volumetric water purchases and overhead related to such things as attending wholesale water board meetings and general management of water supply issues » Demand: costs associated with providing water under peak demand conditions, including a small portion of water supply costs related to the District’s overall peaking characteristics and the sizing of assets such as water mains and storage facilities to meet peak summer demand » Customer: directly associated with the Customer functional category » Cost Meters: directly associated with the Meters functional category » Capacity Meters: used for a reallocation of some Demand costs in a later step » CWA/MWD: costs associated with fixed charges levied by CWA on the District » Public Fire: costs associated with providing water to public hydrants for fire protection purposes » Private Fire: costs associated with providing water to private fire lines for fire protection purposes » Energy: directly associated with the Energy function » Tax Offset: revenues from property taxes levied by the District » General: directly associated with the General function 5.3.1. O&M EXPENSE ALLOCATION District staff functionalized FY 2023 forecast operating expenses. Table 5-10 shows the O&M functionalization results. Functionalizing costs is necessary in order to allocate total O&M expenses to the cost causation components. WATER COST OF SERVICE AND RATE DESIGN STUDY 23 Table 5-10: Summary of O&M Expenses by Functional Category Table 5-11 shows the allocation of functionalized FY 2023 O&M expense forecast to each cost causation component according to the criteria described above. Total O&M expenses associated with each function (Column L) were determined in Table 5-10. The total dollar amount allocated to each cost causation component (Line 23) is determined by adding the values in Lines 2 to 22 for each cost component. On Line 24, General and Administrative costs, shown in Column K, are reallocated to other cost causation components proportionally to the component subtotals on Line 23. General and Administrative costs are not allocated to the Commodity component because overhead costs related to water purchases are already included in the supply function. Additionally, components related to a pass-through cost (Energy and CWA/MWD) or tax offset do not receive an allocation of general costs. Note that the reallocation results in a shifting of costs between cost causation components but does not change the total operating expenses. The final O&M Allocation is shown in Line 25. The percentages (Line 26) represent the proportion of total O&M expenses allocated to each cost causation component. These O&M allocation percentages are later used to allocate some miscellaneous revenues. 24 OTAY WATER DISTRICT Table 5-11: Allocation of O&M Expenses to Cost Causation Components A B C D E F G H I J K L Commodity Demand Accounts Cost Meters Cap. Meters CWA/MWD Dir. Pub. Fire Dir. Priv. Fire Energy Tax Offset General Total Function 1 Supply 44,650,904$ 792,000$ -$ -$ -$ 13,581,000$ -$ -$ -$ -$ -$ 59,023,904$ 2 Water Purchases (CWA) 44,171,000 - - - - - - - - - 44,171,000 3 Water Purchases (CSD) - - - - - - - - - - - 4 Transportation - - - - - - - - - - - 5 Infrastructure Access (CWA) - - - - - 3,128,000 - - - - 3,128,000 6 Customer Service (CWA) - - - - - 1,894,000 - - - - 1,894,000 7 Emergency Storage (CWA) - - - - - 4,947,000 - - - - 4,947,000 8 Reliability Charges (CWA) - - - - - 2,947,000 - - - - 2,947,000 9 Capacity Reservation (MWD) - 792,000 - - - - - - - - 792,000 10 RTS Charges (MWD) - - - - - 665,000 - - - - 665,000 11 Additional Overhead Costs 479,904 - - - - - - - - - 479,904 12 Treatment - 1,588,386 - - - - - - - - - 1,588,386 13 Transmission - 743,917 - - - - - - - - - 743,917 14 Distribution - 5,333,208 - - - - - - - - - 5,333,208 15 Treated Water Pumping - 1,920,921 - - - - - - - - - 1,920,921 16 Distribution Storage - 1,750,363 - - - - - - - - - 1,750,363 17 Customer Service - - 3,186,022 - - - - - - - - 3,186,022 18 Meters and Services - - - 1,084,740 - - - - - - - 1,084,740 19 Direct Public Fire - - - - - - 93,678 - - - - 93,678 20 Direct Private Fire - - - - - - - 36,039 - - - 36,039 21 Energy - - - - - - - - 2,949,000 - - 2,949,000 22 General - - - - - - - - - - 15,727,022 15,727,022 23 Subtotal 44,650,904$ 12,128,795$ 3,186,022$ 1,084,740$ -$ 13,581,000$ 93,678$ 36,039$ 2,949,000$ -$ 15,727,022$ 93,437,200$ 24 Reallocation of General 11,540,122$ 3,031,388$ 1,032,092$ -$ 89,132$ 34,289$ (15,727,022)$ -$ 25 Total 44,650,904$ 23,668,917$ 6,217,409$ 2,116,832$ -$ 13,581,000$ 182,810$ 70,328$ 2,949,000$ -$ 93,437,200$ 26 Percent Allocation 47.8% 25.3% 6.7% 2.3% 0.0% 14.5% 0.2% 0.1% 3.2% 0.0% 0.0% Line O&M Allocations WATER COST OF SERVICE AND RATE DESIGN STUDY 25 5.3.2. CAPITAL ALLOCATION Capital assets are utilized in COS analyses to allocate the capital revenue requirement to the cost causation components. The distribution of a short-term capital plan to the cost causation components can be heavily weighted to specific cost causation components based on the type of projects. Using short-term planned capital projects to allocate capital costs would cause rates to fluctuate and cause customer confusion. The overall capital asset base however is considerably more stable in the long-term, and therefore is more representative of long-term capital investment in the District’s water system. Thus, functionalized capital assets are used to allocate capital costs. District staff provided Raftelis with a detailed asset listing that included the original cost less depreciation (OCLD) of each individual asset. As part of the capital asset analysis, Raftelis and District staff assigned each asset to a functional category. Total asset value (OCLD) by functional category is shown in Table 5-12. Table 5-12: Summary of Capital Assets by Functional Category Table 5-13 shows the allocation of capital assets by function to each cost causation component as well as the reallocation of General costs in line 12; this is consistent with the methodology used to determine the allocation of O&M expenses to cost causation components in Table 5-11. The final capital asset allocation percentages (Line 14) represent the proportion of total capital assets allocated to each cost causation component (Line 13). These percentages are used to allocate annual capital costs, including debt service, rate funded capital, and reserve contributions in Table 5-14. Function 1 Supply 1,676,140$ 0.6% 2 Treatment 1,409,004 0.5% 3 Transmission 68,034,845 22.5% 4 Distribution 115,939,701 38.4% 5 Treated Water Pumping 18,921,442 6.3% 6 Distribution Storage 70,747,830 23.4% 7 Customer Service - 0.0% 8 Meters and Services 6,432,846 2.1% 9 Direct Public Fire 49,872 0.0% 10 General 18,726,044 6.2% 11 Total 301,937,724$ 100.0% Line Asset Functionalization Results Percent of Total 26 OTAY WATER DISTRICT Table 5-13: Allocation of Functionalized Capital Assets to Cost Causation Components\ Table 5-14: Allocation of Capital Costs to Cost Causation Components A B C D E F G H I J K L Commodity Demand Accounts Cost Meters Cap. Meters CWA/MWD Dir. Pub. Fire Dir. Priv. Fire Energy Tax Offset General Total Function 1 Supply 1,676,140$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,676,140$ 2 Treatment - 1,409,004 - - - - - - - - - 1,409,004 3 Transmission - 68,034,845 - - - - - - - - - 68,034,845 4 Distribution - 115,939,701 - - - - - - - - - 115,939,701 5 Treated Water Pumping - 18,921,442 - - - - - - - - - 18,921,442 6 Distribution Storage - 70,747,830 - - - - - - - - - 70,747,830 7 Customer Service - - - - - - - - - - - - 8 Meters and Services - - - 6,432,846 - - - - - - - 6,432,846 9 Direct Public Fire - - - - - - 49,872 - - - - 49,872 10 General - - - - - - - - - - 18,726,044 18,726,044 11 Subtotal 1,676,140$ 275,052,821$ -$ 6,432,846$ -$ -$ 49,872$ -$ -$ -$ 18,726,044$ 301,937,724$ 12 Reallocation of General 110,827$ 18,186,578$ -$ 425,342$ -$ -$ 3,298$ -$ (18,726,044)$ -$ 13 Total 1,786,967$ 293,239,400$ -$ 6,858,188$ -$ -$ 53,170$ -$ -$ -$ 301,937,724$ 14 Percent Allocation 0.6% 97.1% 0.0% 2.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Line Asset Allocations A B C D E F G H I J K L Commodity Demand Accounts Cost Meters Cap. Meters CWA/MWD Dir. Pub. Fire Dir. Priv. Fire Energy Tax Offset General Total Expense 1 Debt Service 48,351$ 7,934,344$ -$ 185,566$ -$ -$ 1,439$ -$ -$ -$ -$ 8,169,700$ 2 Rate Funded Capital 59,859 9,822,730 - 229,731 - - 1,781 - - - - 10,114,100 3 Contribution to Reserves 6,849 1,123,885 - 26,285 - - 204 - - - - 1,157,223 4 Mid-Year Adjustment - - - - - - - - - - - - 5 Subtotal 115,058$ 18,880,959$ -$ 441,582$ -$ -$ 3,423$ -$ -$ -$ -$ 19,441,023$ 6 Reallocation of General -$ -$ -$ -$ -$ -$ -$ -$ 7 Total 115,058$ 18,880,959$ -$ 441,582$ -$ -$ 3,423$ -$ -$ -$ 19,441,023$ 8 Percent Allocation 0.6% 97.1% 0.0% 2.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Line Capital Cost Allocations WATER COST OF SERVICE AND RATE DESIGN STUDY 27 5.3.3. REVENUE OFFSET ALLOCATION The District has a substantial amount of revenue from sources other than rates that is used to offset the total revenue requirement. Raftelis and District staff analyzed each non-rate revenue source to determine the most reasonable allocation basis to the cost causation components. The results are shown in Table 5-15.  All Operating Fund rent and lease revenue, grants, and non-rate revenues earned in the Expansion, Betterment, Replacement, and New Water Supply funds are allocated on the same basis as assets using the percentages shown in Table 5-13, Line 14.  Meter and Lateral Fees as well as Backflow Maintenance fees are used to directly offset costs in the Cost Meters component.  Chula Vista Sewer Collection Fees directly offset customer service costs in the Accounts component.  Property taxes and Availability Fees are separated into the Tax Offset component which is discussed in Section 5.  All other non-rate revenues in the Operating Fund are allocated using the total O&M allocation percentages in Table 5-11, Line 26. 28 OTAY WATER DISTRICT Table 5-15: Non-Rate Revenue Allocations A B C D E F G H I J K L Commodity Demand Accounts Cost Meters Cap. Meters CWA/MWD Dir. Pub. Fire Dir. Priv. Fire Energy Tax Offset General Total Operating Fund 1 Late Penalties 429,606 227,729 59,820 20,367 - 130,669 1,759 677 28,374 - - 899,000 2 Meter and Lateral Fees - - - 106,000 - - - - - - - 106,000 3 1% Property Tax - - - - - - - - - 4,503,000 - 4,503,000 4 Availability - - - - - - - - - 654,000 - 654,000 5 Interest 207,874 110,191 28,945 9,855 - 63,227 851 327 13,729 - - 435,000 6 Backflow Maintenance Fees - - - 2,000 - - - - - - - 2,000 7 Billable Work Orders 38,230 20,265 5,323 1,812 - 11,628 157 60 2,525 - - 80,000 8 Rents and Leases 9,860 1,618,027 - 37,842 - - 293 - - - - 1,666,023 9 Chula Vista Sewer Collection Fee - - 477,000 - - - - - - - - 477,000 10 Grants 18 2,914 - 68 - - 1 - - - - 3,000 11 Miscellaneous 37,800 20,037 5,263 1,792 - 11,497 155 60 2,496 - - 79,100 12 Subtotal 723,387$ 1,999,163$ 576,352$ 179,736$ -$ 217,021$ 3,215$ 1,124$ 47,124$ 5,157,000$ -$ 8,904,123$ Expansion Fund 13 Transfer from 2010 COP Reserve 432$ 70,897$ -$ 1,658$ -$ -$ 13$ -$ -$ -$ -$ 73,000$ 14 Capacity Fee - Restricted 15,210 2,495,963 - 58,375 - - 453 - - - - 2,570,000 15 BAB Subsidy 1,332 218,518 - 5,111 - - 40 - - - - 225,000 16 Interest Income (663) (108,871) - (2,546) - - (20) - - - - (112,100) 17 Subtotal 16,310$ 2,676,507$ -$ 62,597$ -$ -$ 485$ -$ -$ -$ -$ 2,755,900$ Betterment Fund 18 Interest Income 126$ 20,686$ -$ 484$ -$ -$ 4$ -$ -$ -$ -$ 21,300$ 19 BAB Subsidy 2,054 337,004 - 7,882 - - 61 - - - - 347,000 20 Availability Fee - Restricted 3,871 635,159 - 14,855 - - 115 - - - - 654,000 21 Subtotal 6,050$ 992,849$ -$ 23,220$ -$ -$ 180$ -$ -$ -$ -$ 1,022,300$ Replacement Fund 22 Transfer from 2010 COP Reserve 5,100$ 836,973$ -$ 19,575$ -$ -$ 152$ -$ -$ -$ -$ 861,800$ 23 BAB Subsidy 278 45,646 - 1,068 - - 8 - - - - 47,000 24 Capacity Fee - Restricted 36,605 6,006,820 - 140,486 - - 1,089 - - - - 6,185,000 25 Subtotal 41,983$ 6,889,439$ -$ 161,128$ -$ -$ 1,249$ -$ -$ -$ -$ 7,093,800$ New Water Supply Fund 26 BAB Subsidy 53$ 8,741$ -$ 204$ -$ -$ 2$ -$ -$ -$ -$ 9,000 27 Interest Income 279 45,743 - 1,070 - - 8 - - - - 47,100 28 Subtotal 332$ 54,484$ -$ 1,274$ -$ -$ 10$ -$ -$ -$ -$ 56,100$ 29 Total 788,063$ 12,612,443$ 576,352$ 427,956$ -$ 217,021$ 5,140$ 1,124$ 47,124$ 5,157,000$ -$ 19,832,223$ Line Non-Rate Revenue Allocations WATER COST OF SERVICE AND RATE DESIGN STUDY 29 5.4.Cost of Service Allocation Table 5-16 shows the allocation of the total FY 2023 projected rate revenue requirement to the various cost causation components. The preliminary COS allocations (Line 4) are subject to further adjustments for fire protection costs and revenue stability, Discussed in Section 4.5.2. The totals in Line 7 reflect the total costs that should be recovered in each cost component. 5.4.1. PRELIMINARY COST OF SERVICE ALLOCATION The results shown in Table 5-16 are calculated as follows based on intermediate results developed in the preceding subsections: 1. Operating Revenue Requirement (Line 1): The total operating revenue requirement consists solely of the District’s O&M expenses. The allocation of the total operating revenue requirement to each cost causation component was previously determined in Table 5-11, Line 25. 2. Capital Revenue Requirement (Line 2): The total capital revenue requirement consists of capital expenditures and debt service payments. The allocation of the total capital revenue requirement was shown in Table 5-14, Line 7. 3. Non-Rate Revenue (Line 3): Total revenue offsets were determined in Table 5-15, Line 29. 4. Preliminary Cost of Service Allocation (Line 4): The preliminary COS allocation to each cost causation component equals the sum of Lines 1 through 3. Note that the total preliminary COS allocation (Column K, Line 4) equals the total FY 2023 projected rate revenue requirement (from Table 5-9, Column C, Line 9). Table 5-16: Cost of Service Allocation A B C D E F G H I J K Commodity Demand Accounts Cost Meters Cap. Meters CWA/MWD Public Fire Private Fire Energy Tax Offset Total Expenses 1 O&M 44,650,904$ 23,668,917$ 6,217,409$ 2,116,832$ -$ 13,581,000$ 182,810$ 70,328$ 2,949,000$ -$ 93,437,200$ 2 Capital 115,058 18,880,959 - 441,582 - - 3,423 - - - 19,441,023 3 Non-Rate Revenue (788,063) (12,612,443) (576,352) (427,956) - (217,021) (5,140) (1,124) (47,124) (5,157,000) (19,832,223) 4 Subtotal Expenses 43,977,900$ 29,937,433$ 5,641,057$ 2,130,457$ -$ 13,363,979$ 181,094$ 69,204$ 2,901,876$ (5,157,000)$ 93,046,000$ 5 Fire Reallocation -$ (1,296,844)$ -$ -$ -$ -$ 1,050,692$ 246,151$ -$ -$ -$ 6 COS Reallocation -$ (2,577,653)$ -$ -$ 2,577,653$ -$ -$ -$ -$ -$ -$ 7 Total Expenses 43,977,900$ 26,062,936$ 5,641,057$ 2,130,457$ 2,577,653$ 13,363,979$ 1,231,786$ 315,356$ 2,901,876$ (5,157,000)$ 93,046,000$ Cost of ServiceLine 30 OTAY WATER DISTRICT 5.4.2.ADJUSTMENTS TO COST OF SERVICE Raftelis proposes a few adjustments to the preliminary cost of service related to fire protection and demand costs. 5.4.2.1.Reallocation of Public and Private Fire Costs. The share of Demand (peaking) costs allocated to the public and private fire protection classes is shown in Table 5-17. The total preliminary demand costs (from Table 5-16, Column B, Line 4) and peaking units (from Table 5-8, Column B) are used to calculate a peaking unit cost, as shown in Line 6. The unit cost is then multiplied by the public and private fire class peaking units in Lines 2 and 3 to derive the fire protection related peaking cost for each in Lines 7 and 8. These fire protection related Demand costs are subtracted from the total Demand cost causation component and reassigned to the public and private fire cost components in Table 5-16, Line 5. This reassignment is revenue neutral. Table 5-17: Fire Cost Reallocation 5.4.2.1.Allocation of Demand Costs to Capacity Meters Raftelis allocated a portion of Demand costs to what is known as the Capacity Meter cost component. As discussed above in Section 4.2.1, Demand costs are operation and maintenance costs for facilities that the District maintains to provide peak capacity. These costs are fixed costs, incurred regardless of water use, and can be recovered in proportion to meter size; therefore, it is appropriate to collect a portion of these fees through the fixed charges. This was the basis for a portion of demand costs, as shown in Line 6 of Table 4-16 to be reallocated to the Capacity Meter component which is collected through the System Fee. 5.4.3. FINAL COST OF SERVICE ALLOCATION The final allocation of the revenue requirement to the cost causation components (i.e. COS allocation, Line 7 of Table 5-16) equals the sum of Lines 4, 5, and 6. 1 Demand Costs 29,937,433$ Peaking Units 2 Public Fire 1,820 3 Private Fire 426 4 All Other Customers 49,599 5 Total Peaking Units 51,845 6 Demand Unit Cost 577.44$ Fire Demand Costs 7 Public Fire 1,050,692$ 8 Private Fire 246,151 9 Total Fire Demand Costs 1,296,844$ ValueLine Fire Cost Reallocation WATER COST OF SERVICE AND RATE DESIGN STUDY 31 5.5.Unit Cost Development Units of service (Table 5-8) are used to convert total adjusted costs allocated to each cost causation component (Table 5-16) into unit costs, which are directly incorporated into the proposed rate calculations in Section 6. The unit cost development identifies, for example, the total purchased water cost (Commodity component) per unit of water sold, or the total customer service cost per customer. Once these units costs are identified, they can be proportionally assigned to each customer class to reflect their unique characteristics. Unit costs comprise the constituent parts from which proposed rates are calculated in Section 6. Table 5-18 shows unit costs for each cost causation component (Column C), which are calculated by dividing the final COS allocation in Column A (from Table 5-16, Line 7) by the relevant units of service in Column B (from Table 5-8). The units of service are based on either projected FY 2023 water use, peaking units, or number of accounts/fire lines/equivalent meter units. Unit costs shown in this Table are rounded to the nearest penny for presentation purposes. Table 5-18: Development of Unit Costs A B C D Cost Component 1 Commodity 43,977,900$ 11,907,900 3.69$ Ccf 2 Demand 26,062,936 49,599 525.47 Ccf/Day 3 Accounts 5,641,057 50,483 111.74 Account/Yr 4 Cost Meters 2,130,457 60,443 35.25 Eq. Meter / Yr 5 Cap. Meters 2,577,653 67,541 38.16 Eq. Meter / Yr 6 CWA/MWD 13,363,979 67,541 197.86 Eq. Meter / Yr 7 Public Fire 1,231,786 7,131 172.74 Eq. Meter / Yr 8 Private Fire 315,356 1,671 188.77 Eq. Meter / Yr 9 Energy 2,901,876 43,170,047 0.067 Adj. Ccf 10 Tax Offset (5,157,000) 10,900,300 (0.47) Ccf 11 Total 93,046,000$ Unit CostDescriptionLineCostUnits of Service Units 32 OTAY WATER DISTRICT 5.6. Customer Class Costs Unit costs developed in Table 5-18 are used to distribute costs to each customer class based on their units of service from Table 5-8. The Unit Costs are multiplied by the service units for each cost causation component to derive the cost to each class for each cost component in Columns A to J, Lines 1 to 17. For example, the Commodity cost of $3.69 per Ccf (Table 5-18, Column C, Line 1) is multiplied by the SFR Tier 1 Commodity units of 3,992,200 (Table 5-8, Column A, Line 1) to derive the cost of $14,743,872 (Column A, Line1). Column L shows the reallocation of public fire costs to the customer classes as detailed below in Table 5-20. The total cost of service for each class is shown in Column M; this total represents the costs the utility incurs to provide service to each unique customer class. The constituent pieces of the total are directly used to calculate the proposed rates in Section 6, ensuring that the rates reflect the costs of the utility and customer characteristics and behaviors. Table 5-19: Customer Class Cost of Service A B C D E F G H I J K L M Commodity Demand Accounts Cost Meters Cap. Meters CWA/MWD Public Fire Private Fire Energy Tax Offset Total Public Fire Adj. Total SFR 1 Tier 1 14,743,872$ 7,224,486$ -$ -$ -$ -$ -$ -$ 962,102$ (1,888,735)$ 21,041,725$ 21,041,725$ 2 Tier 2 2,588,912 1,563,456 - - - - - - 172,355 (331,647) 3,993,075 3,993,075 3 Tier 3 6,640,690 5,130,266 - - - - - - 500,335 (850,692) 11,420,598 11,420,598 4 Customer - - 5,211,857 1,657,373 1,813,121 9,400,222 - - - - 18,082,572 1,059,034 19,141,607 5 Subtotal 23,973,475$ 13,918,207$ 5,211,857$ 1,657,373$ 1,813,121$ 9,400,222$ -$ -$ 1,634,791$ (3,071,075)$ 54,537,971$ 1,059,034$ 55,597,005$ MFR 6 Tier 1 5,951,912$ 2,838,665$ -$ -$ -$ -$ -$ -$ 358,847$ (762,458)$ 8,386,966$ 8,386,966$ 7 Tier 2 345,681 204,428 - - - - - - 20,922 (44,283) 526,748 526,748 8 Tier 3 563,948 362,410 - - - - - - 1,383 (72,243) 855,497 855,497 9 Customer - - 99,450 129,295 206,723 1,071,767 - - - - 1,507,235 33,680 1,540,915 10 Subtotal 6,861,541$ 3,405,503$ 99,450$ 129,295$ 206,723$ 1,071,767$ -$ -$ 381,152$ (878,984)$ 11,276,446$ 33,680$ 11,310,126$ 11 Commercial 4,183,254$ 2,327,554$ 139,230$ 97,981$ 157,695$ 817,577$ -$ -$ 305,246$ (535,887)$ 7,492,649$ 99,019$ 7,591,669$ 12 Irrigation 4,180,299 3,244,931 114,535 76,684 131,959 684,150 - - 303,315 (535,509) 8,200,364 - 8,200,364 13 Construction 1,058,093 809,716 21,119 103,054 148,077 767,715 - - 31,805 (135,545) 2,804,034 20,026 2,824,061 14 Public 2,751,042 1,583,127 28,159 43,019 79,115 410,174 - - 197,172 - 5,091,808 20,026 5,111,834 15 Public Irrigation 970,196 773,897 26,706 23,051 40,963 212,375 - - 48,397 - 2,095,585 - 2,095,585 16 Public Fire - - - - - - 1,231,786 - - - 1,231,786 (1,231,786) - 17 Private Fire - - - - - - - 315,356 - - 315,356 315,356 18 Total Cost of Service 43,977,900$ 26,062,936$ 5,641,057$ 2,130,457$ 2,577,653$ 13,363,979$ 1,231,786$ 315,356$ 2,901,876$ (5,157,000)$ 93,046,000$ -$ 93,046,000$ Class Cost of ServiceLine WATER COST OF SERVICE AND RATE DESIGN STUDY 33 Public fire costs are reallocated to other customer classes based on their unique fire demands as determined by the District’s master plan. The total fire requirement for each class in Column D is the product of multiplying the number of accounts, the required fire flow, and the fire duration in Columns A to C. The percentage distribution of the fire requirement, shown in Column E, is used to allocate the total public fire revenue requirement from Table 5-19, Column G, Line 18 to each class as shown in Column F. Table 5-20: Public Fire Reallocation 5.7.Customer Class Comparison Table 5-21 compares the total proposed revenue requirement for each class (Table 5-19, Column M) under the proposed rates to the total revenue that would be collected from each class under the current rates. Note that the total revenue collected under either rate structure corresponds to the revenue requirement from Table 5-9, indicating that the proposed rates and rate structure changes are revenue neutral. Distributional impacts to the various customer classes are a result of the District’s changing cost structure and water use patterns relative to the prior rate study, and due to refinements to the methodology to maintain adherence to Cost of Service Principles. As mentioned in Section 4.2.2, the equivalent meters are now based on the ¾-inch meter as the base meter. This a major reason for the increased cost allocation to SFR. A B C D E F Number of Meters Required Fire Flow Required Fire Duration Total Fire Requirement Fire Allocation Fire Allocation Accounts gal. per min. Minutes 1,000 Gal. % $ 1 Public Fire Cost 1,231,786$ Customer Class 2 SFR 46,642 1,500 120 8,395,560 86.0% 1,059,034$ 3 MFR 890 2,500 120 267,000 2.7% 33,680 4 Commercial 1,246 3,500 180 784,980 8.0% 99,019 5 Irrigation 1,025 - - - 0.0% - 6 Construction 189 3,500 240 158,760 1.6% 20,026 7 Public 252 3,500 180 158,760 1.6% 20,026 8 Public Irrigation 239 - - - 0.0% - 9 Total 50,483 9,765,060 100.0% 1,231,786$ Units Line Public Fire Cost Reallocation 34 OTAY WATER DISTRICT Table 5-21: Cost of Service Comparison Proposed Current Dollars Percent Customer Class 1 SFR 55,597,005$ 52,722,782$ 2,874,223$ 5.5% 59.8% 56.7% 2 MFR 11,310,126 11,952,634 (642,508) -5.4% 12.2% 12.8% 3 Commercial 7,591,669 7,496,276 95,392 1.3% 8.2% 8.1% 4 Irrigation 8,200,364 9,083,922 (883,558) -9.7% 8.8% 9.8% 5 Construction 2,824,061 4,491,196 (1,667,136) -37.1% 3.0% 4.8% 6 Public 5,111,834 4,616,615 495,219 10.7% 5.5% 5.0% 7 Public Irrigation 2,095,585 2,342,151 (246,566) -10.5% 2.3% 2.5% 8 Private Fire 315,356 340,423 (25,068) -7.4% 0.3% 0.4% 9 Total 93,046,000$ 93,046,000$ -$ 0.0% 100.0% 100.0% Current Percent of Total Line Proposed Percent of Total ChangeCost of Service Summary Revenue WATER COST OF SERVICE AND RATE DESIGN STUDY 35 6. Proposed Potable Water Rates Section 6 details the proposed water rate calculations. The proposed rates are calculated directly from the results of the COS analysis (from Section 5). 6.1. Proposed Fixed Charges Table 6-1 shows the fixed charge component calculations: the System Fee, MWD/CWA charge, and private fire line charges. Costs for the customer, capacity meter, cost meter, and MWD/CWA components are from Table 5-19, Line 18. Public fire costs, subcategorized by class, are from Table 5-19, Column L. Private fire costs have been divided into the Demand (capacity) component and backflow and lateral maintenance costs identified by District staff. The backflow charges are proportional to meter size while the lateral costs do not vary by meter size. The costs identified in Column A are divided by the units in Column B to derive the annual charge in column C; this amount is converted to a monthly charge in Column D by dividing by 12. Table 6-1: Fixed Charge Components A C D Cost Annual Charge Monthly Charge Rate Component 1 Customer 5,641,057$ 50,483 Accounts 111.74$ 9.31$ 2 Cap. Meters 2,577,653 67,541 Cap. Eq 38.16 3.18 3 Cost Meters 2,130,457 60,443 Cost Eq 35.25 2.94 4 Public Fire 5 SFR 1,059,034$ 47,508 Cap. Eq 22.29 1.86 6 MFR 33,680 5,417 Cap. Eq 6.22 0.52 7 Commercial 99,019 4,132 Cap. Eq 23.96 2.00 8 Irrigation - 3,458 Cap. Eq - - 9 Construction 20,026 3,880 Cap. Eq 5.16 0.43 10 Public 20,026 2,073 Cap. Eq 9.66 0.81 11 Public Irrigation - 1,073 Cap. Eq - - 12 CWA/MWD 13,363,979$ 67,541 Cap. Eq 197.86 16.49 13 Private Fire 14 Capacity 246,151$ 1,671 6" Eq. 147.34$ 12.28$ 15 Lateral 44,522 1,671 6" Eq. 26.65 2.22 16 Backflow 25,806 888 Fire Accounts 29.06 2.42 Fixed Charges UnitsLine B 36 OTAY WATER DISTRICT 6.1.1. PROPOSED SYSTEM FEES Table 6-2, Table 6-3, and Table 6-4 show the detailed calculation of proposed System Fees, which are based on Customer and Equivalent meter unit rates. Customer costs do not vary by connection type or size. Therefore, the Customer unit rate, previously derived in Table 6-1, Column D, Line 1 is applied uniformly to all System Fees (Column A). Because Capacity Meters costs vary by meter size based on hydraulic capacity, the unit cost (Table 5-18, Column D, Line 2) is multiplied by the AWWA capacity ratio for each meter size (Table 5-3, Column B). For example, the AWWA capacity ratio for a 1” meter is 1.67, is multiplied by $3.18 to derive the meter component cost of $5.30 (Column B, Line 3). The same process is repeated for the cost meters component in Line C. The three fixed charge components in Columns A, B, and C are added in Column D, showing the subtotal of these components that all customers pay each month. Table 6-2: System Fees Table 6-3 shows the calculation of the monthly public fire protection component of the total System Fee. The unit cost for each class was shown in Table 6-1, Column D, Lines 5 to 11. These costs are scaled to each meter size using AWWA capacity ratios in the same manner as described above. Table 6-3: Public Fire Protection A B C D Customer Cap. Meters Cost Meters Subtotal Meter Size 1 5/8" 9.31$ 3.18$ 2.94$ 15.43$ 2 3/4" 9.31 3.18 2.94 15.43 3 1" 9.31 5.30 3.79 18.40 4 1 1/2" 9.31 10.60 6.16 26.07 5 2" 9.31 16.96 8.83 35.10 6 3" 9.31 37.10 27.51 73.93 7 4" 9.31 66.79 47.78 123.88 8 6" 9.31 148.42 82.53 240.26 9 8" 9.31 254.43 103.12 366.86 10 10" 9.31 402.85 148.30 560.46 System Fee ComponentsLine A B C D E F G SFR MFR Commercial Irrigation Construction Public Public Irr. Meter Size 1 5/8" 1.86$ 0.52$ 2.00$ -$ 0.43$ 0.81$ -$ 2 3/4" 1.86 0.52 2.00 - 0.43 0.81 - 3 1" 3.10 0.86 3.33 - 0.72 1.34 - 4 1 1/2" 6.19 1.73 6.66 - 1.43 2.68 - 5 2" 9.91 2.76 10.65 - 2.29 4.29 - 6 3" 21.67 6.05 23.30 - 5.02 9.39 - 7 4" 39.01 10.88 41.94 - 9.03 16.91 - 8 6" 86.69 24.18 93.19 - 20.07 37.57 - 9 8" 148.61 41.45 159.76 - 34.41 64.40 - 10 10" 235.30 65.63 252.95 - 54.48 101.97 - Line Public Fire Protection WATER COST OF SERVICE AND RATE DESIGN STUDY 37 Table 6-4 shows the final proposed System Fee for each class, calculated by adding the subtotal from Table 6-2, Column D to the corresponding public fire protection component from Table 6-3. These rates are rounded to the next penny. Table 6-4: Total System Fees 6.1.2. PROPOSED CWA / MWD CHARGES The CWA/MWD charges recover wholesale water purchase costs levied by the San Diego County Water Authority and the Metropolitan Water District. These charges are calculated in a similar way to the System Fees. The unit cost in Table 6-1, Column D, Line 12 is scaled according to the AWWA capacity ratios in Table 5-3. Table 6-5: CWA / MWD Charges 6.1.3. PROPOSED PRIVATE FIRE LINE CHARGES Fixed charges for private fire lines are calculated in the same manner as the fixed charges Table 6-2 All Customers pay the same unit rate for backflow maintenance, as calculated in Table 6-1, Column D, Line 16. The capacity and lateral components (Table 6-1, Column D, Lines 14 and 15) are scaled to larger meter sizes using the equivalent demand factors from Table 5-7, Column F. These components for each meter size are added in Table 6-6, Column D. A B C D E F G SFR MFR Commercial Irrigation Construction Public Public Irr. Meter Size 1 5/8" 17.29$ 15.95$ 17.43$ 15.43$ 15.86$ 16.24$ 15.43$ 2 3/4" 17.29 15.95 17.43 15.43 15.86 16.24 15.43 3 1" 21.50 19.27 21.74 18.41 19.12 19.75 18.41 4 1 1/2" 32.27 27.81 32.74 26.08 27.51 28.76 26.08 5 2" 45.01 37.87 45.76 35.11 37.40 39.40 35.11 6 3" 79.98 97.23 73.93 78.95 83.32 73.93 7 4" 134.77 165.82 123.89 132.92 140.79 123.89 8 6" 264.45 333.46 240.26 260.34 277.83 240.26 9 8" 408.31 526.62 366.86 401.27 431.27 366.86 10 10" 626.10 813.42 560.46 614.94 662.44 560.46 Line System Fees A Proposed Meter Size 1 5/8" 16.49$ 2 3/4" 16.49 3 1" 27.49 4 1 1/2" 54.97 5 2" 87.94 6 3" 192.37 7 4" 346.27 8 6" 769.48 9 8" 1,319.10 10 10" 2,088.58 Line CWA/MWD Passthrough 38 OTAY WATER DISTRICT Table 6-6: Private Fire Charges A B C D Backflow Lateral Capacity Total Meter Size 1 5/8" 2.42$ 0.01$ 0.03$ 2.46$ 2 3/4" 2.42 0.01 0.05 2.49 3 1" 2.42 0.02 0.11 2.56 4 1 1/2" 2.42 0.06 0.32 2.81 5 2" 2.42 0.12 0.68 3.23 6 3" 2.42 0.36 1.98 4.77 7 4" 2.42 0.76 4.23 7.42 8 6" 2.42 2.22 12.28 16.93 9 8" 2.42 4.73 26.17 33.33 10 10" 2.42 8.51 47.06 57.99 Private FireLine WATER COST OF SERVICE AND RATE DESIGN STUDY 39 6.2. Proposed Volume Rates Volume Charges are designed to recover the portion of the rate revenue requirement allocated to the following cost causation components: Commodity, Demand, and Tax Offset. 6.2.1. COMMODITY RATE COMPONENT Table 6-7 shows the calculation of the Commodity rate component. Billable water volumes from Table 5-1 are shown in Column A. The cost for each class and tier was previously calculated in Table 5-19, Column A and is restated in Column B. The Commodity rate component in Column C is the result of dividing Column B by Column A. All customers pay the same amount per Ccf since commodity costs primarily consist of water purchases. Table 6-7: Commodity Rate Component A B C Billed Ccf Cost Rate SFR 1 Tier 1 3,992,200 14,743,872$ 3.69$ 2 Tier 2 701,000 2,588,912 3.69 3 Tier 3 1,798,100 6,640,690 3.69 4 Subtotal 6,491,300 23,973,475$ 3.69$ MFR 5 Tier 1 1,611,600 5,951,912$ 3.69$ 6 Tier 2 93,600 345,681 3.69 7 Tier 3 152,700 563,948 3.69 8 Subtotal 1,857,900 6,861,541$ 3.69$ 9 Commercial 1,132,700 4,183,254$ 3.69$ 10 Irrigation 1,131,900 4,180,299 3.69 11 Construction 286,500 1,058,093 3.69 12 Public 744,900 2,751,042 3.69 13 Public Irr.262,700 970,196 3.69 14 Total 11,907,900 43,977,900$ 3.69$ Line Commodity Component 40 OTAY WATER DISTRICT 6.2.2. DEMAND RATE COMPONENT Table 6-8 shows the calculation of the Demand rate component. Billable water volumes from Table 5-1 are shown in Column A. The cost for each class and tier was previously calculated in Table 5-19, Column B and is restated in Column B. The rate component in Column C is the result of dividing Column B by Column A. The demand rate component is different for each customer class because it reflects a particular classes’ cost that is related to the design, sizing, and operation of the water system. Each customer class as well as customers in each tier use water in a different manner – meaning certain customers show little variation in water use throughout the year, while others vary their use greatly during the year. For example, irrigation customers and customers in Tiers 2 and 3, have higher water use at certain times of the year (peak times), and therefore are more responsible for the seasonal and daily water use peaks witnessed by the District6. Peaking factors were derived from District water use data and were shown in Table 5-1 and peaking factors describe how a class uses water. Commercial customers tend to have less variation in daily, monthly and yearly water use and thus have a lower peaking factors as shown in Table 5-1. The infrastructure (pipes, tanks and pumps) required to serve water during peak times of use must be upsized7 compared to a system that is designed to serve water at average flows8. There is a capital and operational cost associated with upsizing infrastructure. The demand rates are calculated to recover the capital and operational costs associated with upsizing infrastructure and charge customers who are more responsible for the upsizing (peaks). Therefore, the demand rate for Irrigation customers and Tiers 2 and 3 for example, are higher than customers with lower peaking factors such as commercial customers or Tier 1 customers. The derivation of unit costs in Section 5.5 and the calculation of class costs in Section 5.6 ensure that each customer class and tier are treated equally in that the unit costs are the same for each class but are applied in proportion to water use during peak times of use, therefore allocating slightly more costs to classes/tiers that demonstrate higher peaking. The District (and most water utilities who set rates according to the guidance provided by the AWWA in their M1 manual: Principles of Water Rates, Fees and Charges) bills its customers based on total water used per period (regardless of the day of use). This requires that costs associated with maximum day use be recovered on an average day basis, resulting in the different Demand Component rates shown in this Table. Ultimately, customers with a higher peaking factor (Table 5-1, Column C) pay a higher Demand rate. In this way, water users pay their proportionate share of the system upsizing to serve their peak demand. Figure 6-1 shows graphically the upsizing of the distribution system (not drawn to scale) to accommodate average flow, max hour flows and max day flows. The District is setting rates using only max day peaking factors and does not use max hour. Larger pipes are more expensive to install and maintain than smaller pipes. This also applies to distribution reservoirs (tanks). Distribution reservoirs designed to meet average flows could be smaller than reservoirs designed to meet max day flows. Larger tanks are more expensive to construct and maintain than smaller tanks. That rates shown in Table 6-8, are calculated to charge those that cause the upsizing of the pipes and tanks (as evidenced by peaking factors) in proportion to their demonstrated max hour water use. 6 All customer classes have variation in use, but certain classes show more variation in use compared to others. 7 This is evidenced by the District’s Water Master Plan prepared by Atkins which discusses how certain functions (distribution, storage) of the water system are designed/sized to serve water during peak times of use. 8 The Commodity Demand method and the Base-Extra Capacity method are rate setting methods described in the AWWA M1 Manual, and both seek to separate costs into costs associated with serving water at average flows (commodity costs or base costs) and costs to serve water during peak times of use (demand costs or extra capacity costs). These costs are then collected via rates such as those shown in Table 6-8. WATER COST OF SERVICE AND RATE DESIGN STUDY 41 Figure 6-1: Pipe Sizes Required for Average, Max Day and Max Hour Flows (Not Drawn to Scale) 42 OTAY WATER DISTRICT Table 6-8: Demand Rate Component 6.2.3.TAX OFFSET RATE COMPONENT Table 6-9 shows the calculation of the Tax Offset rate component. Billable water volumes from Table 5-1 are shown in Column A. The cost for each class and tier was previously calculated in Table 5-19, Column J and is restated in Column B. The rate component in Column C is the result of dividing Column B by Column A. All customers who pay property taxes receive the same offset in which lowers their volume rates. Public and public irrigation customers, who do not pay property taxes, do not receive this rate offset. A B C Billed Ccf Cost Rate SFR 1 Tier 1 3,992,200 7,224,486$ 1.81$ 2 Tier 2 701,000 1,563,456 2.23 3 Tier 3 1,798,100 5,130,266 2.85 4 Subtotal 6,491,300 13,918,207$ 2.14$ MFR 5 Tier 1 1,611,600 2,838,665$ 1.76$ 6 Tier 2 93,600 204,428 2.18 7 Tier 3 152,700 362,410 2.37 8 Subtotal 1,857,900 3,405,503$ 1.83$ 9 Commercial 1,132,700 2,327,554$ 2.05$ 10 Irrigation 1,131,900 3,244,931 2.87 11 Construction 286,500 809,716 2.83 12 Public 744,900 1,583,127 2.13 13 Public Irr.262,700 773,897 2.95 14 Total 11,907,900 26,062,936$ 2.19$ Line Demand Component WATER COST OF SERVICE AND RATE DESIGN STUDY 43 Table 6-9: Tax Offset Rate Component A B C Billed Ccf Cost Rate SFR 1 Tier 1 3,992,200 (1,888,735)$ (0.47)$ 2 Tier 2 701,000 (331,647) (0.47) 3 Tier 3 1,798,100 (850,692) (0.47) 4 Subtotal 6,491,300 (3,071,075)$ (0.47)$ MFR 5 Tier 1 1,611,600 (762,458)$ (0.47)$ 6 Tier 2 93,600 (44,283) (0.47) 7 Tier 3 152,700 (72,243) (0.47) 8 Subtotal 1,857,900 (878,984)$ (0.47)$ 9 Commercial 1,132,700 (535,887)$ (0.47)$ 10 Irrigation 1,131,900 (535,509) (0.47) 11 Construction 286,500 (135,545) (0.47) 12 Public - - - 13 Public Irr.- - - 14 Total 10,900,300 (5,157,000)$ (0.47)$ Line Tax Offset Component 44 OTAY WATER DISTRICT 6.2.4. TOTAL PROPOSED VOLUME RATE The proposed volume rates in Table 6-10 are the result of adding each of the constituent components derived in Table 6-7, Table 6-8, and Table 6-9. The total rate for each class and tier is shown in Column D. Table 6-10: Total Proposed Volume Rates 6.2.5.ENERGY SURCHARGE The proposed energy surcharge in Table 6-11, Column D is the result of dividing the cost in Column B (from Table 5-19, Column I) by the total elevation adjusted volume units (Table 5-8, Column I). Table 6-11: Energy Surcharge 6.3. Monthly Bill Impacts The following Tables show sample monthly bills for each customer class using the most common meter sizes for the class and a range of water use volumes to provide a representative sample of impacts across many customers. A B C D Commodity Demand Tax Offset Total SFR 1 Tier 1 3.69$ 1.81$ (0.47)$ 5.03$ 2 Tier 2 3.69 2.23 (0.47) 5.46 3 Tier 3 3.69 2.85 (0.47) 6.08 MFR 4 Tier 1 3.69$ 1.76$ (0.47)$ 4.99$ 5 Tier 2 3.69 2.18 (0.47) 5.41 6 Tier 3 3.69 2.37 (0.47) 5.60 7 Commercial 3.69$ 2.05$ (0.47)$ 5.28$ 8 Irrigation 3.69 2.87 (0.47) 6.09 9 Construction 3.69 2.83 (0.47) 6.05 10 Public 3.69 2.13 - 5.82 11 Public Irr.3.69 2.95 - 6.64 Line Volume Charge A B D E Energy Surcharge Cost Unit Rate Current 1 Energy Cost 2,901,876$ 43,170,047 Adj. Ccf 0.068$ 0.063$ Line Units C WATER COST OF SERVICE AND RATE DESIGN STUDY 45 Table 6-12: SFR Bill Impacts Table 6-13: MFR Bill Impacts Table 6-14: Commercial Bill Impacts Table 6-15: Commercial Irrigation Bill Impacts System MWD / CWA Volume Total System MWD / CWA Volume Total Dollar Percent Meter Size Ccf 3/4" 3 20.08$ 17.00$ 10.56$ 47.64$ 17.29$ 16.49$ 15.09$ 48.87$ 1.23$ 2.6% 3/4" 5 20.08 17.00 17.60 54.68 17.29 16.49 25.15 58.93 4.25 7.8% 3/4" 11 20.08 17.00 41.50 78.58 17.29 16.49 56.19 89.97 11.39 14.5% 3/4" 14 20.08 17.00 60.40 97.48 17.29 16.49 73.81 107.59 10.11 10.4% 1" 28 28.39 31.57 159.52 219.48 21.50 27.49 158.93 207.92 (11.56) -5.3% Current Charges Proposed Charges Change SFR Fixed MWD / CWA Volume Total Fixed MWD / CWA Volume Total Dollar Percent Meter Size Ccf 3" 40 308.22$ 258.17$ 131.60$ 697.99$ 79.98$ 192.37$ 199.60$ 471.95$ (226.04)$ -32.4% 1" 18 62.37 31.57 59.22 153.16 19.27 27.49 89.82 136.58 (16.58) -10.8% 2" 45 162.53 121.39 172.17 456.09 37.87 87.94 224.55 350.36 (105.73) -23.2% 1" 35 62.37 31.57 155.35 249.29 19.27 27.49 174.65 221.41 (27.88) -11.2% 1" 36 62.37 31.57 195.18 289.12 19.27 27.49 183.42 230.18 (58.94) -20.4% Current Charges Proposed Charges Change MFR Fixed MWD / CWA Volume Total Fixed MWD / CWA Volume Total Dollar Percent Meter Size Ccf 3/4" 1 41.61$ 17.00$ 4.17$ 62.78$ 17.43$ 16.49$ 5.28$ 39.20$ (23.58)$ -37.6% 3/4" 5 41.61 17.00 20.85 79.46 17.43 16.49 26.40 60.32 (19.14) -24.1% 1" 17 58.75 31.57 70.89 161.21 21.74 27.49 89.76 138.99 (22.22) -13.8% 1 1/2" 55 101.66 71.36 229.35 402.37 32.74 54.97 290.40 378.11 (24.26) -6.0% 2" 305 153.11 121.39 1,271.85 1,546.35 45.76 87.94 1,610.40 1,744.10 197.75 12.8% Current Charges Proposed Charges Change Commercial Fixed MWD / CWA Volume Total Fixed MWD / CWA Volume Total Dollar Percent Meter Size Ccf 3/4" 0 35.13$ 17.00$ -$ 52.13$ 15.43$ 16.49$ -$ 31.92$ (20.21)$ -38.8% 3/4" 6 35.13 17.00 36.54 88.67 15.43 16.49 36.54 68.46 (20.21) -22.8% 1" 43 49.62 31.57 261.87 343.06 18.41 27.49 261.87 307.77 (35.29) -10.3% 1 1/2" 124 85.86 71.36 755.16 912.38 26.08 54.97 755.16 836.21 (76.17) -8.3% 2" 366 129.28 121.39 2,228.94 2,479.61 35.11 87.94 2,228.94 2,351.99 (127.62) -5.1% Current Charges Proposed Charges Change Commercial Irrigation 46 OTAY WATER DISTRICT Table 6-16: Construction Bill Impacts Table 6-17: Temporary Construction Bill Impacts Table 6-18: Public Bill Impacts Table 6-19: Public Irrigation Bill Impacts Fixed MWD / CWA Volume Total Fixed MWD / CWA Volume Total Dollar Percent Meter Size Ccf 1" 5 49.62$ 30.45$ 80.07$ 19.12$ 27.49$ 30.25$ 76.86$ (3.21)$ -4.0% 4" 55 375.63 334.95 710.58 132.92 346.27 332.75 811.94 101.36 14.3% 4" 402 375.63 2,448.18 2,823.81 132.92 346.27 2,432.10 2,911.29 87.48 3.1% Current Charges Proposed Charges Change Construction Fixed MWD / CWA Volume Total Fixed MWD / CWA Volume Total Dollar Percent Meter Size Use 3/4" 5 35.13$ 60.90$ 96.03$ 15.86$ 16.49$ 30.25$ 46.11$ (49.92)$ -52.0% 4" 10 375.63 121.80 497.43 132.92 346.27 60.50 193.42 (304.01) -61.1% 4" 50 375.63 609.00 984.63 132.92 346.27 302.50 435.42 (549.21) -55.8% 4" 100 375.63 1,218.00 1,593.63 132.92 346.27 605.00 737.92 (855.71) -53.7% 4" 400 375.63 4,872.00 5,247.63 132.92 346.27 2,420.00 2,552.92 (2,694.71) -51.4% 4" 900 375.63 10,962.00 11,337.63 132.92 346.27 5,445.00 5,577.92 (5,759.71) -50.8% 4" 1300 375.63 15,834.00 16,209.63 132.92 346.27 7,865.00 7,997.92 (8,211.71) -50.7% Current Charges Proposed Charges Change Temp. Construction Fixed MWD / CWA Volume Total Fixed MWD / CWA Volume Total Dollar Percent Meter Size Ccf 3/4" 3 41.61$ 17.00$ 13.77$ 72.38$ 16.24$ 16.49$ 17.46$ 50.19$ (22.19)$ -30.7% 3/4" 11 41.61 17.00 50.49 109.10 16.24 16.49 64.02 96.75 (12.35) -11.3% 1" 24 58.75 31.57 110.16 200.48 19.75 27.49 139.68 186.92 (13.56) -6.8% 2" 76 153.11 121.39 348.84 623.34 39.40 87.94 442.32 569.66 (53.68) -8.6% 3" 601 290.34 258.17 2,758.59 3,307.10 83.32 192.37 3,497.82 3,773.51 466.41 14.1% Current Charges Proposed Charges Change Public Fixed MWD / CWA Volume Total Fixed MWD / CWA Volume Total Dollar Percent Meter Size Ccf 3/4" 0 41.61$ 17.00$ -$ 58.61$ 15.43$ 16.49$ -$ 31.92$ (26.69)$ -45.5% 3/4" 2 41.61 17.00 13.02 71.63 15.43 16.49 13.28 45.20 (26.43) -36.9% 1 1/2" 17 101.66 71.36 110.67 283.69 26.08 54.97 112.88 193.93 (89.76) -31.6% 2" 74 153.11 121.39 481.74 756.24 35.11 87.94 491.36 614.41 (141.83) -18.8% 2" 402 153.11 121.39 2,617.02 2,891.52 35.11 87.94 2,669.28 2,792.33 (99.19) -3.4% Change Public Irrigation Current Charges Proposed Charges WATER COST OF SERVICE AND RATE DESIGN STUDY 47 7.Recycled Cost of Service Analysis Section 6 details the recycled water cost of service (COS) analysis performed for FY 2023. The COS analysis allocates the overall rate revenue requirement to customer classes based on their proportion of use of and burden on the District’s water system. This provides the basis for the development of proposed water rates. 7.1. Units of Service The first step of the cost of service process is to determine the units of service that will be used to assign costs to each customer class. 7.1.1. WATER USE AND PEAKING UNITS Table 7-1 shows the water use and peaking characteristics of each of the proposed customer classes. The annual use in Column A is the total amount of water, measured in Ccf, forecasted to be purchased in FY 2023. This amount is divided by 365 days in column B to estimate the average daily use. Unique peaking factors shown in Column C are multiplied by the average daily use to estimate the water use of each customer class on the highest use day of the year. Detail on the derivation of these peaking factors can be found in Appendix A. Elevation adjusted volumes were determined for each customer account by analyzing the height above sea level for each pumping zone. The District charges the energy surcharge on each unit of water sold for every 100 feet above 450 feet in elevation. For example, a customer at an elevation of 820 feet would have an “elevation adjustment factor” of four (820-450 /100 = 3.7, rounded to 4). All of this customer’s annual water use is multiplied by four to determine the elevation adjusted Ccf; this process was repeated for each customer in the District’s billing data to determine the elevation adjusted Ccf. The class level results are shown in Column E of Table 7-1. Table 7-1: Water Use and Peaking Units 7.1.2. CUSTOMER UNITS Customer units include the number of accounts and number of ¾” equivalent meters of each customer class and are used to develop the District’s monthly System Fees. Table 7-2 shows a forecast of the number of accounts by customer class for FY 2023, provided to Raftelis by the District. A B C D E Annual Use (Ccf) Avg. Day (Ccf /day)MD Peak MD Total (Ccf /day)Elev. Adj. Ccf 1 Recycled Irrigation 834,700 2,287 2.59 5,913 3,344,148 2 Recycled Public 581,700 1,594 2.73 4,350 1,971,123 3 Recycled Commercial 155,900 427 1.99 852 893,880 4 Total 1,572,300 4,308 2.58 11,115 6,209,151 Line Test Year Units of Service 48 OTAY WATER DISTRICT The capacity equivalent ratio for each meter size from Table 5-3 is multiplied by the number of accounts in Table 7-2 to determine the number of equivalent meter units in Table 7-3. The process is repeated using cost equivalent ratios in Table 7-4. Table 7-2: Customer Accounts Table 7-3: AWWA Capacity Equivalent Meters A B C D Recycled Public Rec. Rec. Comm. Total Meter Size 1 5/8" - - - - 2 3/4" 7 1 - 8 3 1" 65 59 - 124 4 1 1/2" 214 198 - 412 5 2" 110 96 - 206 6 3" 2 2 - 4 7 4" 5 2 - 7 8 6" 2 - - 2 9 8" - - - - 10 10" - - 1 1 11 Total 405 358 1 764 12 Percent 53.0% 46.9% 0.1% Customer AccountsLine A B C D Recycled Public Rec. Rec. Comm. Total Meter Size 1 5/8" - - - - 2 3/4" 7 1 - 8 3 1" 108 98 - 207 4 1 1/2" 713 660 - 1,373 5 2" 587 512 - 1,099 6 3" 23 23 - 47 7 4" 105 42 - 147 8 6" 93 - - 93 9 8" - - - - 10 10" - - 127 127 11 Total 1,637 1,337 127 3,100 12 Percent 52.8% 43.1% 4.1% Capacity Equivalent MetersLine WATER COST OF SERVICE AND RATE DESIGN STUDY 49 Table 7-4: Cost Equivalent Meters A B C D Recycled Public Rec. Rec. Comm. Total Meter Size 1 5/8" - - - - 2 3/4" 7 1 - 8 3 1" 84 76 - 160 4 1 1/2" 449 415 - 864 5 2" 331 289 - 619 6 3" 19 19 - 37 7 4" 81 33 - 114 8 6" 56 - - 56 9 8" - - - - 10 10" - - 50 50 11 Total 1,027 832 50 1,909 12 Percent 33.1% 1.6% 61.6% Line Cost Equivalent Meters 50 OTAY WATER DISTRICT 7.1.3.UNITS OF SERVICE SUMMARY Table 7-5 summarizes the units of service developed above and assigns them to each cost causation component. Commodity units in Column A are from Table 7-1, Column A. Demand units (Column B) are from Table 5-1, Column D. Accounts (Column C) were previously shown in Table 7-2, cost meters (Column D) in Table 7-4, and capacity meters (Column E) in Table 7-3. Table 7-5: Units of Service Summary A B C D E F Commodity Demand Accounts Cost Eq. Meters Capacity Eq. Meters Energy Ccf Ccf/Day Accounts 3/4" Eq. 3/4" Eq. Adj. Ccf 1 Recycled 834,700 5,913 405 1,027 1,637 3,344,148 2 Public Rec.581,700 4,350 358 832 1,337 1,971,123 3 Rec. Comm.155,900 852 1 50 127 893,880 4 Total Units of Service 1,572,300 11,115 764 1,909 3,100 6,209,151 Line Unit Cost of Service Units WATER COST OF SERVICE AND RATE DESIGN STUDY 51 7.2. Revenue Requirement Table 7-6 shows the rate revenue requirement for FY 2023 (also referred to as the test year or rate-setting year). The revenue requirement is split into operating and capital categories (Columns A and B), which are later allocated based on O&M expenses and capital assets respectively. The expenses (Lines 1-3) are equal to FY 2023 forecast expenses. The miscellaneous revenue (Line 5) includes interest earnings, late fees, tax revenue, and other miscellaneous revenues that are applied as offsets to the final rate revenue requirement. The contribution to reserves adjustment (Line 6) is equal to FY 2023 forecast net cash change and represents the increase in the rate revenue requirement resulting from a projected increase to reserves in FY 2023 in the absence of any additional rate increase. All aforementioned values are from the District’s internal financial planning forecast for FY 2023. The final rate revenue requirement (Line 9) is calculated as follows: Total revenue required from rates (Line 9) = Revenue requirements (Line 4) + Non-Rate Revenue (Line 5) + Adjustments (Line 8) Table 7-6: FY 2023 Projected Revenue Required from Rates 7.3. Functionalization and Allocation of Expenses After determining the revenue requirement, the next step of the COS analysis is to allocate O&M expenses and capital assets to the following functional categories: » Supply: Purchased water from the City of San Diego as well as other minor miscellaneous supply costs » Treatment: costs associated with the District’s water treatment system » Transmission: costs associated with the District’s water transmission system » Distribution: costs associated with the District’s water distribution system » Pumping: costs related to operating the District’s water pumping stations » Storage: costs related to the District’s water storage system » Customer Service: costs of meter reading, billing, and other customer services A B C Operating Capital Total Expenses 1 Operating Expenses 8,535,500$ 8,535,500$ 2 Debt Service 1,233,300 1,233,300 3 Rate Funded Capital 2,000,000 2,000,000 4 Subtotal 8,535,500$ 3,233,300$ 11,768,800$ 5 Non-Rate Revenue (756,000)$ (1,476,000)$ (2,232,000)$ Adjustments 6 Contribution to Reserves -$ (193,800)$ (193,800)$ 7 Mid-Year Increase - - - 8 Subtotal -$ (193,800)$ (193,800)$ 9 Total Revenue Required 7,779,500$ 1,563,500$ 9,343,000$ Revenue RequirementLine 52 OTAY WATER DISTRICT » Meters and Services: costs of meter maintenance/repair » Energy: Power purchases associated with operating pumping stations » General: costs for general administration and operational expenses or any other costs that do not clearly relate to a specific functional category After functionalization of costs, we allocate the functionalized costs to cost causation components. Some cost causation components correspond directly to a functional category listed above. The cost causation components include: » Commodity: costs associated with providing water under average water demand conditions, primarily consisting of volumetric water purchases and overhead related to such things as attending wholesale water board meetings and general management of water supply issues » Demand: costs associated with providing water under peak demand conditions, including a portion of water supply costs related to the District’s overall peaking characteristics and the sizing of assets such as water mains and storage facilities to meet peak summer demand » Customer: directly associated with the Customer functional category » Cost Meters: directly associated with the Meters functional category » Capacity Meters: used for a reallocation of some Demand costs in a later step » Energy: directly associated with the Energy function » General: directly associated with the General function 7.3.1. O&M EXPENSE ALLOCATION District staff functionalized FY 2023 operating expenses. Table 7-7 shows a summary of the O&M functionalization results. Functionalizing costs is necessary in order to allocate total O&M expenses to the cost causation components. Table 7-7: Summary of O&M Expenses by Functional Category Function 1 Supply 5,698,041$ 66.8% 2 Treatment 448,294 5.3% 3 Transmission 179,734 2.1% 4 Distribution 371,211 4.3% 5 Recycled Water Pumping 242,660 2.8% 6 Distribution Storage 97,393 1.1% 7 Customer Service 88,129 1.0% 8 Meters and Services 94,807 1.1% 9 Fire Service - 0.0% 10 Energy 562,000 6.6% 11 General 753,231 8.8% 12 Total 8,535,500$ 100.0% Line Budget Functionalization Results Percent of Total WATER COST OF SERVICE AND RATE DESIGN STUDY 53 Table 7-8 shows the allocation of functionalized projected FY 2023 O&M expenses to each cost causation component according to the criteria described above. Total O&M expenses associated with each function (Column H) were determined in Table 7-7. The total dollar amount allocated to each cost causation component (Line 12) is the sum of values in Lines 1 to 11 for each cost component. The total General revenue requirement (Column G, Line 12) is fully reallocated to other cost causation components on a proportional basis. General and Administrative costs are not allocated to the Commodity component because overhead costs related to water purchases are already included in the supply function. Additionally, components related to a pass-through cost (Energy) or tax offset do not receive an allocation of general costs. Note that the reallocation results in a shifting of costs between cost causation components but does not change the total rate revenue requirement. The final O&M Allocation is shown in Line 14. The percentages (Line 15) represent the proportion of total O&M expenses allocated to each cost causation component. These O&M allocation percentages are later used to allocate some miscellaneous revenues. 54 OTAY WATER DISTRICT Table 7-8: Allocation of O&M Expenses to Cost Causation Components A B C D E F G H Commodity Demand Accounts Cost Eq. Meters Capacity Eq. Meters Energy General Total Function 1 Supply 5,698,041$ -$ -$ -$ -$ -$ -$ 5,698,041$ 2 Treatment - 448,294 - - - - - 448,294 3 Transmission - 179,734 - - - - - 179,734 4 Distribution - 371,211 - - - - - 371,211 5 Recycled Water Pumping - 242,660 - - - - - 242,660 6 Distribution Storage - 97,393 - - - - - 97,393 7 Customer Service - - 88,129 - - - - 88,129 8 Meters and Services - - - 94,807 - - - 94,807 10 Energy - - - - - 562,000 - 562,000 11 General - - - - - - 753,231 753,231 12 Subtotal 5,698,041$ 1,339,292$ 88,129$ 94,807$ -$ 562,000$ 753,231$ 8,535,500$ 13 Reallocation of General 662,711$ 43,608$ 46,912$ -$ (753,231)$ -$ 14 Total 5,698,041$ 2,002,003$ 131,737$ 141,719$ -$ 562,000$ 8,535,500$ 15 Percent Allocation 66.8% 23.5% 1.5% 1.7% 0.0% 6.6% 0.0% Line O&M Allocations WATER COST OF SERVICE AND RATE DESIGN STUDY 55 7.3.2. CAPITAL ALLOCATION Capital assets are utilized in COS analyses to allocate the capital revenue requirement to the various cost causation components. The distribution of a short-term capital plan can be heavily weighted to specific cost causation components based on the type of projects. Using short-term planned capital projects to allocate capital costs would cause rates to fluctuate and cause customer confusion. The overall capital asset base however is considerably more stable in the long-term, and therefore is more representative of long-term capital investment in the District’s water system. Thus, functionalized capital assets are used to allocate capital costs. District staff provided Raftelis with a detailed asset listing that included the original cost less depreciation (OCLD) of each individual asset. As part of the capital asset analysis, Raftelis and District staff assigned each asset to a functional category. Total asset value (OCLD) by functional category is shown in Table 7-9. Table 7-9: Summary of Capital Assets by Functional Category Table 7-10 shows the allocation of capital assets by function to each cost causation component as well as the reallocation of General costs in line 12; this is consistent with the methodology used to determine the allocation of O&M expenses to cost causation components in Table 7-8. The final capital asset allocation percentages (Line 14) represent the proportion of total capital assets allocated to each cost causation component (Line 13). These percentages are used to allocate annual capital costs, including debt service, rate funded capital, and reserve contributions in Table 7-11. Function 1 Supply 1,423,205$ 1.8% 2 Treatment 5,505,372 6.8% 3 Transmission 35,223,822 43.7% 4 Distribution 17,159,176 21.3% 5 Recycled Water Pumping 9,541,998 11.9% 6 Distribution Storage 10,602,163 13.2% 7 Customer Service - 0.0% 8 Meters and Services 345,746 0.4% 9 Fire Service 0.0% 10 Energy 0.0% 11 General 720,001 0.9% 12 Total 80,521,483$ 100% Line Asset Functionalization Results Percent of Total 56 OTAY WATER DISTRICT Table 7-10: Allocation of Functionalized Capital Assets to Cost Causation Components\ Table 7-11: Allocation of Capital Costs to Cost Causation Components A B C D E F G H Commodity Demand Accounts Cost Eq. Meters Capacity Eq. Meters Energy General Total Function 1 Supply 1,423,205$ -$ -$ -$ -$ -$ -$ 1,423,205$ 2 Treatment - 5,505,372 - - - - - 5,505,372 3 Transmission - 35,223,822 - - - - - 35,223,822 4 Distribution - 17,159,176 - - - - - 17,159,176 5 Recycled Water Pumping - 9,541,998 - - - - - 9,541,998 6 Distribution Storage - 10,602,163 - - - - - 10,602,163 7 Customer Service - - - - - - - - 8 Meters and Services - - - 345,746 - - - 345,746 10 General - - - - - - 720,001 720,001 11 Subtotal 1,423,205$ 78,032,531$ -$ 345,746$ -$ -$ 720,001$ 80,521,483$ 12 Reallocation of General 12,841$ 704,041$ -$ 3,119$ -$ 13 Total 1,436,046$ 78,736,572$ -$ 348,866$ -$ -$ 80,521,483$ 14 Percent Allocation 1.8% 97.8% 0.0% 0.4% 0.0% 0.0% Line Asset Allocations A B C D E F G H Commodity Demand Accounts Cost Eq. Meters Capacity Eq. Meters Energy General Total Expense 1 Debt Service 21,995$ 1,205,962$ -$ 5,343$ -$ -$ -$ 1,233,300$ 2 Rate Funded Capital 35,669 1,955,666 - 8,665 - - - 2,000,000 3 Contribution to Reserves (3,456) (189,504) - (840) - - - (193,800) 4 Mid-Year Adjustment - - - - - - - - 5 Subtotal 54,207$ 2,972,124$ -$ 13,169$ -$ -$ -$ 3,039,500$ 6 Reallocation of General -$ -$ -$ -$ -$ 7 Total 54,207$ 2,972,124$ -$ 13,169$ -$ -$ 3,039,500$ 8 Percent Allocation 1.8% 97.8% 0.0% 0.4% 0.0% 0.0% Line Capital Cost Allocations WATER COST OF SERVICE AND RATE DESIGN STUDY 57 7.3.3. REVENUE OFFSET ALLOCATION The District has a substantial amount of revenue from sources other than rates that is used to offset the total revenue requirement. Raftelis and District staff analyzed each non-rate revenue source to determine the most reasonable allocation basis. The results of this process are shown in Table 7-12. All non-rate revenues in the Expansion, Betterment, Replacement, and New Water Supply funds are allocated on the same basis as assets using the percentages shown in Table 7-10, Line 14. Meter Fees are used to directly offset costs in the Cost Meters component. All other revenues in the Operating Fund are allocated using the total O&M allocation percentages in Table 7-8, Line 26. 58 OTAY WATER DISTRICT Table 7-12: Non-Rate Revenue Allocations A B C D E F G H Commodity Demand Accounts Cost Eq. Meters Capacity Eq. Meters Energy General Total Operating Fund 1 Reclaim Incentive 445,937 156,680 10,310 11,091 - 43,983 - 668,000 2 Late Fees 22,697 7,975 525 565 - 2,239 - 34,000 3 Meter Fees - - - 5,000 - - - 5,000 4 Interest 32,711 11,493 756 814 - 3,226 - 49,000 5 Subtotal 501,345$ 176,147$ 11,591$ 17,469$ -$ 49,448$ -$ 756,000$ Expansion Fund 6 Capacity Fee - Restricted 5,760 315,840 - 1,399 - - - 323,000 7 BAB Subsidy 2,639 144,719 - 641 - - - 148,000 8 Interest Income 84,781 29,788 1,960 2,109 - 8,362 - 127,000 9 Subtotal 93,181$ 490,347$ 1,960$ 4,149$ -$ 8,362$ -$ 598,000$ Betterment Fund 10 Interest Income 125$ 6,845$ -$ 30$ -$ -$ -$ 7,000$ 11 BAB Subsidy 89 4,889 - 22 - - - 5,000 12 Subtotal 214$ 11,734$ -$ 52$ -$ -$ -$ 12,000$ Replacement Fund 13 Interest Income 1,480$ 81,160$ -$ 360$ -$ -$ -$ 83,000$ 14 Capacity Fee - Restricted 13,839 758,798 - 3,362 - - - 776,000 15 Subtotal 15,320$ 839,959$ -$ 3,722$ -$ -$ -$ 859,000$ New Water Supply Fund 16 BAB Subsidy 36 1,956 - 9 - - - 2,000 17 Interest Income 89 4,889 - 22 - - - 5,000 18 Subtotal 125$ 6,845$ -$ 30$ -$ -$ -$ 7,000$ 19 Total 610,185$ 1,525,032$ 13,551$ 25,423$ -$ 57,810$ -$ 2,232,000$ Line Non-Rate Revenue Allocations WATER COST OF SERVICE AND RATE DESIGN STUDY 59 7.4. Cost of Service Allocation Table 7-13 shows the allocation of the total rate revenue requirement to the various cost causation components. The preliminary COS allocations (Line 4) are subject to further adjustments based on additional reallocations in Lines 5 and 6. 7.4.1. PRELIMINARY COST OF SERVICE ALLOCATION The results shown in Table 5-16 are calculated as follows based on intermediate results developed in the preceding subsections: 5. Operating Revenue Requirement (Line 1): The total operating revenue requirement consists solely of the District’s O&M expenses. The allocation of the total operating revenue requirement to each cost causation component was previously determined in Table 7-8, Line 14. 6. Capital Revenue Requirement (Line 2): The total capital revenue requirement consists of capital expenditures and debt service payments. The allocation of the total capital revenue requirement was shown in Table 7-11, Line 13. 7. Non-Rate Revenue (Line 3): Total revenue offsets were determined in Table 7-12, Line 19. 8. Preliminary Cost of Service Allocation (Line 4): The preliminary COS allocation to each cost causation component equals the sum of Lines 1 through 3. Note that the total COS allocation (Column G, Line 4) equals the total rate revenue requirement (from Table 7-6, Column C, Line 9). 7.4.2. ADJUSTMENTS TO COST OF SERVICE Raftelis proposes a few adjustments to the preliminary cost of service related to Demand costs. 7.4.2.1.Allocation of Demand Costs to Capacity Meters The District collects approximately 10 percent of its non-potable rate revenues from fixed System Fees. It is common for water purveyors to collect fixed capacity related costs in proportion to meter size; the amount collected varies greatly by water purveyor. Raftelis allocated a portion of Demand costs to what is known as the Capacity Meter cost component. Demand costs are operation and maintenance costs for facilities that the District maintains to provide peak capacity. These costs are fixed costs, incurred regardless of water use, and can be recovered in proportion to meter size. Therefore, a portion of demand costs, as shown in Line 5 of Table 6-13 were reallocated to the Capacity Meter component which is collected through the System Fee 7.4.3. FINAL COST OF SERVICE ALLOCATION The final COS allocation (Line 6) equals the sum of Lines 4 and 5. This is the final adjusted allocation of the total revenue requirement (from Table 7-6, Column C, Line 9) to the various cost causation components. 60 OTAY WATER DISTRICT Table 7-13: Cost of Service Allocation A B C D E F G Commodity Demand Accounts Cost Eq. Meters Capacity Eq. Meters Energy Total Expenses 1 O&M 5,698,041$ 2,002,003$ 131,737$ 141,719$ -$ 562,000$ 8,535,500$ 2 Non-Rate Revenue (610,185) (1,525,032) (13,551) (25,423) - (57,810) (2,232,000) 3 Capital 54,207 2,972,124 - 13,169 - - 3,039,500 4 Subtotal Expenses 5,142,063$ 3,449,095$ 118,186$ 129,466$ -$ 504,190$ 9,343,000$ 5 COS Reallocation -$ (586,346)$ -$ -$ 586,346$ -$ 6 Total Expenses 5,142,063$ 2,862,749$ 118,186$ 129,466$ 586,346$ 504,190$ 9,343,000$ Line Unit Cost of Service WATER COST OF SERVICE AND RATE DESIGN STUDY 61 7.5.Unit Cost Development Units of service (Table 7-5) are divided into the total costs for each cost causation component (Table 7-13) to calculate unit costs, which are directly incorporated into the proposed rate calculations in Section 7. Unit costs comprise the constituent parts from which proposed rates are calculated in Section 7. Table 7-14 shows unit costs for each cost causation component (Column C), which are calculated by dividing the final COS allocation in Column A (from Table 7-13, Line 6) by the relevant units of service in Column B (from Table 7-5). The units of service vary by unit cost and are based on either water use, peaking units, or number of accounts /equivalent meter units. Table 7-14: Development of Unit Costs A B C D Cost Units of Service Unit Cost Units Cost Component 1 Commodity 5,142,063$ 1,572,300 3.27$ Ccf 2 Demand 2,862,749 11,115 257.57 Ccf/Day 3 Accounts 118,186 764 154.69 Account/Yr 4 Cost Eq. Meters 129,466 1,909 67.81 Eq. Meter / Yr 5 Capacity Eq. Meters 586,346 3,100 189.12 Eq. Meter / Yr 6 Energy 504,190 6,209,151 0.081 Adj. Ccf 7 Total 9,343,000$ Line Description 62 OTAY WATER DISTRICT 7.6. Customer Class Costs Unit costs developed in Table 7-14 are used to distribute costs to each customer classes based on their units of service from Table 7-5. The Unit Costs are multiplied by the service units to derive the cost to each class for each cost component in Columns A to F, Lines 1 to 3. The total cost of service for each class is shown in Column G. Table 7-15: Customer Class Cost of Service A B C D E F G Commodity Demand Accounts Cost Eq. Meters Capacity Eq. Meters Energy Total 1 Recycled 2,729,810$ 1,522,971$ 62,651$ 69,611$ 309,595$ 271,549$ 4,966,187$ 2 Public Rec.1,902,397 1,120,371 55,380 56,431 252,795 160,057 3,547,432 3 Rec. Comm.509,857 219,406 155 3,424 23,956 72,584 829,381 4 Total Cost of Service 5,142,063$ 2,862,749$ 118,186$ 129,466$ 586,346$ 504,190$ 9,343,000$ Class Cost of ServiceLine WATER COST OF SERVICE AND RATE DESIGN STUDY 63 7.7.Customer Class Comparison Table 7-16 compares the total proposed revenue requirement for each class (Table 7-15, Column G) to the total revenue that would be collected from each class under the current rates. Note that the total revenue collected under either COS corresponds to the revenue requirement from Table 7-6, indicating that the proposed rates and rate structure changes are revenue neutral. Distributional impacts to the various customer classes are a result of the District’s changing cost structure and water use patterns relative to the prior rate study, and due to refinements to the methodology to maintain adherence to Cost of Service Principles. Table 7-16: Cost of Service Comparison Proposed Current Dollars Percent Customer Class 1 Recycled 4,966,187$ 4,953,327$ 12,860$ 0.3% 53.2% 53.0% 2 Public Recycled 3,547,432 3,747,649$ (200,217) -5.3% 38.0% 40.1% 3 Recycled Commercial 829,381 642,024$ 187,358 29.2% 8.9% 6.9% 4 Total 9,343,000$ 9,343,000$ -$ 0.0% 100.0% 100.0% Line Cost of Service Summary Revenue Current % of Total Proposed % of Total Change 64 OTAY WATER DISTRICT 8. Proposed Recycled Water Rates Section 7 details the proposed water rate calculations. Proposed rates are calculated directly from the results of the COS analysis (from Section 6). 8.1. Proposed Fixed Charges Table 6-1 shows the calculation of the components of each fixed charge: costs for the customer, capacity meter, and cost meter components are from Table 7-15, Line 4. The costs identified in Column A are divided by the units in Column B to derive the annual charge in column C; this amount is converted to a monthly charge in Column D by dividing by 12. Table 8-1: Fixed Charge Components 8.1.1. PROPOSED SYSTEM FEES Table 8-2 shows the detailed calculation of proposed System Fees, which are based on Customer and Equivalent meter unit rates. Customer costs do not vary by connection type or size. Therefore, the Customer unit rate, previously derived in Table 8-1, Column D, Line 1 is applied uniformly to all System Fees (Column A). Because Meters costs vary by meter size based on hydraulic capacity, the unit cost (Table 8-1, Column D, Line 3) is multiplied by the AWWA capacity ratio for each meter size (Table 5-3, Column B). For example, the AWWA capacity ratio for a 1” meter is 1.67, which is multiplied by $17.18 to derive the meter component cost of $28.63 (Column C, Line 3). The same process is repeated for the cost meter component in Column B. The three fixed charge components in Columns A, B, and C are added in Column D, showing the total of these components that all customers pay each month. A C D Cost Annual Charge Monthly Charge Component 1 Customer 118,186$ 764 Accounts 154.69$ 12.89$ 2 Cost Eq. Meters 129,466 1,909 5/8" Eq. 67.81 5.65 3 Capacity Eq. Meters 586,346 3,100 5/8" Cap Eq. 189.12 15.76 System Fees UnitsLine B WATER COST OF SERVICE AND RATE DESIGN STUDY 65 Table 8-2: System Fees 8.2. Proposed Volume Rates Volume Charges are designed to recover the portion of the rate revenue requirement allocated to the commodity and demand cost causation components. 8.2.1. COMMODITY RATE COMPONENT Table 8-3 shows the calculation of the commodity rate component. Billable water volumes from Table 7-1 are shown in Column A. The cost for each class and tier was previously calculated in Table 7-15, Column A. The rate component in Column C is the result of dividing Column B by Column A. All customers pay the same amount per Ccf for these costs, which primarily consist of water purchases. Table 8-3: Commodity Rate Component A B C D Customer Cost Eq. Meters Capacity Eq. Meters Total Proposed Meter Size 1 5/8" 12.89$ 5.65$ 15.76$ 34.31$ 2 3/4" 12.89 5.65 15.76 34.31 3 1" 12.89 7.29 26.27 46.46 4 1 1/2" 12.89 11.85 52.53 77.28 5 2" 12.89 16.98 84.05 113.93 6 3" 12.89 52.92 183.87 249.69 7 4" 12.89 91.92 330.97 435.78 8 6" 12.89 158.77 735.48 907.15 9 8" 12.89 198.37 1,260.82 1,472.09 10 10" 12.89 285.30 1,996.30 2,294.50 Line System Fee A B C Billed Ccf Cost Rate 1 Recycled 834,700 2,729,810$ 3.27$ 2 Public Rec.581,700 1,902,397 3.27 3 Rec. Comm.155,900 509,857 3.27 4 Total 1,572,300 5,142,063$ 3.27$ Line Commodity Component 66 OTAY WATER DISTRICT 8.2.2. DEMAND RATE COMPONENT Table 8-4 shows the calculation of the commodity rate component. Billable water volumes from Table 7-1 are shown in Column A. The cost for each class was previously calculated in Table 7-15, Column B. The rate component in Column C is the result of dividing Column B by Column A. This rate component is different for each customer class and tier due to their unique peaking behaviors and demands on the water system. Customers with a higher peaking factor (Table 7-1, Column C) pay a higher demand rate. Table 8-4: Demand Rate Component 8.2.3. TOTAL PROPOSED VOLUME RATE The proposed volume rates in Table 8-5 are the result of adding each of the constituent components derived in Table 8-3 and Table 8-4. The total rate for each class and tier is shown in Column C. Table 8-5: Total Proposed Volume Rates 8.3.Monthly Bill Impacts The following tables show sample monthly bills for each customer class using the most common meter sizes for the class and a range of water use volumes to provide a representative sample of impacts across many customers. Table 8-6: Recycled Bill Impacts A B C Billed Ccf Cost Rate 1 Recycled 834,700 1,522,971$ 1.82$ 2 Public Rec.581,700 1,120,371 1.93 3 Rec. Comm.155,900 219,406 1.41 4 Total 1,572,300 2,862,749 1.82$ Demand ComponentLine A B C Commodity Demand Total 1 Recycled 3.27$ 1.82$ 5.10$ 2 Public Rec.3.27 1.93 5.20 3 Rec. Comm.3.27 1.41 4.68 Volume ChargeLine System Fee Volume Total System Fee Volume Total Dollar Percent Meter Size Use 3/4" 53 36.93$ 267.65$ 304.58$ 34.31$ 270.30$ 304.61$ 0.03$ 0.0% 3/4" 295 36.93 1,489.75 1,526.68 34.31 1,504.50 1,538.81 12.13 0.8% 3/4" 172 36.93 868.60 905.53 34.31 877.20 911.51 5.98 0.7% Proposed Charges ChangeCurrent Charges Recycled Bill Impacts WATER COST OF SERVICE AND RATE DESIGN STUDY 67 Table 8-7: Public Recycled Bill Impacts Table 8-8: Recycled Commercial Bill Impacts System Fee Volume Total System Fee Volume Total Dollar Percent Meter Size Use 1 1/2" 27 90.25$ 147.96$ 238.21$ 77.28$ 140.40$ 217.68$ (20.53)$ -8.6% 1 1/2" 243 90.25 1,331.64 1,421.89 77.28 1,263.60 1,340.88 (81.01) -5.7% 1 1/2" 132 90.25 723.36 813.61 77.28 686.40 763.68 (49.93) -6.1% Current Charges Proposed Charges Change Public Rec. System Fee Volume Total System Fee Volume Total Dollar Percent Meter Size Use 10" 3,000 2,091$ 10,740$ 12,831$ 2,295$ 14,040$ 16,335$ 3,503$ 27.3% 10" 21,000 2,091 75,180 77,271 2,295 98,280 100,575 23,303 30.2% 10" 12,500 2,091 44,750 46,841 2,295 58,500 60,795 13,953 29.8% Proposed Charges Change Rec. Comm. Current Charges Attachment F January 1, 2023 Potable Rate Adjustments: Otay Variable Rate 4.51% Otay System Fee 4.51% MWD/CWA Fixed Fee -1.00% Energy Charge 0.00% Overall Revenue Demand Increase %4.10% Overall Potable Revenue Demand Increase $'s $1,651,000 Required Potable Revenue Demand Increase per the District Rate Model $1,651,000 Usage Fees Cost of Service Study Rate Percentage Change Proposed Rate Residential Tier I 5.03$ 4.51%5.26$ Tier II 5.46 4.51%5.71 Tier III 6.08 4.51%6.35 Multi-Residential Tier I 4.99 4.51%5.22 Tier II 5.41 4.51%5.65 Tier III 5.60 4.51%5.85 Business/Commercial 5.28 4.51%5.52 Publicly Owned 5.82 4.51%6.08 Non-Public Irrigation and Commercial Agriculture 6.09 4.51%6.36 Public Irrigation and Agriculture 6.64 4.51%6.94 Construction 6.05 4.51%6.32 System Fees Meter Size Residential 0.75 17.29$ 4.51%18.07$ 1.00 21.50 4.51%22.47 1.50 32.27 4.51%33.73 2.00 45.01 4.51%47.04 Multi-Residential 0.75 15.95$ 4.51%16.67$ 1.00 19.27 4.51%20.14 1.50 27.81 4.51%29.06 2.00 37.87 4.51%39.58 3.00 79.98 4.51%83.59 4.00 134.77 4.51%140.85 6.00 264.45 4.51%276.38 8.00 408.31 4.51%426.72 Business/Commercial 0.75 17.43$ 4.51%18.22$ 1.00 21.74 4.51%22.72 1.50 32.74 4.51%34.22 2.00 45.76 4.51%47.82 3.00 97.23 4.51%101.62 4.00 165.82 4.51%173.30 6.00 333.46 4.51%348.50 8.00 526.62 4.51%550.37 10.00 813.42 4.51%850.11 Publicly Owned 0.75 16.24$ 4.51%16.97$ 1.00 19.75 4.51%20.64 1.50 28.76 4.51%30.06 2.00 39.40 4.51%41.18 3.00 83.32 4.51%87.08 4.00 140.79 4.51%147.14 6.00 277.83 4.51%290.36 8.00 431.27 4.51%450.72 10.00 662.44 4.51%692.32 Otay Water District Cost of Service Study Potable Rate Rollforward Attachment F- continued Non-Public Irrigation and Commercial Agriculture 0.75 15.43$ 4.51%16.13$ 1.00 18.41 4.51%19.24 1.50 26.08 4.51%27.26 2.00 35.11 4.51%36.69 3.00 73.93 4.51%77.26 4.00 123.89 4.51%129.48 6.00 240.26 4.51%251.10 8.00 366.86 4.51%383.41 10.00 560.46 4.51%585.74 Public Irrigation 0.75 15.43$ 4.51%16.13$ 1.00 18.41 4.51%19.24 1.50 26.08 4.51%27.26 2.00 35.11 4.51%36.69 3.00 73.93 4.51%77.26 4.00 123.89 4.51%129.48 Construction Meters 0.75 15.86$ 4.51%16.58$ 1.00 19.12 4.51%19.98 1.50 27.51 4.51%28.75 2.00 37.40 4.51%39.09 3.00 78.95 4.51%82.51 4.00 132.92 4.51%138.91 6.00 260.34 4.51%272.08 8.00 401.27 4.51%419.37 10.00 614.94 4.51%642.67 Fire Services 0.75 2.49$ 4.51%2.60$ 1.00 2.56 4.51%2.68 1.50 2.81 4.51%2.94 2.00 3.23 4.51%3.38 3.00 4.77 4.51%4.99 4.00 7.42 4.51%7.75 6.00 16.93 4.51%17.69 8.00 33.33 4.51%34.83 10.00 57.99 4.51%60.61 MWD/CWA Fixed Charges 0.75 16.49$ -1.00%16.33$ 1.00 27.49 -1.00%27.22 1.50 54.97 -1.00%54.42 2.00 87.94 -1.00%87.06 3.00 192.37 -1.00%190.45 4.00 346.27 -1.00%342.81 6.00 769.48 -1.00%761.79 8.00 1,319.10 -1.00%1,305.91 10.00 2,088.58 -1.00%2,067.69 Potable Energy 0.068$ 0.00%0.068$ January 1, 2023 Recycled Rate Rollforward: Otay Variable Rate 5.10% Otay System Fee 5.10% Energy Charge -6.10% Overall Revenue Demand Increase %4.10% Overall Recycled Revenue Demand Increase $'s $161,000 Required Recycled Revenue Demand Increase per the District Rate Model $161,000 Usage Fees Cost of Service Study Percentage Change Proposed Rate Non-Public Recycled Irrigation 5.10$ 5.10%5.36$ Recycled Commercial Irrigiation 4.68 5.10%4.92 Pubic Recycled Irrigation 5.20 5.10%5.47 System Fees Meter Size Recycled All Meters 0.75 34.31$ 5.10%36.06$ 1.00 46.46 5.10%48.83 1.50 77.28 5.10%81.22 2.00 113.93 5.10%119.74 3.00 249.69 5.10%262.42 4.00 435.78 5.10%458.00 6.00 907.15 5.10%953.41 8.00 1,472.09 5.10%1,547.17 10.00 2,294.50 5.10%2,411.52 Recycled Energy 0.082$ -6.10%0.077$ Cost of Service Study Recycled Rate Rollforward Otay Water District Attachment G STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 SUBMITTED BY: Lisa Coburn-Boyd Environmental Compliance Specialist PROJECT: P1210- 008000 DIV. NO. All APPROVED BY: Bob Kennedy, Engineering Manager Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Adopt Resolution No. 4417 Authorizing a Financial Assistance Application for a Planning Grant Agreement from the State Water Resources Control Board for the Joint Sweetwater Authority – Otay Water District Recycled Water Intertie Project GENERAL MANAGER’S RECOMMENDATION: Adopt Resolution No. 4417 (Attachment B) to authorize a financial assistance application for a grant agreement from the State Water Resources Control Board (SWRCB) for the planning of the Joint Sweetwater Authority (SWA) – Otay Water District (OWD) Recycled Water Intertie Project(see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: The purpose of this Resolution is to authorize a financial assistance application for a planning grant agreement from the SWRCB SWA-OWD Recycled Water Intertie Project. The SWRCB requires that the resolution be approved by the Board of the lead agency for the grant and be submitted with the grant application. The required resolution is brief and simply specifies the representative at the lead agency who is authorized to sign and file the application for a grant AGENDA ITEM 9a 2 agreement. It also specifies that the authorized representative or their designee can provide assurances, certifications, and commitments required for the application and that they are able to execute the financial assistance agreement if awarded by the SWRCB. ANALYSIS: On August 11, 2022, two Board members from the District and two Board members from Sweetwater Authority met as an Ad Hoc Committee or Task Force to discuss potential recycled water opportunities and to look for ways to work together to solve common problems. A joint project with SWA to study the feasibility of recycled water use within SWA and expanding the use within the District’s service area was proposed during this meeting. The study would be prepared by a consultant in conjunction with staff from OWD and SWA. The study would include an assessment of potential recycled water customers within the District and SWA service areas and the amount of recycled water that could reasonably be used by each customer. The study would also prepare feasibility level cost estimates and timelines to convert existing potable irrigation systems for recycled water use at identified customer sites and for construction of any new infrastructure required for conveyance of recycled water from OWD to customers within SWA. Lastly, a determination of the regulatory compliance that would be required for OWD and SWA to implement the use of recycled water within the SWA service area would be included in the study. Staff identified the SWRCB Water Recycling Funding Program Planning Grant as a possible opportunity to receive funding for this planning project. Generally, all costs necessary to determine the feasibility of using recycled water may be eligible for the planning grant. The grant, if awarded, will generally cover 50 percent of the eligible planning costs up to the maximum established by SWRCB, which is $150,000. OWD staff will work with our as-needed grant writing and administration consultant staff to prepare the application for this funding opportunity. As required, Resolution No. 4417 will be included as an attachment to the grant application. FISCAL IMPACT: Joe Beachem, Chief Financial Officer As a part of the Fiscal Year (FY) 2023 operating budget development process, the FY 2023 annual budget for Grant Funding Research and Writing Consultant services was projected by staff to be $40,000. Staff expects a $40,000 expenditure for FY 2024. The District’s six- 3 year rate model, as part of the FY 2023 budget, includes the anticipated future years’ expenditures associated with this Project through its completion in FY 2024. Based on a review of the budget, staff has determined that with the combined approved FY 2023 and planned FY 2024 budgets, it is anticipated to be sufficient to support the Recycled Water Intertie Project Study. GRANTS/LOANS: Engineering staff has identified the SWRCB Water Recycling Funding Program Planning Grant as a possible funding source for the Joint Sweetwater Authority – Otay Water District Recycled Water Intertie Project. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." LEGAL IMPACT: None. LC-B/BK:mlw Https://Otaywater365.Sharepoint.Com/Sites/Engoperating/Shared Documents/Engineering/Sweetwater Authority/Staff Reports/Bd_10-05-2022_Staff Report_SWRCB RW Planning Grant Funding Resolution (LCB-BK).Docx Attachments: Attachment A – Committee Action Attachment B – Resolution Exhibit A – Project Location ATTACHMENT A SUBJECT/PROJECT: P1210 Resolution Authorizing a Financial Assistance Application for a Planning Grant Agreement from the State Water Resources Control Board for the Joint Sweetwater Authority – Otay Water District Recycled Water Intertie Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on September 20, 2022, and the following comments were made: • Staff requested the Committee’s support in adopting Resolution 4417, which authorizes a financial assistance application for a planning grant agreement from the State Water Resources Control Board Sweetwater Authority (SWA) - Otay Water District (OWD) Recycled Water Intertie Project. • An update from staff or the General Manager was requested from the Committee on the coordination of this project. General Manager Martinez indicated that the District was still working on the MOU with SWA and this resolution was only for the grant. A question was asked about SWA’s Water Facilities Master Plan. Staff stated that SWA staff are in the process of developing their Master Plan and it does include the possibility of utilizing recycled water in their service area. • Director Smith commented that staff should look at all potential users of OWD recycled water in the SWA service area. Other potential users could include the County of San Diego and the golf courses along the Sweetwater River. • Director Smith clarified that this item was specific to SWA, and they had already issued a request for proposals for engineering consultants to do studies. He wants to ensure that staff defines which of the studies are specific to SWA, and which are associated with this item, to ensure that costs are split 50/50. • Director Smith asked staff if something similar needed to be in place for the City of Chula Vista or the County or if they would 5 be covered under this agreement. General Manager Martinez noted that the agreement with Sweetwater covered other agencies that are served under SWA jurisdiction. • Director Keyes commended the efforts of the Board for using grants and working with SWA to open another potential market for OWD recycled water. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full Board as a Consent Item. ATTACHMENT B RESOLUTION NO. 4417 A RESOLUTION AUTHORIZING A FINANCIAL ASSISTANCE APPLICATION FOR A PLANNING GRANT AGREEMENT FROM THE STATE WATER RESOURCES CONTROL BOARD FOR THE JOINT SWEETWATER AUTHORITY – OTAY WATER DISTRICT RECYCLED WATER INTERTIE PROJECT WHEREAS, Otay Water District (OWD) wishes to submit a Financial Assistance Application to the State Water Resources Control Board Water Recycling Funding Program. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Otay Water District (the “Entity”), AS FOLLOWS: The General Manager (the “Authorized Representative”) or designee is hereby authorized and directed to sign and file, for and on behalf of the Entity, a Financial Assistance Application for a grant agreement from the State Water Resources Control Board for the planning, design, and construction of the Joint Sweetwater Authority – Otay Water District Recycled Water Intertie Project (the “Project”). This Authorized Representative, or his/her designee, is designated to provide the assurances, certifications, and commitments required for the financial assistance application, including executing a financial assistance agreement from the State Water Resources Control Board and any amendments or changes thereto. The Authorized Representative, or his/her designee, is designated to represent the Entity in carrying out the Entity’s responsibilities under the grant agreement, including certifying disbursement requests on behalf of the Entity and compliance with applicable state and federal laws. PASSED AND ADOPTED by the Otay Water District Board of Directors this 5th day of October, 2022. Ayes: Noes: Abstain: Absent: ________________________ Timothy Smith, President Otay Water District ATTEST: ________________________ District Secretary 2 CERTIFICATION I do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the Otay Water District Board of Directors held on October 5, 2022. __________________________________ _________________________ Name Title OTAY WATER DISTRICT JOINT SWA-OWD RECYCLED WATER INTERTIE PROJECT POSSIBLE POINTS OF CONNECTIONLOCATION MAPEXHIBIT AC:\Users\donald.bienvenue\OneDrive - Otay Water District\Desktop\Exhibit A -Potential Points of Connection With SWA.mxd ! ! ! ! ! !! ! ! ! !! ! ! UT §¨¦ ÃÅ 805 !\ VICINITY MAP DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 !\ !\ SITE SITE SITE ÃÅ125 ÃÅ94 ÃÅ905§¨¦805 FNTS CIP P1210F 0 2,5001,250 Feet POTENTIAL POINT OF CONNECTION POTENTIAL POINT OF CONNECTION POTENTIAL POINT OF CONNECTION SWEETWATER AUTHORITY OTAY WATERDISTRICT OTAY WATER DISTRICT BOUNDARY LEGEND OTAY WATER DISTRICT RECYCLED WATER PIPELINE STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 SUBMITTED BY: Michael Long Chief of Engineering PROJECT: ANX-22-003 DIV. NO. 3 APPROVED BY: Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Frederick Mejos Residence Water Annexation, 0 Proctor Valley Road, Chula Vista, CA 91914, APN: 595-020-47-00 to the Otay Water District and to Water Improvement District ID No. 22/27 GENERAL MANAGER’S RECOMMENDATION: Adopt Resolution No. 4418, the annexation of the property of Fredrick Mejos Residence Water Annexation, 0 Proctor Valley Road, Chula Vista, CA 91914, APN: 595-020-47-00 to the Otay Water District and to Water Improvement District ID No. 22/27 (see Attachment B). COMMITTEE ACTION: Please see Attachment A. PURPOSE: The purpose of the proposed annexation of the property, owned by Frederick Mejos (“Property Owner”), located at 0 Proctor Valley Road, Chula Vista, CA 91914, APN: 595-020-47-00 to the Otay Water District and to Water Improvement District ID No. 22/27 is to make water service available to the parcel owned by the Property Owner. ANALYSIS: A written request and Petition signed by the Property Owner has been received for annexation of APN: 595-020-47-00 into Improvement District No. 22/27 for water service. The total acreage to be annexed is 0.46 acres. The parcel is currently within the District's sphere of influence of the District’s Water Improvement District No. 22/27 as shown in Exhibit D. Therefore, annexation of this property to the District, and to Improvement District No. 22/27, is required for water service. AGENDA ITEM 9b 2 The property currently receives no water service and the District’s water facilities are located adjacent to the property. This annexation will not create an island. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The property owner has paid the District’s annexation processing fee of $898.01 and the water annexation fee of $2,359.66 for a total of $3,257.67 deposited into account D1138-090563 and will pay any additional service fees including the water capacity fee as established in the attached Resolution No. 4418. GRANTS/LOANS: Not applicable. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." LEGAL IMPACT: None. MJL:mlw Https://otaywater365.sharepoint.com/sites/engpublicservices/Shared Documents/SAMP WSA ANX/D1138-090563 Water Annexation Proctor Valley Rd_APN 595-020-47-00/BD 10-05-2022 Water Annexation Fredrick Mejos Staff Report.docx Attachments: Attachment A - Committee Action Attachment B - Resolution No. 4418 Exhibit A - Legal Description Exhibit B - Legal Map Exhibit C – Grant Deed Exhibit D – Location Map ATTACHMENT A SUBJECT/PROJECT: ANX-22-003 Frederick Mejos Residence Water Annexation, 0 Proctor Valley Road, Chula Vista, CA 91914, APN: 595-020-47-00 to the Otay Water District and to Water Improvement District ID No. 22 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on September 20, 2022, and the following comments were made: • Staff requested the Committee’s support in recommending the adoption of Resolution No. 4418, to approve the annexation to provide water service to the property owned by Mr. Frederick Mejos, located at 0 Proctor Valley Road, Chula Vista, CA 91914 (APN: 595- 020-47-00). • Staff stated that the parcel is currently within the District's sphere of influence of the District’s Water ID No. 22/27. • The Committee commented that this property looked somewhat isolated and asked if staff had information on the adjacent property owners as well as if this parcel was part of the same ownership of the same owner or if this was owned separate. Staff believes this parcel is separate but would get additional information on the surrounding properties to confirm. • The Committee inquired about the “0” in the property address and whether it was typical if an address hasn’t been established to which staff responded that it was typical. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full Board as a Consent Item. ATTACHMENT B Page 1 of 4 RESOLUTION NO. 4418 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPROVING THE ANNEXATION TO OTAY WATER DISTRICT WATER IMPROVEMENT DISTRICT NO. 22/27 OF THOSE LANDS DESCRIBED AS “FREDERICK MEJOS WATER ANNEXATION (APN: 595-020-47-00)” (FILE NO. ANX 22-003/DIVISION 3) WHEREAS, a letter has been submitted by Frederick Mejos, the owner and party that has an interest in the land described in Exhibit "A," attached hereto, for annexation of said land to Otay Water District Water Improvement District No. 22/27 pursuant to California Water Code Section 72670 et seq.; and WHEREAS, pursuant to Section 72680.1 of said Water Code, the Board of Directors may proceed and act thereon without notice and hearing. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT FINDS, RESOLVES, ORDERS AND DETERMINES as follows: 1. A depiction of the area proposed to be annexed, and the boundaries of ID 22/27 following the annexation, is set forth on a map in Exhibit “B” filed with the Secretary of the District, which map shall govern for all details as to the area proposed to be annexed. 2. The purpose of the proposed annexation is to make water service available to the area to be annexed, which availability constitutes a benefit to said area. 3. The Board finds and determines that the area proposed to be annexed to ID 22/27 will be benefited by such annexation and that the property currently within ID 22/27 will also be benefited and not injured by such annexation because after the ATTACHMENT B Page 2 of 4 annexation a larger tax base will be available to finance the water facilities and improvements of ID 22/27. 4. The Board of Directors hereby declares that the annexation of said property is subject to the owners complying with the following terms and conditions: (a) The petitioner for said annexation shall pay to Otay Water District the following: (1) The annexation processing fee and water annexation fee at the time of application; (2) State Board of Equalization filing fees in the amount of $300 (Requirements & Fees – Boundary Change, August 1, 2005); (3) The OWD capacity fees at the time of connection to the Otay Water District water system; (4) Any annual assessment fees collected through the County Tax Assessor’s for APN 595-020- 47-00; (5) In the event that sewer service is to be provided, Petitioners shall pay all applicable sewer fees per Equipment Dwelling Unit (EDU) at the time the sewer connection is purchased; and (6) Payment by the owner of APN 595-020-47-00 of all other applicable local or state agency fees or charges. ATTACHMENT B Page 3 of 4 (b) The property to be annexed shall be subject to taxation after annexation thereof for the purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district, authorized and outstanding at the time of annexation, the same as if the annexed property had always been a part of the improvement district. 5. The Board hereby declares the property described in Exhibit "A" and depicted in Exhibit “B” shall be considered annexed to ID 22/27 upon passage of this resolution. 6. The Board of Directors further finds and determines that there are no exchanges of property tax revenues to be made pursuant to California Revenue and Taxation Code Section 95 et seq., as a result of such annexation. 7. The annexation of APN 595-020-47-00 to the District’s Water Improvement District 22/27 is hereby designated as the “FREDERICK MEJOS RESIDENCE WATER ANNEXATION (APN: 595-020-47- 00)”. 8. Pursuant to Section 57202(a) of the Government Code, the effective date of the “FREDERICK MEJOS RESIDENCE WATER ANNEXATION (APN: 595-020-47-00)” shall be the date this Resolution is adopted by the Board of Directors of the Otay Water District. 9. The General Manager of the District and the Secretary of the District, or their respective designees, are hereby ATTACHMENT B Page 4 of 4 ordered to take all actions required to complete this annexation. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 5th day of October, 2022. President ATTEST: __________________________________ District Secretary ANNEXATION NO. ANX-22-003 ANNEXATION TO OTAY WATER DISTRICT GEOGRAPHICAL DESCRIPTION THE NORTHERLY 95 FEET OF LOT 6 IN HALEY'S ADDITION, ACCORDING TO MAP THEREOF NO. 1286, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID SAN DIEGO COUNTY, SEPTEMBER 22, 1910, MORE PARTICULARY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SECTION 28, TOWNSHIP 17 SOUTH, RANGE 1 WEST, SAN BERNARDINO, ACCORDING TO OFFICIAL PLAT THEREOF FILED IN SAID OFFICE OF THE COUNTY RECORDER; THENCE, ALONG THE FOLLOWING COURSES: COURSE 1: SOUTH 01° 26' 13” WEST 2087.77' TO THE TRUE POINT OF BEGINNING COURSE 2: NORTH 89° 56' 46" WEST 211.66' COURSE 3: NORTH 01° 19' 50” EAST 95.02' COURSE 4: SOUTH 89° 56' 46” EAST 198.18' COURSE 5: SOUTH 62° 42' 00” EAST 14.95' COURSE 6: SOUTH 01° 26' 13” WEST 88.17' TO THE TRUE POINT OF BEGINNING CONTAINING 20,058.8 SQUARE FEET OR 0.460 ACRES MORE OR LESS. FOR ASSESSMENT PURPOSES ONLY. THIS DESCRIPTION IS NOT A LEGAL PROPERTY DESCRIPTION AS DEFINED IN SUBDIVISION MAP ACT AND MAY NOT BE USED AS THE BASIS FOR AN OFFER FOR SALE OF THE LAND DESCRIBED. ____________________________________________________ VICTOR RODRIGUEZ-FERNANDEZ DATE LS 5335 6/14/2022 EXHIBIT A SITE E SYMBOLITEM MEJOS RESIDENCE ANEXATION 60300 6/15/2022 EXHIBIT B RECOROtNG REQUESTED BY: Armando Vazquez Gonzalez WHEN RECORDED MAIL TO AND MAIL TAX STATEMENTS TO: Name:Frederick and Jean Mejos Adct'ess: 2181 Corte San Simeon City: Chula Vista St.ate, 21p:. __ C_a_. _9_19_1_4 __ _ DOC# 2022-0001498 1111\ll ll�I IIU ijl\l \1111\llll lllll 11111 lllll lllll l\111 1111111111111 Jan 03, 2022 01 :49 PM OFFICIAL RECORDS Ernest J. Oronenburg, Jr., SAN DIEGO COUNiY RECORDER FEES: $85 50 (S82 Atkins: $0.00)PCORYES PAGES: 1 CALIFORNIA QUITCLAIM DEED Tide Order No. ______ Eacrow OR LOAN No.______ APN No. 595-020-4 7 -0( THE UNDERSIGNED GRANTOR(s) DECl.ARE(s) DOCUMENTARY TRANSFER TAX Is $._z?.._!_._,;_!J _________ CITY TAX$ ______ _r!!/ C«nputed on full value of pro� conveyed, or O Computed on full Y"alue less v.>lue of liens or encumbrances r.emalrvng at lime of sale,'r!!' Unincorpor-Med aru � Cityof Bonita. Ca. FOR A VALUABLE CONSIDERATION. �ipt of which is hereby acknowledged, Armando Vazguez Gonzalez a single man H-,.by remiw, release .and forever quitclaim to . and !Frederick e. MeJos and Jean P Mejos, Husband and Wife as Joint Tenants The following dKcriMd real prop&rty in 1he County of:San Diego . sca. of Caifomia: The Northerly 95 feet of lot 6 in Haley's addition. according to map thereof no. 1286. filed in the office of the county recorder of said San Diego County. September 22, 191 o December 2 C/) zo 21 ar,� �--a. f'YVl<U1 Jo v{,.__7r 7:-Govt <'A. )e L.. � STATE OF CALIFORNIA County of s"":u � } ss D.e C-"2-� t" � L(7"' j I� Gafol, Tri1 t,)J }�d fJc.v� {;, C On · I b...-.me, -�__._ ____________ , ____ __,_ .... [ ____ _ DIR � � ftl TIie d OfflCl:t peBonalt)' •ppe•red ArM,c.if\Ao Vu 'Zu.,1..l €'?. bo('I 2. 2..who proved to me on the basis ohallsfac&oryevidence to be the per.;on(') whose name{s) Ii/are subscribed to the within Instrument. and acknowledged to me that he/she1lhey executed the same In hislhe1ftheir authorized capaci1y(I�). and that by his/htm¼eir signature,16) on the l�tNment the person�) or the entity upon behalf ol which the pel"IOn(-> acted. executed the instrument I certify undef PENAL TY OF PERJURY ooder the laws of the Slate of Carifomiai that the for9going paragr.aph is we and oorrect EXHIBIT C @ SHT 2 I• 00.t2AC.• ,AC ,JI"' �· 17 0111 16 er� -o •59• ... -... 211. 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CL ..,, 06 2042 35 N! ·-06 1790 \�2 07 1429 27 HWY"'" 08 19152 CANC1&,n, I>---78, 70, l>fCK\JF 09 1808 -80, 81, 82&8."15"6 fU 10 1126 PJ:i,K 85 11 1042 OTAY WATER DISTRICTANNEXATION OF APN 595-020-47-00TO THE OTAY WATER DISTRICT AND TOWATER IMPROVEMENT DISTRICT 22 EXHIBIT AC:\OneDrive Work\Otay Water District\ENG PUBLIC SERVICES - Documents\SAMP WSA ANX\D1138-090563 Water Annexation Proctor Valley Rd_APN 595-020-47-00\Archieve\GIS Exhibit-Water Annexation 595-020-47-00, ANX-22-003.mxd VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 !\ ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS APN 595-020-47-00 ANX-22-003F 0 240120 Feet PROCTOR Aä VALLEYRD ROLLING CIR C U L O C O R O N A D O R D R I D G E STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 SUBMITTED BY: Michael Long Chief, Engineering PROJECT NO:: ANX-22-002 DIV. NO. 5 APPROVED BY: Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Adopt Resolution No. 4419 Approving the Sewer Annexation of Property Owned by the Robinson Family Trust (APN 519-281-02-00; 3110 Sunflower Glen Court, Jamul, CA 91935) to Otay Water District Sewer Improvement District No. 18 GENERAL MANAGER’S RECOMMENDATION: Adopt Resolution No. 4419 approving the annexation of the property owned by Robinson Family Trust (APN 519-281-02-00; 3110 Sunflower Glen Court, Jamul, CA 91935) to Otay Water District Sewer Improvement District (ID) No. 18 (see Exhibit C for Location Map). COMMITTEE ACTION: Please see Attachment A. PURPOSE: The proposed annexation is to provide sewer service to the parcel located at 3110 Sunflower Glen Court, Jamul, CA in an unincorporated area of the County of San Diego California 91935 (APN 519-281-02-00). ANALYSIS: A written request and Petition signed by Licensed Surveyor, Elliot May, has been received for annexation of APN 519-281-02-00, located at 3110 Sunflower Glen Court in the unincorporated area of Jamul in the County of San Diego, for sewer service. The total acreage to be annexed is 1.02 acres. The property is within the jurisdictional AGENDA ITEM 9c 2 boundary of the Otay Water District and following the Board’s approval, it will become part of Sewer ID No. 18. The parcel is located adjacent to an existing 10-inch Otay Water District sewer main within a permanent 20-foot right-of-way easement. The parcel is already contained within the District’s water ID boundary. This parcel is part of the District’s Wastewater Master Plan. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The property owner has paid the District’s annexation processing fee of $898.01, sewer annexation fee for one (1) sewer EDU (current fee is $1,261.95 per EDU) and will pay sewer capacity fees upon annexation approval for parcels located outside the sewer ID (current fee is $9,315.33 per EDU) in effect at the time the service is provided, and any additional fees, including the availability fee, as established in the attached Resolution. STRATEGIC GOAL: Provide enhanced sewer service to meet customer needs. LEGAL IMPACT: No legal impact. MJL:mlw https://otaywater365.sharepoint.com/sites/engpublicservices/Shared Documents/SAMP WSA ANX/D1134-090552 Sewer Annexation-3110 Sunflower Glen Jamul/Staff Report/BD 10-05-2022 - Staff Report Sewer Annexation ID 18- Robinson Family Trust Annex Request.doc Attachments: Attachment A - Committee Action Attachment B - Resolution No. 4419 Exhibit A - Legal Description Exhibit B - Legal Map Exhibit C – Location Map ATTACHMENT A SUBJECT/PROJECT: ANX-22-002 Adopt Resolution No. 4419 Approving the Sewer Annexation of Property Owned by Robinson Family Trust (APN 519-281-02-00; 3110 Sunflower Glen Ct., Jamul, CA 91935) to Otay Water District Improvement District No. 18 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on September 20, 2022, and the following comments were made: • Staff requested the Committee’s support in recommending the adoption of Resolution No. 4419, to approve the annexation to provide sewer service to the property owned by Robinson Family Trust, located at 3110 Sunflower Glen Court, Jamul, CA, 91935 (APN 519-281-02-00). • Staff stated that upon Board approval, the property, which is within the jurisdictional boundary of the District, would become part of Sewer ID No. 18. • The Committee agreed that this request seemed pretty straightforward and supported staff’s recommendation. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full Board as a Consent Item. ATTACHMENT B Page 1 of 4 RESOLUTION NO. 4419 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPROVING THE ANNEXATION TO OTAY WATER DISTRICT IMPROVEMENT DISTRICT NO. 18 OF THOSE LANDS DESCRIBED AS “ROBINSON FAMILY TRUST SEWER ANNEXATION (APN: 519-281-02-00)” (FILE NO. ANX-22-002/DIVISION 5) WHEREAS, a letter has been submitted by ELLIOT MAY, the Licensed Surveyor representing the owner and party (Robinson Family Trust) that has an interest in the land described in Exhibit "A," attached hereto, for annexation of said land to Otay Water District Sewer Improvement District No. 18 pursuant to California Water Code Section 72670 et seq.; and WHEREAS, pursuant to Section 72680.1 of said Water Code, the Board of Directors may proceed and act thereon without notice and hearing. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT FINDS, RESOLVES, ORDERS AND DETERMINES as follows: 1. A depiction of the area proposed to be annexed, and the boundaries of ID 18 following the annexation, is set forth on a map in Exhibit “B” filed with the Secretary of the District, which map shall govern for all details as to the area proposed to be annexed. 2. The purpose of the proposed annexation is to make sewer service available to the area to be annexed, which availability constitutes a benefit to said area. 3. The Board finds and determines that the area proposed to be annexed to ID 18 will be benefited by such annexation and that the property currently within ID 18 will also be benefited and not injured by such annexation because after the annexation ATTACHMENT B Page 2 of 4 a larger tax base will be available to finance the sewer facilities and improvements of ID 18. 4. The Board of Directors hereby declares that the annexation of said property is subject to the owners complying with the following terms and conditions: (a) The petitioner for said annexation shall pay to Otay Water District the following: (1) The annexation processing fee at the time of application; (2) State Board of Equalization filing fees in the amount of $350, if applicable; (3) The sewer annexation fees at the time of connection to the Otay Water District water system; (4) Yearly assessment fees will be collected through the County Tax Assessor’s office in the amount of $10 for APN 519-281-02-00; (5) In the event that sewer service is to be provided, Petitioners shall pay all applicable sewer fees per Equipment Dwelling Unit (EDU) at the time the sewer connection is purchased; and (6) Payment by the owner of APN 519-281-02-00 of all other applicable local or state agency fees or charges. (b) The property to be annexed shall be subject to taxation after annexation thereof for the ATTACHMENT B Page 3 of 4 purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district, authorized and outstanding at the time of annexation, the same as if the annexed property had always been a part of the improvement district. 5. The Board hereby declares the property described in Exhibit "A" shall be considered annexed to ID 18 upon passage of this resolution. 6. The Board of Directors further finds and determines that there are no exchanges of property tax revenues to be made pursuant to California Revenue and Taxation Code Section 95 et seq., as a result of such annexation. 7. The annexation of APN 519-281-02-00 to the District’s Sewer Improvement District 18 is hereby designated as the “ROBINSON FAMILY TRUST SEWER ANNEXATION (APN: 519-281-02-00).” 8. Pursuant to Section 57202(a) of the Government Code, the effective date of the ROBINSON FAMILY TRUST SEWER ANNEXATION (APN: 519-281-02-00) shall be the date this Resolution is adopted by the Board of Directors of the Otay Water District. 9. The General Manager of the District and the Secretary of the District, or their respective designees, are hereby ordered to take all actions required to complete this annexation. ATTACHMENT B Page 4 of 4 PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 5th day of October, 2022. President ATTEST: __________________________________ District Secretary Annexation No. 2022- Annexation to Otay Water District Sewer System Geographical Description ALL THAT CERTAIN REAL PROPERTY SITUATED IN SECTION 29 AND SECTION 32, TOWNSHIP 16 SOUTH, RANGE 1 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA ACCORDING TO UNITED STATE GOVERNMENT SURVEY, DESCRIBED AS FOLLOWS: BEGINNING AT AN ANGLE POINT IN THE BOUNDARY OF OTAY WATER DISTRICT DISTANT THEREON NORTH 88°33’45” WEST 3017.88 FEET FROM THE NORTHWEST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 32 FROM WHICH CORNER THE NORTHEAST CORNER OF SAID SECTION 32 BEARS NORTH 88°33’54” EAST, 1318.84 FEET. SAID POINT BEING THE NORTHWEST CORNER OF LOT 9 ACCORDING TO MAP THEREOF NO. 9664 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID SAN DIEGO COUNTY, MAY 28, 1980. THENCE ALONG THE WESTERLY LINE OF SAID LOT 9 AND THE OTAY WATER DISTRICT BOUNDARY. 1. SOUTH 00°07’36” WEST 213.58 FEET TO THE SOUTHWEST CORNER OF SAID LOT 9; THENCE ALONG THE SOUTH LINE OF SAID LOT 9 AND LEAVING THE OTAY WATER DISTRICT BOUNDARY. 2. SOUTH 85°51’25” EAST 245.57 FEET TO THE MOST SOUTHERLY CORNER OF SAID LOT 9, BEING THE BEGINNING OF A NONTANGENT CURVE HAVING A RADIUS OF 48.00 FEET. A RADIAL LINE TO SAID POINT BEARS NORTH 85°51’25” WEST; THENCE NORTHEASTERLY ALONG SAID CURVE AND THE BOUNDARY OF LOT 9 3. THROUGH A CENTRAL ANGLE OF 50°03’06” A DISTANCE OF 41.93 FEET; THENCE ALONG THE NORTHEAST LINE OF SAID LOT 9 4. NORTH 35°48’19” WEST 238.08 FEET TO THE NORTHEAST CORNER OF SAID LOT 9 AND BEING THE BOUNDARY OF OTAY WATER DISTRICT; THENCE ALONG THE NORTH LINE OF SAID LOT 9 AND THE OTAY WATER DISTRICT BOUNDARY 5. NORTH 88°43’35” WEST 125.00 FEET TO THE POINT OF BEGINNING CONTAINING 1.02 ACRES MORE OR LESS FOR ASSESSMENT PURPOSES ONLY. THIS DESCRIPTION OF LAND IS NOT A LEGAL PROPERTY DESCRIPTION AS DEFINED IN THE SUBDIVISION MAP ACT AND MAY NOT BE USED AS THE BASIS FOR AN OFFER FOR SALE OF THE LAND DESCRIBED. Sincerely, DATE: 05-09-2022 Elliott M. May, RCE 18592 May Engineering and Surveying EXHIBIT A STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 SUBMITTED BY: Michael J. Long Chief of Engineering PROJECT: D1132-090550 DIV. NO. 2 APPROVED BY: Michael J. Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Sale of 0.43 Acres of Otay Water District Property Located Along the Future Alignment of Alta Road on Otay Mesa GENERAL MANAGER’S RECOMMENDATION: That the Board: 1. Declare 0.787 acres of real estate property located along thefuture alignment of Alta Road on Otay Mesa as surplus (seeExhibit A for location). 2. Authorize the General Manager to accept an offer from CH Realty X-ELC I Otay Mesa Business Park, L.P, a Delaware limitedpartnership (CH Realty) to purchase 0.43 acres of the land for$168,000.00 (Exhibit B) and accept a Grant of Easement thatsecures the Otay Water District’s prior property rights (ExhibitC). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain approval from the Otay Water District Board (Board) to declare 0.787 acres of District property as surplus and to authorize the General Manager to accept an offer from CH Realty X-ELC I Otay Mesa Business Parks, L.P, a Delaware limited partnership (CH Realty) to purchase 0.43 acres of the land for $168,000.00 and accept a Grant of Easement that secures the Otay Water District’s prior property rights. AGENDA ITEM 9d 2 ANALYSIS: The District owns a thirty (30) foot wide parcel (APN 648-070-37-00) on Otay Mesa that is located in the future alignment of Alta Road. The property is located in the west half of proposed Alta Road, a short distance south of Siempre Viva Road, in the Otay Mesa Road community of unincorporated San Diego County. (See Exhibit A). The parcel supports the District’s 24-inch water distribution main that supplies emergency water to Mexico. The State of California Department of Transportation (Caltrans) is in the process of moving forward with the development of State Route 11 (SR 11) east of Enrico Fermi Drive on Otay Mesa. The work by Caltrans includes acquisition of right-of-way for the SR 11 project. This recent activity by Caltrans has assisted in moving development projects on Otay Mesa forward including the Otay Crossings Commerce Park. The Otay Crossings Commerce Park project consists of 311.5-acres of mixed industrial land. The future extension of SR-11 is planned to be constructed through the Otay Crossings Commerce Park project. As a condition of development, the Otay Crossings Commerce Park, which is located immediately east of the District’s thirty (30) foot wide parcel, is required to construct the extension of Alta Road between Otay Mesa Road and Airway Road. The Otay Crossings Commerce Park is also required to install off-site sewer improvements to support the development. These improvements include sewer that will be located in the future Alta Road between Airway Road and Siempre Viva Road. CH Realty, the developer for the Otay Crossings Commerce Park, has approached the District to purchase portions of the District’s property, which are needed to construct the extension of Alta Road and the off-site sewer. The developer funded a District appraisal for the acquisition of the District’s property. A Purchase and Sale Agreement and Escrow Instructions have been developed for the purchase of the property (Exhibit B), which includes the plat and legal descriptions. A Grant of Easement of Right-of-Way has also been developed to secure the District prior rights (Exhibit C). Staff is recommending that these documents be executed in substantially the same form as shown. Once the Alta Road improvements are completed, the developer will dedicate these improvements to the County of San Diego. FISCAL IMPACT: Joe Beachem, Chief Financial Officer This land sale will result in a one-time revenue to the District of $168,000.00. 3 STRATEGIC GOAL: The expansion of the distribution system through the construction developer projects supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, "A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service." LEGAL IMPACT: None. MJL:mlw Https://Otaywater365.Sharepoint.Com/Sites/Engpublicservices/Shared Documents/Public-S/STAFF REPORTS/2022/BD 10-05-2022/Staff Report_D1132-090550_10-5-22 (ML).Docx Attachments: Attachment A – Committee Action Exhibit A – Location Map Exhibit B – Purchase and Sale Agreement and Escrow Instructions Exhibit C - Joint Use Agreement between the County of San Diego and Otay Water District ATTACHMENT A SUBJECT/PROJECT: D1132-090550 Sale of 0.43 Acres of Otay Water District Property Located Along the Future Alignment of Alta Road on Otay Mesa COMMITTEE ACTION: The Engineering, Operations and Water Resources Committee (Committee)reviewed this item at a meeting held on September 20, 2022, and the following comments were made: • Staff requested the Committee’s support in declaring 0.787 acres of District property as surplus, and to authorize the General Manager to accept an offer from CH Realty to purchase 0.43 acres of the land for $168,000.00 and accept a Grant of Easement of Right-of- Way that secures the District’s prior property rights. • Director Keyes appreciated the presentation and stated that if the District is able to sell the land and get monies coming in that would be great but also to maintain the right to be there in the future. • President Smith asked for clarification regarding the purchase and whether it was being purchased by Caltrans. Staff clarified that it was being purchased by a developer in the County. The developer has filed a tentative map with the County and as a condition of approval, they must secure a section of Alta Road for dedication to the County for a public road. • President Smith made a comment regarding the valuation of the property and whether the developer accepted the amount of $168,000 based on an appraisal and if any negotiation had taken place. Staff indicated that the developer indeed accepted the offer as fair market value and because they need it to have access. • Staff noted that in the analysis section of this staff reported, it incorrectly stated that the Otay Crossings Commerce Park is also required to install off-site sewer improvements to support the development; this is inaccurate and should be water improvements. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full Board as a Consent Item. OTAY WATER DISTRICTPROPOSED PURCHASE OF OWD PROPERTYAPN 648-070-37 EXHIBIT AC:\OneDrive Work\Otay Water District\ENG PUBLIC SERVICES - Documents\Public-s\STAFF REPORTS\2022\BD 10-05-2022\OWD Alta Rd Property for Purchase 648-070-37.mxd ALTA ROAD OTAY MESA ROAD PASEO DELA FUENTE DE LA FUENTECT Alta Rd Airway Rd Otay Mesa Rd Siempre Viva Rd AÜ Port of EntryOWD APN 648-070-37Proposed Purchase ofOWD Property (0.79 AC) OWD APN 648-070-37OWD Property Ownershipto Remain (0.36 AC) VICINITY MAP SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 !\ ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS D1132-090550F 0 1,000500 Feet Legend APN 648-070-37, Proposed Purchase of OWD Property APN 648-070-37, OWD Property Ownership to Remain M E X I C O PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS This Purchase and Sale Agreement and Escrow Instructions ("Agreement") is entered into effective as of , 2022, which shall be the date of execution by both parties to this Agreement ("Effective Date"), between OTAY WATER DISTRICT, a municipal water district formed under the Municipal Water District Act of 1911 (“Seller”) and CH REALTY X-ELC I OTAY MESA BUSINESS PARK, L.P., a Delaware limited liability company (“Buyer"), and constitutes an agreement for purchase and sale between the parties and joint escrow instructions to the Escrow Agent identified herein and is made with reference to the following facts: RECITALS A.Seller is the owner of the approximately 0.43 acres of land (“Property”) in theEast Otay Mesa area in the unincorporated County of San Diego, State of California. The Property is more particularly described in Exhibits “A” and “A-1” attached hereto. B.Seller desires to sell the Property to Buyer and Buyer desires to purchase the Property, all on the terms and conditions in this Agreement. FOR GOOD AND VALUABLE CONSIDERATION, the receipt and adequacy of which are acknowledged, Buyer and Seller agree as follows: ARTICLE 1 PURCHASE AND SALE 1.1 Purchase and Sale. On the terms and conditions set forth herein, Seller agrees to sell the Property to Buyer, and Buyer agrees to purchase the Property from Seller. ARTICLE 2 AGREEMENT OF SALE AND PURCHASE PRICE 2.1 Purchase Price. The purchase price for the Property shall be ($168,000.00) (the "Purchase Price"). 2.2 Payment of Purchase Price. Buyer shall deliver to Escrow Agent on the Close of Escrow (defined below), Cash (defined below) representing the balance of the Purchase Price due. EXHIBIT B ARTICLE 3 CLOSING 3.1 Opening of Escrow. No later than one day after the execution of this Agreement, the Buyer and Seller shall open an Escrow at First American Title Insurance Company, Attn: Melissa Smith, 4380 La Jolla Village Drive, Suite 110, San Diego, CA 92122; Phone: 858-410-3885; Cell: 619-385-1760; Fax: 877-461-2095; Email: melsmith@firstam.com ("Escrow" or “Escrow Agent”). 3.2 Close of Escrow. Escrow shall close on the Closing Date as set forth in Section 3.3 below. 3.3 Closing Date. The Closing Date shall occur on or before a date, which is ten (10) business days after the Contingency Date (defined below). 3.4 Escrow Instructions. The parties agree to execute such additional supplemental escrow instructions not inconsistent with this Agreement as Escrow Agent may reasonably require in order to facilitate the consummation of the transactions contemplated in this Agreement, and otherwise to conform to the usual practice of Escrow Agent, provided such instructions do not conflict with the provisions hereof. If such an escrow instruction is contrary to, or inconsistent with, a provision of this Agreement, the provision of this Agreement controls. 3.5 Seller’s Delivery at Closing. On or before the Closing Date, Seller shall deliver into Escrow the following documents: 3.5.1 Grant Deed. A Grant Deed in recordable form and properly executed on behalf of Seller conveying to Buyer the Property in fee simple (“Grant Deed”). 3.5.2 IRS. Seller's affidavit that Seller is not a foreign person as defined in the Internal Revenue Code of 1986, as amended (42 USCS §1445(f)(3)). The affidavit shall be in the form prescribed by federal regulations. 3.5.3 FTB. A duly executed Certificate by Seller in favor of Buyer as required under Revenue and Taxation Code §§18662 and 18668. 3.5.4 Fees. The amount, if any, required of Seller under Articles 10 and 11 of this Agreement, entitled “Proration” and “Costs and Fees,” respectively. 3.5.5 Other Documents. Any other documents or instruments reasonably required to close the transaction contemplated hereby. The failure of Seller to make delivery of any of the documents described above on or before the Closing Date shall constitute a material breach hereof by Seller, provided that the conditions to such delivery, if any, have been fulfilled or waived. 3.6 Buyer’s Delivery at Closing. Buyer shall, on or before the Closing Date, deliver to Escrow Agent each of the following: 3.6.1 Cash. Cash representing the balance of the Purchase Price; 3.6.2 Fees. The amount, if any, required of Buyer under Articles 10 and 11 of this Agreement, entitled “Prorations” and “Costs and Fees,” respectively. 3.6.3 Other Documents. Any other documents or instruments reasonably required to close the transaction contemplated hereby. The failure of Buyer to make delivery of any of the documents described above by the Closing Date shall constitute a material breach hereof by Buyer, provided that the conditions to such delivery, if any, have been fulfilled or waived. 3.7 Completion of Documents. Escrow Agent is authorized to collate counterparts of documents deposited into Escrow, to insert the Closing Date as the effective date where appropriate, and to otherwise complete such documents in accordance with instructions received by both parties, where appropriate and consistent with this Agreement. ARTICLE 4 CONDITIONS TO CLOSE OF ESCROW 4.1 Contingency Date. The “Contingency Date” shall mean 5:00 pm on a date, which is ten (10) business days after the Effective Date. 4.2 Conditions Precedent. Seller and Buyer agree that the Closing is subject to the satisfaction or waiver of the following conditions precedent: 4.2.1 Due Diligence. Buyer, in its sole and absolute discretion, shall have until the Contingency Date to approve or disapprove, by written notice to Seller and Escrow Agent, all physical, developmental, economic, and any and all other aspects of the Property. If Buyer fails to give written notice to Seller and Escrow Agent of its approval or disapproval of all such matters on or before the Contingency Date, then Buyer shall be deemed to have disapproved the matters subject to its due diligence review as set forth herein, and the contingency set forth in this paragraph shall be deemed not satisfied. 4.3 Failure of Conditions. If the conditions set forth in Sections 4.2.1 are not satisfied or waived on or before the Contingency Date, Buyer may unilaterally terminate this Agreement and the Escrow by giving written notice of termination to Escrow Agent and a copy of such written notice to the Seller on or before the Contingency Date. In the event of such termination, and except as provided below, neither party shall have any further rights or obligations hereunder, except for any liability or obligation of Buyer and Seller, if any, pursuant to those provisions, which survive termination of this Agreement under the express terms of this Agreement. ARTICLE 5 TITLE 5.1 Delivery of PR. Within five (5) days after the Effective Date, Seller shall deliver to Buyer a preliminary report for the Property (“PR”) issued by First American Title Insurance Company (“Title Company”), together with copies of all underlying documents referred to therein and a plotting of all physical encumbrances disclosed in the PR. During the period between the Effective Date and the Closing or earlier termination of this Agreement, Seller shall not create any further liens or encumbrances to title without Buyer’s prior written consent. Seller shall cause to be removed all deeds of trust, if any, which are recorded against the Property upon Close of Escrow. 5.2 Permitted Exceptions. The following matters shall be deemed permitted exceptions to title to the Property (“Permitted Exceptions”) and Buyer shall take title to the Property subject thereto: 5.2.1 The lien of current, non-delinquent real estate taxes and assessments. 5.2.2 The lien of any supplemental taxes assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code. 5.2.3 The exceptions set forth in the PR, to the extent they are approved by Buyer pursuant to Section 4.2.1. 5.3 Reservation of Easement. Notwithstanding Sections 5.1 and 5.2, above, Seller hereby reserves, for itself, its successors, heirs and assigns, a permanent easement of right-of-way over, under, and across the entire width and length of the Property, more particularly described in Exhibit “A” attached hereto, for the purpose of laying underground water and sewer pipelines and laterals, trunk lines, collection lines and laterals, sewer manholes and other underground and surface structures appurtenant to said water or sewer lines, including but not limited to power lines for transmission and communication purposes, pumps, regulators, valves and access roads or areas within said easement, hereinafter referred to as "said facilities," together with the right to construct, operate, maintain, repair and replace said facilities, and the right of ingress and egress for such purposes. Said easement is described and/or depicted as Exhibit “B” attached hereto. 5.4 Supplemental Reports. If the Title Company issues any supplement to the PR after the Contingency Date, which identifies any additional exceptions which are not Permitted Exceptions, Buyer shall have the right, notwithstanding expiration of the Contingency Date, to deliver written notice of its objection to the same, in writing, to Seller and Escrow Agent within five (5) business days after receipt of such supplemental report with respect to the new exceptions identified in such supplemental report. All exceptions which are approved by Buyer, in writing, shall be deemed Permitted Exceptions. If Buyer disapproves one or more exceptions in the supplemental report within such five (5) day period and Seller has not created such exception in breach of its obligation under Section 5.1, Seller shall have the right, but not the obligation, to cure and cause such disapproved exception to be deleted from the supplemental report by delivering written notice to Buyer and Escrow Agent indicating that Seller will eliminate such exception(s) prior to the Close of Escrow. If Seller delivers such written election to cure disapproved exceptions within three (3) business days after receipt of Buyer’s notice of disapproval, Seller shall have until the Close of Escrow to complete the cure. If Seller fails to deliver written notice to cure any disapproved exception within such three (3) day period, Seller shall be deemed to have elected not to cure the disapproved exceptions. If Seller does not elect to cure or is deemed to have elected not to cure such disapproved exceptions as described above, Buyer shall elect one of the following, by delivering written notice to Seller and Escrow Agent by 5:00 p.m. within five (5) business days after Seller has elected not to cure such disapproved exceptions or has been deemed not to cure such disapproved exceptions: (i) to waive its objections, take title subject to such disapproved exceptions, which shall be deemed Permitted Exceptions, and proceed to close the Escrow; or (ii)to terminate this Agreement and the Escrow, in which event neither party shall have any furtherrights or obligations hereunder (except for any liability or obligation of Seller or Buyer pursuant tothose provisions which survive termination of this Agreement under the express terms of thisAgreement). If Buyer fails to deliver written notice of its election prior to the applicable deadline,Buyer will be deemed to have elected to waive its objections as described in (i) above.Notwithstanding the above, if Seller has created such new exception in breach of its obligation under Section 5.1, Seller shall be in default unless it causes such exception to be deleted from thesupplemental report or Title Policy prior to the Close of Escrow. ARTICLE 6 PRE-CLOSING MATTERS 6.1 Inspection of Property. From and after the Effective Date, Seller shall make available to Buyer reasonable access to the Property during reasonable business hours and with reasonable advance notice to Seller for Buyer's inspection, investigation, and approval, in Buyer's sole discretion, and at Buyer’s sole cost and expense, the physical, geological, and environmental condition and use of the Property, including without limitation, the availability of access, utility services, zoning, environmental risks, engineering, and the soil conditions. Buyer agrees to indemnify Seller and to hold Seller, Seller's agents and employees, and the Property harmless from any losses, costs, damages, claims, or liabilities, including but not limited to, mechanics' and materialmen's liens and attorneys’ fees, arising in connection with Buyer's entry upon the Property under this Section 6.1. 6.2 Delivery of Documents. Seller will deliver to Buyer copies of the following documents with respect to the Property within two (2) days after the Effective Date: 6.2.1 Project Documents. Any studies, reports, surveys, and documents for the Property that are in Seller’s possession (collectively, the “Project Documents”). ARTICLE 7 REPRESENTATIONS AND WARRANTIES 7.1 Warranties of Parties. 7.1.1 Seller's Warranties. Seller represents and warrants as of the date hereof: (a) Seller is a municipal water district formed under the Municipal Water District Act of 1911, duly formed, existing and in good standing under the laws of the State of California; Seller has full legal right, power and authority to execute and fully perform its obligations under this Agreement pursuant to its governing instruments; and the persons executing this Agreement and other documents required hereunder on behalf of Seller are the duly designated agents of Seller and are authorized to do so. (b) To the best of Seller’s knowledge and except as described in the Project Documents, the Property does not contain any Hazardous Materials and does not have located under it, nor has there ever been, any underground storage tanks. (c) Seller has received no notice from any governmental authority and has no knowledge of any pending or threatened (i) zoning, building, fire, or health code violations or violations of other laws or governmental regulations concerning the Property or the operation of the Property that has not previously been corrected or disclosed in writing to Buyer; and (ii) condemnation of the Property or any part of the Property or special assessment regarding same. (d) To the best of Seller's knowledge, no legal actions are pending or threatened against the Property. (e) Sale of the Property will not violate any court order or an order of any governmental agency having jurisdiction over the Property or the Seller, or both. 7.1.2 Buyer's Warranties. Buyer represents and warrants as follows: (a) Buyer is a limited liability company, duly formed, existing and in good standing under the laws of the State of Delaware; Buyer has full legal right, power and authority to execute and fully perform its obligations under this Agreement pursuant to its governing instruments, without the need for any further action; and the persons executing this Agreement and other documents required hereunder on behalf of Buyer are the duly designated agents of Buyer and are authorized to do so. ARTICLE 8 BROKER’S COMMISSIONS (intentionally deleted) ARTICLE 9 (intentionally deleted) ARTICLE 10 PRORATIONS 10.1 Prorations. The following items shall be prorated, as applicable, on a per diem basis up to and including the Closing Date: 10.1.1 All non-delinquent property taxes and installments of special assessments due and payable in the calendar year of Closing, based upon the most recent tax information; and 10.1.2 Assessments payable pursuant to any covenants, conditions, or restrictions affecting the Property. 10.2 Method. All prorations shall be made on the basis of a 30-day month and a 360-day year, unless the parties otherwise agree in writing. If either party receives, afterClose of Escrow, a supplemental tax assessment based upon the new construction or achange in ownership occurring prior to the Closing Date, then, within thirty (30) days after receipt, the parties shall prorate said supplemental assessment outside of Escrow (but asof the Closing Date) and make any appropriate payments. ARTICLE 11 COSTS & FEES 11.1 Costs. Seller will pay (i) Documentary Transfer Tax, in the amount Escrow Agent determines to be required by law; (ii) the premium for the CLTA Title Policy defined and discussed in Section 17.1.2 below; and (iii) one- half (1/2) of Escrow Agent’s fee. Buyer will pay (i) one-half of (1/2) Escrow Agent’s fee; (ii) usual Buyer’s document-drafting charges; and, if applicable, (iii) the policy premium increase for an ALTA Title Policy discussed in Section 17.2 below and any endorsements requested by Buyer and (iv) all recording charges. ARTICLE 12 RISK OF LOSS 12.1 Buyer’s Rights. If the Property is damaged by fire or other casualty prior to the Closing Date, Buyer may either (i) terminate this Agreement, or (ii) proceed to close this transaction, without reduction in the Purchase Price, and have Seller assign and transfer to Buyer on the Closing Date all of Seller’s right, title, and interest to any insurance proceeds paid or payable to Seller under the policy covering the damage and pay to Buyer the amount of Seller’s deductible under the insurance policy. ARTICLE 13 CONDEMNATION 13.1 Condemnation. If between the Effective Date and the Closing Date, any condemnation or eminent domain proceedings are commenced or threatened that might result in the taking of any part of the Property, Buyer may either: (a) terminate this Agreement by written notice to Seller; or (b) proceed with the Closing and have Seller assign to Buyer all of Seller's right, title, and interest to any award made for the condemnation or eminent domain action. 13.2 Notice. Immediately after Seller obtains notice of the commencement of or the threatened commencement of eminent domain or condemnation proceedings, Seller shall notify Buyer in writing. Buyer shall then notify Seller, within thirty (30) calendar days of Buyer's receipt of Seller's notice, whether Buyer elects to terminate this Agreement in accordance with Section 13.1(a) above. Failure by Buyer to respond within such thirty (30) calendar day period shall be deemed to be an election by Buyer to terminate this Agreement in accordance with such Section 13.1(a) above. ARTICLE 14 (intentionally deleted) ARTICLE 15 NOTICES 15.1 Notice. All notices under this Agreement shall be in writing and sent by (a) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered three (3) business days after deposit, postage prepaid in the United States Mail, (b) by a nationally recognized overnight courier such as Airborne Express, or Federal Express, in which case notice shall be deemed delivered one (1) business day after deposit with that courier, or (c) by personal delivery, in which case notice shall be deemed delivered upon such date of delivery, as follows: Buyer’s Address For Notice: With Copies To: CH REALTY X-ELC OTAY MESA BUSINESS PARK, L.P. 11622 El Camino Real, Suite 100 San Diego, CA 92130 Attention: Mr. Brig Black E-Mail: brig@elevation-land.com The Law Office of Cynthia L. Eldred, APC1013 White Oak Avenue Maryville, TN 37803 Attention: Cynthia L. Eldred, Esq. E-Mail: cindy@eldredlaw.com Seller’s Address for Notice: With Copies To: ARTICLE 16 ASSIGNMENT 16.1 Assignment. Either party shall have the right to assign its rights and obligations under this Agreement only with the prior written consent of the other party, which consent shall not be unreasonably withheld. To the extent a party assigns its obligations hereunder, the assignee shall assume the assigning party’s warranties, representations, and obligations under this Agreement and under any additional escrow instructions, in writing and such assignee is bound by all approvals previously given, if any. ARTICLE 17 THE CLOSING 17.1 Closing. Escrow Agent shall close the Escrow on the Closing Date by (i) filing for record the Grant Deed, such other documents as may be necessary to procure the Title Policy (as hereinafter defined), and Seller’s Easement described in Section 5.3 above, and (ii) delivering funds and documents as set forth in this Agreement IF AND ONLY IF each of the following conditions has been satisfied: 17.1.1 Delivery of Funds. All funds and instruments described in Section 3.5 and Section 3.6 have been delivered to Escrow Agent. 17.1.2 Procurement of Title Policy. Escrow Agent has procured the Title Company's CLTA Standard Owner's Policy (the "Title Policy"), with liability in the amount of the Purchase Price, ensuring that the fee title to the Property vests in Buyer subject only to the Permitted Exceptions. 17.1.3 Conditions. The conditions to closing set forth in Section 4.2.1 have been satisfied or waived. 17.2 Title Insurance. Buyer may, at Buyer's option, direct the Escrow Agent to obtain an ALTA Title Extended Policy or to issue additional title insurance endorsements if Buyer pays for the extra cost of such additional endorsements for such ALTA Title Policy over and above what would have been the cost of the CLTA Policy described above, provided that obtaining an ALTA Title Policy or endorsements is feasible and will not delay the Close of Escrow. Notwithstanding Buyer's exercise of this option to obtain an ALTA Title Policy or additional title insurance endorsements, the Title Company's refusal to issue an ALTA Policy with liability in the amount of the Purchase Price or the requirement that additional exceptions to such ALTA coverage should be shown shall not be a condition to Closing or constitute grounds for Buyer's refusing to purchase the Property or any claim for damages or reduction in the Purchase Price. Buyer shall be solely responsible, at his sole cost and expense, for timely obtaining an ALTA survey prior to Close of Escrow. 17.3 Termination. If Escrow Agent cannot close the Escrow on or before the Closing Date, it will nevertheless close the same when all conditions (except as to time) have been met unless, after the Closing Date and prior to the Close of Escrow, Escrow Agent receives a written demand for termination from a party not then in default hereunder. Said written demand shall also concurrently be delivered to the other party hereto. The making of such demand shall be optional, not mandatory; no delay in the making of such demand shall affect the rights hereunder of the party making same. In the event such demand is made upon Escrow Agent, Escrow Agent shall return to each party the funds and/or documents theretofore delivered to it by such party unless Escrow Agent decides the protection of its interests requires otherwise. Such return of funds and/or documents shall not affect the right of either party to enforce any remedy that may otherwise be available against the other party for breach of this Agreement. If Escrow is terminated as provided herein, Buyer shall promptly, upon such termination, deliver to Seller copies of all of the documents previously delivered by Seller to Buyer. ARTICLE 18 GENERAL PROVISIONS 18.1 Governing Law. This Agreement shall be interpreted and construed in accordance with California law. 18.2 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 18.3 Captions and Pronouns. The captions in this Agreement are inserted for convenience of reference and in no way define, describe, or limit the scope or intent of this Agreement or any of the provisions of this Agreement. Variations in pronouns have no bearing on the substantive effect of any provision of this Agreement. The masculine, feminine, or neuter, singular or plural, may be used interchangeably as the context expressly, or by necessary implication, may require. 18.4 Binding Effect. Subject to Section 16.1 above, this Agreement shall be binding upon and inure to the benefit of the parties and their respective legal representatives, successors, heirs, and permitted assigns. 18.5 Modifications; Waiver. No waiver, modification, amendment, discharge, or change of this Agreement shall be valid unless it is in writing and signed by the party against which the enforcement of the modification, waiver, amendment, discharge, or change is sought. 18.6 Entire Agreement. This Agreement contains the entire agreement between the parties relating to the transactions contemplated by this Agreement and all prior or contemporaneous agreements, understandings, representations, or statements, oral or written, are superseded. 18.7 Partial Invalidity. Any provision of this Agreement, which is unenforceable, invalid, or the inclusion of which would adversely affect the validity, legality, or enforcement of this Agreement shall have no effect, but all the remaining provisions of this Agreement shall remain in full effect if the rights and obligations of the parties are not materially altered. 18.8 Survival. Except as otherwise expressly provided in this Agreement, all representations, warranties, covenants, agreements, indemnities and other obligations of Seller and Buyer in this Agreement shall survive the Closing of this transaction. 18.9 No Third-Party Rights. Nothing in this Agreement, express or implied, is intended to confer upon any person, other than the parties to this Agreement and their respective successors and assigns, any rights, or remedies. 18.10 Time of Essence. Time is of the essence in this Agreement. 18.11 Attorneys’ Fees. If any legal action or any other proceeding, including arbitration or an action for declaratory relief, is brought to enforce this Agreement or because of a dispute, breach, default, or misrepresentation in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys’ fees and other costs incurred in that action or proceeding, in addition to any other relief to which that party may be entitled. Prevailing party shall include, without limitation, (a) a party who dismisses an action in exchange for sums allegedly due; (b) the party that receives performance from the other party alleged to have breached a covenant or that receives a desired remedy, where these things are substantially equal to the relief sought in an action; or (c) the party determined to be the prevailing party by a court of law. 18.12 Definitions. Definitions of words and phrases used in this Agreement: 18.12.1 Cash. "Cash" means (I) United States currency, or (ii) cashier’s check(s), currently dated, payable to Escrow Agent and honored and paid upon presentation for payment on or prior to the Closing Date, or (iii) an amount credited by wire transfer into an Escrow Agent's bank account, or (iv) if Escrow Agent, in its sole discretion so requires, check(s) in the form required by clause (ii) drawn on such bank(s) as Escrow Agent may require. 18.12.2 Party. "Party" or "parties" means Buyer and/or Seller, as the context indicates. 18.12.3 Escrow. "The escrow" means the escrow created hereby. 18.12.4 Close of Escrow. "The Close of Escrow" means the time Seller's Grant Deed is filed for record. 18.12.5 Opening of Escrow. "The opening of the escrow" means the date Escrow Agent signs the "Consent of Escrow Agent" attached hereto. 18.12.6 County. “County” means the County of San Diego. 18.12.7 Hazardous Materials. "Hazardous Materials" means: (a) Those substances included within the definitions of "hazardous substance," "hazardous waste," "hazardous material," "toxic substance," "solid waste," or "pollutant or contaminant" in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 [42 USCS §§9601 et seq.]; the Resource Conservation and Recovery Act [42 USCS §§6901 et seq.]; the Clean Water Act [33 USCS §§ 2601 et seq.]; the Toxic Substances Control Act [15 USCS §§9601 et seq.]; the Hazardous Materials Transportation Act [49 USCS §§1801 et seq.] or under any other Environmental Laws; (b) Those substances listed in the United States Department of Transportation Table [49 CFR 172.101], or by the Environmental Protection Agency, or any successor agency, as hazardous substances [40 CFR Part 302]; (c) Other substances, materials, and wastes that are or become regulated or classified as hazardous or toxic under federal, state, or local laws or regulations; and (d) Any material, waste, or substance that is: (I) a petroleum or refined petroleum product, (ii) asbestos, (iii) polychlorinated biphenyl, (iv) designated as a hazardous substance pursuant to 33 USCS §1321 or listed pursuant to 33 USCS §1317, (v) a flammable explosive, or (vi) a radioactive material. 18.12.8 Laws. “Laws” means all governmental laws, statutes, ordinances, resolutions, rules, regulations, restrictions, and requirements applicable to the Property, whether now or hereafter in effect, and as amended or supplemented from time to time. 18.12.9 Environmental Laws. “Environmental Laws” means all laws applicable to the physical condition of the Property or the presence of any substance thereon, including without limitation the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. Sections 9601 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), the Clean Water Act (33 U.S.C. Sections 466 et seq.), the Safe Drinking Water Act (14 U.S.C. Sections 300f et seq.), the Hazardous Materials Transportation Act (49 U.S.C. Sections 5101 et seq.), the Toxic Substances control Act (15 U.S.C. Sections 2601 et seq.), the California Hazardous Waste Control Act (California Health and Safety Code Section 25100 et seq.), the California Hazardous Substances Account Act (California Health and Safety Code Sections 25300 et seq.), the Safe Drinking Water and Toxic Enforcement Act (“Proposition 65”)(California Health and Safety Code Sections 25249.5 et seq., and the Porter-Cologne Water Quality Control Act (California Health and Safety Code Sections 13000 et seq.), and any similar federal, state or local laws, all regulations and publications implementing or promulgated pursuant to the foregoing, as any of the foregoing may be amended or supplemented from time to time. 18.13 Possession. Possession of the Property is to be given to Buyer on the Closing Date. The parties have executed this Agreement as of the date first above written. SELLER: OTAY WATER DISTRICT, a municipal water district formed under the Municipal Water District Act of 1911 By: Jose Martinez, General Manager Approved as to Form: General Counsel BUYER: CH Realty X-ELC I Otay Mesa Business Park, L.P., a Delaware Limited Liability Company By: ELC Otay Business Park GP, LLC, A Delaware limited liability company, its general partner By: Its: CONSENT OF ESCROW AGENT The undersigned Escrow Agent hereby agrees to (i) accept the foregoing Agreement and Instructions, (ii) be escrow agent under said Agreement and Instructions, and (iii) be bound by said Agreement and Instructions in the performance of its duties as escrow agent; provided, however, the undersigned shall have no obligations, liability or responsibility under (i) this Consent or otherwise, unless and until said Agreement and Instructions, fully signed by the parties, has been delivered to the undersigned, or (ii) any amendment to said Agreement and Instructions unless and until the same shall be accepted by the undersigned in writing. Dated: FIRST AMERICAN TITLE INSURANCE COMPANY By: EXHIBIT "A" LEGAL DESCRIPTION PORTION OF APN 648-070-37 The Easterly 30.00 feet of the Southwest Quarter of Section 31, Township 18 South, Range 1 East, San Bernardino Meridian in the County of San Diego, State of California, according to United States Government Survey approved September 11, 1879, as described in Final Order of Condemnation filed in the Office of the County Recorder of San Diego County October 13, 1972 as File No. 309434 of Official Records. Excepting therefrom the Northerly 1512.00 feet. Also excepting therefrom that portion lying Southerly of a line being distant thereon North 00°15'52" West 519.79 feet from the South Quarter Corner of said Section 31 and perpendicular to the Easterly line of said Southwest Quarter. Contains 18,708 Square Feet or 0.43 Acres, more or less �Cref � /tl [1:;>�1.-Date PLS 8050 END OF LEGAL DESCRIPTION Page 1 of 1 PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS INJW 4l/43!E(Ca 34l AIRWAY ROAD G EASTERLY 30.00' 6=90'00'00" SI: STEVENS CRESTO ENGINEERS 9665 Chesapeake Dr, Ste 200 San Diego, CA 92123 858.694.5660 stevenscresto.com SCE NO 20022.02 E 1-- EXHIBIT "B" LEGEND SHEET 1 OF 1 � SUBJECT PROPERTY: PORTION OF APN 648-070-37CONTAINS 18,708 SQ.FT. OR 0.43 ACRES, MORE OR LESS 1 11 1 CENTER OFII I SECTION 31 @ 30' WIDE EASEMENT FOR INGRESS AND EGRESS PER FILE NO. 85-136871 REC. APRIL 22, 1985, OF O.R. @ 30 ' WI DE EASEMENT FOR INGRESS AND EGRESS PER GRANT DEED, FILE NO. 2005-1033150 REC. NOVEMBER 30, 2005, O.R. 11 i I 50' II� @ 20' WIDE EASEMENT TO OTAY MUNICIPAL WATER DISTRICT PER FILE NO. 93912 REC. JUNE 5. 1968, O.R. II I I I �f)�@ I (6�� =(0)1(0)=33� 30' WIDE EASEMENT TO OTAY MUNICIPAL WATER DISTRICT PER FILE NO. 74-051081 REC. FEBRUARY26, 1974, O.R. 1111 20·?© I� E '� ':IIJ I _ '-J'-J © 20' WIDE EASEMENT TO OTAY MUNICIPAL WATERDISTRICT PER FILE NO. 2033 REC. JANUARY 6,1970, O.R. 20' WI DE IRREVOCABLE OFFER OF OED I CAT I ON FORSEWER LINES TO THE COUNTY OF SAN DIEGO PER FILE111 I EAST LINE OF 11 I I SOUTHWEST 1 / 4 I II Il l III I _J OF SECT ION 31 II 20· 11- . ©I� II SOUTH 1/4CORNER OF SECTION 31 NO. 2011-0492242 REC. SEPTEMBER 22, 2011, O.R. @ EASEMENT FOR COUNTY HIGHWAY TO THE COUNTY OF SAN DIEGO PER FILE NO. 2012-0540244 REC. SEPTEMBER 7, 2012, O.R. @ 49' WIDE IRREVOCABLE OFFER OF OED I CA TI ON FOR PUBLIC HIGHWAY PER FI LE NO. 2015-0332936 REC. JUNE 26, 2015, 0.R. 0 50' WIDE EASEMENT FOR THE RIGHT TO EXTENDDRAINAGE STRUCTURES, EXCAVATION AND EMBANKMENTSLOPES FOR PUBLIC HIGHWAY PER FILE NO. 2015-0332936 REC. JUNE 26, 2015, O.R. 0 200 I I-400 1 SCALE: 1''=400' 800 I PROPERTY ACQUISITION DATE: 2022 05 02 PORTION OF SOUTHWEST 1/4 OF SECTION 31 TOWNSHIP 18 SOUTH, RANGE 1 EAST, S.B.M. PORTION OF APN 648-070-37 DWG: 20022 OWD PROP ACQ DRAWN BY: AAH CHECKED BY: JGC PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS EXHIBIT C JOINT USE AGREEMENT – OTAY WATER DISTRICT COUNTY OF SAN DIEGO TRACT NO. 5405-1 This Agreement, entered into this ____ day of _________________, 2022___ by and between the County of San Diego, hereinafter "County", and the Otay Water District, hereinafter "District". Whereas, the District is the owner of the following described easement recorded October 13, 1972, as File No. 334824 of Official Records of San Diego County and described as: the Easterly 30 feet of the Easterly ½ of the Southwest quarter of Section 31, Township 18 South, Range 1 East, San Bernardino Base and Meridian, County of San Diego, State of California. Whereas, County is accepting certain easements which may extend across and through portions of the above described District easement; and Whereas, County and District desire to enter into this Agreement to provide for the rights and obligations of each of the parties in their joint use of the areas common to their respective easements; Now, therefore, County and District agree as follows: 1. In the event that the future use or alteration of said easement by County shall at any time necessitate a rearrangement, relocation or reconstruction of Districts public improvements, the same shall be performed at the cost of County, and if the acquisition of additional required easements or property pursuant thereto is required, the same shall be obtained by County in form satisfactory to the District, or by the District with written consent of the County, at the cost of the County. 2. All uses of said easement area by either party shall be such as will not permanently interrupt the use or operation of the facilities therein of the other party. Uses of said areas by either party which temporarily interfere with the use or operation of the facilities therein of the other party will be made only when reasonably necessary and will be promptly terminated as soon as the necessity therefor no longer exists. 3. If the County or the District shall hereafter vacate or abandon, in whole or in part, said easements or properties the County or District shall, in the vacation or abandonment proceedings, reserve to the other all rights owned by it prior to the execution of this certification. 4. The Otay Water District easements existing on this map will be recognized as senior to all other dedications on the face of this map. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of both parties. 6. Each party shall hold harmless, and indemnify the other party and its directors, officers, agents and employees against any and all loss, liability, damage, or expense, including any direct, indirect or consequential loss, liability, damage, or expense, but not including attorneys' fees unless awarded by a court of competent jurisdiction, for injury or death to persons, including employees of either party, and damage to property, including property of either party, arising out of or in connection with intentional, willful, wanton, reckless or negligent conduct regarding use of the easement area. However, neither party shall be indemnified hereunder for any loss, liability, damage, or expense resulting from its sole negligence or will conduct. In witness whereof, the parties have caused this Agreement to be executed as of the date first above written by their properly authorized officials. OTAY WATER DISTRICT BY: ___________________________ Jose Martinez General Manager COUNTY OF SAN DIEGO BY: ___________________________ Name: Title: STAFF REPORT GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the General Manager to issue purchase orders of up to the budgeted amount, and any inflation adjustments in addition to the budgeted amounts, when pricing and vehicles are available, for the purchase of seven fleet vehicles and one excavator, as described below, in an overall cost of $882,500.00: •Two (2) dump trucks, one (1) class 7 and one (1) commercial class 8, with automatic transmission of up to budgeted amountof $200,000.00 each, for a total of $400,000.00. •Two (2) electric or hybrid vans of up to budgeted amount of $60,000.00 each for a total of $120,000.00. •Two (2) compact pick-up trucks up to budgeted amount of $25,000.00 each for a total of $50,000.00. •One (1) class 5 Valve Exercising Truck up to budgeted amount of $200,000.00. •One (1) compact excavator with hydraulic hammer and bucket in the amount of $112,500. Staff also recommends to surplus Units #206 and #199, Utility Dump Trucks. EXCAVATOR, AND TO DECLARE UNITS #206 AND #199 UTILITY DUMP TRUCKS AS SURPLUS AUTHORIZE THE PURCHASE OF SEVEN FLEET VEHICLES AND ONE SUBJECT: SUBMITTED BY: Charles Mederos, Utility Services Manager October 5, 2022 DIV.NO. All PROJECT: P2282, P2286, and R2162 MEETING DATE: Regular Board TYPE MEETING: Andrew Jackson, Chief Water Operations APPROVED BY: Jose Martinez, General Manager AGENDA ITEM 9e COMMITTEE ACTION: See “Attachment A.” PURPOSE: To obtain Board authorization to purchase seven fleet vehicles and one compact excavator of up to the budgeted amounts, if applicable, include any inflation adjustments, for FY23 or when vehicles are available for purchase, and declare Units #206 and #199, Utility Dump Trucks, as surplus. ANALYSIS: There are seven vehicles and one compactor excavator included in the approved FY23 budget. The window of opportunity to place orders for these vehicles is extremely narrow due to pent-up demand for fleet vehicles. For instance, General Motor’s order banks for most of their light and heavy-duty trucks opened and closed within 72 hours. Should the District wait until pricing becomes available later this calendar year and then seek Board authorization, the District would be locked out of the opportunity to purchase model year 2023 vehicles and have them delivered before the close of the fiscal year. As a remedy to this problem, Sourcewell’s Cooperative Agreement with National Auto Fleet Group (NAFG) allows government agencies to reserve certain vehicles ahead of manufacturers’ pricing without the obligation to purchase. Staff has already reserved two electric vans and will continue to reserve other vehicles listed herein as reservation becomes available. Note: Cooperative/Joint Purchases are authorized under Section 6.2.3 of the Purchasing Manual. These purchases are exempt from the District’s competitive solicitation requirements so long as the contracts, schedules, and agreements are solicited in a manner substantially consistent with the District’s purchasing policies. Sourcewell is a State of Minnesota’s local government unit and service cooperative created under the laws of the State of Minnesota that offer cooperative procurement solutions to government entities. Based on the reasons previously mentioned, it is imperative to seek pre-authorization from the Board to secure the purchases of the vehicles and the excavator as soon as possible. In addition, staff would like to take advantage of the early credit opportunity as written under California Air Resources Board (CARB) for the Advanced Clean Fleets Regulations for Public Fleets per the California Governor’s Executive Order N-79-20. The District will have more flexibility of buying a combustion engine vehicle if an electric vehicle is not available in 2024. The requested seven vehicles (Attachment B) will replace the following units and will add one vehicle for the valve exercising crew and one compact excavator. The non-commercial vehicles are part of the vehicle replacement program of seven years and/or 100,000 miles for non-commercial vehicles: • #206 (2008 Ford F-650 Dump Truck Utility Maintenance – 12,145 miles). This vehicle is a Utility Crew Dump Truck and is 14 years old and in need of replacement. • #199 (2008 Sterling Dump Truck Utility Maintenance – 72,018 miles). This vehicle is a Commercial Utility Crew Dump Truck and is 14 years old and in need of replacement. • #185 (2008 Ford F-250 Electricians – 77,166 miles). This vehicle is utilized by electricians to perform field maintenance of preventive and corrective electrical work. • #183 (2008 Ford F-250 Electricians – 65,753 miles). This vehicle is utilized by electricians to perform field maintenance of preventive and corrective electrical work. • #176 (2009 Toyota Matrix Treatment Plant/Lab – 83,519 miles). This vehicle is utilized by Treatment Plant Laboratory staff to perform water quality sampling throughout the District. • #151 (2004 Ford F-150 SCADA/Pump Electrical Supervisor – 74,102 miles). This vehicle is utilized by SCADA/Pump/Electrical Supervisor for operation and inspection of the SCADA and Pump Electrical Section. It is essential for the District to surplus Units #206 and #199 to maintain critical water and sewer services since the District requires reliable vehicles for emergency response with the capacity to perform repairs in a timely manner. The dump trucks are used to transport the District’s heavy construction equipment including backhoes, skid steers, shoring trailers, among other large equipment. Based on system operation evaluation of workflow and the current market uncertainty of vehicle stock, it is recommended to purchase two new dump trucks and have Units #206 and #199 declared as surplus. The Toyota Matrix and Ford F-150 for the SCADA/Pump/Electrical Supervisor are being replaced with a compact pick-up, possibly a Ford Maverick Hybrid for the following reasons: • Since the Toyota Matrix was discontinued in 2014, staff is pursuing the Ford Maverick Hybrid due to the combined average of 37 miles per gallon (MPG) and the ability to use its battery to obtain better fuel economy of up to 42 MPG, while the Toyota Matrix has 26 MPG and the 2023 Ford Rangers estimated MPG is 20. • The Ford Maverick has a higher ground clearance of 8.3 inches while the Toyota Matrix has ground clearance of 5.8 inches. • The Ford Maverick’s cargo bed can be used to transport light duty items to job sites. The Ford F-250s are being replaced with electric vans for the following reasons: • The California Governor’s Executive Order N-79-20, as written by CARB for the Advanced Clean Fleet Regulation for Public Fleets taking effect, as written, on January 2024, will require public fleets to have 50 percent of the class 2-A vehicles and above be Zero Emissions Vehicle (ZEV) or Near Zero Emissions Vehicle. The District will obtain an early credit if an electric vehicle is purchased before the regulation takes effect and it will also provide more flexibility to purchase a combustion engine commercial vehicle in 2024 if an electric option is not available. Due to the valve replacement program, it is recommended to add an additional valve exercising truck, fully outfitted, and a compact excavator to expedite the valve replacements. These expenses are budgeted and approved under FY23. Once the purchases are secured, staff will inform the Board of the status and costs of the vehicle purchases. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budgeted cost for the seven vehicles is $770,000.00 which will be charged against the Vehicle Capital Purchases CIP P2282 and R2162. The total budgeted cost for the compact excavator is $112,500.00 which will be charged against the Vehicle Capital Purchases CIP P2286. The Finance Department has determined that 100 percent of the funds are available to cover the cost of the Capital Purchases. STRATEGIC GOAL: Operate the system to meet demand 24 hours a day, seven days a week. LEGAL IMPACT: None. Attachment A - Committee Action Attachment B - Photos of Vehicles ATTACHMENT A SUBJECT/PROJECT: AUTHORIZE THE PURCHASE OF SEVEN FLEET VEHICLES AND ONE EXCAVATOR, AND TO DECLARE UNITS #206 AND #199 UTILITY DUMP TRUCKS AS SURPLUS COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee reviewed this item at a meeting held on September 20, 2022 and the following comments were made: • Staff requested the Committee’s support in purchasing (when available) seven (7) fleet vehicles and one (1) compact excavator of up to the budgeted amounts, plus any inflation adjustments, and declare Units #206 and #199, Utility Dump Trucks, as surplus. • Staff evaluated the potential price increases due to inflation and determined that it would be approximately $50,000.00 more than what is budgeted, but could go up to as much as $75,000.00, which remains within the General Manager’s signatory authority. In the event that the price increases are more than that, staff will present the updated amounts to the Board for authorization. • Staff reiterated that the window of opportunity is very narrow and because of this, a letter of intent with no obligation to buy the vehicles is needed, hence the request for authorization. • General Manager Martinez stated that the request for replacement vehicles during this time of year was pretty typical as far as staff submitting their requests and working with Purchasing to obtain quotes and have sellers submit their bids. However, the process is a bit different this time due to the supply chain shortage, which is why advanced authorization is being requested, but within a cap/limit. The District is now only given a few days to make a purchase due to the current environment. • Staff clarified to the Committee that since the District is purchasing the vehicles and not leasing, as Director Keyes had originally understood, it is the District’s responsibility to maintain the EV’s and liable for any malfunctions, however, standard warranties will be applied. • Based on the Committee’s concerns on EV’s malfunctions that have been on the news, staff stated that Ford is at the forefront of electric vehicle technology and are fairly confident about the product in terms of batteries. The biggest concern is dealer support, due to staffing shortages and the amount of time it takes to find qualified people, which creates a backlog for repairs and longer wait times. • The Committee requested that staff ensure the contracts specify responsibility to minimize any gray areas. • In response to a question posed by the Committee about vehicle preference from staff, it was stated that staff work with department heads or immediate supervisor to evaluate employees’ tasks and match them with the best suited vehicle. Some staff are tasked to go off- road in some of the construction in the south District, and ground-clearance is a concern. • The Committee inquired about the CARB 2024 requirement. Staff mentioned that by calendar years 2024-2026 all new additions or replacement of fleet vehicles class 2-A and above need to be 50 percent Zero Emissions (ZEV) and 100 percent by calendar year 2027. • The Committee asked if staff could purchase EV in bulk instead of just by replacements and what asked what other agencies are doing to comply with this executive order. Staff responded that they have discussed with Helix Water District (Helix) and Sweetwater Authority (Sweetwater) about their vehicle replacements, and they are progressively replacing their vehicles. Sweetwater just got their program this fiscal year and are testing. • The Committee noted that staff are “getting ahead of the game” by making purchases as replacements occur. General Manager Martinez noted that other General Managers have been discussing this topic and some agencies do not have a steady program in place and some may be making purchases in bulk and possibly take out loans to cover their costs before the deadline. Discussions with CARB and Sacramento are continuing regarding the requirements with this Executive Order and whether or not this may change since a lot of the vehicles, especially in commercial level, are not available and many may be going after the same Dump Truck at the same time and little inventory. In future purchases, the District may feel that it is appropriate to purchase more if this continues and are unable to purchase now. • The Committee inquired about the District’s charging stations and how the EV will be charged. The current vehicles, that are personal, are getting charged in the Administration building’s charging station now. The District’s plan is to set up more charging stations at the Operations building. The concern for future charging stations at the District is that SDG&E is not ready to support that level of charging infrastructure if all of the agencies and large companies require this support. This is why the District feels that some of these deadlines may be adjusted. • The Committee asked if the District has plans for a CIP charging station infrastructure. Staff stated that there is a CIP for charging station infrastructure over the next six years. The current personal vehicles are a good testing opportunity for staff. • The Committee asked which EVs the District will start testing with first, smaller or larger vehicles. Staff responded saying anything that is available since inventory is scarce. The Committee liked the idea of getting experience from others but there is something to be said about getting hands on as well by getting one. • The Committee asked if there is a punishment for not complying with this Executive Order and there is no language on punishment, but the District does need to report every year the number of vehicles that District have in possession and of those, how many are EVs. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full Board as a Consent Item. ATTACHMENT B John Deere 60G Compact Excavator Ford E-Transit Two (2) for Electricians Replacing Units 183 and 185 Ford Maverick One (1) SCADA/Pump Electrical Replacing Unit 151 and One (1) for Treatment Plant/Lab Replacing Unit 176 Unit 199 2008 Sterling L 9500, 72,018 miles To be replaced with a Class 8 Dump truck Unit 206 2008 Ford F-650, 12,145 miles To be replaced with a Class 7 Dump truck Ford F-550 Valve Exercising Truck Unit 176 Unit 185, 183 is identical to 185 Unit 151 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 SUBMITTED BY: Kelli Williamson Human Resources Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Adolfo Segura, Chief of Administrative Services Jose Martinez, General Manager SUBJECT: APPROVE CONTINUING WITH CURRENT PROVIDER FOR LIFE, ACCIDENTAL DEATH & DISMEMBERMENT (AD&D), AND SHORT/LONG-TERM DISABILITY INSURANCE GENERAL MANAGER’S RECOMMENDATION: To authorize the General Manager to continue with Sun Life, the District’s current provider, and enter a two-year agreement to provide life, accidental death & dismemberment (AD&D), and short/long-term disability insurance from January 1, 2023, through December 31, 2024. COMMITTEE ACTION: See “Attachment A”. PURPOSE: To obtain Board approval to continue with Sun Life for the District’s life, AD&D, and short/long-term disability insurance for two (2) additional years. ANALYSIS: The District reviews its insurance plans on a continuous basis to ensure it is receiving the highest level of service with the most cost- effective premiums. The District provides and pays for life, AD&D, and short/long-term disability insurance for its employees. Voluntary life and AD&D insurance is also provided; however, the costs are borne by AGENDA ITEM 9f 2 employees. In 2017, the District consolidated these benefits to one (1) provider, Sun Life, to obtain overall cost-savings to the plans. The District’s rate guarantee for these benefit plans will end on December 31, 2022. Through our benefits consultant, Alliant, two-year quotes were solicited from two (2) other plan providers for these benefit plans: Sun Life $84,879* Mutual of Omaha $75,870* MetLife $98,771* *Based on current census information subject to change. Sun Life’s quote proposed the same pricing for the next two (2) years for life insurance, AD&D, and short/long-term disability. The MetLife quote was higher than Sun Life, and Mutual of Omaha is slightly lower than Sun Life. The cost savings of transitioning to Mutual of Omaha does not outweigh the administrative costs associated with changing carriers. The District has been satisfied with the service Sun Life has provided for these benefits plans. Therefore, staff recommends continuing with Sun Life, provided the District continues to be satisfied with the service level. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The estimated cost of these benefits, based on the current census, is approximately $85,000 per year over the next two (2) years. The census can change based on salary levels and number of positions filled. The FY23 Operating budget includes $85,300 for these benefits. In addition, these benefits will be budgeted in the FY24 Operating budget. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report ATTACHMENT A SUBJECT/PROJECT: APPROVE CONTINUING WITH CURRENT PROVIDER FOR LIFE, ACCIDENTAL DEATH & DISMEMBERMENT, AND SHORT/LONG-TERM DISABILITY INSURANCE COMMITTEE ACTION: This item was presented to the Finance and Administration Committee (Committee) at a meeting held on September 19, 2022. The following comments were made: • Staff is requesting the Board approve an agreement with Sun Life, the District’s current provider, for up to two additional years at an approximate cost of $85,000. • It was indicated that though the Mutual of Omaha bid came in lower, there would be significant staff time associated with switching providers. The administrative expenses of switching providers would cost approximately $18,000, thus bridging the gap between the two bids. • In response to an inquiry from the Committee, staff indicated that the District has had great experiences with Sun Life and believe their quality of service is equal to what service would be provided by the Mutual of Omaha. • Staff clarified that Sun Life Insurance is for current employees. Following the discussion, the Committee supported staff’s recommendation and presentation to the full board as a consent item. STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: October 5, 2022 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 2022 Calendar of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendars for 2022 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2022 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 Meetings for 2022 G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 10-05-22.doc AGENDA ITEM 10b Board of Directors, Workshops and Committee Meetings 2022 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 5, 2022 February 2, 2022 March 2, 2022 April 6, 2022 May 11, 2022 June 8, 2022 July 6, 2022 August 3, 2022 September 7, 2022 October 5, 2022 November 2, 2022 December 7, 2022 January 19, 2022 February 16, 2022 March 16, 2022 April 20, 2022 May 18, 2022 June 23, 2022 July 20, 2022 August 17, 2022 September 21, 2022 October 19, 2022 November 16, 2022 December 21, 2022 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 PROJECT: DIV. NO. ALL SUBMITTED BY: Kevin Koeppen Assistant Chief of Finance APPROVED BY: Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Award a Contract to Raftelis Financial Consultants, Inc., and Authorize the General Manager to Execute a Contract with Raftelis Financial Consultants, Inc. for Water and Sewer Cost of Service Studies in an Amount Not-to-exceed $99,975 GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award a contract to Raftelis Financial Consultants, Inc. (Raftelis) and authorize the General Manager to execute a contract with Raftelis for water and sewer cost of service studies in an amount not-to- exceed $99,975. COMMITTEE ACTION: See Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a contract with Raftelis for water and sewer cost of service studies in an amount not-to-exceed $99,975. ANALYSIS: The District performs rate studies every three to five years depending on changes in economic factors, price increases, water use patterns, regulations, infrastructure, and other cost drivers. The AGENDA ITEM 11a 2 cost of service study is a crucial tool when setting retail rates because as water use and cost drivers change over time, imbalances may occur in the equity of how various customer classes pay for water. By the time this study can be implemented two years will have passed using the prior cost of service study for water. For sewer, four years will have passed using the prior cost of service study for sewer. • The recommendation to perform a water cost of service study is based upon updating the District’s water rates and charges using AMI data, which is projected to be available in April 2023. The vast majority of the District’s current meters store time of use data and the District is currently implementing an AMI system that will automatically communicate that time of use data to the District’s database. • The need to perform a sewer cost of service study at this time is due to the District’s routine process of performing cost of service studies every three to five years. The current projected timeline will result in the sewer cost of service study results being implemented within the five-year timeframe. The cost of service study process needs to begin at the present time to perform a statistical assessment of the available AMI data and determine any additional data needs for the water cost of service study. Establishing the data gathering requirements early in the process will allow time for the District to assess the resource requirements for additional data needs. Both the water and sewer cost of service studies are projected to be completed by March of 2024 and will be incorporated into the FY 2025 budget and January 1, 2025 rates and charges. The District publicly solicited proposals using Periscope, the District’s online solicitation system, including inviting eleven firms to propose on the project. The RFP was also advertised on the District’s website. Firms that did not submit a proposal were: Bartle Wells Associates, Black and Veatch, Brown and Caldwell, Carollo Business Solutions, Carollo SDO, FCS Group, HDR Engineering Inc, HF&H Consultants, and Robert D. Niehaus, Inc. The District received two proposals. These proposals were evaluated by a three-person review panel that scored each firm’s experience, qualifications, and fees (see “Attachment B”). 3 Firm Fee Total Score Raftelis Financial Consultants, Inc. $99,975* 80.33 Utility Financial Solutions $93,290 56.00 *The above Fee for Raftelis includes $3,900 for estimated expenses which was not part of the professional services fee amount of $96,075 on the proposal scoresheet. Raftelis’s proposal received the highest score, and they were determined to be the most qualified candidate for the required scope of services. Raftelis has extensive experience performing both water and sewer cost of service studies in California and their proposal included the most qualified level of statistical expertise. The quoted price was reasonable based on a comparison to Utility Financial Solutions’ pricing. Also, when considering the proposed scope of work, the quoted price is comparable to the cost of the most recently completed cost of service study. Utility Financial Solutions had significantly less experience performing comparable water cost of service studies in California and expert statistical analysis. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The annual outside services operating budget is sufficient to cover the cost of the contract. The project expenditures are estimated to be funded over a three-year period from FY 2023 to FY 2025. Funding for this expenditure has been budgeted in the FY 2023 Operating budget and included as part of the FY 2024 and FY 2025 expense projection. STRATEGIC GOAL: Supports the District’s Strategy: Ensure financial health through formalized policies, prudent investing, and efficient operations. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – Summary of Proposal Rankings 4 ATTACHMENT A SUBJECT/PROJECT: Award a Contract to Raftelis Financial Consultants, Inc., and Authorize the General Manager to Execute a Contract with Raftelis Financial Consultants, Inc. for Water and Sewer Cost of Service Studies in an Amount Not-to-exceed $99,975 COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on September 19, 2022, and the following comments were made: • Staff explained that the scoring was weighted towards the qualitative technical score. The technical score was broken up into subcategories with a focus on expertise in performing cost of service studies in California and the financial consulting firm’s proficiency with statistical sampling and analysis for a maximum total of 85 points. The cost of the service had a maximum of 15 points which were awarded to the lowest bid. • After the Committee commented how essential it is for the selected firm’s methodology and findings to be sound, staff highlighted that Raftelis Financial Consultants, Inc. (Raftelis) are experienced as they completed the current water cost of service study for the District and staff was satisfied with Raftelis’s work product. • Staff elaborated that as courts are making decisions and the understanding of Proposition 218 is evolving, all rate consultant groups are having to evolve their methodologies. Raftelis is deeply knowledgeable and current with their methods. The District is not only relying on the rate consultant, Raftelis if the Board approves the contract, but also our attorneys and additional attorneys that specialize in Proposition 218. • The Committee asked staff why they thought out of eleven firms only two responded. Staff explained some firms had a lack of available staff and or resources, while others did not believe their statistical experience was proficient enough to develop data collection plans and analysis of the AMI time of use data. 5 • In response to an inquiry from the Committee, staff clarified that AMI is expected to be live by April 2023. Summer usage data will then need to be gathered and the selected financial consulting firm will analyze the data around October 2023. Staff would like to start this process earlier than usual to ensure there is an adequate sampling of data and an ample understanding of the sample. Following the discussion, the Committee supported staff’s recommendation and presentation to the full board as an action item. 1. Understanding of the requested tasks… 2. Ability to evaluate current water and sewer rate structures… 3. Experience in developing expert statistical sampling plans… 4. Experience of assigned staff in the development of water and sewer rates… Individual Subtotal Technical Score Fee Score Total Score Company Name Maximum Points 15 20 20 30 85 85 15 100 Joe Beachem 14 19 15 28 76 Kevin Koeppen 15 20 17 27 79 Rod Posada 15 18 20 30 83 $96,075 Joe Beachem 7 8 7 14 36 Kevin Koeppen 7 10 10 15 42 Rod Posada 10 10 12 13 45 $93,290 Full descriptions of criteria 1. Understanding of the requested tasks in the Scope of Services. 2. Ability to evaluate current water and sewer rate structures to make recommendations and give guidance in the process. 3. Experience in developing expert statistical sampling plans and performing expert statistical evaluations in water or utility industries. 4. Experience of assigned staff in the development of water and sewer rates, designing and defending rate structures, and compliance with Proposition 218. Summary of Proposal Scoresheet RFP FY23-2300-001 Water & Sewer Cost of Service Studies 80.33 56.00 Raftelis Financial Consultants, Inc. (Charlotte, NC with office in Huntington Beach, CA) Utility Financial Solutions, LLC (Holland, MI) 41.00 79.33 1 15 Attachment B 1 STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: October 5, 2022 SUBMITTED BY: Eileen Salmeron, Communications Assistant PROJECT: Various DIV. NO. All APPROVED BY: Tenille Otero, Communications Officer Jose Martinez, General Manager SUBJECT: Social Media, Mobile Application, and Website Analytics Update GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: See Attachment B. PURPOSE: To provide the Board with an update on the Otay Water District’s social media, mobile application, and website analytics. ANALYSIS: District communications staff uses online information-sharing services, including social media platforms, a mobile application, and the website, to share news with customers and the public. Through social media, the District can provide up-to-date information regarding water-related programs, events, and local- and state-wide news. Social media engagement enhances the interaction between the public and public agencies and increases the reach to demographics that do not regularly consume traditional media. To stay current with the evolving technology, encourage water-use efficiency, and ensure customer satisfaction, staff also manages and AGENDA ITEM 12a 2 monitors the District’s website and “Make Every Drop Count” mobile application. It also manages and monitors its social media online presence daily and stays current with evolving online trends. Included in Attachment B are the social media, mobile application, and website analytics for fiscal year 2022. Social Media The District’s social media presence, its online audience, and stakeholder engagement has steadily increased each year. Staff continues its online reach to promote programs such as education, conservation, operational efficiencies, and capital improvement projects. Staff increases its social media followers and engagement by creating visual content, publishing posts in English and Spanish, and partnering with other water agencies and organizations to launch water-related campaigns and programs. The District uses the following social media platforms: • YouTube – Joined November 2010 • Twitter – Joined February 2011 • Facebook – Joined November 2011 • Nextdoor – Joined July 2016 • LinkedIn – Joined August 2017 • Instagram – Joined November 2018 The social media analytics report in Attachment B shows a comparison of the cumulative number of followers the District has gained in the last two fiscal years. Twitter: From June 30, 2021, to June 30, 2022, the number of Twitter followers increased by 3%, from 2,166 to 2,236. Compared to other retail water agencies in the San Diego region, the District continues to be number one with the most Twitter followers. Instagram: From June 30, 2021, to June 30, 2022, the number of Instagram followers increased by 13%, from 927 to 1,045. Compared to other retail water agencies in the San Diego region, the District is number one with the most Instagram followers. LinkedIn: From June 30, 2021, to June 30, 2022, the number of LinkedIn followers increased by 20%, from 696 to 833. Compared to other retail water agencies in the San Diego region, the District is in the top two with the most LinkedIn followers. 3 Facebook: From June 30, 2021, to June 30, 2022, the number of Facebook followers increased by 45%, from 480 to 694. Compared to other retail water agencies in the San Diego region, the District is in the top five with the most Facebook followers. Staff believes that these numbers may have increased with the help of staff developing Facebook ads and boosted posts. YouTube: From June 30, 2021, to June 30, 2022, the number of channel subscribers increased by 96%, from 115 to 225. Compared to other retail water agencies in the San Diego region, the District is in the top two with the most subscribers. Also, YouTube video views increased by 54%, from 117,075 to 180,615. Nextdoor: Unlike the other social media platforms, Nextdoor followers or members, are based on the number of residents within the District’s service area who have joined the platform. If they are in its service area, they are automatically subscribed to receive the District’s posts. Since all its members are customers, staff also uses the platform to geo-target specific neighborhoods within the District’s service area to share exclusive messaging regarding projects in those neighborhoods. From June 30, 2021, to June 30, 2022, the number of Nextdoor members in the District’s service area increased by 12%, from 50,172 to 56,295. Instagram Photo Contest: As part of its effort to help customers reduce water use during the State’s Water Conservation Emergency Regulation, the District launched a social media contest on Instagram during winter 2021-2022. The “New Year Instagram Photo Contest” invited Instagrammers to make a New Year’s resolution to save more water during the drought. Participants posted photos with captions using the hashtag #OtaySavesWaterResolution. The top two winners were based on receiving the most “likes” from the public. Two additional winners were selected for “best photo” judged by staff. Communications staff will continue to assess its current use of social media platforms, including paid social media advertising, and their effectiveness. Mobile App The District first launched its “Make Every Drop Count” mobile application in August 2015. In 2020, IT and communications staff collaborated to enhance the app for iOS and Android users. The app’s features include utility bill payment, water waste reports, programs and resources, water-saving tips, water-use restrictions, contact information, and social media interaction. As of Sept. 7, 2022, there have been 5,630 iOS downloads and 221 Android downloads. 4 Website Staff also manages and maintains the District’s website, otaywater.gov. The goal is to better serve customers by enhancing its web presence and user-friendliness, communicating the most current information, and visually conveying that it uses state-of-the-art technologies and is a forward-thinking agency. Attachment B includes the District’s website analytics. During fiscal year 2022, its top 20 most viewed website pages were the following: 1) Home Page 2) Payment Options 3) Customer Service 4) Employment 5) Billing Information 6) Start or Terminate Service Page 7) Contact Us 8) Start or Terminate Service Form 9) Update Your Info 10) Owner Acknowledgement Form 11) Engineering Bids 12) About Otay 13) Otay Employees 14) Job Opportunities 15) Water Services 16) Board Agenda 17) Water Agency Search 18) Public Services 19) Bid Opportunities 20) Water and Sewer Rates In fiscal year 2022, the District’s web page views decreased by 7% compared to fiscal year 2021, from 373,178 to 347,347. Per the board’s request for fiscal year 2022, staff filtered out page views made internally by staff from its analytics tool. The 373,178 page views include the views made internally by staff. The 347,347 views do not. Although staff cannot confirm, it believes this may be a factor as to why page views decreased. In fiscal year 2022, about 81% of its website users were new, and about 19% were returning. Attachment B shows how users arrived at the website and which URLs are considered the top 10 referral sources. To address the Spanish-speaking population in the District’s service area, the website includes functionality that displays most of the web content in Spanish. Staff works with a consultant to have the English content translated to Spanish. 5 As part of its strategic plan, staff assesses and implements ways to improve the website. It enhances its functionality and navigational structure, crafting content aligned with key messaging, conveying information searched by visitors in English and Spanish, and publishing content more frequently to keep pages attractive and engaging. Critical to owning, maintaining, and cultivating integrated communication, outreach, and marketing strategy, staff will continue to explore best practices for cross-promoting messaging through social media, its website, and other outreach tools. It will post new content to social media platforms, including videos, photos, graphics, and other material necessary depending on the topic, resources available, and value added. It will also continue to work closely with IT staff to evaluate best practices for websites and monitor online trends to effectively reach customers. FISCAL IMPACT: Joe Beachem, Chief Financial Officer There is no fiscal impact associated with this action. STRATEGIC GOAL: Execute and deliver services that meet or exceed customer expectations, and increase customer engagement in order to improve District Services. LEGAL IMPACT: None. Attachments: A) Committee Action B) Presentation: Social Media, Mobile Application, and Website Analytics 6 ATTACHMENT A SUBJECT/PROJECT: Social Media, Mobile Application, and Website Analytics Update COMMITTEE ACTION: The Conservation, Public Relations, Legal and Legislative Committee (Committee) reviewed and discussed this item at a meeting held on September 19, 2022. Following the discussion, the committee supported staffs’ recommendation and presentation to the full board as an informational item. Social Media, Mobile Application, and Website Analytics Conservation, Public Relations, Legal,and Legislative (CPRL&L) CommitteeSeptember 19, 2022 Otay Water District Attachment B 50,172 56,295 NEXTDOOR 2,166 927 696 480 115 2,236 1,045 833 694 225 0 500 1,000 1,500 2,000 2,500 As of June 30, 2021 As of June 30, 2022 13%20%3%45%96% Growth in Followers SOCIAL MEDIA ANALYTICS 12% Water Agency Comparison FACEBOOK Agency Followers SDCWA 10,854 Vallecitos 2,556 Sweetwater 1,298 Padre 835 Helix 766 Otay 694 Olivenhain 660 INSTAGRAM Agency Followers SDCWA 2,888 Otay 1,045 Padre 905 LINKEDIN Agency Followers SDCWA 7,281 Sweetwater 1,242 Otay 833 YOUTUBE Agency Subscribers SDCWA 1.09k Vallecitos 305 Otay 225 -Nextdoor does not provide access to view other agency pages or analytics.-Cities/municipalities are not included in this comparison since they provide additional services other than water and sewer. TWITTER Agency Followers SDCWA 6,326 Otay 2,236 Sweetwater 2,097 Twitter Highlights for FY 22 HIGHEST IMPRESSIONS Impressions Engagements Impressions: 2,630 | Engagements: 27 Engagements: 73 |Impressions: 1,559 HIGHEST ENGAGEMENTS Instagram Highlights for FY 22 ORGANIC POSTPAID POST Impressions: 30,158 |Engagements: 93 Impressions: 264 |Engagements: 39 LinkedIn Highlights for FY 22 HIGHEST IMPRESSIONS & ENGAGEMENTS Impressions: 912Engagements: 76 TOP INDUSTRIES FOLLOWING OTAY: UTILITIES GOVERNMENT ADMINISTRATIONCONSTRUCTIONCIVIL ENGINEERING ENVIRONMENTAL SERVICES 5%6%6%10% 20% Facebook Highlights for FY 22 ORGANIC POSTPAID POST Impressions: 39,226 |Engagements: 560 Impressions: 631 |Engagements: 51 YouTube Highlights for FY 22 MOST VIEWED VIDEO IN FY 22 CHANNEL VIDEO VIEWS FISCAL YEAR VIEWS RECEIVEDDURING FY CUMULATIVE VIEWS 2022 63,540 180,615 2021 15,559 117,075 308%54% 9464,31011,01115,476 14,022Suggested Videos Browse FeaturesExternal YouTube SearchDirect or Unknown Views in FY 22: 47,741Views since published: 64,147 TRAFFIC SOURCES (SINCE PUBLISHED) Nextdoor Highlights for FY 22 Impressions: 3,229 |Engagements: 16 OTAY RANCH VILLAGE 1 EASTLAKE GREENS ROLLING HILLS RANCH RANCHO SAN DIEGO EASTLAKE SAN MIGUEL RANCH EASTLAKE TRAILS SPRING VALLEY VILLAGE OF MONTECITO COUNTRYSIDE TOP NEIGHBORHOODS FOLLOWING OTAY: 1,2421,411 1,446 1,5151,7131,74 2,155 2,513 2,746 3,806 Published Aug. 18, 2021 HIGHEST IMPRESSIONS & ENGAGEMENTS Instagram Photo Contest PHOTO SELECTEDBY OTAYPHOTO WITHMOST LIKES 1st Place 2nd Place 2nd Place 1st Place MOBILE APPLICATION ANALYTICS iOS DOWNLOADS: Received in FY 2022: 709As of Sept. 7, 2022: 5,630 ANDROID DOWNLOADS:Received in FY 2022: 98As of Sept. 7, 2022: 221 WEBSITE ANALYTICS PAGE VIEWS PAGE VIEWS 1. Home Page 41.10%11. Engineering Bids 1.28% 2. Payment Options 9.52%12. About Otay 1.13% 3. Customer Service 4.24%13. Otay Employees .93% 4. Employment 4.21%14. Job Opportunities .93% 5. Billing Information 3.42%15. Water Services .90% 6. Start or Terminate Service Page 2.86%16. Board Agenda .75% 7. Contact Us 1.95%17. Water Agency Search .67% 8. Start or Terminate Service Form 1.85%18. Public Services .64% 9. Update Your Info 1.51%19. Bid Opportunities .59% 10. Owner Acknowledgement Form 1.28%20. Water and Sewer Rates .58% Most Viewed Pages Total Page Views in FY 2022: 347,347 Comparison of Total Page Views 373,178 347,347 330,000 335,000 340,000 345,000 350,000 355,000 360,000 365,000 370,000 375,000 380,000 PAGE VIEWS FY 2021 FY 2022 7% Comparison of Total Users 129,924 108,072 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 USERS FY 2021 FY 2022 17% Year Comparison of Views and Users New Users vs. Returning Users New Users 81.43% Returning Users, 18.57% Total Users in FY 2022: 108,072 How Users Arrived to otaywater.gov Organic Search 50.79% Direct 45.20% Referral 3.27%Social Media 0.74% Total Users in FY 2022: 108,072 Referral Sources Total Referrals in FY 2022: 3,637 1.otay-3y354o0pajyrfwiyyvs.netdna-ssl.com –Otay’s home page 2. duckduckgo.com –Search engine 3. governmentjobs.com –Government job search site 4. baidu.com –Chinese multi-national technology company (search engine) 5. com.google.android.googlequicksearchbox –Android Google search app 6. classroom.google.com –Learning platform for educational institutions 7. com.google.android.gm –Gmail Android app 8. sharepoint2016.otay.local –Otay Water District SharePoint 9. bidocean.com –Company offers sales & marketing solutions 10. us.search.yahoo.com –Search engine Top 10 Cities 0.63% 0.87% 1.07% 1.33% 1.34% 1.63% 3.42% 9.46% 25.35% 32.56%CHULA VISTA SAN DIEGO LOS ANGELES EL CAJON LA MESA SPRING VALLEY SANTEE RANCHO SAN DIEGO LEMON GROVE IRVINE Total Users in FY 2022: 108,072 1.10% 2.70% 6.54% 41.92% 44.30% 0.25% 20.39% 79.35%iOS ANDROID WINDOWS Top 5 Computer Browsers Top Mobile Operating Systems Total Mobile Users in FY 2022: 49,298Total Users in FY 2022: 108,072 SAFARI CHROME EDGE FIREFOX INTERNET EXPLORER Questions? Otay Water District otaywater.gov (619) 670-2222 info@otaywater.gov Social Media: STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 PROJECT: Various DIV. NO. ALL SUBMITTED BY: General Manager’s Office APPROVED BY: Jose Martinez, General Manager SUBJECT: REVIEW OF BOARD OF DIRECTORS POLICY 40, ETHICS POLICY GENERAL MANAGER’S RECOMMENDATION: That the Otay Board review Board Policy 40, Ethics Policy. COMMITTEE ACTION: See “Attachment A.” PURPOSE: This is an informational item for Board review and consideration. ANALYSIS: The codification or organization of ordinances provides an essential framework of operating laws for an agency to function. The District’s code of ordinances contains 52 Board adopted policies that govern how the District operates. As a standard course of action, the District reviews and updates its Board policies as needed. On January 21, 2021, AB 992 took effect by amending the Brown Act to provide clarity on the actions public officials can and cannot take on social media. Under AB 992, a public or elected official may communicate on a social media platform to answer questions, provide information to the public, or to solicit information from the public. However, via AB 992, a public or elected official “shall” not respond directly to any communication on an internet-based social media platform regarding official agency or District business. The District’s Board Policy 40, Ethics Policy, contains language regarding Disclosure of Closed Session Matter, Disclosure of AGENDA ITEM 12b Confidential Communications, Ex Parte (On Behalf of or By an Outside Party), and written or oral communication, however, there is no language or reference to some of the newer forms of communication including but not limited to social media communications. Given the recent update to the Brown Act, via AB 992 and government best practices, staff is presenting this informational item for Board review and consideration. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Operate the District in a financially, sustainable, and transparent manner. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report ATTACHMENT A SUBJECT/PROJECT: REVIEW OF BOARD OF DIRECTORS POLICY 40, ETHICS POLICY COMMITTEE ACTION: The Public Relations, Legal, and Legislative Committee (Committee) met on September 19, 2022, to review this item and the following comments were made: • Staff indicated that the purpose of reviewing the Board of Directors’ Policy 40, Ethics Policy, is to request input from the board and establish best practices updates, as needed. • The Committee and staff discussed the Brown Act and Ethics Policy and how they relate to each other. Staff encouraged ethics training on a consistent basis for board members and District staff to prevent potential violations and impacts. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as an informational item. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 SUBMITTED BY: Amy Pinion, Accountant PROJECT: DIV. NO. ALL APPROVED BY: Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Fiscal Year 2022 Board of Directors’ Expenses GENERAL MANAGER’S RECOMMENDATION: This is an informational item only. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To present the Board of Directors’ expenses for Fiscal Year 2022. ANALYSIS: The California Government Code Section 53065.5 requires special districts, at least annually, to disclose any reimbursements paid by a district within the immediately preceding fiscal year. In addition, the District’s Code of Ordinances Policy 8 echoes this requirement. To meet these requirements, staff prepares and presents the Board of Directors’ expenses on an annual basis. The reimbursements and per diems paid by the District for Fiscal Year 2022 are summarized in the table on the following page and detailed in Attachments C-H. AGENDA ITEM 12c 2 The above table displays the expenses by category and Director. The expenses totaled $72,809.11 with $56,240.00, or 77.2%, of the expenses stemming from Director’s Fees. FY 2022 Board expenses were less than the FY 2022 budgeted amount of $114,000. FISCAL IMPACT: None. STRATEGIC GOAL: Prudently manage District funds. LEGAL IMPACT: Compliance with California law and District Code of Ordinance Policy 8. Attachments: Attachment A: Committee Action Attachment B: Directors’ Expenses and Per Diems Presentation Attachments C-H: Directors’ Expenses Details ATTACHMENT A SUBJECT/PROJECT: Fiscal Year 2022 Board of Directors’ Expenses COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on September 19, 2022, and the following comments were made: • In response to an inquiry from the Committee, staff indicated that the total Board of Directors’ expenses for fiscal year 2022 were closer to pre-COVID-19 levels but still less than the amount budgeted. • For comparison, staff presented fiscal year 2021 data whereby Director’s fees were approximately $55,000 and accounted for approximately 95% of Director’s expenses. Since the fiscal year 2022 expenses totaled $72,809.11 with $56,240.00, or 77.2%, of the expenses stemming from Director’s fees, it is apparent that travel and conference expenses have returned closer to pre-COVID-19 levels. • The Committee commented that this informational item was routine, and the information presented was straight-forward. The Committee recommended that a verbal presentation of this item at the October Board meeting is not necessary. Following the discussion, the Committee supported staffs’ presentation to the full board as an informational item. BOARD OF DIRECTORS’ EXPENSES AND PER DIEMS Finance and Administration Committee September 19, 2022 Board of Directors Meeting October 5, 2022 ATTACHMENT B California Government Code Section 53065.5 and Otay Water District’s Code of Ordinances Policy 8 require that staff present the Expenses and Per Diems for the Board of Directors on an annual basis: •Fiscal Year 2022. •The expenses are shown by Board member and expense type. •The information is presented in alphabetical order. Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Total 5214 Business Meetings -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 5281 Director's Fees 608.00 608.00 760.00 760.00 760.00 760.00 608.00 1,064.00 760.00 912.00 608.00 304.00 8,512.00 5211 Mileage - Business - - - 16.80 16.80 - - - - - - - 33.60 5211 Mileage - Commuting - - - - - - - 5.85 - - - - 5.85 5213 Seminars and Conferences - - - - - - - - - - - - - 5212 Travel - - - - - - - - - - - - - Total 608.00$ 608.00$ 760.00$ 776.80$ 776.80$ 760.00$ 608.00$ 1,069.85$ 760.00$ 912.00$ 608.00$ 304.00$ 8,551.45$ 5214 Business Meetings -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 5281 Director's Fees 304.00 1,064.00 912.00 760.00 456.00 304.00 456.00 608.00 608.00 760.00 912.00 912.00 8,056.00 5211 Mileage - Business - - - - - - - - - - - - - 5211 Mileage - Commuting - - - - - - - - - - - - - 5213 Seminars and Conferences - 175.00 175.00 170.00 - - - - - - - - 520.00 5212 Travel - - - - - - - - - - - - - 304.00$ 1,239.00$ 1,087.00$ 930.00$ 456.00$ 304.00$ 456.00$ 608.00$ 608.00$ 760.00$ 912.00$ 912.00$ 8,576.00$ 5214 Business Meetings -$ -$ -$ -$ -$ -$ -$ -$ 55.00$ -$ -$ -$ 55.00$ 5281 Director's Fees 456.00 1,064.00 1,216.00 1,064.00 608.00 456.00 608.00 912.00 760.00 912.00 912.00 608.00 9,576.00 5211 Mileage - Business - - 183.68 - 23.52 - - - - 22.23 - - 229.43 5211 Mileage - Commuting - 31.36 - - - - - - - 55.58 - 33.35 120.29 5213 Seminars and Conferences 605.00 - - - - - - - - - - - 605.00 5212 Travel - - 772.75 - - - - - - - - - 772.75 1,061.00$ 1,095.36$ 2,172.43$ 1,064.00$ 631.52$ 456.00$ 608.00$ 912.00$ 815.00$ 989.81$ 912.00$ 641.35$ 11,358.47$ 5214 Business Meetings 20.00$ -$ 20.00$ -$ 130.00$ 30.00$ 65.00$ 30.00$ 156.76$ 45.00$ -$ 85.00$ 581.76$ 5281 Director's Fees 912.00 1,368.00 1,216.00 1,064.00 1,064.00 1,216.00 1,520.00 1,520.00 1,520.00 1,216.00 1,520.00 1,216.00 15,352.00 5211 Mileage - Business 12.32 31.92 9.52 26.32 106.40 84.00 - - 69.03 95.94 - 44.46 479.91 5211 Mileage - Commuting - - - - - - - - - - - -- 5213 Seminars and Conferences - - 675.00 - 725.00 - 395.00 - 1,800.00 775.00 625.00 - 4,995.00 5212 Travel - 126.01 1,401.93 - -- -- 1,110.97 1,558.85 1,355.69 - 5,553.45 Total 944.32$ 1,525.93$ 3,322.45$ 1,090.32$ 2,025.40$ 1,330.00$ 1,980.00$ 1,550.00$ 4,656.76$ 3,690.79$ 3,500.69$ 1,345.46$ 26,962.12$ JOSE LOPEZ (DETAILED IN ATTACHMENT F) MARK ROBAK (DETAILED IN ATTACHMENT G) OTAY WATER DISTRICT ADMINISTRATIVE EXPENSES - BOARD JULY 1, 2021 - JUNE 30, 2022 GARY CROUCHER (DETAILED IN ATTACHMENT D) RYAN KEYES (DETAILED IN ATTACHMENT E) Page 1 of 2 ATTACHMENT C Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Total OTAY WATER DISTRICT ADMINISTRATIVE EXPENSES - BOARD JULY 1, 2021 - JUNE 30, 2022 5214 Business Meetings -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 17.95$ -$ 17.95$ 5281 Director's Fees 1,064.00 1,368.00 1,520.00 1,520.00 1,064.00 1,064.00 1,216.00 1,368.00 1,216.00 1,216.00 1,216.00 912.00 14,744.00 5211 Mileage - Business - - 154.56 - 127.68 87.36 - - - 71.37 - 25.74 466.71 5211 Mileage - Commuting - 14.56 - - - - - 15.21 - 30.42 - 30.42 90.61 5213 Seminars and Conferences 525.00 - - - 725.00 - - - - - - - 1,250.00 5212 Travel - - 753.80 - 38.00 - - - - - - - 791.80 Total 1,589.00$ 1,382.56$ 2,428.36$ 1,520.00$ 1,954.68$ 1,151.36$ 1,216.00$ 1,383.21$ 1,216.00$ 1,317.79$ 1,233.95$ 968.16$ 17,361.07$ TOTALS: 5214 Business Meetings 20.00$ -$ 20.00$ -$ 130.00$ 30.00$ 65.00$ 30.00$ 211.76$ 45.00$ 17.95$ 85.00$ 654.71$ 5281 Director's Fees 3,344.00 5,472.00 5,624.00 5,168.00 3,952.00 3,800.00 4,408.00 5,472.00 4,864.00 5,016.00 5,168.00 3,952.00 56,240.00 5211 Mileage - Business 12.32 31.92 347.76 43.12 274.40 171.36 - - 69.03 189.54 - 70.20 1,209.65 5211 Mileage - Commuting - 45.92 - - - - - 21.06 - 86.00 - 63.77 216.75 5213 Seminars and Conferences 1,130.00 175.00 850.00 170.00 1,450.00 - 395.00 - 1,800.00 775.00 625.00 - 7,370.00 5212 Travel - 126.01 2,928.48 - 38.00 - - - 1,110.97 1,558.85 1,355.69 - 7,118.00 Total 4,506.32$ 5,850.85$ 9,770.24$ 5,381.12$ 5,844.40$ 4,001.36$ 4,868.00$ 5,523.06$ 8,055.76$ 7,670.39$ 7,166.64$ 4,170.97$ 72,809.11$ TIM SMITH (DETAILED IN ATTACHMENT H) Page 2 of 2 DIRECTOR'S NAME CROUCHER, GARY Account Name Date Descriptions Sum of Amount Mileage - Business 10/31/2021 October Mileage 16.80 11/28/2021 November Mileage 16.80 Mileage - Business Total 33.60 Mileage - Commuting 2/28/2022 February Commuting Mileage 5.85 Mileage - Commuting Total 5.85 Director's Fee 7/7/2021 OWD Monthly Board Meeting 152.00 7/12/2021 LAFCO Mtg - Rainbow Fallbrook Detachment 152.00 7/21/2021 CWA Matters Meeting 152.00 7/20/2021 East County Caucus Mtg 152.00 8/4/2021 OWD Monthly Board Meeting 152.00 8/18/2021 OWD EO&WR Committee Meeting 152.00 8/23/2021 CWA Matters Meeting 152.00 8/16/2021 LAFCO Mtg - Rainbow Fallbrook Detachment 152.00 9/1/2021 OWD Monthly Board Meeting 152.00 9/9/2021 OWD Director/GM Update 152.00 9/21/2021 OWD EO&WR Committee Meeting 152.00 9/22/2021 CWA Matters Meeting 152.00 9/27/2021 OWD Special Board Meeting 152.00 10/6/2021 OWD Monthly Board Meeting 152.00 10/19/2021 OWD Board Retreat 152.00 10/4/2021 OWD Board Retreat Discussion 152.00 10/18/2021 OWD EO&WR Committee Meeting 152.00 10/27/2021 CWA Matters Meeting 152.00 11/3/2021 OWD Monthly Board Meeting 152.00 11/17/2021 CWA Matters Meeting 152.00 11/16/2021 OWD Legal Meeting 152.00 11/28/2021 OWD Legal Meeting 152.00 11/29/2021 OWD Legal Meeting 152.00 12/1/2021 OWD Special Board Meeting 152.00 12/7/2021 OWD EO&WR Committee Meeting 152.00 12/17/2021 CWA Matters Meeting 152.00 12/20/2021 OWD Special Board Meeting 152.00 12/29/2021 Ethics Training 152.00 1/5/2022 OWD Monthly Board Meeting 152.00 1/25/2022 CWA Matters Meeting 152.00 1/19/2022 OWD EO&WR Committee Meeting 152.00 1/26/2022 East County Caucus Mtg 152.00 2/8/2022 Ad Hoc Recycled Agreement Mtg 152.00 2/15/2022 OWD Special Board Meeting 152.00 2/16/2022 Ad Hoc Detachment Meeting 152.00 2/17/2022 SCEDC Elected Officials Workshop 152.00 2/22/2022 CWA Matters Meeting 152.00 2/23/2022 East County Caucus Mtg 152.00 2/28/2022 OWD Meeting with GM and Legal 152.00 3/2/2022 OWD Monthly Board Meeting 152.00 3/17/2022 OWD CPRL&L Committee Meeting 152.00 3/22/2022 CWA Matters Meeting 152.00 3/23/2022 East County Caucus Mtg 152.00 3/29/2022 OWD Special Board Meeting 152.00 4/5/2022 OWD Director/GM Update 152.00 4/6/2022 OWD Monthly Board Meeting 152.00 4/26/2022 CWA Matters Meeting 152.00 4/27/2022 OWD Special Board Meeting 152.00 4/25/2022 Ad Hoc Legal Committee 152.00 5/9/2022 Ad Hoc Legal Committee 152.00 5/10/2022 Ad Hoc Legal Committee 152.00 5/11/2022 OWD Monthly Board Meeting 152.00 5/24/2022 CWA Matters Meeting 152.00 4/4/2022 OWD Legal Meeting 152.00 6/21/2022 CWA Matters Meeting 152.00 6/9/2022 OWD Director/GM Update 152.00 Director's Fee Total 8,512.00 Grand Total 8,551.45 Page 1 of 1 ATTACHMENT D DIRECTOR'S NAME KEYES, RYAN Account Name Date Descriptions Sum of Amount Director's Fee 7/7/2021 OWD Monthly Board Meeting 152.00 7/27/2021 CSDA Meeting 152.00 8/4/2021 OWD Monthly Board Meeting 152.00 8/10/2021 CSDA Financial Management Workshop 152.00 8/17/2021 COWU Meeting 152.00 8/19/2021 ACWA Meeting 152.00 8/9/2021 CSDA Financial Management Workshop 152.00 8/11/2021 WateReuse Associate Desalination Discussion 152.00 8/13/2021 OWD Director/GM Update 152.00 9/1/2021 OWD Monthly Board Meeting 152.00 9/21/2021 OWD CPRL&L Committee Meeting 152.00 9/15/2021 CSDA Discussion 152.00 9/3/2021 OWD Financial Overview 152.00 9/14/2021 CSDA Discussion 152.00 9/30/2021 ACWA Meeting 152.00 10/6/2021 OWD Monthly Board Meeting 152.00 10/19/2021 OWD Board Retreat 152.00 10/20/2021 ACWA Workshop 152.00 10/1/2021 OWD Board Retreat Discussion 152.00 10/13/2021 ACWA Workshop 152.00 11/3/2021 OWD Monthly Board Meeting 152.00 11/5/2021 OWD Engineering Presentation 152.00 11/12/2021 OWD Director/GM Update 152.00 12/1/2021 OWD Special Board Meeting 152.00 12/20/2021 OWD Special Board Meeting 152.00 1/5/2022 OWD Monthly Board Meeting 152.00 1/25/2022 WateReuse Association Infrastructure Discussion 152.00 1/12/2022 WateReuse Association Policy Outlook 152.00 2/14/2022 OWD Director/GM Update 152.00 2/2/2002 OWD Monthly Board Meeting 152.00 2/12/2022 OWD GM Briefing 152.00 2/27/2022 CSDA Course 152.00 3/2/2022 OWD Monthly Board Meeting 152.00 3/29/2022 OWD Special Board Meeting 152.00 3/1/2022 SCEDC Monthly Board Meeting 152.00 3/15/2022 OWD EO&WR Committee Meeting 152.00 4/5/2022 SCEDC Monthly Board Meeting 152.00 4/6/2022 OWD Monthly Board Meeting 152.00 4/27/2022 OWD Special Board Meeting 152.00 4/19/2022 OWD EO&WR Committee Meeting 152.00 4/23/2022 CSDA Course 152.00 5/11/2022 OWD Monthly Board Meeting 152.00 5/17/2022 OWD EO&WR Committee Meeting 152.00 5/3/2022 SCEDC Monthly Board Meeting 152.00 6/8/2022 OWD Monthly Board Meeting 152.00 6/22/2022 OWD Special Board Meeting 152.00 5/1/2022 CSDA Course 152.00 5/8/2022 CSDA Course 152.00 5/13/2022 OWD Director/GM Update 152.00 6/5/2022 Brown Act Refresher 152.00 6/12/2022 CSDA Good Goverance 152.00 6/19/2022 CSDA Course 152.00 6/26/2022 CSDA Course 152.00 Director's Fee Total 8,056.00 Conferences and Seminars 8/22/2021 CSDA Financial Management Workshop 175.00 9/23/2021 CSDA Workshop Registration 175.00 10/22/2021 ACWA Workshop Registration 170.00 Conferences and Seminars Total 520.00 Grand Total 8,576.00 Page 1 of 1 ATTACHMENT E DIRECTOR'S NAME LOPEZ, JOSE Account Name Date Descriptions Sum of Amount Business meetings 3/15/2022 COWU Meeting Registration 55.00 Business meetings Total 55.00 Mileage - Business 9/21/2021 September Mileage 183.68 11/18/2021 November Mileage 23.52 5/31/2022 May Mileage 22.23 Mileage - Business Total 229.43 Mileage - Commuting 8/19/2021 August Commuting Mileage 31.36 4/30/2022 April Commuting Mileage 27.79 5/31/2022 May Commuting Mileage 27.79 6/30/2022 June Commuting Mileage 33.35 Mileage - Commuting Total 120.29 Travel 9/30/2021 WateReuse Conference Travel Expenses 772.75 Travel Total 772.75 Director's Fee 7/7/2021 OWD Monthly Board Meeting 152.00 7/9/2021 Chula Vista Chamber of Commerce 152.00 7/13/2021 SCEDC Monthly Board Meeting 152.00 8/3/2021 SCEDC Monthly Board Meeting 152.00 8/4/2021 OWD Monthly Board Meeting 152.00 8/5/2021 Water Conservation Garden Quarterly Meeting 152.00 8/10/2021 OWD Director/GM Update 152.00 8/12/2021 JPIA Training 152.00 8/17/2021 OWD F&A Committee Meeting 152.00 8/19/2021 CSDA Quarterly Meeting 152.00 9/1/2021 OWD Monthly Board Meeting 152.00 9/21/2021 WateReuse Conference 152.00 9/22/2021 OWD F&A Committee Meeting 152.00 9/27/2021 OWD Special Board Meeting 152.00 9/7/2021 SCEDC Monthly Board Meeting 152.00 9/14/2021 Fellowship Latinos on Water 152.00 9/19/2021 WateReuse Conference 152.00 9/20/2021 WateReuse Conference 152.00 10/5/2021 SCEDC Monthly Board Meeting 152.00 10/6/2021 OWD Monthly Board Meeting 152.00 10/19/2021 OWD Board Retreat 152.00 10/20/2021 OWD F&A Committee Meeting 152.00 10/26/2021 Water Conservation Garden Quarterly Meeting 152.00 10/4/2021 OWD Board Retreat Discussion 152.00 10/28/2021 San Diego County Water Authority Board Meeting 152.00 11/3/2021 OWD Monthly Board Meeting 152.00 11/17/2021 Fellowship Latinos on Water 152.00 11/18/2021 CSDA Quarterly Meeting 152.00 11/10/2021 OWD GM Briefing 152.00 12/1/2021 OWD Special Board Meeting 152.00 12/7/2021 OWD F&A Committee Meeting 152.00 12/20/2021 OWD Special Board Meeting 152.00 1/5/2022 OWD Monthly Board Meeting 152.00 1/18/2022 OWD F&A Committee Meeting 152.00 1/24/2022 Ad Hoc Redistricting Meeting 152.00 1/25/2022 Water Conservation Garden Quarterly Meeting 152.00 2/8/2022 OWD Director/GM Update 152.00 2/15/2022 OWD Special Board Meeting 152.00 2/16/2022 OWD F&A Committee Meeting 152.00 2/17/2022 SCEDC Elected Officials Workshop 152.00 2/1/2022 SCEDC Monthly Board Meeting 152.00 2/2/2022 OWD Monthly Board Meeting 152.00 3/2/2022 OWD Monthly Board Meeting 152.00 3/17/2022 OWD F&A Committee Meeting 152.00 3/29/2022 OWD Special Board Meeting 152.00 3/15/2022 COWU Meeting 152.00 Page 1 of 2 ATTACHMENT F Director's Fee 4/6/2022 OWD Monthly Board Meeting 152.00 4/20/2022 OWD F&A Committee Meeting 152.00 4/26/2022 Water Conservation Garden Quarterly Meeting 152.00 4/27/2022 OWD Special Board Meeting 152.00 3/31/2022 Ad Hoc Redistricting Meeting 152.00 4/25/2022 Ad Hoc Legal Committee 152.00 5/5/2022 Ad Hoc GM Evaluation Committee 152.00 5/9/2022 Ad Hoc Legal Committee 152.00 5/10/2022 Ad Hoc Legal Committee 152.00 5/11/2022 OWD Monthly Board Meeting 152.00 5/17/2022 COWU Meeting 152.00 5/18/2022 OWD F&A Committee Meeting 152.00 5/19/2022 OWD Director/GM Update 152.00 6/8/2022 OWD Monthly Board Meeting 152.00 6/22/2022 OWD Special Board Meeting 152.00 6/24/2022 Ad Hoc GM Evaluation Committee 152.00 6/28/2022 Fellowship Latinos on Water 152.00 Director's Fee Total 9,576.00 Conferences and Seminars 7/22/2021 WateReuse Registration 575.00 CSDA Registration 30.00 Conferences and Seminars Total 605.00 Grand Total 11,358.47 Page 2 of 2 DIRECTOR'S NAME ROBAK, MARK Account Name Date Descriptions Sum of Amount Business meetings 7/22/2021 East County Chamber of Commerce Meeting Registration 10.00 7/22/2021 Chula Vista Chamber of Commerce Registration 10.00 9/22/2021 East County Chamber of Commerce Meeting Registration 20.00 11/1/2021 CSDA Registration 30.00 1/24/2022 CMAA SD Chapter Meeting 65.00 2/22/2022 East County Chamber of Commerce Meeting Registration 30.00 3/22/2022 East County Chamber of Commerce Meeting Registration 30.00 4/22/2022 Otay Mesa Chamber of Commerce First Friday Meeting 30.00 4/22/2022 East County Chamber of Commerce Meeting Registration 15.00 3/31/2022 SD Chamber of Commerce Meeting Registration 126.76 12/22/2021 East County Chamber of Commerce Meeting Registration 30.00 11/22/2021 East County Chamber of Commerce Meeting Registration 25.00 11/22/2021 San Diego Chamber of Commerce Registration 75.00 6/22/2022 East County Chamber of Commerce Meeting Registration 70.00 6/16/2022 Name Plate 15.00 Business meetings Total 581.76 Mileage - Business 7/22/2021 July Mileage 12.32 8/19/2021 August Mileage 22.40 8/30/2021 August Mileage 9.52 9/2/2021 September Mileage 9.52 10/19/2021 October Mileage 26.32 11/30/2021 November Mileage 106.40 12/31/2021 December Mileage 84.00 3/30/2022 March Mileage 69.03 4/30/2022 April Mileage 29.25 5/31/2022 May Mileage 66.69 6/30/2022 June Mileage 44.46 Mileage - Business Total 479.91 Travel 8/31/2021 CSDA Annual Conference Expense Reimbursement 126.01 9/22/2021 CSDA Annual Conference Airfare 648.00 9/22/2021 CSDA Annual Conference Hotel 753.93 3/22/2022 SD Chamber of Commerce Mission to Washington DC - Airfare 1,110.97 4/22/2022 SD Chamber of Commerce Mission to Washington DC - Hotel 1,100.07 4/22/2022 ACWA Conference - Airfare 237.97 5/31/2022 May Travel Expense Reimbursement 220.81 5/23/2022 JPIA Spring Conference (Hotel)289.33 5/23/2022 SD Regional Chamber of Commerce Leadership Delegation - Airfare 302.96 5/23/2022 SD Regional Chamber of Commerce Leadership Delegation - Hotel 763.40 Travel Total 5,553.45 Director's Fee 7/7/2021 OWD Monthly Board Meeting 152.00 7/21/2021 East County EDC Monthly Board Meeting 152.00 7/13/2021 SCEDC Monthly Board Meeting 152.00 7/22/2021 East County Chamber of Commerce Meeting 152.00 7/6/2021 East County Chamber of Commerce GA&I Committee 152.00 7/28/2021 Salt Creek Golf Course Meeting 152.00 8/3/2021 SCEDC Annual Board of Directors Meeting 152.00 8/4/2021 OWD Monthly Board Meeting 152.00 8/5/2021 Water Conservation Garden Quarterly Meeting 152.00 8/17/2021 OWD F&A Committee Meeting 152.00 8/19/2021 CSDA Quarterly Meeting 152.00 8/18/2021 East County EDC Monthly Board Meeting 152.00 8/27/2021 Ad Hoc Salt Creek Golf Course Meeting 152.00 8/30/2021 CSDA Annual Conference 152.00 8/31/2021 CSDA Annual Conference 152.00 9/1/2021 CSDA Annual Conference 152.00 9/21/2021 OWD CPRL&L Committee Meeting 152.00 9/22/2021 OWD F&A Committee Meeting 152.00 9/27/2021 Ad Hoc Salt Creek Golf Course Meeting 152.00 9/2/2021 CSDA Annual Conference 152.00 9/7/2021 East County Chamber of Commerce GA&I Committee 152.00 9/15/2021 East County EDC Monthly Board Meeting 152.00 9/17/2021 LAFCO Special Districts Advisory Board 152.00 10/5/2021 East County Chamber of Commerce GA&I Committee 152.00 10/6/2021 OWD Monthly Board Meeting 152.00 10/7/2021 SD Chamber of Commerce S&I Committee 152.00 10/19/2021 OWD Board Retreat 152.00 10/20/2021 OWD F&A Committee Meeting 152.00 10/26/2021 Water Conservation Garden Quarterly Meeting 152.00 11/2/2021 East County Chamber of Commerce GA&I Committee 152.00 11/3/2021 OWD Monthly Board Meeting 152.00 11/4/2021 SD Chamber of Commerce S&I Committee 152.00 11/8/2021 OWD Director/GM Update 152.00 11/17/2021 East County EDC Monthly Board Meeting 152.00 11/18/2021 East County EDC Skilled Workforce Committee Mtg 152.00 Page 1 of 2 ATTACHMENT G Director's Fee 11/19/2021 Ad Hoc Salt Creek Golf Course Meeting 152.00 11/30/2021 ACWA Semi Annual Meeting 152.00 12/1/2021 ACWA Conference 152.00 12/2/2021 ACWA Conference 152.00 12/6/2021 LAFCO Mtg - Rainbow Fallbrook Detachment 152.00 12/7/2021 OWD F&A Committee Meeting 152.00 12/14/2021 Ad Hoc Salt Creek Golf Course Meeting 152.00 12/15/2021 East County EDC Monthly Board Meeting 152.00 12/17/2021 LAFCO Special Districts Advisory Board 152.00 12/20/2021 OWD Special Board Meeting 152.00 1/5/2022 OWD Monthly Board Meeting 152.00 1/18/2022 OWD F&A Committee Meeting 152.00 1/24/2022 Ad Hoc Redistricting Meeting 152.00 1/25/2022 Water Conservation Garden Quarterly Meeting 152.00 1/4/2022 East County Chamber of Commerce GA&I Committee 152.00 1/6/2022 San Diego Chamber of Commerce S&I Committee Mtg 152.00 1/11/2022 SCEDC Monthly Board Meeting 152.00 1/19/2022 East County EDC Monthly Board Meeting 152.00 1/20/2022 East County EDC Skilled Workforce Committee Mtg 152.00 1/27/2022 SDCWA Monthly Board Meeting 152.00 2/15/2022 OWD Special Board Meeting 152.00 2/16/2022 OWD F&A Committee Meeting 152.00 2/17/2022 CSDA Quarterly Meeting 152.00 2/1/2022 East County Chamber of Commerce GA&I Committee 152.00 2/2/2022 OWD Monthly Board Meeting 152.00 2/3/2022 Ad Hoc Redistricting Meeting 152.00 2/3/2022 San Diego Chamber of Commerce S&I Committee Mtg 152.00 2/7/2022 LAFCO Mtg - Rainbow Fallbrook Detachment 152.00 2/10/2022 Ad Hoc Redistricting Meeting 152.00 2/14/2022 OWD Director/GM Update 152.00 3/2/2022 OWD Monthly Board Meeting 152.00 3/29/2022 SD Chamber of Commerce Mission to Washington DC 152.00 3/1/2022 East County Chamber of Commerce GA&I Committee 152.00 3/3/2022 SD Chamber of Commerce S&I Committee 152.00 3/15/2022 COWU Meeting 152.00 3/16/2022 East County EDC Monthly Board of Directors Meeting 152.00 3/18/2022 LAFCO Special Districts Advisory Board 152.00 3/27/2022 SD Chamber of Commerce Mission to Washington DC 152.00 3/28/2022 SD Chamber of Commerce Mission to Washington DC 152.00 3/30/2022 SD Chamber of Commerce Mission to Washington DC 152.00 4/5/2022 East County Chamber of Commerce GA&I Committee 152.00 4/6/2022 OWD Monthly Board Meeting 152.00 4/7/2022 P3 Water Summit 152.00 4/8/2022 P3 Water Summit 152.00 4/20/2022 OWD F&A Committee Meeting 152.00 4/26/2022 Water Conservation Garden Quarterly Meeting 152.00 4/27/2022 OWD Special Board Meeting 152.00 4/28/2022 WateReuse Meeting 152.00 5/5/2022 ACWA Semi Annual Meeting 152.00 5/11/2022 OWD Monthly Board Meeting 152.00 5/17/2022 SD Chamber of Commerce Meeting 152.00 5/18/2022 OWD F&A Committee Meeting 152.00 5/19/2022 CSDA Quarterly Meeting 152.00 5/2/2022 ACWA Semi Annual Meeting 152.00 5/3/2022 ACWA Semi Annual Meeting 152.00 5/4/2022 ACWA Semi Annual Meeting 152.00 5/12/2022 OWD Director/GM Update 152.00 5/16/2022 SD Chamber of Commerce Meeting 152.00 6/8/2022 OWD Monthly Board Meeting 152.00 6/22/2022 OWD Special Board Meeting 152.00 6/1/2022 East County Advanced Water Purification Groundbreaking 152.00 6/2/2022 SD Chamber of Commerce S&I Committee 152.00 6/7/2022 East County Chamber of Commerce GA&I Committee 152.00 6/15/2022 East County EDC Monthly Board of Directors Meeting 152.00 6/23/2022 SDCWA Press Conference 152.00 6/27/2022 Ad Hoc Salt Creek Golf Course Meeting 152.00 Director's Fee Total 15,352.00 Conferences and Seminars 9/22/2021 CSDA Annual Conference Registration 675.00 1/24/2022 P3 Water Summit - Registration 395.00 3/22/2022 SD Chamber of Commerce Mission to Washington DC - Registration 1,800.00 4/22/2022 ACWA Registration 775.00 11/22/2021 ACWA Registration 725.00 5/23/2022 SD Regional Chamber of Commerce Leadership Delegation Registration 625.00 Conferences and Seminars Total 4,995.00 Grand Total 26,962.12 Page 2 of 2 DIRECTOR'S NAME SMITH, TIM Account Name Date Descriptions Sum of Amount Business meetings 5/25/2022 East County Caucus Mtg Registration 17.95 Business meetings Total 17.95 Mileage - Business 9/21/2021 September Mileage 154.56 11/30/2021 November Mileage 127.68 12/31/2021 December Mileage 87.36 4/30/2022 April Mileage 45.63 5/31/2022 May Mileage 25.74 6/30/2022 June Mileage 25.74 Mileage - Business Total 466.71 Mileage - Commuting 8/4/2021 August Commuting Mileage 14.56 2/28/2022 February Commuting Mileage 15.21 5/31/2022 May Commuting Mileage 30.42 6/30/2022 June Commuting Mileage 30.42 Mileage - Commuting Total 90.61 Travel 9/30/2021 WateReuse Conference Travel Expenses 753.80 11/30/2021 ACWA Conference Parking 38.00 Travel Total 791.80 Director's Fee 7/7/2021 OWD Monthly Board Meeting 152.00 7/21/2021 CWA Matters Meeting 152.00 7/28/2021 Salt Creek Golf Course Meeting 152.00 7/1/2021 OWD Agenda Briefing 152.00 7/15/2021 OWD Committee Agenda Briefing 152.00 7/20/2021 OWD EO&WR Committee Meeting 152.00 7/29/2021 OWD Agenda Briefing 152.00 8/4/2021 OWD Monthly Board Meeting 152.00 8/12/2021 OWD Committee Agenda Briefing 152.00 8/17/2021 COWU Meeting 152.00 8/11/2021 OWD Director/GM Update 152.00 8/18/2021 OWD EO&WR Committee Meeting 152.00 8/23/2021 CWA Matters Meeting 152.00 8/25/2021 East County Caucus Mtg 152.00 8/26/2021 OWD Agenda Briefing 152.00 8/27/2021 Ad Hoc Salt Creek Golf Course Meeting 152.00 9/1/2021 OWD Monthly Board Meeting 152.00 9/9/2021 OWD Director/GM Update 152.00 9/21/2021 OWD EO&WR Committee Meeting 152.00 9/22/2021 East County Caucus Mtg 152.00 9/27/2021 OWD Special Board Meeting 152.00 9/19/2021 WateReuse Conference 152.00 9/20/2021 WateReuse Conference 152.00 9/10/2021 OWD District Maters Update 152.00 9/16/2021 OWD Agenda Briefing 152.00 10/6/2021 OWD Monthly Board Meeting 152.00 10/19/2021 OWD Board Retreat 152.00 10/1/2021 OWD Agenda Briefing 152.00 10/13/2021 COWU Meeting 152.00 10/4/2021 OWD Board Retreat Discussion 152.00 10/18/2021 OWD EO&WR Committee Meeting 152.00 10/27/2021 East County Caucus Mtg 152.00 10/14/2021 OWD Committee Agenda Briefing 152.00 10/25/2021 OWD Agenda Briefing 152.00 11/3/2021 OWD Monthly Board Meeting 152.00 11/4/2021 OWD Overview with Supervisor Anderson 152.00 11/17/2021 CWA Matters Meeting 152.00 11/19/2021 Ad Hoc Salt Creek Golf Course Meeting 152.00 11/30/2021 ACWA Fall Conference 152.00 11/16/2021 OWD Legal Meeting 152.00 11/29/2021 OWD Legal Meeting 152.00 Page 1 of 2 ATTACHMENT H Director's Fee 11/9/2021 OWD Director/GM Update 152.00 12/1/2021 OWD Special Board Meeting 152.00 12/2/2021 ACWA Conference 152.00 12/7/2021 OWD EO&WR Committee Meeting 152.00 12/14/2021 Ad Hoc Salt Creek Golf Course Meeting 152.00 12/17/2021 CWA Matters Meeting 152.00 12/20/2021 OWD Special Board Meeting 152.00 12/29/2021 OWD Agenda Briefing 152.00 1/5/2022 OWD Monthly Board Meeting 152.00 1/18/2022 COWU Monthly Meeting 152.00 1/25/2022 CWA Matters Meeting 152.00 1/19/2022 OWD EO&WR Committee Meeting 152.00 1/27/2022 OWD Agenda Briefing 152.00 1/12/2022 COWU Agenda Briefing 152.00 1/13/2022 OWD Agenda Briefing 152.00 1/26/2022 East County Caucus Mtg 152.00 2/8/2022 Ad Hoc Recycled Agreement Mtg 152.00 2/15/2022 OWD EO&WR Committee Meeting 152.00 2/16/2022 Ad Hoc Detachment Meeting 152.00 2/22/2022 CWA Matters Meeting 152.00 2/23/2022 East County Caucus Mtg 152.00 2/28/2022 CWA Matters Meeting 152.00 2/2/2022 OWD Monthly Board Meeting 152.00 2/9/2022 OWD Director/GM Update 152.00 2/11/2022 OWD Committee Agenda Briefing 152.00 2/25/2022 OWD Agenda Briefing 152.00 3/2/2022 OWD Monthly Board Meeting 152.00 3/22/2022 CWA Matters Meeting 152.00 3/23/2022 East County Caucus Mtg 152.00 3/29/2022 OWD Special Board Meeting 152.00 3/15/2022 OWD EO&WR Committee Meeting 152.00 3/30/2022 Ad Hoc Salt Creek Golf Course Meeting 152.00 3/9/2022 COWU Pre-Meeting 152.00 3/11/2022 OWD Committee Agenda Briefing 152.00 4/6/2022 OWD Monthly Board Meeting 152.00 4/26/2022 CWA Matters Meeting 152.00 4/27/2022 OWD Special Board Meeting 152.00 4/28/2022 OWD Agenda Briefing 152.00 4/19/2022 OWD EO&WR Committee Meeting 152.00 4/1/2022 OWD Agenda Briefing 152.00 4/13/2022 Valuation of Water Webinar 152.00 4/15/2022 OWD Committee Agenda Briefing 152.00 5/5/2022 Ad Hoc GM Evaluation Committee 152.00 5/11/2022 OWD Monthly Board Meeting 152.00 5/17/2022 OWD EO&WR Committee Meeting 152.00 5/12/2022 OWD Committee Agenda Briefing 152.00 5/20/2022 OWD Director/GM Update 152.00 5/24/2022 CWA Matters Meeting 152.00 5/25/2022 East County Caucus Mtg 152.00 5/27/2022 OWD Agenda Briefing 152.00 6/8/2022 OWD Monthly Board Meeting 152.00 6/22/2022 OWD Special Board Meeting 152.00 6/24/2022 Ad Hoc GM Evaluation Committee 152.00 6/30/2022 OWD Agenda Briefing 152.00 6/27/2022 Ad Hoc Salt Creek Golf Course Meeting 152.00 6/21/2022 CWA Matters Meeting 152.00 Director's Fee Total 14744.00 Conferences and Sem 7/22/2021 WateReuse Registration 525.00 11/22/2021 ACWA Conference - Registration 725.00 Conferences and Seminars Total 1250.00 Grand Total 17,361.07 Page 2 of 2 1 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Michael Kerr, Information Technology Manager APPROVED BY: Adolfo Segura, Chief of Administrative Services Jose Martinez, General Manager SUBJECT: FY22 YEAR-END REPORT OF THE DISTRICT’S FY19-22 STRATEGIC PLAN GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To provide a year-end report of the District’s FY19-22 Strategic Plan for FY22. ANALYSIS: Summary Developed in 2018, the strategic plan, FY19 through FY22, achieved a high success rate for accomplishing defined objectives and performance measures. During this time, the District embarked on a structural redesign to better align the workforce with our customer needs. As a result, the plan focused on several significant areas, including technology, workforce and culture, communications, and financial stability. This report details the year-end results for the fourth and final year of the plan. AGENDA ITEM 12d 2 Objectives – Target 90% Strategic Plan objectives are designed to ensure the District is executing defined mission-developed strategies and implementing appropriate changes necessary to guide the agency, meet new challenges, and positively adapt to change. FY22 year-end results are above target at 98%, with 51 of 52 active items completed or on schedule, and one (1) objective is on hold. Objective on Hold (1): FINANCIAL Strategy #3: Enhancement of business systems. Objective: Evaluate enhancements to, or replacement, of the rate model program. This objective is on hold pending the District’s Enterprise Resource Planning (ERP) replacement project. Key Performance Indicators (KPI’s) – Target 75% KPI’s are designed to monitor the District’s day-to-day performance. These items assess the efficiency and effectiveness of essential operational services. The District’s overall goal of 75% is considered “on target”. For FY22, year-end results are above target at 88%, with 37 of 42 items achieving the desired level or better. 0 5 10 15 20 25 30 35 40 45 51 0 1 0 On Schedule/Completed Behind On Hold Not Started 51 of 52 Objectives are Completed or On Schedule (98%) 3 KPI’s are based on established AWWA performance benchmarks, water agency standards, and historical trends. Seven (7) measures are reported at year’s end: • Water Debt Coverage • Sewer Debt Coverage • Reserve Level • Accounts Per FTE • Leak Detection Program • Injury Incident Rate • Enterprise Technology Services KPI’s Not on Target (5): Overtime Percentage Target: Less than 100% of the budgeted overtime per quarter and annually. Year-to-date overtime expenditures amounted $193,200 vs. the budgeted amount of $173,700. Fourth quarter results were below target ($39,500 actuals vs. $41,600 budgeted); however, the year-to-date overtime overage was primarily due to main breaks and COVID-19. Injury Incident Rate Target: No more than 4.1 injury incidents per 200,000 hours worked annually. 0 5 10 15 20 25 30 35 40 37 5 On Target Not on Target 37 of 42 Key Performance Indicators are On Target (88%) 4 There were seven (7) recordable injuries for calendar year 2021. This resulted in a 5.1 injury incident rate. To decrease the number of injuries, the Safety and Security Specialist coordinated additional ergonomic training in September 2022. Potable Water Distribution System Integrity Target: No more than 16 leaks and breaks per 100 miles of distribution piping annually. Year-to-date, there were a total of 181 leaks and nine (9) breaks with a rate of 18.01 leaks and breaks per one hundred miles of distribution piping. Sewer Overflow Rate (AWWA) Target & AWWA: Zero (0) overflows per quarter and annually. There were zero (0) overflows in the third and fourth quarter; however, the year-to-date target was not met due to two (2) sewer overflows in the first quarter: 1. Category 2 Sewer Spill Overflow (SSO) event on July 26, 2021: This overflow was due to a hole in a one-inch (1”) copper air vac service line on the force main, located on Steele Canyon Road. This main pumps sewage from Par Four Drive to Willow Glen Drive in El Cajon. A total of 1,500 gallons of sewage were recovered. 2. Category 3 SSO event on September 15, 2021: This overflow was due to a blockage at manhole MM-331-039 located on Singer Lane in Spring Valley. A total of 200 gallons of sewage were recovered. Employee Turnover Rate Target: Less than 5% turnover annually. There were 11 voluntary terminations for fiscal year 2022 resulting in a 7.97% turnover. Next Steps Staff will focus on the recently approved FY23-26 Strategic Plan objectives, key performance indicators, and emerging trends. Committee Reports – Slideshow The Strategic Plan year-end results are presented to both the Finance, Administration, and Communications Committee, and the Engineering, 5 Operations, and Water Resources Committee with a specific focus on the most relevant information for each 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: FY22 YEAR-END REPORT OF THE DISTRICT’S FY19-22 STRATEGIC PLAN COMMITTEE ACTION: The Finance and Administration Committee, and the Engineering, Operations, and Water Resources Committee met on September 19 and 20, 2022, respectively, and the following comments were made: • Staff presented the FY 2022 year-end report of the District’s FY 2019-2022 Strategic Plan. • There was discussion regarding how the overall KPI target is set, which is currently set at 75%. Staff mentioned that based on the AWWA benchmarking, the 75th percentile is the highest percentile category for benchmarking; however, staff will take another look to see if raising the overall KPI target is warranted. Staff noted that keeping the overall KPI target at 75% encourages staff to establish ambitious KPIs at aspiring targets. • The Committee asked about the overtime KPI and who sets the budget. Staff responded that District’s overtime budget is a collective of each department’s overtime budget, which is reviewed and determined within each department. • The Committee commented on the high turnover rate and asked if there is something that the District can apply to slow this down. General Manager Martinez commented that this trend is seen all over the country, not just in San Diego, but the District does look at the reasons for departure, including the reason(s) provided during the exit interviews. Many are looking at flexible schedules, hybrid work settings, and out-of-state opportunities. • The Committee noted that the District is doing great with accomplishing Strategic Plan KPIs and Objectives and praised staff for their achievements. Director Smith discussed leveraging the 7 success of the District with CWA and Metropolitan. He mentioned that the District had automated many processes, for example, the Confined Space Entry forms. Director Smith is requesting a bullet list of the top ten higher-level successful automation with the most significant impacts that the District has created so that he can share those with Metropolitan Water as examples of the District’s efficiencies. • The Committee applauded staff for preparing such an informative and graphically pleasant presentation and FY 2023-2026 Strategic Plan document. The Committee highlighted the great pictures captured by staff and their use in telling the story of the hard work behind the District’s efforts to meet the objective and KPI goals. Staff noted that all the work to prepare the Strategic Plan presentations and documents is completed by in-house staff, thus saving the District $20,000-$40,000 as some other agencies hire firms to prepare these documents. Following the discussion, the Committee supported staffs’ presentation to the full board as an information item. OTAY WATER DISTRICT STRATEGIC PLAN FY2022 Year-End Report 2019 2022 ATTACHMENT B 168 Total Participants American Water Works Association (AWWA) Utility Benchmarking Program Evaluation of Advanced Metering Infrastructure (AMI) technology Optimize Global Positioning System (GPS) fleet assignment and routing operation Streamline contract and purchase order management and lifecycle Organizational Development Best Practices Organizational Best Practices Index (%): OWD 95.7% •Strategic Planning Efforts •Long-term Financial Planning •Risk Management •Asset Management •Succession Planning Customer Relations Practices Call Center Indicator: >75% Percentile •Average TALK time •Average WAIT time •Abandoned Call Ratio •Billing Accuracy NOTABLE COMPLETED OBJECTIVES 2 (21 from California) 90% Total 52 On Schedule or Completed 51 ON SCHEDULE COMPLETED BEHIND SCHEDULE ON HOLD OBJECTIVES 1 Objective 1/52 = 2% TR E N D S YEAR-END 2022 51 Objectives 51/52 = 98% Overall Target 94% 88% 93%95%94% 82%86% 98% 50% 60% 70% 80% 90% 100% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Year-End Target On Hold 1 3 = COMPLETED Tenille Otero Communications Officer Enhance and build awareness and engagement among the District’s customers and stakeholders and within the San Diego Region of the District’s strategies, policies, projects, programs, and legislative/regulatory issues Continue implementation of and enhance the District’s community and business outreach, media, and government relations programs Ensure consistency of branding and representation across the District, using consistent logos, colors, messaging, communications tools, and other collaterals through enhancement of internal and external marketing materials Evaluate and enhance the District’s water conservation programs Assess and enhance communications tools and increase online presence and social media exposure Assess communication tools (social media presence) 4 CU S T O M E R Integrated resource planning and facility optimization Recycled water long-term business plan South District Potable Water Supply Alternatives to San Diego County Water Authority (SDCWA) Pipeline 4 Supply Interruption (catastrophic event) Treatment Plant long-term business plan (sewer portion) Evaluation of key system alternatives and financial impact Conduct desalination (Rosarito) financial analysis In support of the Engineering Department, conduct recycled water and sewer business financial analysis Enhancement of business systems Enterprise Resource Planning (ERP) validation and replacement evaluation Evaluate, and if beneficial, implement cloud-based payroll service Evaluate enhancements to, or replacement, of the rate model program Implement Paperless Account Payable (AP) solution Re-evaluate prior payroll solutions and identify any new cloud-based payroll solutions Complete a sewer cost of service study and recommend a rate structure that will provide for more stable sewer revenues Evaluate the Capacity and New Water Supply Fees, including an update of applicable costs, and, if possible, recommend a fee structure that is more efficient and effective than the current structure5 = COMPLETED = ON HOLD Roberto Marquez Reclamation Plant Operator II FI N A N C I A L Kevin Cameron Sr. Civil Engineer Enhancement of the Asset Management (AM) and Capital Improvement Programs (CIP) Enhancement of the framework for systematic development, validation, and implementation of new CIPs Enhancements of the AM Program Financial activity-based cost cross-training In support of the Engineering Department, enhance financial impact forecasting and analysis of future CIPs Develop alternative Public Employees Retirement System (PERS) financing strategy to fund ahead of PERS schedule Optimize funding and liability schedule Negotiate and implement a new labor agreement and optimize employee benefit programs Negotiate and implement new labor agreement Review Deferred Compensation Program for reduced fees and streamlined approach and ensure offerings are fully utilized 6 = COMPLETED FI N A N C I A L Optimize meter activity operations Evaluation of Advanced Metering Infrastructure (AMI) technology* Explore web-based options for meter reading and backflow test entry Optimize Global Positioning System (GPS) fleet assignment and routing operation* Enhance customer experience (collaboration between Customer Service and Communications) Customer electronic communication and outreach Customer Information System (CIS)/ Customer Relationship Management (CRM) validation and replacement evaluation Evaluate and leverage the use of available Human Resources self-service and capital management technology solutions Evaluate on-boarding programs and implement, if determined necessary Implement Human Resource Information System (HRIS) in coordination with payroll conversion Pilot cloud-based human capital performance management system and implement, if determined necessary 7 = COMPLETED Kim Chavez Meter Maintenance Worker IN T E R N A L B U S I N E S S P R O C E S S Maintain a reliable, scalable, secure, and high-performing technology infrastructure to support current and future service needs Adopt National Institute of Standards and Technology (NIST) cyber security framework and enhance disaster recovery planning Advance business processes and operational efficiencies through effective implementation of information technology Create framework to evaluate cost efficiency of new technology services and cloud vs. on-premise selection Deploy next generation storage services and communication architecture Enhance SCADA system services via SCADA roadmap project Prioritize 14 strategic project/initiatives, recently developed Enhancement of enterprise geographic data Deploy ArcGIS Pro for 3D analysis Evaluate the use of Drone2Map technology for asset, field inspections, and condition assessment Migrate Geographic Information System (GIS) data structure from geometric network to utility dashboard Standardization of District asset data and collection process 8 = COMPLETED Bruno Burgin Sr. SCADA Instrumentation Technician IN T E R N A L B U S I N E S S P R O C E S S (c o n t ’ d ) Enhancement of maintenance and program standards Analyze electric energy-saving programs as they become available Evaluate the effectiveness of various methods to reduce nitrification events Evaluate the efficiency and effectiveness of the District’s valve exercise preventative maintenance including proposed recommendations Evaluate the impacts as a result of recent and upcoming regulatory changes including, but not limited to, Air Pollution Control District (APCD), State Water Resource Control Board (SWRCB), and Occupational Safety and Health Administration (OSHA), etc. Establish an access and defensible space vegetation mitigation program with maintenance schedules for District remote facilities, access roads, and off-road appurtenances Enhancement of contracting and facility services Enhance Customer and Public Service security in public lobby areas Evaluate feasibility of incorporating electric and hybrid vehicles into District fleet Streamline contract and purchase order (contract) management and lifecycle* Enhancement of the Confined Space Program Automate confined space regulatory and work forms (electronic conversion), add confined space data layer in the District’s enterprise Geographic Information System (GIS), and use data to electronically automate the District’s confined space inventory 9 = COMPLETED = ON SCHEDULE Omar Sanchez Equipment Mechanic II IN T E R N A L B U S I N E S S P R O C E S S (c o n t ’ d ) Left to right: Guillermo Rojas (Utility Worker), Peter Grable (Water System Operator), and Leo Lopez (Utility Worker) Optimize District’s Hazardous Waste Operations and Emergency Response (HAZWOPER) Confined Space Rescue Team Certify program at Industry State Level and under the Incident Command System, streamline chlorine gas and confined space rescue training, operations, and response and convert inventory lists and equipment logs to electronic form Enhance leadership/employee training programs and knowledge transfer process Continue development of leadership and District-wide training programs Review and enhance knowledge transfer process to ensure retention of District knowledge 10 = COMPLETED = ON SCHEDULE IN T E R N A L B U S I N E S S P R O C E S S (c o n t ’ d ) LE A R N I N G A N D G R O W T H KEY PERFORMANCE INDICATORS TR E N D S YEAR-END 2022 Overall Target 75% Total 42 Reported Quarterly 35 Reported Annually 7 83% 90%88% 95% 83% 90%90%88% 50% 60% 70% 80% 90% 100% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Year-End Target 37 KPIs 37/42 = 88% ON TARGET NOT ON TARGET 5 KPIs 5/42 = 12% 98.33% 97.84% 98.12%98.00% 98.38%98.43%98.55%98.60% 95% 96% 97% 98% 99% 100% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target ANSWER RATE TARGET 97% average answer rate per quarter and annually CALCULATION Number of calls answered/Total number of calls 12Pam Castanon Customer Service Rep II 3.69 5.12 3.94 4.20 3.55 3.51 4.50 3.85 0 5 10 15 20 25 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target 75th Percentile Median 25th Percentile POTABLE WATER COMPLIANCE RATE (AWWA | Water Operations)TECHNICAL QUALITY COMPLAINT (AWWA | Customer Relations) TARGET No more than 7.1 complaints per 1,000 customer accounts annually CALCULATION Number of technical quality complaints per year/Number of active accounts per reporting period AWWA BENCHMARK Average of 75th Percentile, 13.1, and Median, 1.1, for population served between 100,001 – 500,000 (Combined Utilities) 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) 13 100% (Year-End Result for FY 2015 -FY 2022) Laura York Laboratory Analyst 92.20% 89.80% 109.10% 97.40% 104.80% 87.30% 111.00% 103.00% 80% 85% 90% 95% 100% 105% 110% 115% 120% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target CIP PROJECT EXPENDITURES VS. BUDGET TARGET 95% of budget annually CALCULATION Actual Expenditures/Annual Budget 14 458-1 Reservoir 1.9%1.8% 1.5%1.3% 3.1% 5.6% 4.4% 2.0% 0% 1% 2% 3% 4% 5% 6% 7% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target CONSTRUCTION CHANGE ORDER INCIDENCE $511.00 $503.00 $517.00 $549.00 $548.00 $545.00 $545.00 $549.00$531.12 $531.12 $540.00 $540.00 $570.00 $552.00 $575.00 $592.00 $450 $470 $490 $510 $530 $550 $570 $590 $610 $630 $650 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target O&M COST PER ACCOUNT TARGET No more than 5% per quarter and annually CALCULATION Cost of Change Orders (not including allowances)/Original construction contract amount (not including allowances) TARGET Less than $592 per account annually (based on Operating budget) CALCULATION Operations O&M/Number of accounts 15 99.81%99.97%99.99%99.98%99.94%99.99%99.99%99.99% 95% 96% 97% 98% 99% 100% 101% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target 98% 129% 118% 100% 129% 72% 106% 111% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140% 150% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target BILLING ACCURACY OVERTIME PERCENTAGE TARGET 99.8% billing accuracy per quarter and annually CALCULATION Number of correct bills/Number of bills issued during the reporting period TARGET Less than 100% of budgeted overtime per quarter and annually (based on Operating budget and historical trends; FY22 Overtime budget is $173,700) CALCULATION Actual overtime costs (including comp time)/Budgeted overtime costs 16 8 7 5 6 3 5 5 5 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target SEWER RATE RANKING 10 12 11 3 3 5 5 5 0 2 4 6 8 10 12 14 16 18 20 22 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target WATER RATE RANKING TARGET Bottom 50th percentile for the 22 member agencies in San Diego CALCULATION Ranking for the average monthly water bill among CWA member agencies TARGET Bottom 50th percentile for the 28 sewer service providers in San Diego CALCULATION Ranking for the average monthly bill among sewer service providers in San Diego County 17 168% 171% 200% 236% 165% 188% 272%262% 0% 50% 100% 150% 200% 250% 300% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target 1241% 371% 838% 0% 200% 400% 600% 800% 1000% 1200% 1400% 2020 2021 2022 Year-End Result Target SEWER DEBT COVERAGE RATIOWATER DEBT COVERAGE RATIO TARGET 150% excluding growth revenue annually CALCULATION Qualified net operating revenues/Debt service requirements 18 TARGET 150% excluding growth revenue annually CALCULATION Qualified net operating revenues/Debt service requirements 100% 78% 85% 100%100%100% 85%83% 0% 20% 40% 60% 80% 100% 120% 140% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target RESERVE LEVEL 406 426 410 410 408 406 400 410 420 430 440 450 2017 2018 2019 2020 2021 2022 Year-End Result Target ACCOUNTS PER FULL-TIME EMPLOYEE (FTE) TARGET 83% annually CALCULATION Number of reserve funds that meet or exceed fund target levels/Total number of reserve funds TARGET 406 accounts per FTE annually CALCULATION Potable + Recycled + Sewer Accounts/Number of FTEs 19 75.64%77.05%78.67% 80.47% 82.71%83.76% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 2017 2018 2019 2020 2021 2022 Year-End Result Target FY2017 used as a benchmarking year PERCENT OF CUSTOMERS PAYING BILLS ELECTRONICALLY 2.5% 4.0%4.1% 3.3% 3.6%3.8%3.9%4.0% 0% 1% 2% 3% 4% 5% 6% 7% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target DISTRIBUTION SYSTEM LOSS TARGET 75% per quarter and annually CALCULATION Number of customers paying bills electronically/Total number of customers TARGET Less than 5% of unaccounted water 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 20 66% 75% 70% 72%74% 77% 66% 72% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target PLANNED POTABLE WATER MAINTENANCE RATIO IN $ 66% 86% 91% 74%74% 70% 55% 74% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target PLANNED RECYCLED WATER MAINTENANCE RATIO IN $ TARGET 66% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost TARGET 70% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost 21 92%92%91% 82% 84% 92% 93% 90% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target PLANNED WASTEWATER MAINTENANCE RATIO IN $ $785.11 $912.56 $1,095.70 $1,165.82 $1,071.66 $996.29 $1,374.69 $869.97 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target DIRECT COST OF TREATMENT PER MGD TARGET 77% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost TARGET No more than $1050 per MGD spent on wastewater treatment annually CALCULATION Total O&M costs directly attributable to sewer treatment/Total volume in MG for one quarter 22 20%20% 33% 20%20%20%20%20% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target LEAK DETECTION PROGRAM 4.4 4.4 4.4 2.9 2.1 5.1 0 1 2 3 4 5 6 7 8 9 10 2017 2018 2019 2020 2021 2022 Year-End Result Target INJURY INCIDENT RATE TARGET 20% of system surveyed for leaks annually CALCULATION Miles of potable pipe surveyed/Total miles of pipe TARGET No more than 4.1 injury incidents per 200,000 hours worked annually (based on Department of Labor average for similar-size water agencies) CALCULATION (Number of recordable injuries/illnesses x 200,000 average hours worked)/ Total hours employees worked 23 TARGET 99.5% network uptime and availability CALCULATION 3h 39m 8s hours of downtime per month (1d 19h 49m 44s per year) 99.99% 99.50%99.50%99.50%99.50%99.50%99.50% 95% 96% 97% 98% 99% 100% 101% 102% 103% 104% 105% 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target ENTERPRISE TECHNOLOGY SERVICES AVAILABILITY 24 Bill Poulin Database Administrator 29.0 37.3 71.2 70.3 37.0 37.3 32.0 26.3 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target PROJECT CLOSEOUT TIME TARGET 45-day average annually CALCULATION Number of days between NOSC and NOC for all construction projects within the quarter/ Number of construction projects within the quarter MARK-OUT ACCURACY TARGET 100% mark-out accuracy 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 25 Israel Bojorquez Utility Locator 100% (Year-End Result for FY 2015 -FY 2022) 100% 93% 90%90% 100% 96% 100%100% 75% 80% 85% 90% 95% 100% 105% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target RECYCLED WATER SHUTDOWN TESTING TARGET 90% of recycled site shutdown tests performed annually (29 recycled water sites scheduled for shutdown in FY22, 90% = 26 sites) CALCULATION Cumulative percentage of recycled site shutdown tests performed per year ANNUAL RECYCLED WATER SITE INSPECTIONS TARGET 100% of recycled sites inspected annually (172 Recycled water use sites are due for inspection in FY22 ) CALCULATION Cumulative percentage of recycled site inspected per quarter of those required by DEH 26 100% (Year-End Result for FY 2015 -FY 2022) 99%100%100%100% 99% 96% 99% 100% 75% 80% 85% 90% 95% 100% 105% 110% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target PERCENT OF PM’S COMPLETED FLEET MAINTENANCE TARGET 90% of scheduled preventative maintenance completed per quarter and annually CALCULATION Number of PM’s completed/Number of PM’s scheduled 129% 188% 111% 100% 50% 70% 90% 110% 130% 150% 170% 190% 2019 2020 2021 2022 Year-End Result Target EASEMENT EVALUATION AND FIELD INSPECTION TARGET 100% assigned easements, evaluated via desktop tools, and inspected annually (100 easements are assigned for FY22) CALCULATION Number of easements evaluated and inspected/Total easements assigned for the period 27 PERCENT OF PM’S COMPLETED -PUMP/ELECTRIC TARGET 90% of scheduled preventative maintenance completed per quarter and annually CALCULATION Number of PM’s completed/Number of PM’s scheduled 98% 100%99%98%98% 100%100%99% 75% 80% 85% 90% 95% 100% 105% 110% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target PERCENT OF PM’S COMPLETED RECLAMATION PLANT TARGET 90% of scheduled preventative maintenance completed per quarter and annually CALCULATION Number of PM’s completed/Number of PM’s scheduled 28 Joc Anderson Electrician II 100% (Year-End Result for FY 2015 -FY 2022) 11.14 10.28 9.50 8.44 7.61 15.16 18.01 0 5 10 15 20 25 30 35 40 45 50 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target 75th Percentile Median 25th Percentile POTABLE WATER DISTRIBUTION SYSTEM INTEGRITY (AWWA –Water Operations) TARGET No more than 16 leaks and breaks per 100 miles of distribution piping annually CALCULATION 100 (Number of leaks and breaks)/Total miles of distribution piping AWWA BENCHMARK 16.2 –Median population served between 100,001-500,000 3425 4549 3228 3405 3298 2969 4723 3132 2050 2550 3050 3550 4050 4550 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target SYSTEM VALVE EXERCISING PROGRAM TARGET 3,080 valves exercised per year CALCULATION Total number of valves exercised per year 29 0 0 1.14 0 1.14 1.14 1.14 2.27 0 1 2 3 4 5 6 7 8 9 10 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target 75th Percentile Median 25th Percentile SEWER OVERFLOW RATE (AWWA –Wastewater Operations) TARGET 0 overflows 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 1.07 0.00 0.90 2.67 4.45 0.96 3.80 1.90 0 1 2 3 4 5 6 7 8 9 10 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target RECYCLED WATER SYSTEM INTEGRITY TARGET No more than 6.6 leaks and breaks per 100 miles of recycled distribution system annually CALCULATION 100 (Number of leaks and breaks)/Total miles of recycled distribution system 30 7 11 8 8 5 6 7 8 9 10 11 12 13 14 15 2019 2020 2021 2022 Year-End Result Target POTABLE TANK INSPECTION AND CLEANING TARGET 8 potable water storage tanks and/or reservoirs cleaned annually CALCULATION Number of tanks cleaned and inspected annually 100% 105%105%105% 72% 100%100% 65% 70% 75% 80% 85% 90% 95% 100% 105% 110% 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target EMERGENCY FACILITY POWER TESTING TARGET 100% of all emergency facilities tested annually (38 power ready facilities) CALCULATION 100 (Number of leaks and breaks)/Total miles of recycled distribution system 31 753 463 355 443 601 413 580 960 100 200 300 400 500 600 700 800 900 1000 1100 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target 520 631 631 631 631 631 631 712 400 450 500 550 600 650 700 750 800 850 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target CRITICAL VALVE EXERCISING TARGET 712 critical valves exercised annually CALCULATION Number of critical valves exercised in a year MAIN FLUSHING AND HYDRANT MAINTENANCE TARGET 215 mains flushed and fire hydrants maintained annually CALCULATION Number of mains flushed and fire hydrants maintained per year 32 3.15% 0% 0.75% 1.50% 3.63% 2.19%2.16% 7.97% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target EMPLOYEE VOLUNTARY TURNOVER RATE TARGET Less than 5% turnover annually CALCULATION Number of voluntary terminations (not including retirements)/Average number of employees 33Kyle Hernon Meter Maintenance Worker II 17.53 23.02 22.89 18.11 26.85 59.90 16.49 24.53 0 10 20 30 40 50 60 70 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target TRAINING HOURS PER EMPLOYEE 43.11 36.80 30.83 33.38 34.04 79.04 28.40 55.77 0 10 20 30 40 50 60 70 80 90 100 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target SAFETY TRAINING PROGRAM TARGET 12 hours per employee annually CALCULATION Total qualified training hours for all employees/Average number of FTEs TARGET 24 hours per field employee annually CALCULATION Total qualified safety training hours for field employees/Average number of field employees 34 https://otaywater.gov/about-otay/news-and-documents/strategic-plan/ QUESTIONS? FY23 –FY26 Strategic Plan STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 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 •District’s Response to COVID-19 Pandemic – The District has had no impacts to its water supply and has maintained a continuity of operations and services during the challenging and dynamic environment. Staff continues to monitor and provide updates relating to responding to this pandemic, as needed, including but not limited to water and wastewater services, supplies, operations, finances, and communication. The District remains committed to the safety of the public and its employees who continue to provide the public with essential services. Staff continue to monitor and comply with all Federal, State, and Local orders and guidelines. ADMINISTRATIVE SERVICES: GIS: •District Wall Maps – Due to redistricting, staff updated District maps by creating multiple digital versions with the new director division boundaries, facilities, and statistics for the District’s “At-a-Glance” site. All 36 wall maps have been installed in various District conference rooms and offices. Human Resources: •Open Enrollment – To be held October 11 - 21. Staff is working with Alliant, our benefits consultant, and IT staff in preparation. A virtual Open Enrollment meeting will be held on October 18, 2022, at 3:00 pm. AGENDA ITEM 13 2 • New Hires/Recruitments: o The District recently filled the position of Human Resources Manager. o The District is or will be recruiting for the following positions: ▪ Utility Worker I/II ▪ Meter Services Supervisor ▪ Construction Inspector I/II ▪ Reclamation Plant Operator I/II/III ▪ Engineering Manager IT Operations: • District Internet Upgrade - Staff completed the District's internet circuit upgrade. The circuit upgrade increased the Administrative and Operations facilities' internet speed from 100 MB to 250 MB. Purchasing & Facilities: • U.S. Bank CAL-Card Incentive Program Update – The District is a participant in the State of California’s Purchase Card Program (CAL- Card), which is based on an agreement between the State of California and U.S. Bank under the State of Washington NASPO ValuePoint* Commercial Card Master Agreement. CAL-Card is the official registered name of the State’s Purchase Card Program administered by the Department of General Services, Procurement Division. The purpose of the CAL-Card Program is to provide commercial card services to “eligible governmental bodies and corporations empowered to expend public funds for the acquisition of goods, information technology, or services pursuant to Public Contract Code section 10298 (a) (b) and 10299 (b).” The Master Agreement includes two incentives/rebates whereby participating agencies receive a Volume Incentive rebate of 1.35% on every dollar processed and a Prompt Payment Incentive rebate (PPI) of 0.44% on the monthly balance. The PPI is reduced 0.01% for each day after the statement date reaching 0.00% or no PPI rebate on or after the 45th day. Since 2014, procurement staff have actively promoted the use of CAL- Card as a best practice for low value purchases rather than routing costly purchase orders (PO). In the years preceding 2014, the District processed over 1900 PO’s per year; in FY 2022, the District processed 360 PO’s or 1,540 fewer than pre-2014. With an estimated administrative cost of $63 per PO, the annual administrative savings is over $97,000 and when combined with the CAL-Card rebates, the District’s FY2022 benefit exceeded $141,000. Note that there was a reduction in rebates from FY20 to FY21 due to less spending during COVID but has since rebounded. 3 *NASPO ValuePoint is the cooperative contracting arm of the National Association of State Procurement Officials (NASPO) a non- profit organization formed in 1947, comprised of the Chief Procurement Officials of all fifty states, Washington D.C., and the U.S. Territories. NASPO ValuePoint Master Agreements are competitively solicited leveraging the expertise and buying power of the many states and other participating entities. Safety & Security: • Emergency Management: o SDCWA Water Agencies Emergency Collaborative (WAEC) Group – Staff participated in the voluntary monthly WAEC WebEOC exercises. On September 21st, Staff facilitated two activities. The first exercise required Staff to log into the County WebEOC and navigate through the Weblinks to access the National Weather Service. This allowed us to view the warmer temperatures forecast for next week and plan accordingly. The second exercise also accessed the WebLinks and viewed the SigAlert traffic map and cameras. This allowed us to familiarize ourselves with the roads in our service areas. • Safety Training: o Auto Crane Training – The initial was conducted for the Pump and Electrical group in Operations. o Forklift Class III, IV, and VII Equipment Refresher Training – Operations received an initial or refresher training, including lectures and practical evaluation. 4 o Confined Space Entry, Gas Detectors, and Fall Protection Initial – New Staff received the initial training to perform work in confined spaces. • Meetings: o Confined Space Evaluations – Staff is evaluating the District’s current program by meeting with departments, reviewing current classifications, updating forms, and transferring data to our GIS confined space layer. • Worker’s Compensation: o Return to Work/Transitional Duty Program – Staff worked with Operations to return two injured employees on Worker’s Comp to light or transitional duty. This program effectively returns employees to productive work in the shortest time possible while adhering to work restrictions, maintaining high morale, and keeping costs to a minimum. Returning employees on transitional duty will reduce our temporary total disability (WC) costs and the OSHA recordable lost workdays. FINANCE: • FY 2022 Annual Financial Audit – On September 16, Davis Farr LLP submitted the first draft of the annual financial statements to the District for review. Staff is currently updating the draft along with including various comments and notes. The final draft is scheduled to be presented at the October F&A Committee. • FY 2022 Water Loss Validation Audit Update - With input of various departments, Finance has completed the FY 2022 water loss worksheet. Finance held an internal staff meeting with Operations and Engineering on September 15 to review the results. Final review of the water loss worksheet is scheduled for October 4, 2022, and the results will be filed with the California Department of Water Resources by October 31, 2022. • CalPERS Pension Unfunded Liability Update – As presented during various workshops and as directed by the Board, Finance has remitted savings and reimbursements from OPEB along with the minimum required payment for a total of $2,314,000 to reduce the pension’s projected unfunded accrued liability (UAL). The UAL fluctuates year to year due to market rates of return, inflation, discount rate changes, life expectancy, etc. According to CalPERS, after the District makes this payment, the projected UAL as of June 30, 2023 is $2,569,989 – making the pension plan 98% funded. This projected amount provided by CalPERS does not reflect the 2022 Market Rates of Return. • New Meter Test Bench Installed – The new meter test bench was installed by meter services staff in early September and commissioned 5 by the manufacturer the week of September 12. The manufacturer, The Ford Meter Box Company, Inc., completed the programming of the new test bench and trained all meter maintenance staff how to use the bench and corresponding computer. This new bench replaces an over 40- year-old bench and will allow multiple meters sizes ¾” to 2” to be tested simultaneously, increasing the efficiency of small meter testing for the District. Financial Reporting: • The financial reporting for August 31, 2022 is as follows: o For the second month ending August 31, 2022, there are total revenues of $23,028,291 and total expenses of $21,311,445. The revenues exceeded expenses by $1,716,846. • The financial reporting for investments for August 31, 2022 is as follows: o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of August 31, 2022 total $99,470,608 with an average yield to maturity of 1.504%. The total earnings year to date are $250,347. 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. Since District staff took over the project with the intent that District staff will complete the remainder of the project in-house with support of the District’s as-needed consultants, the 30% redesign was completed and a review meeting was held August 8, 2022. Task Orders were issued to as-needed electrical and structural engineer consultants on August 31, 2022 with the goal of reaching 60% design by October 2022. The project is within budget. (P2639 and P2680) • RWCWRF Disinfection System Improvements: The project involves the replacement of the chlorine gas disinfection system with an ultraviolet (UV) process at the Ralph W. Chapman Water Reclamation Facility. Consultant selection for design and construction support to Carollo Engineers was approved by the Board at the June 2021 Board Meeting. Design work initiated in July 2021. Monitoring of ultraviolet transmittance has been completed and analyzed for setting 6 the design criteria for the UV equipment. Initial contact with the regulating state agencies has been made. Information on available equipment manufacturers has been assessed and pre-procurement procedures completed for designing the project around the Trojan UV system. 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 prevent materials acquisition delays related to this equipment. The draft preliminary design report has been finalized and 60% design is underway. (R2117) • Melrose Ave and Oleander Ave PRSs and 980 Reservoirs Altitude Valve Vaults: This project involves the replacement of two (2) 1960’s era pressure reducing stations in Chula Vista and the renovations of the 980-1 & -2 Reservoirs altitude valve vaults. The Board approved awarding a contract to CCL Contracting at the May 5, 2021 Board Meeting. The project is substantially complete, with only checklist items remaining. The projects are within budget. (P2605, P2627, & P2671) • Olympic Parkway Recycled Water Line Replacement: Several main breaks within the past year of 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, has been selected to design the replacement waterline using the District’s As-Needed Engineering Design Services contract. Final design is expected in September 2022 with advertising for bids to follow in October. Submission to the City of Chula Vista for permits has been made. 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 and is substantially complete. (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 this contract, the water line between Vista Grande and Vista Sierra will be replaced. 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 has been isolated due to a leak, removing the redundancy for this neighborhood. Bids were opened in February with the construction contract approved by the Board at the April meeting. A limited notice to proceed was provided in May 2022 to begin material acquisition. Pre-con was held on August 3, 2022 and the formal notice to proceed was issued on August 8, 2022. Construction is expected to start in November 2022. The project is within budget. (P2612 & P2616) • 1655-1 Reservoir & Rancho Jamul Hydropneumatic Pump Station: This project consists of constructing a new 0.5 MG prestressed concrete 7 potable water tank in Jamul and modifying the existing Rancho Jamul Hydropneumatic Pump Station (HPS) to become the permanent Pump Station to feed the new 1655-1 Reservoir. The project also includes replacing approximately 1,500 linear feet of existing pipe that will be experiencing pressure over the rated pressure class under the new configuration. Richard Brady and Associates (Brady) delivered the 60% design on July 6, 2022. Staff provided comments back to Brady on September 7, 2022. Brady is working toward 90% design. The project is on schedule and within budget. (P2040, P2642, & P2681) • 458-1 Reservoir Interior/Exterior Coating and Upgrades: This project consists of removing and replacing the interior and exterior coatings of the 458-1 (0.8 MG) Reservoir, along with providing structural upgrades, to ensure the tank complies with both state and federal OSHA standards as well as the American Water Works Association and the Health Department standards. Advanced Industrial Services (AIS) was awarded a construction contract at the November 3, 2021 Board Meeting. AIS has completed the structural improvements as well as the interior and exterior coating on the Reservoir. The Reservoir was returned to service on July 22, 2022. All work has been completed by AIS and staff has submitted the NOC to the County of San Diego for recordation. The project is within budget. (P2593) • Recycled Water Pipeline Cathodic Protection Improvements: This project includes repairs to existing cathodic protection systems, such as anode replacement and cathodic test station repairs for recycled water pipelines located in the Central Area. The project advertised for bid in March 2022 and was awarded at the June 8, 2022 Board Meeting. The contract was executed, the NTP was issued for August 1, 2022, and the pre-construction meeting was held. Project completion date is anticipated by February 7, 2023. (R2146) • Advanced Metering Infrastructure Upgrade Project: On May 16, 2022, the District received notification from the Bureau of Reclamation that the District will receive a WaterSMART Water and Energy Efficiency Grant of $234,645 for the District’s Advanced Metering Infrastructure (AMI) project, which includes installing network hardware, upgrading meter data management software, installing AMI- compatible meter box lids, and firmware upgrades to existing AMI- capable meters. The District will also implement a web-based platform for customers to track their water use efficiency and compare it with the usage of other District customers. (P2682) • San Miguel Habitat Management Area: The District was informed that our San Miguel HMA Threat Reduction grant application under the SANDAG TransNet Environmental Mitigation Program Land Management Grant Program has been recommended for award. Of the eleven projects they are recommending for funding, the District’s application had the fourth highest ranking. The award amount is $78,593.80 for this project. The project will reduce threats to sensitive species found 8 within the HMA's Diegan coastal sage scrub and grassland habitats. This will be accomplished through implementation of a variety of deterrent and education-oriented strategies to reduce threats and prevent disturbance to vulnerable habitats on the HMA. The recommendations for award will be taken to the SANDAG Board for approval and the agreement with SANDAG will be executed in the Fall of 2022. This grant does not require matching funds from the District. • Sweetwater Authority and Otay Water District Ad Hoc Committee Meeting: On August 8, 2022, the Sweetwater Authority and Otay Water District Ad Hoc Committee Meeting, together with staff from both agencies, met to discuss working together on several water supplies and management options to benefit both agencies. A joint project between the two agencies would study the feasibility of Otay providing recycled water for use within Sweetwater Authority’s service area and/or Sweetwater Authority providing potable water for use within Otay’s service area. The studies would include an assessment of potential customers within the adjoining service area and the amount of water that could reasonably be used by each customer. Grant Opportunities for these projects would improve the economic feasibility of any project being considered and staff were directed to work on a joint application for grant funding for the initial market study to consider the feasibility of the projects. The resolution to accompany the grant application has been recommended for consent by the Engineering, Operations and Water Resources Committee at the October 5, 2022 Board meeting. • FY 2023 Sewage Flows to Metro vs Planned Capacity: The Amended and Restated Agreement became effective at the start of FY 2023. Per the terms of the Agreement, tracking for flow, chemical oxygen demand, and suspended solids are now being done. 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. Given the current maximization of the District’s sewage treatment capacity at the Ralph W. Chapman Water Reclamation Facility, potential future sewage flows, as well as potential periods of wet weather, require that the District maintains the current annual capacity with Metro. The treatment plant continued to operate at a productive level to start the fiscal year as indicated in the graph below. 9 • Summary of Budgeted and Sold Meters and EDUs for Fiscal Year 2023 up through August 31, 2022: Water System Operations: • On Friday, August 19th, the 870-2 Pump Station experienced an out of spec voltage causing the pump station generator to run. An out of spec voltage can damage electrical equipment if it is operated. The generator ran for approximately four hours. SDG&E is aware of the issue and is looking into a remedy. • On Thursday, August 25th, staff performed mock shutdowns on Fury Lane, east of Calle Verde, in La Mesa. This mock shutdown was needed for an upcoming valve replacement. • On August 29th and 30th, and September 15th, process instrument calibrations were performed at the 1090-1 and 1200-1 Pump Stations. Instrument calibrations are a form of preventative maintenance that are performed to ensure proper field control of associated water Date Meters (Budgeted) Meters Sold (Actual) EDUs (Budgeted) EDUs Sold (Actual) Total $ Collected (Budgeted) Total $ Collected (Actual) August 2022 25.7 8 66.9 15.5 $206,750 $277,306 Totals FY 2023 51.3 23 133.8 36 $413,500 $539,249 10 systems and accurate reporting of process data and to assist in mitigating unplanned downtime from unexpected equipment failures. • On Tuesday, August 30th, staff increased the pressure to the Melrose Avenue and Oleander Avenue pressure reducing stations. This was done to ensure the proper fire flow was met in the pressure zone. The CIP for this was implemented when the original pressure reducing stations had reached the end of their use full life. The new pressure reducing stations were set to the original pressure setting to ensure the proper fire flow and adequate pressure is met in higher elevation areas of this pressure zone. • On Thursday, September 1st, staff performed a planned shutdown on Avenida Caprise, south of La Media Parkway in Chula Vista. This shutdown was performed to allow Cass Arrieta Construction to connect a newly installed segment of a 12-inch pipe to the existing system. The shutdown lasted six and a half hours with one meter affected. One water trailer was available on site for the affected meter. • On During Monday, September 5th through Thursday, September 8th, the District was notified by SDG&E that the Emergency Load Reduction Program (ELRP)events would be called due to high temperatures that were requiring for energy conservation. Numerous District sites were manually switched from utility power to generator power to reduce the District’s electrical energy consumption including the Administrative, Operations, and Warehouse buildings. Reducing electricity consumption during electrical grid emergencies assists in reducing the risk of outages when the grid’s available energy supply is insufficient to satisfy the anticipated demand. SCADA equipment and process controls were verified before, during, and after the events to ensure continuous control and monitoring of water flow activity. Here are the events that occurred during this timeframe due to this event: o On Tuesday, September 6th, the California Independent System Operator (CAISO), which manages the state's electric grid, issued a call for increased energy conservation during peak hours from 4:00 p.m. to 9:00 p.m. statewide. Demand response programs were active during this heat event. The District responded to this call and SCADA and Electrical staff, in coordination with the Treatment Plant and Operations sections, worked extended hours on these days and were able to successfully complete the program without major problems. o On Tuesday, September 6th, due to SDG&E’s issued ELRP to the County, the District placed the Treatment Plant and four Sewer Lift Stations on generator power during the times called for the ELRP through September 8th. o Staff proactively started back-up power generators at hydropneumatic stations, sewer lift stations, and the Administrative and Operations buildings to help reduce demand on 11 the power grid. The District’s pump stations do not pump during peak power demands as part of time-of-use programs with SDG&E and were not affected by these events. • On Monday, September 5th, an over voltage occurred at the 870-2 Pump Station and the generator started in automatic mode to keep the station up and running. SDG&E was experiencing high demand for service due to the high temperatures in the county. SDG&E resolved the issue on Thursday, September 8th. This issue occurred again on Friday, September 9th and the District reported the incident to SDG&E and the issue was resolved on Tuesday, September 12th. • On Tuesday, September 6th, the District received an emergency notification that the Cottonwood Sewer Lift Station had excessive run time alarms and was not holding prime. Since the lift station only has two pumps, it was crucial that pump #2 was functioning as soon as possible. After troubleshooting, staff determined that the check valve located at the suction side of the pump casing had failed. Staff adjusted the clearances on the rotating assembly and replaced the damaged check valve. • On Wednesday, September 7th, Kirk Paving performed the final grind and paving on Woods Drive in Chula Vista from the 16-inch main break. • The following events occurred on Thursday, September 8th: o Staff performed a mock shutdown on the Steele Canyon bridge between Willow Glen and Jamul Drive in El Cajon. This was performed in preparation for the 20-inch steel water main rehabilitation that required welding on the pipe and interior pipe inspection. There are 10 locations with corrosion around the bridge pipe hangers that needed to have a weld around the pipe to extend its life and avoid failure. o A representative of the automatic transfer switch (ATS) was on site at the 1004 Pump Station to solve an issue after a few months of failure. The ATS display was changed with a newer model to ensure instantaneous power transfer in case of an outage. An ATS is a device that automatically transfers power supply from its primary source (SDG&E) to a backup source (generator) when it senses a failure or outage in the primary source. This pump station is now protected in case of any power failure. • The following events occurred on Friday, September 9th: o The District’s laboratory received a notification of accreditation as an environmental testing laboratory. This is an annual certification that the laboratory must go through to be approved. In-house lab tests are performed, and results are submitted to the state for acceptance. If the results pass the state guidelines, the District receives certification for the 12 Lab. Tests performed are Heterotrophic Bacteria, Total Coliform, E Coli, Turbidity, Conductivity, Chlorine Residuals, and pH. o Staff reported that pump #5 did not open at 711 Pump Station. After troubleshooting, staff found that the three-way valve located at the bottom of the power body needed to be replaced. Staff replaced the three-way valve and performed an operational test on the pump/valve. Testing went well with no issues noted and the issue was resolved. • The following events occurred on Monday, September 12th: o Staff provided major traffic control for Kirk Paving to complete final paving at 2237 Willow Glen Drive in El Cajon, from a previous service leak and at the intersection of Fury Lane and Calle Verde from previous valve replacements. o SDG&E adjusted the power transformer feeding the 870-2 Pump Station to lower the voltage. The adjustment was needed since the SDG&E power lines were putting out higher than normal voltage due to high power demands on SDG&E’s power grid. • On Tuesday, September 13th, Engineering staff had a consultant perform site assessments, as part of the District’s Asset Management Program, for the 980-2, 711-1, and 832-2 Pump Stations. This assessment included electrical, SCADA, hydraulic, pneumatic, mechanical, building, and exterior site grounds assessment. The assessment is a pilot project, as part of the Asset Management Program, to develop a full facility condition assessment as a template that will be utilized at all sites. • During this month, staff completed vibration testing on 11 pump stations. Vibration testing is one of the most important and effective methods of detecting the health of motor pumps. Vibration data can help the District identify faults or detect warning signs of potential failures. It can also aid in the detection of misalignment or imbalance of assets, such as bearings and rotating pieces of equipment. By looking at vibration data, staff can also identify high and damaging levels of vibration. • During this month, staff completed oil changes and lubrication on 21 pump stations. Oil changes help keep the motors at the pump stations running at optimal temperature levels since heat is created as the moving parts produce friction. • During this month, staff completed infrared and thermal testing on seven pump stations, including the Treatment Plant with no issues found. Some of the benefits of thermal and infrared testing are that they minimize the occurrence of fire caused by electrical faults, equipment failures are reduced, potential issues can be easily identified, downtime is minimized for the business, can accurately 13 identify the site of the issue so repairs can be specific, and boosts workplace safety measures. Purchase and Change Orders: • The following table summarizes purchases and change orders issued during the period from August 16, 2022 through September 15, 2022 that were within staff signatory authority: Date Action Amount Project Contractor/ Consultant/Vendor 8/16/2022 P.O. $25,000.00 FY23 INVESTMENT ADVISOR FOR DEFERRED COMPENSATION PLANS SAGEVIEW ADVISORY GROUP LLC 8/16/2022 P.O. $7,000.00 FY23 SAFETY BOOTS (AS NEEDED) REDWING BUSINESS ADV ACCOUNT 8/19/2022 P.O. $6,794.00 METER READING RECEIVERS HPS WEST INC. 8/22/2022 P.O. $1,800.00 CUSTOM DESIGNED ENVIRONMENTAL SIGNAGE MANCE CREATIVE INC. 8/22/2022 P.O. $4,000.00 CREW ROOM & WAREHOUSE ELECTRICAL WORK OT ELECTRIC 8/25/2022 P.O. $10,760.40 FY23 ESIGNATURE ENTERPRISE PRO FOR GOV SOFTWARE LICENSE DOCUSIGN INC. 8/25/2022 P.O. $4,900.00 WAREHOUSE EXHAUST FANS & CONTROL OT ELECTRIC 8/29/2022 P.O. $15,500.00 FY23 INTERNET CIRCUITS UPGRADE BITBODYGUARD INC 8/29/2022 P.O. $2,484.00 VIDEO VERIFICATION SERVICE WATCHLIGHT CORPORATION 8/29/2022 P.O. $9,930.00 FY23 CONSULTING SERVICES FOR AS-BUILTS HOTLINKING PROJECT NOBEL SYSTEMS 9/12/2022 P.O. $5,500.00 FY23 PIPELINE OBSERV SYST MGMT (POSM) SOFTWARE SUPPORT POSM SOFTWARE LLC 9/15/2022 P.O. $6,750.00 FY23 SAFETY TRAINING TRENCH SHORING CO Water Conservation and Sales: • Water Conservation – August 2022 usage was 11% lower than August 2013 usage. Since August 2021, customers have saved an average of 8% over 2013 levels. 14 • Conservation 2020 vs Present – On July 8, 2021, Governor Gavin Newsom called on Californians to voluntarily reduce water use by 15%. The benchmark year for comparison is 2020. The chart below shows the difference in usage since July 2021. August 2022 usage was 0% lower than August 2020. Since July 2021, customer usage decreased .07% compared to 2020 levels. San Diego experienced above average rainfall in the winter of 2020 and below average rainfall in 2022. • Potable Water Purchases – The August potable water purchases were 3,032 acre-feet which is 1.0% below the budget of 3,064 acre-feet. Year-to-date potable purchases are 6,045 acre-feet exceeding the cumulative budget of 5,973 acre-feet by 1.2%. 15 • Recycled Water Purchases – The August recycled water purchases from the City of San Diego and production at the District’s treatment facility were 539 acre-feet which is 7.5% above the budget of 501 acre-feet. Year-to-date recycled purchases and production are 1,035 acre-feet exceeding the cumulative budget of 970 acre-feet by 6.7%. 16 • Rainfall for the month of August and year to date can be seen in the table below. Potable, Recycled, and Sewer (Reporting up to the month of August): • Total number of potable water meters: 51,551. • Total number of sewer connections: 4,740. • Recycled water consumption for the month of August: o Total consumption: 479.02 acre-feet or 156,080,672 gallons. o Average daily consumption: 5,034,860 gallons per day. o Total cumulative recycled water consumption since August 1, 2021: 1,017 acre-feet. o Total number of recycled water meters: 769. • Wastewater flows for the month of August: o Total basin flow: 1,563,903 gallons per day. ▪ This is an increase of .08 percent from August 2021. o Spring Valley Sanitation District flows to Metro: 521,301 gallons per day. o Total Otay flow: 1,402,581 gallons per day. o Flow processed at the Ralph W. Chapman Water Recycling Facility: 994,677 gallons per day. o Flow to Metro from Otay Water District: 47,903 gallons per day. o By the end of August there were 6,752 wastewater EDUs. Rainfall August Y-T-D Actual 0.00 0.00 Historical Average 0.08 0.08 Variance -0.08 (-100.0%) -0.08 (-100.0%) Exhibit A Annual YTD REVENUES: Budget Actual Budget Variance Var % Potable Water Sales 61,958,000$ 12,570,839$ 12,327,000$ 243,839$ 2.0% Recycled Water Sales 10,217,000 2,793,299 2,574,400 218,899 8.5% Potable Energy Charges 2,721,000 540,152 565,600 (25,448) (4.5%) Potable System Charges 15,168,000 2,984,199 2,974,000 10,199 0.3% Potable MWD & CWA Fixed Charges 13,547,000 2,311,234 2,270,000 41,234 1.8% Potable Penalties and Other Fees 914,000 190,563 190,724 (161) (0.1%) Total Water Sales 104,525,000 21,390,286 20,901,724 488,562 2.3% Sewer Charges 3,284,000 527,063 524,660 2,403 0.5% Meter Fees 170,000 10,270 28,400 (18,130) (63.8%) Capacity Fee Revenues 2,311,000 429,625 385,200 44,425 11.5% Non-Operating Revenues 2,523,100 506,665 420,500 86,165 20.5% Tax Revenues 5,310,000 118,790 86,000 32,790 38.1% Interest 495,000 45,592 82,500 (36,908) (44.7%) Total Revenues 118,618,100$ 23,028,291$ 22,428,984$ 599,307$ 2.7% EXPENSES: Potable Water Purchases 44,250,000$ 8,989,781$ 8,912,000$ (77,781)$ (0.9%) Recycled Water Purchases 5,487,000 1,534,029 1,534,029 - 0.0% CWA-Infrastructure Access Charge 2,998,000 514,864 514,800 (64) (0.0%) CWA-Customer Service Charge 1,881,000 311,028 311,000 (28) (0.0%) CWA-Reliability Charge 3,003,000 491,242 491,200 (42) (0.0%) CWA-Emergency Storage Charge 4,711,000 785,203 785,200 (3) (0.0%) MWD-Capacity Res Charge 762,000 140,544 140,600 56 0.0% MWD-Readiness to Serve Charge 685,000 102,259 108,800 6,541 6.0% Subtotal Water Purchases 63,777,000 12,868,950 12,797,629 (71,321) (0.6%) Power Charges 3,893,000 854,923 840,800 (14,123) (1.7%) Payroll & Related Costs 22,649,100 3,206,548 3,413,000 206,452 6.0% Material & Maintenance 4,132,600 690,615 688,900 (1,715) (0.2%) Administrative Expenses 7,602,700 860,940 1,273,974 413,034 32.4% Legal Fees 455,000 147,729 75,800 (71,929) (94.9%) Expansion Reserve 684,800 114,140 114,140 - 0.0% Replacement Reserve 8,393,600 1,399,000 1,399,000 - 0.0% OPEB Trust 2,080,900 346,800 346,800 - 0.0% General Fund Reserve 40,400 6,800 6,800 - 0.0% Rate Stabilization Reserve 19,000 - - - 0.0% Total Expenses 118,618,100$ 21,311,445$ 21,771,843$ 460,398$ 2.1% EXCESS REVENUES(EXPENSE) -$ 1,716,846$ 657,141$ 1,059,705$ OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR THE TWO MONTHS ENDED AUGUST 31, 2022 F:/MORPT/FS2023-P2 9/22/2022 11:19 AM The year-to-date actual net revenues through August show a positive variance of $1,716,846. COMPARATIVE BUDGET SUMMARY NET REVENUE AND EXPENSES FOR THE TWO MONTHS ENDED AUGUST 31, 2022 ‐$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 $1,600,000 $1,800,000  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 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 05, 2022 SUBMITTED BY: Jose Martinez General Manager W.O./G.F. NO: DIV. NO. SUBJECT: General Manager’s Report ADMINISTRATIVE SERVICES AND FINANCE: Finance: The financial reporting for investments for August 31, 2022 is as follows:  The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of August 31, 2022 total $99,470,608 with an average yield to maturity of 1.504%. The total earnings year to date are $250,347. July FY22 Aug FY22 Sep FY22 1st Qtr FY22 Oct FY22 Nov FY22 Dec FY22 2nd Qtr FY22 Jan FY22 Feb FY22 Mar FY22 3rd Qtr FY22 Apr FY22 May FY22 June FY22 4th Qtr FY22 July FY23 Aug FY23 Otay 0.57 0.59 0.57 0.58 0.54 0.52 0.52 0.53 0.52 0.57 0.62 0.57 0.80 0.91 1.10 0.94 1.32 1.46 LAIF 0.22 0.22 0.21 0.20 0.20 0.20 0.21 0.20 0.23 0.28 0.37 0.29 0.52 0.68 0.86 0.69 1.09 1.28 Difference 0.35 0.37 0.36 0.38 0.34 0.32 0.31 0.32 0.29 0.29 0.25 0.28 0.28 0.23 0.24 0.25 0.23 0.18 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 Re t u r n o n I n v e s t m e n t s Month Performance Measure FY-23 Return on Investment Otay LAIF Difference Target: Meet or Exceed 100% of LAIF $1,247,587 1.22% $82,597,133 80.43% $18,845,221 18.35% Otay Water District Investment Portfolio: 08/31/2022 Banks (Passbook/Checking/CD)Pools (LAIF & County) Agencies & Money Market Mutual Funds Total Cash and Investments: $102,689,941 (Book Value) OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW August 31, 2022 INVESTMENT OVERVIEW & MARKET STATUS: At the Federal Reserve Board's regular scheduled meeting on September 21, 2022, the Committee increased the target range for the federal funds rate from 2.25%-2.50% to 3.00% -3.25% and anticipates that ongoing increases in the target range will be appropriate. 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. 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 public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments." The District's effective rate of return for August 2022 was 1.46%, fourteen basis points higher than the previous month. LAIF's return was nineteen basis points higher than the last month, reaching an average effective yield of 1.28% for August 2022. Based on our success at maintaining a competitive rate of return on our portfolio during this extended period of low-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: August 31, 2022 Investment State Limit Otay Limit Otay Actual 8.01: Treasury Securities 100% 100% 0 8.02: Local Agency Investment Fund (Operations) $75 Million $75 Million $25.75 Million 8.03: Federal Agency Issues 100% 100% $15.74 Million 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% 3.02% 8.08: San Diego County Pool 100% 100% 55.35% 12.0: Maximum Single Financial Institution 100% 50% 1.22% Month End Portfolio Management August 31, 2022 Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days to MaturityTerm YTM 360 Equiv. YTM 365 Equiv. Federal Agency Issues- Callable 5,991,347.37 7585.91 1.9616005,812,120.006,000,000.00 1.989 Federal Agency Issues - Bullet 9,748,461.27 1,3109.61 1.2561,0429,159,730.689,796,000.00 1.273 Money Market 3,105,412.92 13.06 1.95313,105,412.923,105,412.92 1.980 Local Agency Investment Fund (LAIF)25,754,333.06 125.39 1.259125,422,756.6825,754,333.06 1.276 San Diego County Pool 56,842,799.49 156.03 1.548154,723,000.0056,842,799.49 1.570 101,442,354.11 100.00%Investments 98,223,020.28101,498,545.47 171 136 1.484 1.504 Cash (not included in yield calculations)Passbook/Checking 1,247,587.35 1 0.36911,247,587.351,247,587.35 0.374 102,689,941.46Total Cash and Investments 99,470,607.63102,746,132.82 171 136 1.484 1.504 Current Year August 31 129,648.93 Fiscal Year To Date 250,347.03 Average Daily Balance Effective Rate of Return 104,566,915.77 106,081,071.57 1.39%1.46% 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 11, 2022. The investmentsprovide 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 APData Updated: SET_ME8: 09/21/2022 17:23 Reporting period 08/01/2022-08/31/2022 Run Date: 09/21/2022 - 17:23 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.5 09/22/2022 YTM 360 Page 1 Par Value Book Value Maturity Date Stated RateMarket Value August 31, 2022 Portfolio Details - Investments Average BalanceIssuer Portfolio Management Month End Days to MaturityS&PCUSIP Investment # Purchase Date Federal Agency Issues- Callable 1.294Federal Home Loan Bank2395 2,000,000.00 1,991,347.37 07/26/20241.08002/03/2022 1,901,640.00 AA3130AQL68 694 1.973Federal Home Loan Bank2396 2,000,000.00 2,000,000.00 03/28/20242.00003/30/2022 1,944,540.00 AA3130ARE31 574 2.615Federal Home Loan Bank2398 2,000,000.00 2,000,000.00 02/16/20242.65005/16/2022 1,965,940.00 AA3130ARWD9 533 5,991,347.375,812,120.006,000,000.005,991,170.12Subtotal and Average 1.961 600 Federal Agency Issues - Bullet 2.855Federal Farm Credit Bank2397 2,000,000.00 1,992,688.06 04/25/20252.75004/26/2022 1,964,120.00 AA3133ENVC1 967 0.612Federal Home Loan Mortgage2391 1,045,000.00 1,037,240.50 09/23/20250.37509/16/2021 951,817.35 AA3137EAEX3 1,118 0.618Federal Home Loan Mortgage2392 2,751,000.00 2,730,151.16 09/23/20250.37509/22/2021 2,505,693.33 AA3137EAEX3 1,118 0.996Federal National Mortage Assoc2393 2,000,000.00 2,028,385.29 01/07/20251.62512/09/2021 1,918,020.00 AA3135G0X24 859 1.129Federal National Mortage Assoc2394 2,000,000.00 1,959,996.26 11/07/20250.50012/15/2021 1,820,080.00 AA3135G06G3 1,163 9,748,461.279,159,730.689,796,000.009,747,970.42Subtotal and Average 1.256 1,042 Money Market 2.012Blackrock T - Fund Inst9010 6,263.90 6,263.90 2.0406,263.90RESERVE-10A WRB 1 2.012Blackrock T - Fund Inst9011 10,832.50 10,832.50 2.04010,832.50RESERVE 10 BABS 1 1.953FIRST AMERICAN US TREASURY9016 3,088,316.52 3,088,316.52 1.9803,088,316.52OWD TRUST & CUS 1 3,105,412.923,105,412.923,105,412.92286,566.15Subtotal and Average 1.953 1 Local Agency Investment Fund (LAIF) 1.259STATE OF CALIFORNIA9001 25,754,333.06 25,754,333.06 1.27625,422,756.68LAIF 1 25,754,333.0625,422,756.6825,754,333.0629,651,107.25Subtotal and Average 1.259 1 San Diego County Pool 1.548San Diego County9007 56,842,799.49 56,842,799.49 1.57054,723,000.00SD COUNTY POOL 1 56,842,799.4954,723,000.0056,842,799.4956,832,341.03Subtotal and Average 1.548 1 104,566,915.77 101,498,545.47 1.484 13698,223,020.28 101,442,354.11Total and Average Portfolio OTAY APData Updated: SET_ME8: 09/21/2022 17:23 Run Date: 09/21/2022 - 17:23 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.5 YTM 360 Page 2 Par Value Book Value Stated RateMarket Value August 31, 2022 Portfolio Details - Cash Average BalanceIssuer Portfolio Management Month End Days to MaturityS&PCUSIP Investment # Purchase Date Union Bank 0.000STATE OF CALIFORNIA9002 100.02 100.02100.02UNION MONEY 1 0.000STATE OF CALIFORNIA9003 2,950.00 2,950.002,950.00PETTY CASH 1 0.572STATE OF CALIFORNIA9004 805,023.38 805,023.38 0.580805,023.38UNION OPERATING 1 0.000STATE OF CALIFORNIA9005 381,706.07 381,706.0707/01/2022 381,706.07PAYROLL 1 0.000STATE OF CALIFORNIA9014 57,807.88 57,807.8807/01/2022 57,807.88UBNA-FLEX ACCT 1 0.00 104,566,915.77 102,746,132.82 1.484 136 1Average Balance 99,470,607.63 102,689,941.46Total Cash and Investments Portfolio OTAY APData Updated: SET_ME8: 09/21/2022 17:23 Run Date: 09/21/2022 - 17:23 PM (PRF_PM2) 7.3.0 Month End Activity Report Sorted By Issuer August 1, 2022 - August 31, 2022 Current Rate Transaction Date Balance Beginning 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 7.852.040 0.00RESERVE-10A WRB Blackrock T - Fund Inst9011 13.572.040 0.00RESERVE 10 BABS 0.0017,074.98 17,096.40Subtotal and Balance 21.42 21.42 0.0017,074.98 17,096.400.017%Issuer Subtotal Issuer: STATE OF CALIFORNIA Union Bank STATE OF CALIFORNIA9004 601,234.820.580 1,185,608.12UNION OPERATING STATE OF CALIFORNIA9005 352,377.52 138.46PAYROLL STATE OF CALIFORNIA9014 99.98 5,164.97UBNA-FLEX ACCT 1,190,911.551,484,786.58 1,247,587.35Subtotal and Balance 953,712.32 Local Agency Investment Fund (LAIF) STATE OF CALIFORNIA9001 7,700,000.001.276 12,600,000.00LAIF 12,600,000.0030,654,333.06 25,754,333.06Subtotal and Balance 7,700,000.00 8,653,712.32 13,790,911.5532,139,119.64 27,001,920.4126.280%Issuer Subtotal Issuer: FIRST AMERICAN US TREASURY Money Market FIRST AMERICAN US TREASURY9016 3,013,308.861.980 0.00OWD TRUST & CUS 0.0075,007.66 3,088,316.52Subtotal and Balance 3,013,308.86 3,013,308.86 0.0075,007.66 3,088,316.523.006%Issuer Subtotal Issuer: Federal Farm Credit Bank Federal Agency Issues - Bullet 2,000,000.00 2,000,000.00Subtotal and Balance 0.00 0.002,000,000.00 2,000,000.001.947%Issuer Subtotal Portfolio OTAY APData Updated: SET_ME8: 09/21/2022 17:23 Run Date: 09/21/2022 - 17:23 DA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 2 Percent of Portfolio Par Value August 1, 2022 - August 31, 2022 Activity Report Month End CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: Federal Home Loan Bank Federal Agency Issues- Callable 6,000,000.00 6,000,000.00Subtotal and Balance 0.00 0.006,000,000.00 6,000,000.005.840%Issuer Subtotal Issuer: Federal Home Loan Mortgage Federal Agency Issues - Bullet 3,796,000.00 3,796,000.00Subtotal and Balance 0.00 0.003,796,000.00 3,796,000.003.695%Issuer Subtotal Issuer: Federal National Mortage Assoc Federal Agency Issues - Bullet 4,000,000.00 4,000,000.00Subtotal and Balance 0.00 0.004,000,000.00 4,000,000.003.893%Issuer Subtotal Issuer: San Diego County San Diego County Pool San Diego County9007 59,276.521.570 5,000.00SD COUNTY POOL 5,000.0056,788,522.97 56,842,799.49Subtotal and Balance 59,276.52 59,276.52 5,000.0056,788,522.97 56,842,799.4955.324%Issuer Subtotal 104,815,725.25 102,746,132.82Total 13,795,911.5511,726,319.12100.000% Portfolio OTAY APData Updated: SET_ME8: 09/21/2022 17:23 Run Date: 09/21/2022 - 17:23 DA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Month End Duration Report Sorted by Investment Type - Investment Type Through 08/31/2022 Investment #Security ID Issuer Investment Class Book Value Par Value Market Value Current Rate YTM Current Yield Maturity/ Call Date Duration Modified 360Fund Federal Home Loan Bank2395 99 2,000,000.00 1,901,640.003130AQL68 3.784 07/26/2024 1.8511,991,347.37 1.294Fair 1.080000 Federal Home Loan Bank2396 99 2,000,000.00 1,944,540.003130ARE31 3.832 03/28/2024 1.5162,000,000.00 1.973Fair 2.000000 Federal Home Loan Bank2398 99 2,000,000.00 1,965,940.003130ARWD9 3.863 02/16/2024 1.4112,000,000.00 2.615Fair 2.650000 Federal Home Loan Mortgage2391 99 1,045,000.00 951,817.353137EAEX3 3.471 09/23/2025 2.9881,037,240.50 0.612Fair .3750000 Federal Home Loan Mortgage2392 99 2,751,000.00 2,505,693.333137EAEX3 3.471 09/23/2025 2.9882,730,151.16 0.618Fair .3750000 Federal National Mortage Assoc2393 99 2,000,000.00 1,918,020.003135G0X24 10.243 01/07/2025 2.1922,028,385.29 0.996Fair 1.625000 Federal National Mortage Assoc2394 99 2,000,000.00 1,820,080.003135G06G3 20.320 11/07/2025 2.8531,959,996.26 1.129Fair .5000000 Federal Farm Credit Bank2397 99 2,000,000.00 1,964,120.003133ENVC1 3.465 04/25/2025 2.5051,992,688.06 2.855Fair 2.750000 Blackrock T - Fund Inst9010 99 6,263.90 6,263.90RESERVE-10A 2.040 0.0006,263.90 2.012 †Amort 2.040000 Blackrock T - Fund Inst9011 99 10,832.50 10,832.50RESERVE 10 2.040 0.00010,832.50 2.012 †Amort 2.040000 FIRST AMERICAN US TREASURY9016 99 3,088,316.52 3,088,316.52OWD TRUST & 1.980 0.0003,088,316.52 1.953 †Amort 1.980000 STATE OF CALIFORNIA9001 99 25,754,333.06 25,422,756.68LAIF 1.276 0.00025,754,333.06 1.259Fair 1.276000 San Diego County9007 99 56,842,799.49 54,723,000.00SD COUNTY 1.570 0.00056,842,799.49 1.548Fair 1.570000 2.262 0.345101,442,354.11 101,498,545.47 98,223,020.28Report Total † † = Duration can not be calculated on these investments due to incomplete Market price data. Portfolio OTAY AP Page 1 Data Updated: SET_ME8: 09/21/2022 17:23 Run Date: 09/21/2022 - 17:23 DU (PRF_DU) 7.1.1 Report Ver. 7.3.5 Month End GASB 31 Compliance Detail Sorted by Fund - Fund August 1, 2022 - August 31, 2022 Investment #Maturity Date Beginning Invested Value Purchase of Principal Investment ClassFundCUSIP Adjustment in Value Ending Invested Value Addition to Principal Redemption of Principal Amortization Adjustment Change in Market Value Fund: Treasury Fund 2391 967,565.50Fair Value 09/23/2025 -15,748.1599 951,817.353137EAEX3 0.00 0.00 0.00 0.00 2392 2,547,150.90Fair Value 09/23/2025 -41,457.5799 2,505,693.333137EAEX3 0.00 0.00 0.00 0.00 2393 1,938,520.00Fair Value 01/07/2025 -20,500.0099 1,918,020.003135G0X24 0.00 0.00 0.00 0.00 2394 1,853,140.00Fair Value 11/07/2025 -33,060.0099 1,820,080.003135G06G3 0.00 0.00 0.00 0.00 2395 1,936,620.00Fair Value 07/26/2024 -34,980.0099 1,901,640.003130AQL68 0.00 0.00 0.00 0.00 2398 1,986,360.00Fair Value 02/16/2024 -20,420.0099 1,965,940.003130ARWD9 0.00 0.00 0.00 0.00 2396 1,974,300.00Fair Value 03/28/2024 -29,760.0099 1,944,540.003130ARE31 0.00 0.00 0.00 0.00 9003 2,950.00Amortized 0.0099 2,950.00PETTY CASH 0.00 0.00 0.00 0.00 9002 100.02Amortized 0.0099 100.02UNION MONEY 0.00 0.00 0.00 0.00 9005 29,467.01Amortized 0.0099 381,706.07PAYROLL 0.00 352,377.52 138.46 0.00 9001 30,259,671.21Fair Value 63,085.4799 25,422,756.68LAIF 0.00 7,700,000.00 12,600,000.00 0.00 9014 62,872.87Amortized 0.0099 57,807.88UBNA-FLEX ACCT 0.00 99.98 5,164.97 0.00 9004 1,389,396.68Amortized 0.0099 805,023.38UNION OPERATING 0.00 601,234.82 1,185,608.12 0.00 2397 1,994,880.00Fair Value 04/25/2025 -30,760.0099 1,964,120.003133ENVC1 0.00 0.00 0.00 0.00 9007 55,220,000.00Fair Value -551,276.5299 54,723,000.00SD COUNTY POOL 0.00 59,276.52 5,000.00 0.00 9016 75,007.66Amortized 0.0099 3,088,316.52OWD TRUST & CUS 0.00 3,013,308.86 0.00 0.00 9011 10,818.93Amortized 0.0099 10,832.50RESERVE 10 BABS 0.00 13.57 0.00 0.00 9010 6,256.05Amortized 0.0099 6,263.90RESERVE-10A WRB 0.00 7.85 0.00 0.00 102,255,076.83Subtotal -714,876.77 99,470,607.630.00 11,726,319.12 13,795,911.55 0.00 102,255,076.83Total 99,470,607.63-714,876.770.00 11,726,319.12 13,795,911.55 0.00 Portfolio OTAY APData Updated: SET_ME8: 09/21/2022 17:23 Run Date: 09/21/2022 - 17:23 GD (PRF_GD) 7.1.1 Report Ver. 7.3.5 Month End Interest Earnings Sorted by Fund - Fund August 1, 2022 - August 31, 2022 Yield on Beginning Book Value Maturity Date Current Rate Ending Par Value EndingSecurity TypeFund Book Value Beginning Book Value Adjusted Interest Earnings AccretionAmortization/EarningsAdjusted InterestAnnualized YieldCUSIP Investment # Interest Earned Fund: Treasury Fund 1,037,240.502391 1,045,000.00 0.375FAC 09/23/2025 326.57 211.24 537.810.61199 1,037,029.263137EAEX3 2,730,151.162392 2,751,000.00 0.375FAC 09/23/2025 859.69 567.57 1,427.260.61699 2,729,583.593137EAEX3 2,028,385.292393 2,000,000.00 1.625FAC 01/07/2025 2,708.33 -1,006.57 1,701.760.98799 2,029,391.863135G0X24 1,959,996.262394 2,000,000.00 0.500FAC 11/07/2025 833.34 1,047.22 1,880.561.13099 1,958,949.043135G06G3 1,991,347.372395 2,000,000.00 1.080MC1 07/26/2024 1,800.00 378.95 2,178.951.28999 1,990,968.423130AQL68 2,000,000.002398 2,000,000.00 2.650MC1 02/16/2024 4,416.66 0.00 4,416.662.60099 2,000,000.003130ARWD9 2,000,000.002396 2,000,000.00 2.000MC1 03/28/2024 3,333.34 0.00 3,333.341.96299 2,000,000.003130ARE31 25,754,333.069001 25,754,333.06 1.276LA1 32,133.68 0.00 32,133.681.23499 30,654,333.06LAIF 805,023.389004 805,023.38 0.580PA1 961.24 0.00 961.240.81599 1,389,396.68UNION OPERATING 1,992,688.062397 2,000,000.00 2.750FAC 04/25/2025 4,583.33 229.93 4,813.262.84499 1,992,458.133133ENVC1 56,842,799.499007 56,842,799.49 1.570LA3 75,781.65 0.00 75,781.651.57199 56,788,522.97SD COUNTY POOL 3,088,316.529016 3,088,316.52 1.980PA2 453.15 0.00 453.157.11399 75,007.66OWD TRUST & CUS 10,832.509011 10,832.50 2.040PA2 18.76 0.00 18.762.04299 10,818.93RESERVE 10 BABS 6,263.909010 6,263.90 2.040PA2 10.85 0.00 10.852.04299 6,256.05RESERVE-10A WRB 102,303,568.85Subtotal 102,247,377.49 1.459 129,648.931,428.34128,220.59104,662,715.65 102,303,568.85Total 102,247,377.49 1.459 129,648.931,428.34128,220.59104,662,715.65 Portfolio OTAY APData Updated: SET_ME8: 09/21/2022 17:23 Run Date: 09/21/2022 - 17:23 IE (PRF_IE) 7.2.0 Report Ver. 7.3.5 SUMMARY FOR PERIOD 8/25/2022 - 9/21/2022 NET DEMANDS $)&$,4     70*%$)&$,4    505"-$)&$,4    8*3&50 #&/&'*54$003%*/"5034%&/5"-$0#3"$-"*.4 "6(   #&/&'*54$003%*/"5034%&/5"-#&/&'*54"%.*/'&&4 "6(  #&/&'*54$003%*/"5034%&/5"-#&/&'*54"%.*/'&&4 "6(  $"45"5&%*4#634&.&/56/*5#*8&&,-:1":30--%&%6$5*0/  $"45"5&%*4#634&.&/56/*5#*8&&,-:1":30--%&%6$5*0/  $*5:0'$)6-"7*45"#*.0/5)-:4&8&3$)"3(&4 +6-:"6(    $*5:53&"463&3.&53010-*5"/4&8&3"(&4:45&. ':45253   05":8"5&3%*453*$5#*8&&,-:1":30--%&%6$5*0/  05":8"5&3%*453*$5#*8&&,-:1":30--%&%6$5*0/  16#-*$&.1-0:&&43&54:45&.#*8&&,-:1&34$0/53*#65*0/   16#-*$&.1-0:&&43&54:45&.#*8&&,-:1&34$0/53*#65*0/   16#-*$&.1-0:&&43&54:45&.-6.146.503&%6$&6"-    4"/%*&(0$06/5:8"5&3"65)8"5&3%&-*7&3*&4$)"3(&4 +6-:    41&$*"-%*453*$53*4,&.1-0:&&.&%*$"-#&/&'*54 0$5   6/*0/#"/,#*8&&,-:1":30--5"9&4   6/*0/#"/,#*8&&,-:1":30--5"9&4   70:"'*/"/$*"-#*8&&,-:"1-"/   70:"'*/"/$*"-#*8&&,-:"1-"/   TOTAL CASH DISBURSEMENTS $ 14,346,460.70 RECOMMENDED ACTION: 5IBUUIF#PBSESFDFJWFEUIFBUUBDIFEMJTUPGEFNBOET +C"UUBDINFOU PURPOSE: "UUBDIFEJTUIFMJTUPGEFNBOETGPSUIF#PBSEhTJOGPSNBUJPO FISCAL IMPACT: STAFF REPORT TYPE MEETING: SUBMITTED BY: APPROVED BY: APPROVED BY: SUBJECT: 3FHVMBS#PBSE &JE'BLIPVSJ 'JOBODF.BOBHFS 5SFBTVSZ"DDPVOUJOH4FSWJDFT +PTFQI#FBDIFN $IJFG'JOBODJBM0GGJDFS +PTF.BSUJOF[ (FOFSBM.BOBHFS "DDPVOUT1BZBCMF%FNBOE-JTU MEETING DATE: W.O./G.F. NO: DIV. NO. 0DUPCFS  Check Total 2,675.40 CHECK REGISTER Otay Water District Date Range: 8/25/2022 - 9/21/2022 Check # Date Vendor Vendor Name Invoice Inv. Date Description Amount 2058600 09/21/22 15416 24 HOUR ELEVATOR INC 127898 09/01/22 ELEVATOR GENERAL MAINT (SEPT 2022) 591.79 591.79 2058601 09/21/22 08488 ABLEFORCE INC 11235 09/19/22 SHAREPOINT & INTRANET SUPP (AUG 2022) 375.00 375.00 2058602 09/21/22 18122 ACC BUSINESS 222255928 08/27/22 INTERNET CIRCUITS (AUG 2022) 1,244.78 1,244.78 2058531 09/07/22 17989 ADS CORP 22446.22-0822 08/20/22 SEWER FLOW MONITORING (AUG 2022) 890.00 890.00 2058495 08/31/22 16322 ADVANCED AIR AND VACUUM 83730584 08/09/22 850-2 PS MOTOR & INSPECTION 5,531.82 5,531.82 2058532 09/07/22 07732 AIRGAS SPECIALTY PRODUCTS INC 9129122509 08/18/22 AS-NEEDED AQUA AMMONIA FY23 1,936.80 9129122498 08/18/22 AS-NEEDED AQUA AMMONIA FY23 738.60 2058496 08/31/22 21474 ANGELINA AMADOR Ref002675030 08/29/22 UB Refund Cst #0000272847 27.90 27.90 2058497 08/31/22 08967 ANTHEM EAP 448949338013 08/25/22 EMPLOYEE ASSISTANCE PROG (SEPT 2022) 317.80 317.80 2058498 08/31/22 21468 ARIC BAUDEK Ref002675024 08/29/22 UB Refund Cst #0000253016 88.54 88.54 2058573 09/14/22 17264 ARTIANO SHINOFF ABED 306226 09/12/22 PROF SERV (AUG 2022) 82,698.66 82,698.66 2058533 09/07/22 01884 ASSN OF ENVIRONMENTAL PROF 12978 09/01/22 MEMBERSHIP RENEWAL (L. BOYD) 150.00 150.00 2058534 09/07/22 07785 AT&T 000018626195 08/12/22 TELEPHONE SERVICES (7/12/2022 - 8/11/2022) 3,981.33 3,981.33 2058603 09/21/22 20125 AZTEC LANDSCAPING INC J1234 08/31/22 JANITORIAL SERVICES (AUG 2022) 8,409.90 8,409.90 2058604 09/21/22 21254 BITBODYGUARD INC OWD-004 08/30/22 INTERNET CIRCUITS UPGRADE FY23 7,750.00 7,750.00 2058499 08/31/22 21475 BRADEN KLOUSE Ref002675031 08/29/22 UB Refund Cst #0000272875 5.70 5.70 2058574 09/14/22 17525 CALIFORNIA COMMERCIAL SECURITY 0202205727 06/28/22 CCTV VIDEO MGMT SOFTWARE SUPPORT 9,992.83 9,992.83 2058535 09/07/22 15177 CAROLLO ENGINEERS INC FB26695 08/16/22 DISINFECTION SYS IMPROVE (JULY 2022) 10,855.00 10,855.00 2058605 09/21/22 00848 CASS CONSTRUCTION INC R2776-00001 07/31/22 42" WATER MAIN REPAIR AT 980-2 PS 6,938.34 6,938.34 2058606 09/21/22 21414 CDCE INCORPORATED 140336 08/29/22 TOUGHBOOKS 1,680.90 1,680.90 2058575 09/14/22 21490 CHETAN PATEL Ref002675207 09/12/22 UB Refund Cst #0000232347 105.94 105.94 2058500 08/31/22 12631 CITY OF CHULA VISTA 20216230222 02/01/22 DEPOSIT FOR PLAN CHECKING 3,000.00 3,000.00 2058501 08/31/22 21470 CJW CONSTRUCTION Ref002675026 08/29/22 UB Refund Cst #0000260677 963.86 963.86 2058607 09/21/22 04119 CLARKSON LAB & SUPPLY INC 57557 08/31/22 BACTERIOLOGICAL TESTING (8/10/22) 744.00 Page 1 of 8 4,290.00 12,327.32 609.00 27550 08/31/22 BACTERIOLOGICAL TESTING (8/3/22) 648.00 27564 08/31/22 BACTERIOLOGICAL TESTING (8/24/22) 552.00 27558 08/31/22 BACTERIOLOGICAL TESTING (8/9/22) 300.00 27560 08/31/22 BACTERIOLOGICAL TESTING (8/11/22) 288.00 27554 08/31/22 BACTERIOLOGICAL TESTING (8/9/22) 228.00 27552 08/31/22 BACTERIOLOGICAL TESTING (8/4/22) 216.00 27559 08/31/22 BACTERIOLOGICAL TESTING (8/10/22) 216.00 27561 08/31/22 BACTERIOLOGICAL TESTING (8/11/22) 216.00 27562 08/31/22 BACTERIOLOGICAL TESTING (8/11/22) 216.00 27563 08/31/22 BACTERIOLOGICAL TESTING (8/18/22) 216.00 27553 08/31/22 BACTERIOLOGICAL TESTING (8/8/22) 126.00 27555 08/31/22 BACTERIOLOGICAL TESTING (8/8/22) 126.00 27556 08/31/22 BACTERIOLOGICAL TESTING (8/8/22) 126.00 27551 08/31/22 BACTERIOLOGICAL TESTING (8/31/22) 36.00 27565 08/31/22 BACTERIOLOGICAL TESTING (8/31/22) 36.00 2058608 09/21/22 02852 CLA-VAL COMPANY 851818 08/25/22 SOLENOID CONTROL FOR 870-2 PUMP #5 2,234.74 2,234.74 2058536 09/07/22 02852 CLA-VAL COMPANY 850606 08/09/22 SOLENOID CONTROL FOR 870-2 PUMP #5 1,686.94 1,686.94 2058502 08/31/22 21479 CLAYCO INC Ref002675035 08/29/22 UB Refund Cst #0000275293 1,879.05 1,879.05 2058576 09/14/22 21489 CLINTON CERALDE Ref002675206 09/12/22 UB Refund Cst #0000229841 124.11 124.11 2058537 09/07/22 03706 CONSUMERS PIPE & SUPPLY CO S1559690.004 08/12/22 GATE VALVES 9,760.92 9,760.92 2058609 09/21/22 18331 CORE & MAIN LP Q980798 08/31/22 INVENTORY 10,591.40 R278253 09/01/22 INVENTORY 1,735.92 2058610 09/21/22 15049 CORELOGIC SOLUTIONS LLC 82144834 08/31/22 DATA SERV - REALQUEST PROPERTY DATA 540.75 540.75 2058538 09/07/22 02643 CORE-ROSION PRODUCTS C2022321 08/31/22 POLY TANK BOSS FITTING 3,036.58 3,036.58 2058503 08/31/22 21477 COREY MALLOY Ref002675033 08/29/22 UB Refund Cst #0000273053 91.63 91.63 2058539 09/07/22 02612 COUNCIL OF WATER UTILITIES 09202022 09/06/22 BUSINESS MEETING 110.00 110.00 2058505 08/31/22 00184 COUNTY OF SAN DIEGO 2003193E6370307 08/04/22 DEVELOPER INSPECTION (JULY 2022) 122.40 122.40 2058504 08/31/22 00184 COUNTY OF SAN DIEGO DEH22-0174-OHP 07/30/22 INDUSTRIAL HYGIENE SERVICES 683.22 683.22 2058611 09/21/22 00184 COUNTY OF SAN DIEGO 2003193E6637020 09/04/22 DEVELOPER INSPECTION (8/22/22) 237.00 2003193E6023408 09/04/22 SHUT DOWN TEST (8/24/22) 158.00 2003193E6370808 09/04/22 SHUT DOWN TEST (8/26/22) 79.00 2003193E6369508 09/04/22 SHUT DOWN TEST (8/5/22) 79.00 2003193E6321108 09/04/22 DEVELOPER INSPECTION (8/31/22) 56.00 Page 2 of 8 4,175.00 1,750.00 148.20 30,858.08 2,564.15 1,414.78 2058577 09/14/22 00184 COUNTY OF SAN DIEGO 5364081722 08/17/22 UPFP PERMIT RENEWAL (10/31/22-10/31/23) 1,714.00 5363081722 08/17/22 UPFP PERMIT RENEWAL (10/1/22-10/31/23) 1,365.00 5365081722 08/17/22 UPFP PERMIT RENEWAL (10/31/22-10/31/23) 548.00 1354081722 08/17/22 UPFP PERMIT RENEWAL (10/31/22-10/31/23) 548.00 2058540 09/07/22 04497 D & R CRANE INC 16464 08/16/22 CRANE GEAR BOX OIL CHANGE SERVICE 625.00 16463 08/16/22 CRANE GEAR BOX OIL CHANGE SERVICE 625.00 16462 08/16/22 CRANE QUARTERLY PM SERVICE INSPECT 500.00 2058541 09/07/22 11797 D&H WATER SYSTEMS INC 2022-1072 08/10/22 PROMINENT ANALYZER 8,365.15 8,365.15 2058578 09/14/22 17433 DAILY JOURNAL CORPORATION A3619061 08/25/22 ADVERTISEMENT 94.90 94.90 2058612 09/21/22 17433 DAILY JOURNAL CORPORATION A3623337 09/09/22 ADVERTISEMENT 55.90 55.90 2058506 08/31/22 17433 DAILY JOURNAL CORPORATION A3617408 08/22/22 ADVERTISEMENT 54.60 54.60 2058542 09/07/22 17433 DAILY JOURNAL CORPORATION A3619944 09/01/22 ADVERTISEMENT 93.60 A3620983 09/02/22 ADVERTISEMENT 54.60 2058543 09/07/22 21339 DANGELO COMPANY S1477170.002 08/19/22 INVENTORY 27,592.06 S1484406.001 08/15/22 FURY LANE VALVE REPLACEMENTS 3,266.02 2058579 09/14/22 21488 DANIEL KYLE Ref002675205 09/12/22 UB Refund Cst #0000225327 72.58 72.58 2058613 09/21/22 01335 DICKSON COMPANY INV1159111 08/30/22 CHART RECORDER 12,274.63 12,274.63 2058507 08/31/22 20795 DOCUSIGN INC. 34044142 06/15/22 ESIGNATURE ENTERPRISE PRO FOR GOV 10,760.40 10,760.40 2058508 08/31/22 02447 EDCO DISPOSAL CORPORATION 5458 083122 08/30/22 RECYCLED WASTE SERVICE (AUG 2022) 149.69 149.69 2058509 08/31/22 21465 EDUARDO PUENTES GARCIA Ref002675021 08/29/22 UB Refund Cst #0000147593 54.17 54.17 2058510 08/31/22 21466 EMMANUEL JIMENEZ Ref002675022 08/29/22 UB Refund Cst #0000188529 94.14 94.14 2058544 09/07/22 20794 ENTISYS 360 CR177949 PARTIAL CREDIT FOR INV 177949 -274.05 184576 08/19/22 MS SOFTWARE MAINTENANCE RENEWAL 2,838.20 2058580 09/14/22 21495 ERIC LUTHER Ref002675212 09/12/22 UB Refund Cst #0000273957 100.00 100.00 2058511 08/31/22 20511 EYEMED (FIDELITY) 165401942 08/20/22 VISION BENEFITS ADMIN (AUG 2022) 1,376.73 165402375 08/20/22 VISION BENEFITS ADMIN COBRA (AUG 2022) 38.05 2058614 09/21/22 02753 FERGUSON ENTERPRISES INC #1083 07977604 09/02/22 VFD TRAILER - 1004 PS 4,541.66 4,541.66 2058545 09/07/22 03546 FERGUSON WATERWORKS # 1083 0793073-1 08/18/22 INVENTORY 16,416.79 0809284 08/17/22 INVENTORY 4,831.08 08/19/22 Page 3 of 8 31,593.26 18,628.51 6,730.33 25,604.56 0799112-1 08/10/22 8" GATE LIDS 3,744.31 0796320-1 08/16/22 INVENTORY 1,733.70 0809636 08/22/22 INVENTORY 1,475.23 0809434 08/15/22 DUCTILE IRON SPOOLS 1,438.38 0809424 08/15/22 INVENTORY 1,258.41 0809098-1 08/11/22 INVENTORY 695.36 2058512 08/31/22 03546 FERGUSON WATERWORKS # 1083 0808490 08/10/22 INVENTORY 6,106.52 0809098 08/10/22 INVENTORY 5,657.28 0805072 08/05/22 MISC. MATERIALS FOR 458-1 RESERVOIR 4,589.51 0809057 08/10/22 INVENTORY 2,275.20 2058615 09/21/22 03546 FERGUSON WATERWORKS # 1083 0810210 08/28/22 INVENTORY 7,690.87 7,690.87 2058581 09/14/22 17465 FINANCIAL CREDIT NETWORK INC 060122063022 06/30/22 COLLECTION SERVICES (JUNE 2022) 2,474.16 2,474.16 2058616 09/21/22 17888 FIRST AMERICAN DATA TREE LLC 9003400822 08/31/22 DOCUMENT SERVICE (MONTHLY) 99.00 99.00 2058617 09/21/22 11962 FLEETWASH INC 1624199 08/19/22 FLEETWASH SERVICES FY23 278.53 278.53 2058546 09/07/22 11501 FLUID CONSERVATION SYSTEMS INC 11733 08/19/22 LEAK CORRELATION EQUIPMENT TRAINING 1,500.00 1,500.00 2058513 08/31/22 21053 FRANCHISE TAX BOARD Ben2675078 08/31/22 BI WEEKLY PAYROLL DEDUCTION 100.00 100.00 2058582 09/14/22 21053 FRANCHISE TAX BOARD Ben2675259 09/15/22 BI WEEKLY PAYROLL DEDUCTION 100.00 100.00 2058547 09/07/22 03537 GHA TECHNOLOGIES INC 101235540 08/11/22 VERITAS ESSENTIAL SUPPORT LICENSE FY23 5,111.50 101237344 08/18/22 MICROSOFT SURFACE PRO 8 1,618.83 2058548 09/07/22 00174 HACH COMPANY 13201813 08/19/22 HACH PM SERVICE 5500SC ANALYZERS 7,862.00 7,862.00 2058514 08/31/22 21469 HALEY TRENSCHEL Ref002675025 08/29/22 UB Refund Cst #0000259700 16.81 16.81 2058515 08/31/22 15474 HANK MILLER REALITY Ref002675020 08/29/22 UB Refund Cst #0000083327 35.10 35.10 2058549 09/07/22 19978 HASA INC. 841755 08/16/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 5,334.73 842392 08/18/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 5,102.13 843315 08/22/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 5,057.32 840511 08/11/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 3,499.58 840510 08/11/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 1,632.43 841756 08/16/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 1,280.33 842394 08/18/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 992.26 840512 08/11/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 970.92 843316 08/22/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 853.56 842393 08/18/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 460.92 840509 08/11/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 420.38 Page 4 of 8 25,790.19 3,472.50 4,462.50 20,002.20 2058516 08/31/22 19978 HASA INC. 840228 08/10/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 682.84 682.84 2058618 09/21/22 19978 HASA INC. 847099 09/06/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 5,121.34 845215 08/29/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 4,566.52 844269 08/25/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 4,310.46 846289 09/01/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 4,141.88 844271 08/25/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 1,707.11 844267 08/25/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 1,098.95 845216 08/29/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 998.66 847101 09/06/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 877.03 845977 08/31/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 866.36 844273 08/25/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 618.83 844266 08/24/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 586.82 846290 09/01/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 533.47 846291 09/01/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 362.76 2058619 09/21/22 18436 HAZEN AND SAWYER DPC 200940071 08/24/22 ASSET MANAGEMENT SVCS (JULY 2022) 2,172.50 2009400610 08/31/22 2022 FACILITIES MASTER PLAN (JULY 2022) 1,300.00 2058517 08/31/22 21471 HEARTLAND GRADING Ref002675027 08/29/22 UB Refund Cst #0000267587 288.95 288.95 2058620 09/21/22 02008 HELIX ENVIRONMENTAL 114888 08/26/22 ENVIRONMENTAL SVCS (AUG 2022) 4,855.37 4,855.37 2058621 09/21/22 19476 HENDRICKSON APPRAISAL CO INC 20220124 08/25/22 APPRAISAL SERVICES (5/27/22-8/20/22) 9,500.00 9,500.00 2058622 09/21/22 21321 HILTS CONSULTING GROUP INC 44809 09/05/22 870-1 RES COVER/LINER EVAL (AUG 2022) 7,442.50 7,442.50 2058550 09/07/22 21322 HPS WEST INC. 0001071 08/11/22 INVENTORY 33,322.34 33,322.34 2058551 09/07/22 13349 HUNSAKER & ASSOCIATES 2022070114 08/19/22 LAND SURVEYING SERVICES (JULY 2022) 312.00 312.00 2058552 09/07/22 15622 ICF JONES & STOKES INC 00000036141 08/15/22 ENVIRONMENTAL SVCS (JULY 2022) 3,487.50 00000036142 08/18/22 ENVIRONMENTAL SVCS (JULY 2022) 450.00 00000036143 08/16/22 ENVIRONMENTAL SVCS (JULY 2022) 375.00 00000036144 08/17/22 ENVIRONMENTAL SVCS (JULY 2022) 150.00 2058518 08/31/22 08969 INFOSEND INC 218026 07/29/22 BILL PROCESSING SERVICES FY23 12,150.02 218025 07/29/22 BILL PROCESSING SERVICES FY23 4,867.29 218339 08/01/22 BILL PROCESSING SERVICES FY23 2,734.64 216648 07/10/22 BILL PROCESSING SERVICES FY23 142.26 216649 07/10/22 BILL PROCESSING SERVICES FY23 107.99 2058623 09/21/22 08969 INFOSEND INC 219950 08/31/22 BILL PROCESSING SERVICES FY23 14,988.60 219949 08/31/22 BILL PROCESSING SERVICES FY23 7,831.88 Page 5 of 8 26,258.41 220270 09/01/22 BILL PROCESSING SERVICES FY23 2,760.57 219261 08/25/22 BILL PROCESSING SERVICES FY23 340.12 220328 09/02/22 BILL PROCESSING SERVICES FY23 337.24 2058553 09/07/22 15368 INTEGRITY MUNICIPAL SYSTEMS 11411 08/15/22 SCRUBBER FLOAT SWITCH 1,314.55 1,314.55 2058624 09/21/22 20752 IWG TOWERS ASSETS II LLC 409807250 09/01/22 ANTENNA SUBLEASE FY23 2,135.70 2,135.70 2058519 08/31/22 21476 JARROD HAMBY Ref002675032 08/29/22 UB Refund Cst #0000273010 23.73 23.73 2058554 09/07/22 10563 JCI JONES CHEMICALS INC 895041 09/01/22 AS-NEEDED CHLORINE GAS FY23 5,732.45 5,732.45 2058555 09/07/22 20989 JENNETTE COMPANY INC 00019241 07/28/22 RETAINAGE RELEASE 14,289.55 14,289.55 2058583 09/14/22 21492 JOANITA NAKAZZI Ref002675209 09/12/22 UB Refund Cst #0000259645 100.45 100.45 2058584 09/14/22 21491 JUAN CARLOS SANCHEZ Ref002675208 09/12/22 UB Refund Cst #0000233033 49.00 49.00 2058625 09/21/22 20835 KENNY CONSULTING SERV INC KCS0724345 09/06/22 IN-PLANT INSPECTION SERVICES (AUG 2022) 1,907.75 1,907.75 2058585 09/14/22 21485 KHALED ZAKARIA 3423 09/12/22 CUSTOMER REFUND 2,071.61 2,071.61 2058626 09/21/22 05840 KIRK PAVING INC 22-115-1 09/01/22 AS-NEEDED PAVING SERVICES FY23 13,020.30 13,020.30 2058586 09/14/22 21486 LAITH SHAMON Ref002675203 09/12/22 UB Refund Cst #0000139624 11.68 11.68 2058587 09/14/22 21497 LETICIA ESPINOZA Ref002675214 09/12/22 UB Refund Cst #0000274313 26.25 26.25 2058556 09/07/22 10512 MAIL MANAGEMENT GROUP INC OWD-12927 08/15/22 MAILING SERVICES - SURVEY POSTCARDS 5,747.88 5,747.88 2058520 08/31/22 21482 MARISOL TURLA 1819083122 08/31/22 CUSTOMER REFUND 225.92 225.92 2058588 09/14/22 21496 MARK YOUNG Ref002675213 09/12/22 UB Refund Cst #0000274019 67.61 67.61 2058521 08/31/22 06648 MEASUREMENT CONTROL 230537 08/09/22 TEMP METERS W/BACKFLOWS 10,186.89 10,186.89 2058589 09/14/22 21493 MELISSA CABAL Ref002675210 09/12/22 UB Refund Cst #0000264716 200.00 200.00 2058627 09/21/22 21319 MICRO TOOL & MANUFACTURING INC 31414 09/14/22 FABRICATE EYE PLATES 800.00 800.00 2058522 08/31/22 21481 MOHAMAD NASER Ref002675037 08/29/22 UB Refund Cst #0000275969 54.36 54.36 2058523 08/31/22 21467 MONICA BECERRA Ref002675023 08/29/22 UB Refund Cst #0000224020 292.57 292.57 2058557 09/07/22 19824 MURRAYSMITH INC 21320113 08/23/22 PLAN CHECK SERVICES (JULY 2022) 4,086.50 4,086.50 2058628 09/21/22 17261 NATURESCAPE SERVICES 5903 08/30/22 LANDSCAPE MAINTENANCE SVC (AUG 2022) 9,689.00 9,689.00 2058524 08/31/22 21480 NORENE ANDERSEN Ref002675036 08/29/22 UB Refund Cst #0000275712 6.60 6.60 2058629 09/21/22 02027 NTH GENERATION COMPUTING INC 40696TM3 08/25/22 PROF SVC - SERVER UPGRADE PROJECT 1,250.00 1,250.00 2058630 09/21/22 16834 ON-SITE TECHNICAL SVCS INC 10754 09/02/22 IN-PLANT INSPECTION SERV (AUG 2022) 7,210.01 7,210.01 2058631 09/21/22 01002 PACIFIC PIPELINE SUPPLY INC S100438615.001 REIMBURSE FOR LEAKING 8" GATE VALVE -3,040.25 S100443483.002 09/14/22 INVENTORY 3,073.27 09/14/22 Page 6 of 8 2,108.61 470.86 300.42 270,588.03 130,405.48 S100439103.004 08/30/22 INVENTORY 2,075.59 2058558 09/07/22 01002 PACIFIC PIPELINE SUPPLY INC S100442735.001 08/19/22 INVENTORY 645.37 645.37 2058590 09/14/22 19717 PACO VENTURES LLC SI-64294 08/11/22 JACKHAMMER PARTS 255.10 SI-64619 09/02/22 JACKHAMMER PARTS 215.76 2058559 09/07/22 19310 PALM LAUNDRY INC 214 09/01/22 TOWEL LAUNDRY SERVICE (AUG 2022) 300.00 300.00 2058591 09/14/22 21487 PATSY MASON Ref002675204 09/12/22 UB Refund Cst #0000198313 83.71 83.71 2058560 09/07/22 00137 PETTY CASH CUSTODIAN 090122 09/06/22 PETTY CASH REIMBURSEMENT 1,540.00 1,540.00 2058525 08/31/22 00137 PETTY CASH CUSTODIAN 082922 08/29/22 PETTY CASH REIMBURSEMENT 1,075.76 1,075.76 2058561 09/07/22 20861 RAFTELIS 24764 08/12/22 WATER COST OF SERVICE STUDY 1,960.00 1,960.00 2058592 09/14/22 19836 RED WING BUSINESS ADV ACCOUNT 2022091069504 09/10/22 AS-NEEDED SAFETY BOOTS FY23 988.21 988.21 2058632 09/21/22 02923 RICHARD BRADY & ASSOCIATES 2207124 08/25/22 DESIGN - 1665-1 RES/RANCHO JAMUL PS 36,717.50 36,717.50 2058562 09/07/22 08972 RICK ENGINEERING COMPANY 0089723 08/17/22 TRAFFIC ENGINEERING SERVICES (JULY 2022) 1,907.76 1,907.76 2058526 08/31/22 21473 RILEY COLLAZO Ref002675029 08/29/22 UB Refund Cst #0000272805 46.10 46.10 2058593 09/14/22 04542 ROBAK, MARK 080122083122 08/31/22 MILEAGE REIMBURSEMENT (AUG 2022) 277.50 80122083122 08/31/22 EXPENSE REIMBURSEMENT (AUG 2022) 22.92 2058594 09/14/22 21494 ROBERT PIMENTAL Ref002675211 09/12/22 UB Refund Cst #0000266573 81.65 81.65 2058563 09/07/22 02586 SAN DIEGO COUNTY ASSESSOR 202200679 09/02/22 MONTHLY ASSESSOR DATA FY23 125.00 125.00 2058527 08/31/22 00121 SAN DIEGO GAS & ELECTRIC 082322 08/23/22 UTILITY EXPENSES (MONTHLY) 226.68 226.68 2058564 09/07/22 00121 SAN DIEGO GAS & ELECTRIC 083122 08/31/22 UTILITY EXPENSES (MONTHLY) 106,743.89 083122A 08/31/22 UTILITY EXPENSES (MONTHLY) 102,101.13 082922 08/29/22 UTILITY EXPENSES (MONTHLY) 60,967.57 082622 08/26/22 UTILITY EXPENSES (MONTHLY) 775.44 2058595 09/14/22 00121 SAN DIEGO GAS & ELECTRIC 090922 09/09/22 UTILITY EXPENSES (MONTHLY) 126,695.43 090722 09/07/22 UTILITY EXPENSES (MONTHLY) 2,797.11 090122 09/01/22 UTILITY EXPENSES (MONTHLY) 912.94 2058633 09/21/22 00121 SAN DIEGO GAS & ELECTRIC 091222 09/12/22 UTILITY EXPENSES (MONTHLY) 50.43 50.43 2058565 09/07/22 19603 SECURITAS SECURITY SVC USA INC 10942767 09/01/22 ON-DEMAND SECURITY RESPONSE FY23 1,450.00 1,450.00 2058528 08/31/22 21478 SOFIA ANGEL Ref002675034 08/29/22 UB Refund Cst #0000274364 49.22 49.22 2058596 09/14/22 21115 SONIA RIVAS Ben2675257 09/15/22 BI-WEEKLY PAYROLL DEDUCTION 553.85 553.85 2058529 08/31/22 21115 SONIA RIVAS Ben2675076 08/31/22 BI-WEEKLY PAYROLL DEDUCTION 553.85 553.85 Page 7 of 8 1,172.07 808.87 10,048.00 1,884.78 2,484.00 250.00 2058530 08/31/22 21472 SOUTHWESTERN COMMUNITY COLLEGE Ref002675028 08/29/22 UB Refund Cst #0000272751 494.31 494.31 2058566 09/07/22 15974 SUN LIFE FINANCIAL 38166080122 08/01/22 LIFE INSURANCE AND STD/LTD (AUG 2022) 11,317.15 11,317.15 2058597 09/14/22 21498 SWCS INC Ref002675215 09/12/22 UB Refund Cst #0000282721 1,518.10 1,518.10 2058567 09/07/22 21394 TEEDEEUAS LLC Otay 02 09/03/22 UNMANNED AIRCRAFT SYS PROG SVC 825.00 825.00 2058598 09/14/22 21484 THE KYA GROUP 1200091222 09/12/22 CUSTOMER REFUND 1,461.93 1,461.93 2058634 09/21/22 21144 TORO NETWORK SERVICES CORP 10063 09/02/22 DATACENTER & NETWORK SUPPORT SVCS 1,400.00 1,400.00 2058568 09/07/22 20793 TREDENT DATA SYSTEMS INC 55733 08/19/22 NETWORK HARDWARE 12,189.88 12,189.88 2058635 09/21/22 00427 UNDERGROUND SERVICE ALERT 820220512 09/02/22 UNDERGROUND ALERTS (MONTHLY) 932.25 222300712 09/01/22 DIG SAFE BOARD FEES (MONTHLY) 239.82 2058569 09/07/22 15675 UNITED SITE SERVICES INC 00944883 08/23/22 PORT. TOILET RENTAL FY23 662.40 00944887 08/23/22 PORT. TOILET RENTAL FY23 146.47 2058636 09/21/22 08028 VALLEY CONSTRUCTION MANAGEMENT SD222114 09/05/22 CMIS (AUG 2022) 4,768.00 SD222201 09/05/22 CMIS (AUG 2022) 4,455.00 SD9237701 09/05/22 CMIS (AUG 2022) 825.00 2058637 09/21/22 20909 VOLT WORKFORCE SOLUTIONS 45452547 09/11/22 WATER INTERNS (9/5/22-9/11/22) 966.56 966.56 2058599 09/14/22 20909 VOLT WORKFORCE SOLUTIONS 45437544 09/04/22 WATER INTERNS (8/29/22-9/4/22) 966.56 45425037 08/28/22 WATER INTERNS (8/15/22-8/28/22) 918.22 2058570 09/07/22 15807 WATCHLIGHT CORPORATION 774508 08/15/22 VIDEO VERIFICATION 1,620.00 774503 08/15/22 VIDEO VERIFICATION 864.00 2058638 09/21/22 15726 WATER SYSTEMS CONSULTING INC 7091 08/31/22 HYDRAULIC MODELING (AUG 2022) 2,490.00 2,490.00 2058639 09/21/22 01343 WE GOT YA PEST CONTROL INC 56914 09/02/22 AS-NEEDED BEE REMOVAL FY23 125.00 125.00 2058571 09/07/22 01343 WE GOT YA PEST CONTROL INC 55980 08/11/22 AS-NEEDED BEE REMOVAL FY23 125.00 56071 08/18/22 AS-NEEDED BEE REMOVAL FY23 125.00 2058572 09/07/22 19866 WOOD RODGERS INC 160678 07/31/22 ENGINEERING DESIGN SERVICES (JULY 2022) 26,255.00 26,255.00 2058640 09/21/22 08023 WORKTERRA 0103731 08/31/22 EMPLOYEE BENEFITS FY23 146 Checks 847.50 847.50 Amount Pd Total: 1,111,670.11 Check Grand Total: 1,111,670.11 Page 8 of 8