Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
04-06-22 Board Packet
OTAY WATER DISTRICT BOARD OF DIRECTORS MEETING DISTRICT BOARDROOM 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY April 6, 2022 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. PRESENTATION OF THE 2022 ECONOMIC UPDATE FOR SAN DIEGO COUNTY PREPARED BY THE XPERA GROUP (KOEPPEN / NEVIN) 5. APPROVE THE MINUTES OF THE REGULAR MEETING OF MARCH 2, 2022 AND SPECIAL BOARD MEETING OF MARCH 29, 2022 6. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION INCLUDING AN ITEM ON TODAY'S AGENDA Additionally, members of the public may submit their comments on agendized and non-agendized items by either of the following two methods: a) If you wish to provide public comment directly - that is, live during the “Public Participation” portion of the meeting - please complete and submit a Request to Speak Form via email to BoardSecretary@otaywater.gov before the start of the meeting. Your request to speak will be acknowledged during the “Public Participation” portion of the meeting when the Board will hear your comment. When called to speak, please state your Name and the City in which you reside. You will be provided three minutes to speak. The Board is not permitted to enter into a dialogue with the speaker during this time. OR b) If you wish to have your comment read to the Board during the “Public Par- ticipation” portion of the meeting, please email your comment to BoardSecretary@otaywater.gov at least thirty minutes prior to the start of the meeting, and it will be read aloud during the “Public Participation” portion of the meeting. Please provide your Name and the City in which you reside, with your comment. Your comment must not take more than three minutes to read. The Board is not permitted to respond to written public comment dur- ing this time. The District’s meeting is live streamed. Information on how to watch and listen to the District’s meeting can be found at this link: https://otaywater.gov/board-of- directors/agenda-and-minutes/board-agenda/ PUBLIC HEARING 7. THE BOARD WILL HOLD A PUBLIC HEARING TO CONSIDER APPROVING THE FOLLOWING AGENDA ITEMS AND INVITES THE PUBLIC TO PROVIDE COMMENTS ON THE ITEMS: a) PUBLIC HEARING ON REDISTRICTING OTAY WATER DISTRICT WILL BE ADJUSTING THE BOUNDARIES OF ITS FIVE (5) DIVISIONS TO EQUALIZE THE POPULATION WITHIN THOSE DIVISION BOUNDARIES BECAUSE OF AN INCREASE IN THE POPULATION WITHIN ITS SERVICE AREA, AS MEASURED BY THE 2020 U.S. CENSUS PURSUANT TO CALIFORNIA WATER CODE §71540 AND ELECTIONS CODE § 22001. THIS PUBLIC HEARING IS BEING HELD TO INVITE AND SOLICIT PUBLIC COMMENT ON THE DRAFT DIVISION MAPS WHICH WERE PUBLISHED BY THE DISTRICT PRIOR TO THE BOARD OF DIRECTORS CONSIDERING ADOPTION OF A NEW DIVISION MAP AT TODAY’S HEARING (MARTINEZ) b) ADOPT RESOLUTION NO. 4407, A RESOLUTION OF THE BOARD OF DI- RECTORS OF OTAY WATER DISTRICT, REAPPORTIONING THE FIVE DIVISIONS WITHIN THE OTAY WATER DISTRICT (MARTINEZ) CONSENT CALENDAR 8. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: a) AWARD OF A CONSTRUCTION CONTRACT TO CCL CONTRACTING, INC. FOR THE PASO DE LUZ/TELEGRAPH CANYON (CIP P2612) AND VISTA GRANDE/VISTA SIERRA (CIP P2616) WATER LINE REPLACE- MENT PROJECTS IN AN AMOUNT NOT-TO-EXCEED $1,627,440 b) AWARD OF TWO (2) PROFESSIONAL SERVICES CONTRACTS FOR AS- NEEDED GRANT WRITING & ADMINISTRATION SERVICES TO ENGINEERING SOLUTIONS SERVICES AND HOCH CONSULTING. THE TOTAL AMOUNT OF THE TWO (2) CONTRACTS WILL NOT EXCEED $300,000 DURING FISCAL YEARS 2023-2025 c) APPROVE TO INCREASE THE CIP P2677 BUDGET IN AN AMOUNT OF $300,000 (FROM $1,500,000 TO $1,800,000) AND AUTHORIZE THE GEN- ERAL MANAGER TO EXECUTE A REIMBURSEMENT AGREEMENT BE- TWEEN THE CITY OF SAN DIEGO AND THE OTAY WATER DISTRICT FOR THE LA MEDIA/AIRWAY ROAD WATER LINE RELOCATION (CIP P2677) PROJECT d) APPROVE A REIMBURSEMENT REQUEST FROM BALDWIN & SONS, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, IN THE AMOUNT OF $265,911.45 FOR THE COMPLETED CONSTRUCTION OF A 20-INCH RE- CYCLED WATER PIPELINE ON SANTA VICTORIA ROAD, FOR A POR- TION OF THE CAPITAL IMPROVEMENT PROGRAM PROJECT RECPL - 20-INCH, 680 ZONE, VILLAGE 2 – HERITAGE/LA MEDIA (CIP R2084), PROJECT LOCATION SANTA VICTORIA ROAD e) ADOPT THE 2022 OTAY WATER DISTRICT LEGISLATIVE PROGRAM POLICY GUIDELINES AND TOP 10 LEGISLATIVE PRIORITIES f) DISCUSSION AND DIRECTION REGARDING THE PROPOSED FY 2023 – FY 2026 STRATEGIC PLAN ACTION ITEMS 9. 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 EMERGENCY RELATED TO COVID-19 IS CURRENTLY IN EFFECT; (2) LOCAL OFFICIALS IN SAN DIEGO COUNTY HAVE IMPOSED OR REC- OMMENDED MEASURES TO PROMOTE SOCIAL DISTANCING IN CON- NECTION WITH COVID-19; AND (3) DUE TO THE COVID-19 EMER- GENCY, 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) REPORTS 10. GENERAL MANAGER’S REPORT 11. SAN DIEGO COUNTY WATER AUTHORITY UPDATE 12. DIRECTORS' REPORTS/REQUESTS 13. PRESIDENT’S REPORT/REQUESTS RECESS TO CLOSED SESSION 14. CLOSED SESSION a) DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC SERVICES [GOVERNMENT CODE §54957] b) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOV- ERNMENT CODE §54956.9] OTAY WATER DISTRICT vs. CITY OF SAN DIEGO; CASE NO. 37-2017- 00019348-CU-WM-CTL c) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERN- MENT CODE §54956.9] MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, CASE NO. 37- 2015-000-CU-MC-CTL d) EVALUATION OF GENERAL COUNSEL Pursuant to Government Code §54954.5 RETURN TO OPEN SESSION 15. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. OTAY WATER DISTRICT FINANCING AUTHORITY 16. NO MATTERS TO DISCUSS 17. ADJOURNMENT All items appearing on this agenda, whether or not expressly listed for action, may be deliberated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the District’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available by contacting the District Secretary at (619) 670-2253. If you have any disability which would require accommodation in order to enable you to participate in this meeting, please call the District Secretary at (619) 670-2253 at least 24 hours prior to the meeting. Certification of Posting I certify that on April 1, 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 Section §54954.2). Executed at Spring Valley, California on April 1, 2022. /s/ Tita Ramos-Krogman, District Secretary STAFF REPORT TYPE MEETING: Board Meeting MEETING DATE: April 6, 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: Informational Report Presenting the 2022 Economic Outlook Update for San Diego County Prepared by Vertex GENERAL MANAGER’S RECOMMENDATION: Informational Report presenting the 2022 Economic Outlook Update for San Diego County prepared by Vertex. PURPOSE: To present to the Board the 2022 Economic Outlook Update for San Diego County prepared by Alan Nevin of Vertex. DISCUSSION: Each year, the District goes through a budget process with new challenges. The budget process starts in January and culminates with a budget presentation to the Board in June. Consistent with the FY 2022 budget process, the FY 2023 budget will be presented to the Board in three (3) presentations: 1.The first consists of this Economic Outlook Update presentation, which will be used to evaluate potential economic impacts on revenues and budget for growth. 2.The second presentation will be a Board Workshop on April 27 to review key assumptions and inputs used to prepare the budget, the water cost of service study results, along with known opportunities and challenges. 3.The third and final presentation of the consolidated budget will be on June 1. At that time, staff will be presenting AGENDA ITEM 4 2 the consolidated FY 2023 budget and request Board approval of the following items: • The FY 2022-2023 Operating and Capital Budget. • The interfund transfers for potable, recycled, and sewer. • Actions associated with the recommended rate changes. • Adopt the FY 2023 Salary Schedule. • Staff will also be requesting direction from the Board to draft and mail water 218 Hearing Notices. Staff will be proposing a water 218 Hearing to take place at the October Board meeting. • Due to OPEB being fully funded, continue advance funding CalPERS with funds from both the reimbursement of OPEB retiree actual medical costs and the annual budgeted OPEB contribution. To prepare the budget, staff makes every effort to present the most realistic set of factors and assumptions based on information received from various sources, including growth and economic expectations. Part of this process includes engaging an Economist to perform an Economic Outlook study evaluating the projected health of both the global and local economies. The study includes discussions about macro and micro economic activities, including a six-year projection of development within the District. Staff incorporates the information provided in this report into the budget preparation including estimated growth-related revenues and costs, and inflation factors. When compared to the 2021 economic study six-year projections, Equivalent Dwelling Units (EDU’s) are projected to increase by 21%, which will result in a $9.5 million increase in capacity fee revenues. The $9.5 million increase is due to the recent rise in multi-family dwelling construction which results in increased larger Master Meter sales. In addition, actual inflation outpacing last year’s projected inflation is also increasing the FY 2023 projected capacity fees. Capacity fees for the larger meters are significantly higher than those of the single-family meter sales. The table on the following page provides a historical comparison of growth EDU’s. 3 FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer The $9.5 million increase in capacity fee revenue projections will provide a benefit to rates over the next five years from FY 2023 to FY 2027. While the benefit will be a factor smoothed into the rates as part of preparing the six-year rate model, it is equivalent to a one-time rate benefit of 9.5%. STRATEGIC OUTLOOK: The District ensures its continued financial health through long-term financial planning and debt planning. LEGAL IMPACT: None. Attachments: A) Vertex PowerPoint Presentation B) Vertex Economic Outlook Update Report ECONOMIC OUTLOOK UPDATE OTAY WATER DISTRICT SAN DIEGO COUNTY 2022-2028 Presented by Alan Nevin April 2022 Attachment A The United States •Good ▪GNP Up 5.6% ▪Unemployment Rate 4.0% ▪Job Gains in past 12 months: 6.0 Million ▪Residential Construction: 1.7 Million, up 18% over 2020 ▪Home Resales: More than 6.0 Million, up 8.0% ▪Home Resale Prices: More than $400,000, up 17% ▪Avg. Wages –Up 6.8% The United States •Not So Good •Gas Prices –Up 33% (U.S. $4.24) •Inflation -7.0% •COVID –Total deaths -977,195 •Fully vaccinated –Only 65% •Ukraine Involvement •Unknown effect on real estate. The Ukrainian Situation & The Effect on the U.S. Economy •Gas Prices will Continue to go up •Food containing grain (wheat, corn, etc.) will increase •Utilities charges will be increased •GDP will be reduced (but not by much) •Continued decline in stock prices •Chip-making implications (Russia produces minerals needed) •Military budget to increase because we are sending armament •Feds will raise rates to keep inflation down which will drive up mortgage rates. CALIFORNIA The California Story •The Good •Jobs added in past year: 954,000 (1/6th of all the jobs in the Nation) •Unemployment Rate: 6.5% •New Home Construction: 117,000 Units •Existing Home Sales: 429,000, up 7.9% •Existing Home Prices: $796,570, up 11.0% California •Not so good news: •Gas prices: $5.90 per gallon (regular) •Apartment rents: up 10% SAN DIEGO COUNTY The Good Month Unemployment Rate Jan-21 8.0% Jul-21 6.9% Dec-21 4.2% Source: BLS Unemployment Rate San Diego County Jan 2021-Dec 2021 Employment Change Month Jobs Dec-20 1,389,500 Dec-21 1,457,000 Change 67,500 Source: BLS Employment change San Diego County 2020-2021 Employment by Industry Industry Dec-20 Dec-21 Change % Change Total Non-Farm 1,389,500 1,457,100 67,600 4.9% Leisure & Hospitality 130,400 168,000 37,600 28.8% Professional & Business Services 253,400 266,900 13,500 5.3% Government 235,900 241,000 5,100 2.2% Educatonal I& Health Services 211,800 213,900 2,100 1.0% Trade, Transportation & Utilities 220,500 222,200 1,700 0.8% Manufacturing 112,900 112,900 - 0.0% Construction 87,800 86,200 (1,600) -1.8% Financial Activities 74,000 71,000 (3,000) -4.1% Source: BLS Change in Employment Selected Industries San Diego County Dec 2020-Dec 2021 Year $Billions Startups Funded 2014 1.76$ 263 2015 1.77$ 263 2016 1.98$ 266 2017 2.32$ 288 2018 2.57$ 248 2019 3.32$ 301 2020 6.19$ 287 2021 9.60$ 370 Source: Pitchbook Venture Capital Raised San Diego County 2014-2021 Attainment S.D.County California Less than H.S.13.6% 17.8% H.S. Graduate 18.8% 20.7% Jr. College 8.7% 7.8% Some College 22.4% 21.7% Bachelors Degree 22.5% 20.1% Masters 9.2% 8.0% Professional or Doctorate 4.8% 3.9% Bachelors Degree or Higher 36.5%32.0% Total 100.0% 100.0% Source: Statisticalatlas.com Educational Attainment San Diego County & California Percent Workers in Science & Engineering Rank Metro Arch.& Engring Science Total 1 San Jose 48.3 10.5 58.8 2 San Diego 29.9 15.1 45.0 3 Boston 23.9 19.7 43.6 4 Seattle 29 11.2 40.2 5 Portland 31.3 8.6 39.9 6 Peer Avg.27.9 11.8 39.7 7 San Francisco 22.5 16.1 38.6 8 Denver 26.1 10 36.1 9 Baltimore 22.3 11.1 33.4 10 Austin 24 8.6 32.6 Source: San Diego Economic Development Corp. Workers in Science & Engineering Occupations Per Thousand Workers Year Total Detached Attached 2018 9,788 3,510 6,278 2019 8,082 3,023 5,059 2020 9,447 2,898 6,549 2021 9,358 3,232 6,126 Source: Census.gov Residential Construction San Diego County 2018-2021 Average Homeowner Gained $51.5K in Equity Last Year Type Detached Attached Yr. End 2019 646,000$ 428,400$ Yr. End 2020 710,000$ 460,000$ Yr. End 2021 850,000$ 575,000$ Change 2019-2020 64,000$ 31,600$ 2020-2021 140,000$ 115,000$ % Change 2019-2020 9.9% 7.4% 2020-2021 19.7% 25.0% Source: SDAR Change in Home Prices San Diego County 2019-2021 Median Indicator Dec-20 Dec-21 Detached Days on Market Until Sale 27 22 Inventory of Homes for Sale 2,874 938 Months Supply of Inventory 1.4 0.5 Attached Days on Market Until Sale 25 21 Inventory of Homes for Sale 2,232 394 Months Supply of Inventory 2.2 0.3 Source: SDAR Market Indicators San Diego Inventory Year-End 2020-2021 Year Total Single Family Multi- Family % SFD % MF 2010 517 296 221 57% 43% 2011 728 394 334 54% 46% 2012 799 304 495 38% 62% 2013 630 269 361 43% 57% 2014 475 156 319 33% 67% 2015 689 89 600 13% 87% 2016 1,050 86 964 8% 92% 2017 1,073 563 510 52% 48% 2018 1,882 644 1,238 34% 66% 2019 839 282 557 34% 66% 2020 1,100 222 878 20% 80% 2021 1,756 291 1,465 17% 83% Source: City of Chula Vista & CIRB Residential Building Permits City of Chula Vista 2010-2021 Type 2023 2024 2025 2026 2027 2028 Total Single Family Detached 240 125 125 125 200 250 1,065 Single Family Attached 423 390 515 590 740 728 3,689 Apartments 1,137 430 830 830 730 480 4,637 Total 1,800 945 1,470 1,545 1,670 1,458 9,391 Single Family Detached 13%13%9%8%12%17%11% Single Family Attached 24%41%35%38%44%50%39% Apartments 63%46%56%54%44%33%49% Total 100%100%100%100%100%100%100% Source: BIA, land owners, builders & City of Chula Vista Percentages Projected Development Activity SFD, SFA & Apartments Otay Ranch 2023-2028 6 Years of Future Projections Fiscal Years:2023 2024 2025 2026 2027 2028 To t a l For Sale Detached Otay Ranch 240 125 125 125 200 250 1,065 Outside Otay Ranch Total Detached 240 125 125 125 200 250 1,065 Attached Otay Ranch 423 390 515 590 590 578 3,086 Outside Otay Ranch 355 428 300 200 200 100 1,583 Total Attached 778 818 815 790 790 678 4,669 Total For Sale 1,018 943 940 915 990 928 5,734 Apartments Otay Ranch 1,137 430 830 830 730 480 4,437 Outside Otay Ranch 200 400 400 318 200 200 1,718 Total Apartments 1,337 830 1,230 1,148 930 680 6,155 Total Detached for Sale 240 125 125 125 200 250 1,065 Total Attached for Sale 778 818 815 790 790 678 4,669 Total Apartments 1,337 830 1,230 1,148 930 680 6,155 Total 2,355 1,773 2,170 2,063 1,920 1,608 11,889 % For Sale 43% 53% 43% 44% 52% 58% 48% % For Rent 57% 47% 57% 56% 48% 42% 52% Residential Development Projections Otay Water District Service Area Calendar Years 2023-2028 6 Years of Future Projections Sq.Ft.Sq.Ft.%Vacancy Rate Sq.Ft. Under Construction Total County 146,112,872 100%4.4% 5,364,164 South County 30,002,113 21%5.4% 5,191,110 Otay Mesa 16,341,479 11%6.3% 5,286,610 Source: Voit Real Estate Services The Industrial Space Market Otay Mesa and San Diego County 4th Quarter 2021 Fiscal Years:Measure 20 2 1 - 2 0 2 2 20 2 2 - 2 0 2 3 20 2 3 - 2 0 2 4 20 2 4 - 2 0 2 5 20 2 5 - 2 0 2 6 20 2 6 - 2 0 2 7 20 2 7 - 2 0 2 8 Total Hotels (2)Rooms 150 410 200 760 Sq.Ft. Per Room (Gross)400 400 400 Total Sq.Ft.60,000 164,000 80,000 304,000 Industrial (1)Sq.Ft.1,350,000 1,700,000 500,000 500,000 500,000 500,000 500,000 5,550,000 Amazon 3,400,000 700,000 4,100,000 Retail Sq.Ft.20,000 90,000 15,000 15,000 140,000 Office (3)Sq.Ft.100,000 100,000 100,000 100,000 400,000 Total Sq.Ft.4,750,000 2,460,000 784,000 690,000 615,000 615,000 580,000 10,494,000 Total Sq.Ft. Without Amazon 1,350,000 1,760,000 784,000 690,000 615,000 615,000 580,000 6,394,000 (3) Assumes 1st phase of Chesnut project is completed in 2023-2024 Non-Residential Development Projections Otay Water District Service Area Fiscal Years 2021-2028 (1) excludes renovation of Sanyo space. And excludes Amazon. (2) excludes the 1,600 room RIDA Hotel and Conference Center which is not in the OWD service area; the hotel in 2025-2026 is in Village 13. 10911 Technology Place San Diego CA 92127 858-436-7770 Economic Outlook Update Otay Water District San Diego County 2022-2028 Prepared for Otay Water District March 2022 By Alan Nevin Director, Economic Research Vertex Attachment B 2 2 March 23, 2022 Mr. Jose Martinez General Manager Otay Water District 2554 Sweetwater Springs Blvd. San Diego CA 91978 RE: Economic Outlook Update 2022-2028, Otay Water District Dear Mr. Martinez: Xpera Group, a Vertex company, has been retained to prepare an economic outlook update for the Otay Water District for the 2022-2028 period. The outlook includes an economic and demographic analysis of the international, national and local economies and then focuses on the changes in population, residential and commercial development within the Otay Water District service area. We stand ready to respond to your inquiries about the study and its findings. Sincerely yours, Alan N. Nevin Director, Economic Research Vertex 3 3 Table of Contents This report is segmented into ten sections: Introduction ➢ Section 1: International Outlook, p 8 ➢ Section 2: The National Economy, p 13 ➢ Section 3: The California Economy, p 35 ➢ Section 4: NAFTA, p 45 ➢ Section 5: The San Diego County Economy, p 50 ➢ Section 6: San Diego Housing Market, p 60 ➢ Section 7: Future of South County, p 72 ➢ Section 8: Future Development – OWD Service Area p 92 ➢ Section 9: Future Non-Residential Development, p 109 ➢ Section 10: Projections for OWD Development Activity 2022-2028, p 116 4 4 Introduction: Economic Outlook Update Otay Water District Service Area Vertex has undertaken and now completed an update of the Economic Outlook Study for both San Diego County and the area served by the Otay Water District (“OWD”). This past year has been almost without precedent, both on an international and national level. We have experienced: And with it all, we have had the lowest interest rates in decades and the real estate market continues to be vibrant throughout the Nation and particularly on the West Coast with an insatiable appetite for new and existing homes and commercial properties. In this report, we concentrate on the changing demographics and economics in the world, the Nation, California and San Diego County and the projected residential and commercial development within the County and the OWD service area. The OWD services most of Chula Vista east of I-805 and the Otay Mesa area. The service area covers 125 square miles (80,000 acres) and services more than 50,000 customers and serves a population of approximately 225,000 or approximately 7.0% of the County population. 2021 marked the District’s 65th year of service to south county. The OWD has a potable distribution system of 723 miles; 84 miles of public sewer system, 104 miles of recycled distribution system and 6,000 fire hydrants. ➢ COVID Omicron Erratic movement in gold prices ➢ Rampant inflation Run-up in used car prices ➢ Shortage of computer chips 11,000,000+ job openings ➢ International shipping crisis Tornadoes & Storms ➢ Wild upswing in lumber prices Taliban Takeover of Afghanistan ➢ Shortage of truckers Smash & Grabs THE 12 PLAGUES 5 5 Its service area covers 80,207 acres, more than any other water district in the County: I-1 Of the top five water suppliers in the County, Otay Water District ranks No.3, behind only the City of San Diego and the Helix Water District. I-2 Water Sales in 2020-2021 totaled 33.1-thousand acre feet, the highest in five years: District Acres Otay Water District 80,207 Valley Center MWD 64,559 Rainbow MWD 47,670 Rincon Del Diablo MWD 45,868 Padre Dam MWD 45,892 Source: San Diego County Water Authority Gross Acres Served Top Five Water Districts San Diego County as of FY 2020-2021 District Persons City of San Diego 1,373,607 Helix Water District 277,294 Otay Water District 226,413 City of Oceanside 178,021 City of Escondido 137,941 (1) approximate Source: San Diego County Water Authority Population Served (1) Top Five Water Suppliers San Diego County as of FY 2020-2021 6 6 1.3 Total meter sales for FY 20/;”17-2021 are shown below: 1.4 The map below shows the OWD boundaries: Fiscal Year Thousands 2016-2017 29.6 2017-2018 32.2 2018-2019 29.4 2019-2020 29.5 2020-2021 33.1 Potable & Recycled Water Sales Total Acre-Feet (in Thousands) Otay Water District FY 2016-2021 Year Total 2017 65 2018 548 2019 448 2020 276 2021 220 Source: OWD Meter Sales by Type Potable Water Otay Water District FY 2017-2021 7 7 I-5 Of the 22 water districts in the County, the OWD has the 5th lowest water rates. Its rate based on 11 units of water use is $81.00 compared to the most expensive in the County: Fallbrook at $130. In last year’s report, we noted evidence of strong future development in the OWD service area. We have now updated this information through year end 2021 in order to project outward to fiscal years 2022-2028. Our comfort level for forecasting out six years is much better than for one year: that one year being 2022. The reasoning behind that is that it is difficult to know exactly when the developers are going to break ground, even though we have their best estimates. 8 8 Section 1: International Outlook As the industrialized countries grow, so do our opportunities for doing business abroad, with the West Coast of our Nation in a particularly strong position to benefit from international growth. In this section, we will discuss: ➢ 1.1 The COVID factor; ➢ 1.2 The growth of GDP, ➢ 1.3 Commodity prices, and ➢ 1.4 Household income around the world 1.1 The COVID Factor The COVID death toll has passed the 5.0 million mark worldwide: 1.1 But all countries are not the same. Countries that are “tight” (i.e, have a multitude of laws and punishments and mete them out liberally) have a COVID death rate one/third of that of the “loose” Year No. Deaths 2020 1,940,000 2021 (1)3,543,495 Total 5,483,495 (1) Based on 11 months of 2021 Source: Worldometer COVID Deaths Worldwide 2019-2021 9 9 countries. The loose countries are more tolerant of differences and celebrate creative expression. The exhibit below details the COVID death experience of 20 loose and tight countries. The U.S. is in the loose category. There is a downside to freedom. We have not shown China because their COVID statistics are not known to be reliable. 1.2 1.2 Gross Domestic Product (GDP) Gross Domestic Product is the sum of all goods and services produced in a country. Virtually every major country in the world had a negative gross domestic product in 2020, due to COVID. With COVID under control (or mostly under control) the GDPs for 2021 and 2022 are projected to be highly positive. Country Population (000)No. Deaths Deaths: Pop.Country Population (000)No. Deaths Deaths: Pop. New Zealand 5,000 41 0.008 India 1,400,000 466,000 0.333 South Korea 51,000 3,000 0.06 Netherlands 17,000 19,000 1.118 Singapore 6,000 700 0.12 Ireland 5,000 6,000 1.200 Japan 126,000 18,000 0.14 France 66,000 118,000 1.788 Norway 5,000 1,000 0.20 Greece 10,000 18,000 1.800 Turkey 84,000 75,000 0.89 Spain 46,000 88,000 1.913 Israel 8,000 8,000 1.00 Italy 60,000 133,000 2.217 Taiwan 20,000 23 0.00 Mexico 128,000 293,000 2.289 Germany 83,000 100,000 1.20 United States 332,000 800,000 2.410 Austria 9,000 12,000 1.33 Brazil 212,000 613,000 2.892 Average 0.50 Average 1.80 (1) many rules and laws in places and punishments liberally meted out (2) more tolerant of differences and celebrate creative expression. Source: World Health Organization; Worldometer Based on article by Michele Gelfand, Foreign Affairs, JulyAugust 2021 Vertex 12.2021 Tight and Loose Countries Tight (1)Loose (2) COVID Deaths to Population 10 10 1.3 On a per capita basis, there have been some remarkable increases in the past two decades. The GDP for the world doubled. The major increases have been in India and China, up 351% and 1,140% respectively. Despite the major increases, the U.S. has a per capita GDP six times that of China. 1.4 Country 2020 2021 2022 World Output -3.2%6.0%4.9% U.S.-3.5%7.0%4.9% Germany -4.8%3.6%4.1% France -8.0%5.8%4.2% Japan -4.7%2.8%3.0% China 2.3%8.1%5.7% India -7.3%9.5%8.5% Source: International Monetary Fund Economic Outlook Major Countries 2020-2022 Gross Domestic Product Country 2000 2010 2020 2021 $% World 5,487$ 9,555$ 10,925$ 12,290$ 6,803$ 124% U.S.36,334$ 48,466$ 63,543$ 69,375$ 27,209$ 75% Germany 23,695$ 41,572$ 46,215$ 50,788$ 27,093$ 114% Japan 38,532$ 440,507$ 40,113$ 40,704$ 2,172$ 6% France 22,364$ 40,638$ 40,298$ 45,028$ 22,664$ 101% China 959$ 4,550$ 10,500$ 11,891$ 10,932$ 1140% India 443$ 1,357$ 1,900$ 2,000$ 1,557$ 351% Source: International Monetary Fund Change 2000-2021 Gross Domestic Product Per Capita Selected Countries 2000-2021 11 11 1.3 Commodity Prices Commodity prices have exploded worldwide, a situation that has been exacerbated by the chip shortage and lengthening supply lines. In the exhibit below, we show the total commodity price index and those for metals, food and energy (gas/oil). Prices were relatively stable from 2016-2020 and then exploded in 2021. 1.5 1.4 Median Household Income (Per Capita) It is no surprise that the Nation with the highest median household income per capita is the United States, but it is important to note that our neighbor to the north, Canada, is fast approaching the household income of the United States. As Canada is a major importer of our goods, it is very positive that their household incomes are about the same as those in the United States. Our neighbor to the south, Mexico, does not provide the United States with a meaningful market for the goods we produce as their median household income is about 15% that of the U.S. Year Total Metals Food Energy 2018 107.80 116.10 102.50 157.00 2019 108.70 124.00 99.30 130.40 2020 115.90 142.00 100.90 91.40 3rd Qtr 2021 149.40 180.60 131.40 163.50 Source: Fig 1.SF.1 World Economic Outlook, IMF Commodity Prices World Markets 2018-2021 12 12 1.6 Country 2021 United States 19,306$ Canada 18,652$ Germany 16,845$ United Kingdom 14,793$ Japan 14,543$ South Korea 12,507$ Russia 5,504$ China 4,246$ Mexico 3,315$ India 1,314$ Source: World Bank, United Nation Median Household Income Major Countries 2021 Per Capita 13 13 Section 2: The National Economy In Section 2, we note the COVID statistics in the U.S. and then move on to a discussion of the National economy: ➢ 2.1 The U.S. and COVID; ➢ 2.2 The Path of the Gross Domestic Product; ➢ 2.3 U.S. Employment Trends; ➢ 2.4 U.S. Population Trends; ➢ 2.5 Mortgage Rates; ➢ 2.6 Residential Construction; ➢ 2.7 Non-Residential Construction; ➢ 2.8 The Automobile Industry; and ➢ 2.9 Forecast for the U.S. in 2022 2.1 The U.S. and COVID As the Nation ages, the number of deaths accelerates. In the period between 2015 and 2020, the total number of deaths increased by 12%, excluding COVID deaths. Of the total deaths in 2020, only 10% were due to COVID. Heart Disease and Cancer produced far more deaths than COVID. This exhibit puts COVID in perspective: 14 14 2.1 The exhibit below shows the top ten causes of death in the U.S. in 2020: 2.2 Disease No.%No.% Heart Disease 633,842 32%690,000 28% Cancer 595,930 30%598,000 24% COVID 0%345,000 14% Unintentional Injuries 146,571 7%192,176 8% Stroke 140,323 7%159,050 6% Chronic Lower Respiratory Diseases 155,041 8%151,637 6% Alzheimer 110,561 6%133,382 5% Diabetes 79,535 4%101,106 4% Influenza & Pneumonia 57,062 3%53,495 2% Kidney Disease 49,959 3%52,260 2% Total - Top 10 1,968,824 100%2,476,106 100% Total Deaths 2015-2020 2,712,630 3,358,814 Total deaths 2015-2020, without COVID 2,712,630 3,013,814 COVID as % of Total Deaths - 10% Source: CDC 2015 2020 Cause of Death Top 10 United States 2020 15 15 Of the total deaths and total deaths from COVID in the United States, seven out of ten were persons over the age of 65, according to the World Health Organization. Many, if not most of those over 65, had underlying conditions (known as co- morbidity). In total, however, COVID was only accountable for 12.1% of all deaths. 2.3 The following exhibit shows deaths by month in the United States. The data shows a very uneven pattern of deaths with a considerable number of deaths in the later months of 2021, despite the availability of vaccinations; however, the 4th quarter of 2021 shows a major improvement over the 4th quarter of 2020. Age Range Total Deaths COVID Deaths COVID as % of Total Deaths Total 6,794,242 825,371 12.1% Under Age 39 550,633 30,813 5.6% 40-49 276,337 35,190 12.7% 50-64 1,121,577 151,396 13.5% 65 and Over 4,845,695 607,972 12.5% % over age 65 71.3%73.7% Source:Centers for Disease Control & Prevention Total Deaths from COVID by Age Group as % of Total Deaths United States as of December 26 2021 16 16 2.4 Although we can be glum about 2020-2021, it behooves us to take a look at the highly positive economic growth the near-term future as the projections for increases in the GDP are positive. Loose/Tight States Like other countries, the United States’ deaths from COVID varies from state to state and can be ranked by deaths per 1,000 population. In this exhibit, we show the tight and loose states. Although not a perfect correlation, the states in the north Week Ending No. Week Ending No. Jan-20 5 Jan-21 105,311 Feb-20 20 Feb-21 48,390 Mar-20 7,161 Mar-21 23,141 Apr-20 65,481 Apr-21 18,675 May-20 38,300 May-21 14,871 Jun-20 18,008 Jun-21 7,945 Jul-20 31,116 Jul-21 11,153 Aug-20 29,879 Aug-21 48,300 Sep-20 19,139 Sep-21 62,291 Oct-20 24,910 Oct-21 41,423 Nov-20 53,219 Nov-21 30,146 Dec-20 98,100 Dec-21 19,373 Avg. 4th Qtr. 2020-2021 58,743 30,314 Avg. Jan-Dec.. 2020-2021 32,112 35,918 Deaths by Month COVID 2020-2021 Source: Centers for Disease Control & Prevision, Natl. Ctr. For Health Statistics United States 17 17 have a higher death rate than those in the South. California has one of the lower death rates per 1,000. 2.5 2.2 The Path of the GDP Not to brag, but the United States continues to produce one quarter of the world’s gross domestic product, in good times and bad. The other good part is that the GDP of the world continues to expand and that’s a good thing. State Population Deaths Deaths/1,000 Utah 3,310,774 3,545 1.0707 Colorado 5,893,634 9,563 1.6226 Minnesota 5,706,398 9,678 1.6960 Wisconsin 5,822,434 10,134 1.7405 Ohio 11,714,618 26,587 2.2696 Total 32,447,858 59,507 1.8339 Arkansas 3,033,946 8,693 2.8652 Arizona 7,520,103 22,383 2.9764 Louisiana 4,627,002 14,814 3.2016 Alabama 4,934,193 16,157 3.2745 Mississippi 2,966,407 10,296 3.4709 Total 23,081,651 72,343 3.1342 California 39,613,493 74,923 1.8914 Th e S o u t h COVID Deaths by State The North and The South United States as of December 2021 Th e N o r t h 18 18 2.6 The World Bank forecasts that the U.S. GDP will increase 6.0% in 2022 over 2021 and then another 3.0% in 2023. 2.7 2.3 U.S. Employment Trends Since the beginning of the recession recovery in 2011 through 2019, the Nation had added 19.0 million jobs, a pace of 2.3 million annually, until spring 2020 when COVID appeared. Year World U.S.U.S. % 1970 12,137 1,070 8.8% 1990 27,539 5,960 21.6% 2010 66,036 15,000 22.7% 2020 84,705 21,000 24.8% 2021 (1)89,702 21,500 24.0% 2022 (F)94,097 22,790 24.2% (1) Based on first 3 quarters Source: World Bank Gross Domestic Product in Trillions United States and the World 1970-2021 Year GDP Index 2019 21,433$ 1.00 2020 20,936$ 0.98 2021 21,500$ 1.00 2022 (F)22,790$ 1.06 2023 (F)23,420$ 1.09 Source: World Bank/Trading Economics Forecast: Gross Domestic Product United States 2019-2023 (F) 19 19 2.8 By April 2020, the unemployment rate skyrocketed to 14.8%. By the end of 2020, the unemployment rate had declined to 6.7% and by year end 2021 was 4.0% -- a return to normalcy. Year Total (000)Annual Annual Change % 2008 137,225 2009 131,289 (5,936) -4.3% 2010 130,337 (952) -0.7% 2011 131,922 1,585 1.2% 2012 134,157 2,235 1.7% 2013 136,356 2,199 1.6% 2014 138,922 2,567 1.9% 2015 141,804 2,882 2.1% 2016 144,329 2,525 1.9% 2017 146,589 2,260 1.7% 2018 148,891 2,302 1.7% 2019 150,935 2,045 1.5% 2020 149,830 (1,105) -0.8% 2021 155,000 5,170 3.9% 2011-2019 19,013 2,289 Source: U.S. BLS Total Employment United States 2008-2021 20 20 2.9 The following graph tells the employment story very well: 2.10 Month Unmployment Rate Mar-20 4.4% Apr-20 14.8% Dec-20 6.7% Sep-21 4.6% Oct-21 4.3% Nov-21 4.2% Dec-21 4.0% Source: U.S. Bureau of Labor Statistics Not seasonally adjusted Unemployment Rate United States March 2020-December 2021 Unemployment Rate United States 2011-2021 14.8% 4.0% 21 21 Initial Unemployment Claims Initial unemployment claims skyrocketed to almost 6.0 million in April 2020. At the end of 2021, claims fell to 199,000, one of the lowest since July 1969. 2.11 Educational Attainment A key component of unemployment is educational attainment. Without a high school degree, the U.S. unemployment rate is 7.4% compared to 2.4% with a bachelors’ degree or higher. 2.12 Month Claims Change Aug-19 171,386 n/a Apr-20 5,981,787 5,810,401 Dec 2021 (1)199,000 5,611,401 (1) December 28 report Source: BLS.gov Initial Unemployment Claims United States August 2019-December 2021 Attainment Unemploy ment Rate Less than High School Degree 7.4% High School Degree 5.4% Jr. College Degree 4.4% Bachelors Degree or Higher 2.4% Source: BLS Unemployment Rate United States Educational Attainment 22 22 Job Openings In the end of 2021, the Bureau of Labor Statistics reported more than ten million job openings – a modern record and almost double that of one year prior. 2.13 According to a recent Goldman Sachs report, almost half of the openings were created by persons taking an early retirement. The job market in the United States is continually shifting as persons change jobs regularly. From December 2020 to December 2021, there were 6,263,000 million persons hired and 5,900,000 million “Separated”. This resulted in a net gain of more than 363,000 jobs. 2.14 Month/Year No. Openings 3Q2019 7,129,000 4Q2020 6,593,000 4Q2021 10,925,000 Source: BLS Job Openings United States 2019-2021 Job Openings 10,925,000 Hires 6,263,000 Separations 5,900,000 Net Gain 363,000 Source: BLS.gov Hires & Separations Jobs United States 4th Quarter 2021 23 23 The Inflation Index In tandem with the world markets, the U.S. inflation index skyrocketed in 2021, reaching a high of 6.8%, dramatically higher than the past few years: 2.15 Most of the indices have seen major increases in the past year, but motor fuel leads the way with a 58.0% increase from December to December. The other indices have also increased dramatically over the very low rates of inflation that we have become accustomed to. 2.16 Year Rate 2015 1.0% 2016 1.3% 2017 2.1% 2018 2.4% 2019 1.8% 2020 1.2% 2021 6.8% Rate of Inflation United States 2015-2021 Item Dec-20 Dec-21 Change % Change Food 269.1 285.5 16.4 6.1% Motor Fuel 188.5 297.8 109.3 58.0% Housing 327.4 339.9 12.5 3.8% Medical Care 565.3 577.0 11.7 2.1% Apparel 116.6 122.4 5.8 5.0% All Items 260.2 277.9 17.7 6.8% Source: BLS Inflation Index United States December 2020- 2021 24 24 2.4 U.S Population Trends The U.S. continues to expand its population and economy. The population expansion is perhaps the most important element in the expansion of the Nation. For an industrialized Nation to expand on a continuing basis, it is necessary to continue to add population. From a basic demographic standpoint, it is necessary to have 2.0 children per every mother and father. If a Nation falls below that level, it faces a long-term stagnation of its economy. The United States continues to gain population at a pace of 2.0-2.5 million annually, both recently and projected well into the future. Projections anticipate a very gradual decline in the rate of annual population gain. The 2020 Census shows a population of 331,449,000, a gain of 2,275,000 over the 2010 Census. The Nation is projected to gain 2,365,000 persons in this decade, ending the decade of 2020-2030 with 355,101,000. 2.17 The change in population from 2010-2020, on a percentage basis, is the lowest since the Great Depression: Year Population Change Annual Change % Change 1980 226,500 n/a n/a 1990 248,700 22,200 2,220 9.8% 2000 281,400 32,700 3,270 13.1% 2010 308,700 27,300 2,730 9.7% 2020 331,449 22,749 2,275 7.4% 2030 355,101 23,652 2,365 7.1% Average 2,572 Census. Gov, Main Series, Table 1 Population & Projections (000) United States 1980-2030 25 25 2.18 In 2020, the increase in population from the previous year was predominantly the result of natural household formations (more births than deaths). In 2030, however, that ratio is anticipated to change, with a reduction in natural increase and an increase in net international migration. The 2030 projection could vary substantially depending on COVID and the international in-migration determination. 2.19 Source: Census.gov Population Percentage Change United States 1920-2020 Year Population Births Deaths Natural increase Net International Migration 2020 331,449,000 4,054,000 2,667,000 1,387,000 997,000 2030 355,001,000 4,161,000 3,184,000 978,000 1,069,000 Source: Census.gov Components of Population Change United States 2020-2030 26 26 Perhaps the most predominant projection is the change in population by age group. Almost two-thirds of the population gain in the 2020-2040 timeframe will be persons over age 65. This ratio has exceptionally important implications in terms of spending on health and welfare and the necessity to replace the skills of the aging workforce. 2.20 During this decade, the long-term trends in ethnicity will continue, with the Hispanic population accounting for more than half of the population gain in the 2020-2030 period. 2.21 Age Group 2020 2040 Change % of Change Under 18 73,967 77,131 3,164 8% 18-64 202,621 215,571 12,950 32% 65+56,052 80,827 24,775 60.6% Total 332,640 373,529 40,889 100% % of Total 17%22%60.6% Source: Census.gov Aging of the U.S. Population 2020-2040 Ethnicity 2020 2030 Change % Change Hispanic 62,313,000 74,807,000 12,494,000 20.1% Asian 20,009,000 24,394,000 4,385,000 21.9% Black 44,734,000 49,009,000 4,275,000 9.6% Other 7,012,000 8,899,000 1,887,000 26.9% Non-Hispanic White 198,571,000 197,992,000 (579,000) -0.3% Total 332,639,000 355,101,000 22,462,000 6.8% Source: U.S. Census Population Ethnicity Projections United States 2020-2030 27 27 2.22 2.5 Mortgage Rates The chart below tells the story of remarkably low interest rates that leads to Section 2.6 on residential construction. 2.23 Ethnicity Pop.% Share 2030 % Share Non-Hispanic White 198,571,000 60%197,992,000 56% Hispanic 62,313,000 19%74,807,000 21% Black 44,734,000 13%49,009,000 14% Asian 20,009,000 6%24,394,000 7% Other 7,012,000 2%8,899,000 3% Total 332,639,000 100%355,101,000 100% Source: U.S. Census Population Ethnicity Projections United States 2020-2030 2020 2030 % of Population 28 28 2.6 Residential Construction For multiple reasons, the construction and home sale industries ignored COVID. Four major factors came into play in 2021. ➢ First was continuing low interest rates; ➢ Lenders were very anxious to produce revenue because their coffers were overflowing; ➢ The economy recovered; and ➢ Fourth, an artificial supply/demand imbalance caused by a severe reduction of homes on the market for sale (sellers who didn’t want potential buyers traipsing through their homes during the COVID pandemic). Existing Home Sales The year 2021 marked a high point for resale homes in the Nation, a total not seen since 2006-2007. In 2021, more than 6.0 million resales closed escrow. 2.24 Year Total Months Supply 2015 5,250,000 5.9 2016 5,450,000 5.4 2017 5,510,000 3.9 2018 5,340,000 4.0 2019 5,340,000 3.9 2020 5,640,000 3.1 2021 6,460,000 1.9 Source National Assn. of Realtors Home Resales United States 2015-2021 29 29 Existing home prices moved sharply upward in 2020 and 2021, passing the $400,000 mark in 2021. And the months supply of inventory fell to 2.4 months. 2.25 New Home Development On the new home side of the ledger, the total number of new single-family homes permitted continued its seven-year climb and passed the million mark in 2021. Multi-family activity, which includes both sale and rental product, was also strong, ending the year with more than 600,000 units permitted. Year Prices Index 2015 302,500$ 1.00 2016 310,900$ 1.03 2017 337,900$ 1.12 2018 322,800$ 1.07 2019 327,100$ 1.08 2020 358,700$ 1.19 2021 (1)404,700$ 1.34 (1) thru 3rd quarter Source: Federal Reserve Home Resale Prices United States 2015-2021 30 30 2.26 2.7 Non-Residential Construction A major component of the construction industry is the non-residential sector which includes both private and public spending. Since 2015, there has been a steady rise in spending in both the private and public non-residential sector, with a new high in 2021. In 2020, the non-residential private sector construction total reached the $3.0 billion level. In addition, the public sector spending on construction continued to expand, ending 2021 with more than $3.7 billion. Year Total Single Family Multi- Family 2015 1,182,600 696,000 486,600 2016 1,206,600 750,800 455,800 2017 1,282,000 820,000 462,000 2018 1,328,800 855,300 473,500 2019 1,386,000 862,100 523,900 2020 1,471,100 979,400 491,700 2021 (P)1,700,000 1,100,000 600,000 Census.gov Residential Building Permits United States 2015-2021 31 31 2.27 2.7 The Automobile Industry The automobile industry is a strong indicator of the health of the economy. For five continuous years, until 2020, new vehicle (cars and light trucks) sales passed the 17,000,000 level, a feat never achieved before in the United States. Unfortunately, that run came to an abrupt end in 2020 as a result of COVID. In 2020, new vehicle sales totaled 14,698,000. In 2021, the demand heightened for new cars, but because of delivery problems, barely 15,000,000 were sold. Sales in 2022 are projected to be15,200,000. Year Private Public Sector Total 2015 2,450$ 2,868$ 5,318$ 2016 2,506$ 2,904$ 5,410$ 2017 2,648$ 2,898$ 5,546$ 2018 2,838$ 3,005$ 5,843$ 2019 2,952$ 3,221$ 6,173$ 2020 2,862$ 3,483$ 6,345$ 2021 (P) (1)3,072$ 3,700$ 6,772$ Change 2015-2021 622$ 832$ 1,454$ % Change 25.4%29.0%27.3% Annual % Change 3.6%4.1%3.9% (1) Preliminary figuresased on January-October totals. Source: Census. Gov Value of Construction (Millions) Private & Public Sector United States 2015-2021(P) 32 32 2.28 The dominant supply of used vehicles results from trade-ins for new vehicles and that was muted in 2020. Typically, used vehicle dealers like to have a two-month supply on hand, but in 2020, it was reduced to one month. The shortage of trade-ins reduced the used car sales to an estimated 39,100,000. 2.29 The pressure for used cars drove up their prices to remarkably high levels in 2020 and then again in 2021. Year No. 2015 17,404,970 2016 17,500,719 2017 17,212,565 2018 17,323,849 2019 17,023,894 2020 14,900,000 2021 14,954,805 (1) Based on Jan-Oct sales Source: Edmunds & Goodcarbadcar New Car Sales - Annual United States 2015-2021 Year No. 2015 37,300,000 2018 40,420,000 2020 39,300,000 2021 39,100,000 Source: Buireau of Transportation Statistics Used Car Sales United States 2015-2021 33 33 2.30 2.31 Year Index 2015 124.7 2016 125.1 2017 129.6 2018 135.7 2019 138.9 2020 150.6 2021 196.5 Source: Manheim Used Vehicle Value Index Prices of Used Cars (Index) United States 2015-2021 34 34 2.8 Forecast of the U.S. Economy: 2022 2022 looks like it will be a rather strong year for the United States economy: ➢ The gross domestic product (GDP) will rise by 5.0-6.0%; ➢ The population will continue to increase by more than 3.0 million annually (based on the 2020 Census); ➢ Employment will reach 155.0 million, higher than pre-COVID levels; ➢ The unemployment rate will be a steady 4.0%; ➢ Initial unemployment claims will fall to new levels; ➢ Job openings will continue to top 11.0 million; ➢ 30-year mortgage rates will rise to 4.00-4.50% range; ➢ Oil prices per barrel will ebb to the $70-80 range unless the Ukrainian situation continues; ➢ Construction will parallel 2020, with a total of 1.6-1.7 million new residential units; ➢ The Nationwide demand for new homes and condominiums will continue unabated; ➢ The resale home market will continue its strong demand throughout 2022 with the inventory of housing for sale gradually expanding in the second half of the year with taming of price increases; ➢ The non-residential construction market will continue to expand thanks to Federal spending on infrastructure and military spending; ➢ Finally, the Federal government will open its purse strings even further than it did in 2020-2021 and that will increase consumer goods demand. ➢ Overall, 2022 will be a year of recovery, but it may take until 2023 to return to our classic normalcy. ➢ The one flaw: inflation will continue to be in the 5-6% range and there’s not much we can do about it. 35 35 Section 3: The California Economy In this section is a discussion of the overall economy of the state of California, including population, employment and housing. 3.1 Gross Domestic Product California remains the 5th largest “nation” in the world in terms of GDP, barely passing the UK and France and India. We like to show these figures to remind us of the enormity of the California economy. California has been the Nation’s largest state in terms of GDP since 1871. 3.1 Rank Country GDP (Trillions) 1 United States (1)22.90$ 2 China 15.60$ 3 Japan 5.10$ 4 Germany 4.23$ 5 California 3.30$ 6 United Kingdom 2.83$ 7 France 2.94$ 8 India 2.94$ 9 Italy 2.12$ 10 Texas 1.95$ (1) the world's largest country since 1871. Source: International Monetary Fund (IMF); Bureau of Economic Analysis (BEA) Gross Domestic Product Top Countries & California 2021 36 36 Within the United States, California has a GDP equal to almost the entirety of Texas and New York, although we know that Texas is working diligently to catch up with the Golden State. On an annualized basis, the state has been growing its GDP by an average of more than 5.0% since coming out of the recession. This compared to the U.S. increase in the 2.0-2.5% range. COVID caused a reversal on that growth trend but in 2021 the state is recovering and in 2021 had a Gross Domestic Product of $3.3 trillion. 3.2 3.2 Population of California We had anticipated that California’s population would pass the 40.0 million mark in 2020, but COVID, move-outs and declining immigration intervened. Year Trillions Change % Change 2015 2,553,772$ 158,610$ 6.6% 2016 2,657,798$ 104,026$ 4.1% 2017 2,819,111$ 161,313$ 6.1% 2018 2,997,733$ 178,622$ 6.3% 2019 3,137,469$ 139,736$ 4.7% 2020 3,071,000$ (66,469)$ -2.2% 2021 (P)3,300,000$ 229,000.0$ 6.9% (P)=preliminary Source: CA Dept. of Finance; U.S. Bureau of Economic Analysis Change in Gross Domestic Product California 2015-2021 37 37 3.3 There are three predominant factors that have created the secession of growth: ➢ Natural Increase ➢ Legal In-migration ➢ Domestic Migration Natural Increase Natural increase is births over deaths. The birth rate declined (blame it on COVID) and because of COVID, the death rate increased, thus resulting in a natural population increase of 76,066. 3.4 Foreign Migration The combination of COVID and politics caused a severe decline in net foreign migration to California. State 1980 2010 2020 1980-2010 2010-2020 California 23,667,902 37,253,956 39,782,870 13,586,054 2,528,914 U.S.226,500,000 308,770,000 335,000,000 82,270,000 26,230,000 % of U.S.10.4%12.1%11.9%16.5%9.6% Source: U.S. Census & CA DOF Population Change California 1980-2020 Year Births Deaths Difference 2018 461,424 270,699 190,725 2019 451,227 267,250 183,977 2020 437,289 280,289 157,000 2021 420,311 344,245 76,066 Natural Population Increase California 2018-2021 38 38 In the 2014-2017 period, net foreign migration to California averaged 149,603 annually. 3.5 Since then, net foreign migration has plummeted, as shown here: 3.6 Domestic Migration Net domestic migration (folks moving out of California) has been gradually increasing and in 2021 was estimated at 276,663, about 7/10ths of 1% of the total population. 2014 136,588 2015 145,601 2016 162,453 2017 153,769 Average 149,603 Net Foreign Migration California 2014-2017 2018 139,966 2019 123,201 2020 76,990 2021 27,424 Net Foreign Migration California 2018-2021 39 39 3.7 Forecast: the natural increase will turn positive when COVID is conquered (or at least controlled) and legal immigration may increase with the present administration. I doubt if the domestic outmigration situation will change. We have just gotten too expensive for some folks to live here. Optimally, the loss of population will subside and someday we will see the state’s population top 40.0 million. We are still the golden state. We know that 60% of persons moving to California have a bachelors’ degree, but also of interest is that fact that the immigrants who make up a growing share of the California workforce have a college degree. Our state is getting smarter. Year Domestic Migration CA Pop. % of CA Pop. 2018 (183,553) 39,476,064 -0.465% 2019 (253,553) 39,529,566 -0.641% 2020 (221,770) 39,541,786 -0.561% 2021 (276,663) 39,368,613 -0.703% Source: California Dept. of Demographics Net Domestic Migration California 2018-2021 40 40 In March of this year, the Census Bureau and the California Department of Demographics will release its population forecast for the next decade. 3.3 California Employment California remains a mighty job machine, despite COVID. 3.8 State YE 2015 YE 2021 (F)Change % Change California 18,068,401 17,639,149 (429,252) -2.4% Texas 12,594,665 13,434,300 839,635 6.7% Florida 9,180,636 10,099,800 919,164 10.0% Note 2021 based on 11 months Bureau of Labor Statistics Employment In the Big Three 2015-2021 41 41 In March of 2020 (immediately prior to COVID), California had 18.2 million jobs, a change of almost a million jobs since 2015 and had been adding more than a quarter million jobs annually (pre-COVID). In fact, the state had been adding more jobs each year than population. The state needs to add almost a half million jobs to return to pre-COVID levels. 3.9 When COVID hit California in Spring 2020, the unemployment rate jumped to 16.0%, but has now settled back down to 6.9%, almost pre-COVID levels. 3.10 Month Total Employment Change in Unemployment March 2020 18,193,000 n/a April 2020 15,507,400 (2,685,600) November 2021 17,719,400 2,212,000 Employment to Reach Pre- COVID Total 473,600 Source: CA EDD Employment Trends California March 2020 - November 2021 Month Unemployment Rate March 2020 5.1% April 2020 16.0% November 2021 6.9% Source: CA EDD Unemployment Rate California March 2020 - November 2021 42 42 Equally important, most sectors of the economy were growing with Professional and Business Services and Education and Health Services each gaining more than 60,000 jobs annually until COVID. 3.11 Overall, the state of California was a job machine until COVID and is gradually working its way back to prosperity. 3.3 The California Housing Market It is obvious that California has a housing shortage, at least near the coast. The Central and Imperial Valleys do not appear to have a shortage of housing. The permitting activity in residential construction passed the 100,000-unit level in California in 2016-2021. Category 2015 2021 Total Change Annual Change Professional & Business Services 2,452,400 2,765,600 313,200 62,640 Education & Health Services 2,505,500 2,813,400 307,900 61,580 Construction 731,800 890,200 158,400 31,680 Information 470,400 560,300 89,900 17,980 Financial Activities 781,300 813,300 32,000 6,400 Manufacturing 1,288,200 1,270,900 (17,300) (3,460) Government 2,483,500 2,451,700 (31,800) (6,360) Leisure & Hospitality 1,774,300 1,723,000 (51,300) (10,260) Total 12,487,400 13,288,400 801,000 160,200 Source: U.S. Bureau of Labor Statistics Economic Drivers California December 2015-December 2021 43 43 3.12 The supply of new homes available for owner-occupancy in California has continued to be below demand levels as the owner-occupancy rate continues to decline and is among the lowest in the Nation at 55%. The National average is 64%. 3.4 Non-Residential Construction 2020 was a very strong year for non-residential construction in California, totaling $38 billion. Data for 2021 is not yet available. Year Total SFD MF 2012 59,638 27,558 32,080 2013 85,472 36,991 48,481 2014 85,844 37,089 48,755 2015 98,233 44,896 53,337 2016 100,265 49,254 51,011 2017 110,000 56,000 54,000 2018 117,079 62,236 54,843 2019 119,985 79,486 40,499 2020 105,925 60,824 45,101 2021 (1)120,000 75,000 45,000 Average 2012-2015 82,297 36,634 45,663 2016-2020 110,651 61,560 49,091 (1) Projected Source: U.S. Census Residential Building Permits California 2012-2021 44 44 3.13 The number of employees in California engaged in non-residential construction is shown here – a very steady rise: Source: FRB St. Louis 3.14 We are convinced that California remains an economic juggernaut with its best days still to come. Year $ Millions Change % Change 2010 11,200$ n/a 2011 12,991$ 1,791$ 16.0% 2012 14,679$ 1,688$ 13.0% 2013 22,401$ 7,722$ 52.6% 2014 23,706$ 1,305$ 5.8% 2015 26,263$ 2,557$ 10.8% 2016 27,389$ 1,126$ 4.3% 2017 28,873$ 1,484$ 5.4% 2018 33,571$ 4,698$ 16.3% 2019 32,246$ (1,325)$ -3.9% 2020 38,300$ 6,054$ 18.8% Source: CHF & constructconnect Non-Residential Construction $ Billions California 2010-2020 45 45 Section 4: The NAFTA Countries In Section 4, we focus on doing business with the NAFTA countries and the volume of cross-border transportation. 4.1 Doing Business with the NAFTA Countries Mexico and Canada combined remain the top two export countries for California goods. In the 2015-2020 period, U.S. exports to the top ten countries increased but decreased due to COVID in 2020. Importantly, Mexico and Canada account for almost one-third of California’s total exports. Data for 2021 has not been released. The Far East, including China, Japan, South Korea, Hong Kong and Taiwan combined also account for one-third of California’s exports. 4.1 Of the top ten items exported, seven fall into the category of technology based, mostly related to transportation. Rank Country 2015 Value 2016 Value 2017 Value 2018 Value 2019 Value 2020 Value Change 2015- 2020 % Change 1 Mexico 26,788 25,260 26,773 30,763 27,965 24,078 -2,710 -10% 2 Canada 17,262 16,233 16,843 17,698 16,696 15,923 -1,339 -8% 3 China 14,384 14,323 16,432 16,339 15,848 15,022 638 4% 4 Japan 11,743 11,759 12,830 13,030 11,887 10,651 -1,092 -9% 5 Korea, South 8,683 8,211 9,589 9,975 9,199 9,784 1,101 13% 6 Hong Kong 8,761 9,662 12,109 9,906 8,424 6,330 -2,431 -28% 7 Taiwan 7,727 6,987 6,326 6,831 7,224 7,397 -330 -4% 8 Germany 5,344 5,350 6,038 6,592 6,439 6,477 1,133 21% 9 Netherlands 5,634 5,457 5,785 6,429 6,409 5,673 39 1% 10 India 4,568 5,129 5,014 6,122 5,636 4,974 406 9% Source: Census.gov, Foreign Trade Exports from California ($Millions) Top 10 Countries 2015-2020 46 46 4.2 4.2 The Baja Influence The state of Baja California’s population has been growing steadily and has now surpassed San Diego County. Of the total, 2.2 million live in Tijuana. The population of Tijuana since 2000 has been growing at a pace of 30,000-40,000 persons annually, somewhat more than the growth pace of San Diego County. 4.3 Rank Descripiton Millions 1 Motor Vehicles (Tesla)5,651$ 2 Civilian Aircraft Engines & Parts 4,991$ 3 Machines & Apparatus for the Mfg. of Semi Conductors 4,821$ 4 Electronic Integrated Circuits 3,864$ 5 Machines for the Reception, Conversion & Transmission 3,790$ 6 Almonds 3,364$ 7 Diamonds (including polishing)3,198$ 8 Machines & Apparatus for Mfg.3,050$ 9 Composite Diagnostic or Lab Reagents 2,856$ 10 Parts & Accessories for automatic data processing 2,475$ Source: Census, state exports Exports from California Top Commodities 2020 Year Population Change Year Population Change 1990 811,688 n/a 1990 1,660,855 n/a 2000 1,364,918 553,230 2000 2,487,367 826,512 2010 1,725,140 360,222 2010 3,155,070 667,703 2021 (F)2,181,000 455,860 2021 (F)3,769,000 613,930 Source: World Population Review Tijuana Baja California Population Tijuana & Baja California 1990-2021 47 47 Baja California’s economy is driven by five industries, the largest, by far, is the maquiladora plants with more than 200,000 employees, more than half of them in Tijuana. The other four industries are agriculture, tourism, wine, medical tourism and manufacturing. Manufacturing comprises about 20% of the Baja California economy. Medical tourism is typically Americans going to foreign countries for medical procedures, thereby saving substantial amounts. Several major insurance companies are now covering operations in countries like Mexico. Tijuana, with its broad range of surgeons and dentists that are U.S. educated, has become a mecca for medical tourism. The manufacturing sector focuses on five areas: aerospace, medical devices, automotive, electronics and contract manufacturing. Tijuana is the maquiladora center of Mexico with more than 600 factories employing 115,000 workers. Reportedly, 50% of the companies operating in Tijuana have a presence in San Diego County. Industrial space development in Tijuana is increasing. Amazon recently completed a 350,000 square foot facility. A 538,000 square foot building has also been completed. The two border crossings (San Ysidro and Otay Mesa) combined are the busiest land border crossing in the western hemisphere. San Ysidro Border Crossing San Ysidro, until COVID, accounted for 15.0 million personal vehicle crossings annually and more than 10.0 million pedestrian crossing. In 2020 and 2021, personal vehicle and pedestrian crossings have declined substantially with the greatest loss in pedestrian crossings. 4.6 Category 2018 2019 2020 2021 (1) Personal Vehicles 14,505,306 14,979,363 11,775,960 11,494,917 Pedestrians 94,359,611 10,799,398 5,043,034 4,218,126 (1) thru October 2021 Source: U.S. Dept. of Transportation Inbound Traffic San Ysidro Border 2018-2021 48 48 Our clients who have retail establishments in San Ysidro report declines in business of at least 50% and some more than that. The 905 Otay Mesa Port of Entry The Otay Mesa POE has become the busiest California-Mexico commercial border crossing with more than $50 billion in goods passing through it annually. Caltrans projects that by 2030, there will be 900,000 northbound commercial vehicles passing through the POE. 4.7 Northbound truck border crossings at the Otay Mesa Port of Entry have not had a significant decline in 2020 and 2021, but there has been a significant decline in passenger vehicles. 4.8 The governments of California and Mexico have signed an agreement to deliver a new border crossing at Otay Mesa by late 2024 (Otay Mesa East). The new gate Year Private Vehicles Trucks 2018 7,708,214 962,577 2019 6,584,442 948,630 2020 4,804,274 927,714 2021 (1)4,250,965 855,947 (1) thru October Northbound Vehicle Crossings Private Vehicles and Trucks Otay Mesa Port of Entry 2018-2021 49 49 would have a toll charge but reduce wait time to 20 minutes. There will be five gates for passenger vehicles and five for trucks. The aerial below shows the development progress in the Otay Mesa East area. 4.9 50 50 Section 5: The San Diego County Economy In this section, we discuss the population and employment changes in San Diego County. San Diego remains the second largest county in the state, second only to Los Angeles County: 5.1 5.1 Population Change, San Diego County The population growth of San Diego County has gradually slowed over the past several years. In 2020, the Census population was 3,298,634. Based on SANDAG’s 2015 estimates, the County added an average of 6,719 persons annually from 2015-2020. It is possible that SANDAG’s 2015 estimates will be adjusted when they modify them to correspond with the 2020 Census. In any event, the population growth has slowed. Note: The detailed statistics from the 2020 Census are not yet available at the time of this report. For most statistics, we are relying on SANDAG and the California Department of Demographics. Rank County Population 1 Los Angeles 10,014,009 2 San Diego 3,298,634 3 Orange 3,186,989 4 Riverside 2,418,185 5 San Bernardino 2,181,654 Source: 2020 Census Most Populous Counties California 2020 51 51 5.2 The state’s Department of Demographics projects that the County will grow by approximately 25,000 persons annually over the next 20 years. The actual population growth will depend on four principal factors: • The number of new jobs created; • Immigration from south of the border and the far east; and • Out-migration due to the cost of housing • Production of housing Year Population 2015 3,265,039 2020 3,298,634 Change 2015- 2020 No.33,595 Annual 6,719 %1.0% Source:Census.gov; 2020 Census; SANDAG Population Change San Diego County 2015-2020 52 52 5.3 What is certain is that San Diego County is growing older, particularly in the 75+ year component of the population. Unless there is a major increase in the birth rate and substantial in-migration, approximately 60% of the County’s future growth will be persons over age 75. This aging group will drive the demand for retirement communities, nursing homes and health care. 5.4 Year No. 2020 3,298,634 2040 3,799,752 Change 2020-2040 501,118 Annual Change 25,056 % Change 15.2% Source: CA Dept of Demographics Population Projections San Diego County 2020-2040 Age Group 2020 2050 Change % Change Under 20 868,523 765,267 (103,256) -12% 20-34 752,370 807,095 54,725 7% 35-59 1,021,300 1,161,865 140,565 14% 60-74 471,350 536,157 64,807 14% 75+202,530 459,951 257,421 127% Total 3,316,073 3,730,335 414,262 12% % of Change over age 75 62% Source: CA DOF Population Population by Age Group San Diego County 2020-2050 53 53 The 35-59 year age group is responsible for substantial spending on homes, home furnishings and other big ticket items and the millennials will drive the rental housing and car sale market. Ethnicity As of the 2020 Census, the County’s population is 46% non-Hispanic white, 34% Hispanic, 12% Asian and 5% black. 5.5 Looking out to the SANDAG 2050 forecast, there will be a significant change in the composition of the population with the Hispanic population accounting for most of the population gain with the non-Hispanic white population losing more than a quarter million people. Ethnicity 2020 % Change 2020- 2050 Non-Hispanic White1,510,756 46% Hispanic 1,117,517 34% Asian 385,657 12% Black 156,084 5% Other 128,620 4% Total 3,298,634 100% Source: SANDAG Ethnicity Distribution San Diego County 2020 54 54 5.6 5.2 Employment and Economic Situation From 2015 through 2018, the County’s non-farm employment grew by 30,000+ each year. There was a noticeable slowdown in 2019, but the County did add more than 20,000 jobs in that year. And then, COVID. In 2020, the County lost 84,900 jobs. 5.7 Ethnicity 2020 2050 Change 2020-2050 Percentage Change % of Change Non-Hispanic White 1,510,756 1,230,375 (280,381) 46%-36% Hispanic 1,117,517 1,883,763 766,246 34%99% Asian 385,657 577,559 191,902 12%25% Black 156,084 150,153 (5,931) 5%-1% Other 128,620 226,909 98,289 4%13% Total 3,298,634 4,068,759 770,125 100% Source: SANDAG Ethnicity Distribution San Diego County 2020-2050 Year Employment Change 2015 1,384,800 40,100 2016 1,422,600 37,800 2017 1,452,200 29,600 2018 1,482,200 30,000 2019 1,503,900 21,700 2020 1,419,000 (84,900) Source: U.S. BLS Non-Farm Employment San Diego County 2015-2020 55 55 And then, most obviously, job growth ground to a halt in 2020 as COVID caused the economy to falter as can be seen in the following graph: 5.8 From September 2019’s 3.0% unemployment rate, unemployment skyrocketed to 15.9% in April 2020 and now has gradually receded to the 5.4% level in November. Thus, gradually, the total job count has recovered. 5.9 Month Unemployment Rate Sep-19 3.0% Apr-20 15.9% Sep-20 9.6% Jan-21 8.0% Oct-21 5.6% Nov-21 4.6% Source: BLS.gov Unemployment Rate San Diego County Sept 2019-Nov 2021 56 56 The job losses were not evenly spaced throughout the economy. Far from it. The Leisure and Hospitality industries suffered the most, actually accounting for more than half of total job losses. 5.10 In terms of educational attainment, San Diego County has one of the highest percentages of persons with a bachelors’ degree or higher, at 36.5% compared to the state average of 32.0%. Job Type Nov-20 Nov-21 Change 11/2020- 11/2021 Leisure & Hospitality 141,300 169,800 28,500 Construction 85,000 89,400 4,400 Professional & Business Services 250,900 261,700 10,800 Educational & Health Services 211,600 217,700 6,100 Manufacturing 113,200 113,100 (100) Financial Activities 74,000 71,700 (2,300) Government 237,400 241,900 4,500 Trade, Transportation & Utilities 217,700 209,300 (8,400) Source: BLS.gov Selected Employment Categories San Diego County November 2020-November 2021 57 57 5.11 Coinciding with the higher level of education is the number of workers in science and engineering: number 2 in the Nation, trailing only San Jose (Silicon Valley). 5.12 Attainment S.D.County California Less than H.S.13.6%17.8% H.S. Graduate 18.8%20.7% Jr. College 8.7%7.8% Some College 22.4%21.7% Bachelors Degree 22.5%20.1% Masters 9.2%8.0% Professional or Doctorate 4.8%3.9% Bachelors Degree or Higher 36.5%32.0% Total 100.0%100.0% Source: Statisticalatlas.com Educational Attainment San Diego County & California Percent Rank Metro Arch.& Engring Science Total 1 San Jose 48.3 10.5 58.8 2 San Diego 29.9 15.1 45.0 3 Boston 23.9 19.7 43.6 4 Seattle 29 11.2 40.2 5 Portland 31.3 8.6 39.9 6 Peer Avg.27.9 11.8 39.7 7 San Francisco 22.5 16.1 38.6 8 Denver 26.1 10 36.1 9 Baltimore 22.3 11.1 33.4 10 Austin 24 8.6 32.6 Source: San Diego Economic Development Corp. Workers in Science & Engineering Occupations Per Thousand Workers 58 58 5.3 Income of the Population The most recent SANDAG estimates show a median household income of $82,538. More than one-third of the households have an income of more than $100,000. The percent of the households with an income over $100,000 has increased 37% since the 2010 Census. 5.13 5.4 Assessed Valuation Indicative of the strength of the economy is the continual increase in real property assessed valuation. Values have typically increased 5-6% per annum, except that 2017-2018 was a particularly bullish year. This year’s assessed values were up 5.2%. Of particular note is that since the 2014-2015 assessment, real estate values in San Diego County have increased 50%. Range 2010 2020 Change % Less than $30,000 266,457 229,665 (36,792) -13.8% $30,000-44,999 153,011 133,602 (19,409) -12.7% $45,000-74,999 235,088 237,073 1,985 0.8% $75,000-99,999 142,638 160,997 18,359 12.9% $100,000+289,672 398,099 108,427 37.4% Total 1,086,866 1,159,436 72,570 6.7% Median 63,586$ 72,239$ % Change % over $100,000 26.7%34.3% Source: SANDAG Number of Households by Income San Diego County 2010-2020 59 59 5.14 5.5 Gross Domestic Product The GDP of San Diego County has grown steadily with average annual gains over the past several years in the 5-6% range. This is twice the growth rate in the U.S. economy; however, the San Diego County Association of Governments has projected that due to COVID that the GDP of the County will lose 4.8% in 2020. The 2021 GDP will not available until mid-2022. 5.15 FY Millions Change % Change 2014-2015 404,699$ n/a n/a 2015-2016 427,932$ 23,233$ 5.7% 2016-2017 451,659$ 23,727$ 5.5% 2017-2018 512,374$ 60,715$ 13.4% 2018-2019 543,681$ 31,307$ 6.1% 2019-2020 574,962$ 31,281$ 5.8% 2020-2021 604,750$ 29,788$ 5.2% Source: San diego County Assessor Assessed Valuation Real Estate San Diego County 2014-2021 Year GDP Change % Change 2014 201,195,000$ n/a n/a 2015 213,188,000$ 11,993,000$ 6.0% 2016 219,932,000$ 6,744,000$ 3.2% 2017 230,789,000$ 10,857,000$ 4.9% 2018 245,138,000$ 14,349,000$ 6.2% 2019 257,394,900$ 12,256,900$ 5.0% 2020 (F)245,000,000$ (12,394,900)$ -4.8% Source: FRED St. Louis; SANDAG Gross Domestic Product (GDP) San Diego County 2014-2020 60 60 Section 6: The San Diego County Housing Market In this section is a discussion of the current and future state of the San Diego County housing market. 6.1 Owner/Renter Tenure In most of the Nation, the owner/renter tenure is 2/3 owned and 1/3 rented. In some mid-western states, ownership tenure is more than 70%. Going back as far as 1980, in San Diego County, the ratio has not changed much. It is typically 53-55% owned and 44-47% rented. There is no reason to expect that the San Diego County ownership ratio will approach the National average, particularly given the local price of housing. It is important to note that 85% of property owners receive the benefit of Prop.13. 6.1 Year Total Owner Renter Owner Renter 1980 641,188 358,614 282,574 56%44% 2000 994,677 551,461 443,216 55%45% 2010 1,086,865 591,025 495,840 54%46% 2019 1,224,375 650,143 574,232 53%47% 2020 1,237,479 682,279 555,200 55%45% Source: American Fact Finder; Census Bureau, 1980 Census No. Households % Tenure Household Tenure San Diego County 1980-2020 61 61 6.2 Composition of the Housing Inventory The current inventory of the County housing market consists of 1,160,890 units, half of them detached; 16.5% condominiums; 31.2% apartments and 2.2% mobile homes. 6.2 Total 2011 Mobile Homes 23,295 Single Family 555,597 Multi-Family 347,929 Condominiums 179,852 Total 1,106,673 2021 Mobile Homes 25,285 Single Family 578,004 Multi-Family 365,697 Condominiums 191,904 Total 1,160,890 Change 2011-2021 Mobile Homes 1,990 Single Family 22,407 Multi-Family 17,768 Condominiums 12,052 Total 2011-2021 54,217 Annual 5,422 % Change 4.9% Source: SD County Assessor Inventory: Number of Housing Units San Diego County 2011-2021 62 62 6.3 Recent and Current Housing Construction On the exhibit below, we show residential construction over the past two decades. Overall, the number of units permitted averaged 10,261 per year. The major difference over the two decades is the substantial decline in single family permits. In the first five years of this decade, single family homes accounted for 58% of total units permitted and in the past few years that percentage has declined almost in half. The multi-family category includes both apartments and condominiums. 63 63 6.3 The unit count is shown graphically in Exhibit 6.4: Year Total Single Family Multi- Family % Single Family 2000 15,592 9,111 6,481 58.4% 2001 15,405 10,048 5,357 65.2% 2002 13,684 8,775 4,909 64.1% 2003 18,031 9,217 8,814 51.1% 2004 15,590 9,056 6,534 58.1% 2005 14,215 7,485 6,730 52.7% 2006 9,194 4,746 4,448 51.6% 2007 7,458 3,423 4,035 45.9% 2008 5,132 2,160 2,972 42.1% 2009 2,945 1,777 1,168 60.3% 2010 3,494 2,270 1,224 65.0% 2011 5,370 2,245 3,125 41.8% 2012 5,687 2,198 3,489 38.6% 2013 8,264 2,565 5,699 31.0% 2014 6,871 2,478 4,393 36.1% 2015 9,893 3,253 6,640 32.9% 2016 10,666 2,341 8,325 21.9% 2017 10,415 4,058 6,357 39.0% 2018 9,788 3,510 6,278 35.9% 2019 8,082 3,023 5,059 37.4% 2020 9,447 2,898 6,549 30.7% 2021 (P)9,358 3,232 6,126 34.5% Average 2000-2005 15,420 8,949 6,471 58.0% Average 2006-2014 6,046 2,651 3,395 43.9% Average 2015-2021 9,664 3,188 6,476 33.0% Total 214,581 99,869 114,712 46.5% Average 10,729 4,993 5,736 46.5% Source: Census Bureau 2010-2020; projections Xpera Group Residential Construction 2000-2020 San Diego County Summary 64 64 6.4 6.4 Projections for Residential Construction As we look out over the next few years, we foresee several changes occurring in the San Diego County housing market once the pandemic has run its course. • As a result of a major increase in shovel-ready dirt, predominantly in south County and in the Rancho Penasquitos area along I-15 and along Highway 78 in north county, there will be a substantial increase in overall developable land supply in the next few years; • A number of the new projects will be on the grounds of failed golf courses. To date, housing communities have been approved on five golf courses. In addition, the golf course at Carlton Oaks in Santee will be redesigned by Lennar and rebuilt along with 243 homes. 65 65 6.5 In the past decade, almost all master-planned community development has been in South County. On the exhibit that follows we show the new master-planned communities that are in development in north San Diego County. Course Status Plan for Future Escondido CC Closed 2013 148 homes on 24.2 acres Carmel Highlands Closed 2015 Junipers 536 55+ homes and 331 Apts. Stoneridge Closed 2017 160 SFD Carmel Mtn. Ranch Closed 2018 451 TH, 543 mkt-rate apts; 78 afforable apts., 128 combo apts. Riverwalk Golf Club To Close 2021 4,000+ res'l units and 1.0 MM SF office Cottonwood Open Sand Mine San Luis Rey Downs Closed 2014 to become land mitigation bank & park Fallbrook Closed 2016 Winery Auld / Salt Creek Golf Club Closed 2019 Uncertain; Owned by Otay Water District Borrego Springs Closed 2020 Uncertain Recent Closings and Redevelopment Golf Courses San Diego County 2013-2020 66 66 6.6 Looking to Future Development • There will be a concerted countywide effort to encourage higher density in urban areas, particularly those within a 20-30 minute drive of downtown San Diego; however neighborhood resistance will delay the development of these areas, some indefinitely. • Having said that, the state and federal government may enact legislation that takes power away from community groups and encourages higher densities, particularly near transit lines. The newly enacted SB 9 & 10 may prove effective in this regard. Based on calculations by SANDAG, San Diego County has a housing shortage of 100,000 housing units. Xpera Group is certain that there is a housing shortage, and it is possible that it is approaching 100,000 units, but even if 100,000 is an aggressive calculation, there is definitely a shortage, mostly of work force housing – sale and rental housing appropriate for the mainstream of San Diego households. Acres Name of Community Master Developer Locale Status Total Homes 56 Corridor 3 Roots - Sorreno Mesa Lennar, Shea & California West 56 Corridor Active 413 1,800 Merge 56 Seabreeze 56 Corridor Active 40 242 Trails at Carmel Mountain Ranch (1)New Urban West 56 Corridor On Hold 164 1,200 Junipers (55+) Lennar 56 Corridor On Hold 112 536 Total 3,778 78 Corridor North City Seabreeze 78 Corridor Active 200 3,400 Citro TriPoint Homes 78 Corridor Active 390 844 Park Circle Touchstone 78 Corridor Active 180 632 Bonsall Oaks Bonsall Oaks LLC 78 Corridor Active 450 250 Total 5,126 Total 8,904 New Master-Planned Communities North of I-8 San Diego County Fall 2021 67 67 We project an average of 8,000-9,000 new units per year with a slight reduction in detached production because of our belief that the inventory of lots will gradually ebb. And, conversely, we foresee an increase in multi-family production, both for sale and for rent. These projections are based on continuing low interest rates. We believe that rates will remain low because it will be imperative for this new administration to increase the GDP and rising interest rates would be contrary to that cause. Having said that, in order to deflate the current inflation, it may be necessary to raise interest rates to the 4.0% level or slightly higher. 6.5 The Price of Existing Housing A recent study by Core Logic determined equity gains in owner-occupied housing in the past year. The study determined that California had an average equity gain of $116,000 and San Diego County’s gain averaged $151,000. 6.7 The price of existing housing continues to escalate in San Diego County, both for detached and attached housing. At year-end 2021, the median price of a detached home was $850,000 and an attached home $575,000. The prices of resale detached and attached homes increased 19.7% and 25.0%, respectively. Average Homeowner Gained $51.5K in Equity Last Year 68 68 6.8 The detached home selling for under $500,000 is quickly fading away. This past year, detached homes under $500,000 accounted for only 10% of total detached home sales. Homes priced over $750,000 had a vibrant buyer reception as did most attached for sale housing. 6.9 Type Detached Attached Yr. End 2019 646,000$ 428,400$ Yr. End 2020 710,000$ 460,000$ Yr. End 2021 850,000$ 575,000$ Change 2019-2020 64,000$ 31,600$ 2020-2021 140,000$ 115,000$ % Change 2019-2020 9.9%7.4% 2020-2021 19.7%25.0% Source: SDAR Change in Home Prices San Diego County 2019-2021 Median Price Range 2020 2021 No.%2020 2021 No.% Under $500,000 3,063 889 (2,174) -71%7,378 6,262 (1,116) -15% $500,000-750,000 10,641 9,034 (1,607) -15%3,169 5,116 1,947 61% $750,000-1,000,000 4,492 7,080 2,588 58%847 1,553 706 83% Over $1,000,000 5,128 7,941 2,813 55%703 1,316 613 87% Total 23,324 24,944 1,620 7%12,097 14,247 2,150 18% Source: SDAR No. Homes Change in No. Homes Change in Homes Sold by Price Range San Diego County Rolling Twelve Month Average Year End 2020-2021 Detached Attached 69 69 The shrinking inventory of existing homes on the market is responsible for the unusual increase in prices along with the low interest rates. 6.10 6.6 A Longer Term View There has been substantial press lately on the anticipated explosion of homes on the market being sold by the ever-increasing over 65 market. In San Diego County, there is an obvious increase in the number of seniors; however, we can state with certainty that 85% of seniors die in their current home. One of the reasons for that is that the County has a virtual absentia of housing for the senior market. Unlike cities like Tampa, Miami, Palm Desert and Phoenix, San Diego has a dearth of sale housing aimed at the senior market. Therefore, they will stay put, unless they need an assisted living facility. And, in that event, if there is a living spouse, the spouse usually remains in the house. Based on the 2017 U.S. Census American Community Survey, 19.1% of owner- occupied homes in the County are owned by persons over age 65. And there are only 21,732 homes occupied by persons living alone. Indicator Dec-20 Dec-21 Detached Days on Market Until Sale 27 22 Inventory of Homes for Sale 2,874 938 Months Supply of Inventory 1.4 0.5 Attached Days on Market Until Sale 25 21 Inventory of Homes for Sale 2,232 394 Months Supply of Inventory 2.2 0.3 Source: SDAR Market Indicators San Diego Inventory Year-End 2020-2021 70 70 6.11 New medical technologies that didn’t exist last decade are keeping more seniors at home. “Aging in place” has become more commonplace, effectively reducing the supply of housing. 6.7 Foreclosure Activity Substantial press has been given to the subject of foreclosures, given the COVID pandemic and loss of jobs, but the exhibit that follows refutes that situation in San Diego County. 6.12 Household Type 65+Under 65 Total % Over 65 Family Households 90,658 348,441 439,099 20.6% Household with Only Male Present 5,168 69,873 75,041 6.9% Households with Only Female Present 16,564 34,584 51,148 32.4% Total 112,390 476,754 589,144 19.1% Source: Census ACS 2017 Owner-Occupied Housing by Age of Owner San Diego County 2017 71 71 6.13 Housing Type 2020 2021 Single Family 195 75 Condos/TH 109 29 Total 304 104 Source: SDAR Lender-Mediated Properties San Diego County 2020-2021 72 72 Section 7: The Future of South San Diego County Section 7 looks at the future of South San Diego County as an integral part of San Diego County. Section 7.1: Population and Housing in the OWD Service Area The Otay Water District Area encompasses 125 square miles and services an estimated 225,000 persons. Most of the area served is within the City of Chula Vista with the balance in the unincorporated area of San Diego County. 7.1 In 2021, the District served 51,000+ customers with potable water and has a continual rise in customers. 73 73 7.2 The exhibit below reports meter sales for the past three years: 7.3 Year Customers Change % Change from Previous Year 2012-2013 48,962 n/a n/a 2013-2014 49,148 297 n/a 2014-2015 49,308 160 0.3% 2015-2016 49,425 117 0.2% 2016-2017 49,502 77 0.2% 2017-2018 50,045 543 1.1% 2018-2019 50,555 510 1.0% 2019-2020 50,994 439 0.9% 2020-2021 51,204 210 0.4% Source: OWD Customers Served Potable Water Otay Water District 2012-2021 Year Potable Recycled Total 2017 109 3 112 2018 574 14 588 2019 463 12 475 2020 302 4 306 2021 270 27 297 Source: OWD Meter Sales by Type Potable Water Otay Water District FY 2017-2021 74 74 7.2 Population and Residential Units in Chula Vista As Chula Vista is the largest city in South County and the OWD encompasses most of the City east of I-805, we think it is appropriate to note the City’s growth pattern in recent years. The following graph outlines the boundaries of the City of Chula Vista. The City includes the Otay Ranch developable area. 7.4 In the following exhibit, the population growth pattern in the years 2000-2020 changed dramatically by time period. There was a major burst of population gain as a result of the housing boom of the early 2000’s, followed by the major recession of 2007-2009. The recent supply of “shovel ready” dirt has resulted in a steady increase in annual population since 2015. 75 75 7.5 As of 2020, there were an estimated 87,693 residential units in Chula Vista, an increase of 5,194 units since 2015. 7.6 The persons per household have remained stable at 3.13, according to the California Department of Finance, Demographics Section. Year Population Total Annual Increase 2015 261,989 2,317 2016 263,332 1,343 2017 265,523 2,191 2018 268,060 2,537 2019 271,411 3,351 2020 274,492 3,081 Source: Ca Department of Finance & Census.gov Chula Vista City of Chula Vista Population 2015-2020 . Year 2015 2016 2017 2018 2019 2020 Change 2015- 2020 Annual Change 2015- 2020 Single Family 44,990 45,034 45,117 45,211 45,780 46,588 1,598 320 2-4 Units 13,100 13,127 13,182 13,242 13,451 13,800 700 140 5+ Units 20,344 20,485 21,042 21,692 22,239 23,240 2,896 579 Mobile Homes 4,065 4,065 4,065 4,065 4,065 4,065 - Total 82,499 82,711 83,406 84,210 85,535 87,693 5,194 1,039 Source: CA Department of Finance Residential Units City of Chula Vista 2015-2020 76 76 7.7 7.3 Projections of Population Growth in Chula Vista Based on SANDAG’s forecasts, the City of Chula Vista will expand to 345,586 population by the year 2050. 7.8 SANDAG is projecting that the City of Chula Vista will add 3,681 housing units annually in the 2020-2035 timeframe, 38% of the County total. After that, Chula Vista will have exhausted its land supply and reduce its share of the County housing units in the 2035-2050 to 19.5%. Year Population Housing Units Persons/HH 2015 261,989 82,499 3.18 2016 263,332 82,711 3.18 2017 265,523 83,406 3.18 2018 268,060 84,210 3.18 2019 271,411 85,535 3.17 2020 274,492 87,693 3.13 Source: CA DOF Persons Per Household City of Chula Vista 2015-2020 Year City Change 2020 274,492 n/a 2035 326,625 52,133 2050 345,586 18,961 Source: SANDAG Population Forecast City of Chula Vista 2020-2050 77 77 7.9 7.4 Residential Units Permitted From 2016 to 2020, the residential permit count was over 1,000 units in Chula Vista. There was a major surge of single family construction in 2017 and 2018 as a result of numerous lots being completed. As those lots produced in that timeframe were absorbed, the number of single family produced in 2019 declined, awaiting the development of more lots in 2020, and the single family home production in 2021 was a lackluster 291 units. 2021 was a bonanza year for multi-family production in Chula Vista. In 2021, units permitted totaled 1,465. Multi-family production was vibrant in 2021 in Chula Vista, mostly related to two major apartment projects: Ryan’s 480-unit Avalyn apartments and Chelsea’s 200-unit Columbia affordable apartments. In the future, it is likely that single-family detached homes will continue to be an incrementally smaller share of the units permitted as developers have found it difficult to produce detached homes at prices that would be accepted by the marketplace. But multi-family production should be vigorous. Year City County City as % of County 2020 271,411 1,249,684 21.7% 2035 326,625 1,394,783 23.4% 2050 345,586 1,491,935 23.2% Total Change 2020-2035 55,214 145,099 38.1% 2035-2050 18,961 97,152 19.5% Annual Change 2020-2035 3,681 9,673 38.1% 2035-2050 1,264 6,477 19.5% Source: SANDAG Housing Unit Forecast City of Chula Vista & San Diego Co. 2020-2050 78 78 7.10 In terms of share of the County-wide market, Chula Vista’s output of detached homes has been fairly erratic the past decade but has stabilized in the 2019-2021 timeframe. The multi-family sector has been equally erratic and in 2021 accounted for an unusually large 83% of all units permitted in the County. Year Total Single Family Multi- Family % SFD % MF 2010 517 296 221 57%43% 2011 728 394 334 54%46% 2012 799 304 495 38%62% 2013 630 269 361 43%57% 2014 475 156 319 33%67% 2015 689 89 600 13%87% 2016 1,050 86 964 8%92% 2017 1,073 563 510 52%48% 2018 1,882 644 1,238 34%66% 2019 839 282 557 34%66% 2020 1,100 222 878 20%80% 2021 1,756 291 1,465 17%83% Source: City of Chula Vista & CIRB Residential Building Permits City of Chula Vista 2010-2021 79 79 7.11 7.5 Resale Home Sales and Prices – South County The resale market in south county remains vibrant. The map below identifies the south County zip codes. 7.12 Year Total Single Family Multi- Family Total Single Family Multi- Family Total Single Family Multi- Family 2010 3,494 2,270 1,224 517 296 221 14.8%13.0%18.1% 2011 5,370 2,245 3,125 728 394 334 13.6%17.6%10.7% 2012 5,687 2,198 3,489 799 304 495 14.0%13.8%14.2% 2013 8,264 2,565 5,699 630 269 361 7.6%10.5%6.3% 2014 6,871 2,478 4,393 475 156 319 6.9%6.3%7.3% 2015 9,893 3,253 6,640 689 89 600 7.0%2.7%9.0% 2016 10,666 2,341 8,325 1,050 86 964 9.8%3.7%11.6% 2017 10,415 4,058 6,357 1,073 563 510 10.3%13.9%8.0% 2018 9,788 3,510 6,278 1,882 644 1,238 19.2%18.3%19.7% 2019 8,082 3,023 5,059 839 282 557 10.4%9.3%11.0% 2020 9,447 2,898 6,549 1,100 222 878 11.6%7.7%13.4% 2021 9,358 3,232 6,126 1,756 291 1,465 18.8%9.0%23.9% Source: Census.gov Residential Permits Chula Vista & San Diego County 2010-2021 SD County Chula Vista CV as % of County 80 80 Within the seven ZIP codes identified here, there were a total of more than 3,000 resale units sold in calendar year 2021: 7.13 The resale housing market in the Otay Ranch remains buoyant. Detached and attached homes increased each year from 2019 through 2020 with a slight fallback in 2021, as shown here: ZIP Area Total SFD SFA 91902 Bonita 214 162 52 91910 Chula Vista No.572 412 160 91911 Chula Vista So.474 342 132 91913 Chula Vista Eastlake 819 461 358 91914 Chula Vista NE 204 156 48 91915 Chula Vista SE 571 278 293 92154 Nestor Otay Mesa 601 361 240 Total 3,455 2,172 1,283 Source: SDAR Closed Sales Closed Sales Detached & Attached homes Southern Sector San Diego County YE 2021 81 81 7.14 Prices in most of the ZIP codes increased 15.0% or more with some ZIPs increasing 20-25%, substantially above the past year. We do not think that rate of gain will continue in 2021. We anticipate that the increase in home prices in 2021 will be in the range of 8-10%. ZIP Area SFD SFA SFD SFA SFD SFA 91902 Bonita 157 37 211 57 162 52 91910 Chula Vista No.366 134 483 180 412 160 91911 Chula Vista So.325 144 463 154 342 132 91913 Chula Vista Eastlake 445 317 497 392 461 358 91914 Chula Vista NE 179 54 208 89 156 48 91915 Chula Vista SE 267 253 313 306 278 293 92154 Nestor Otay Mesa 323 171 405 247 361 240 Total 2,062 1,110 2,580 1,425 2,172 1,283 Total SFD & SFA 3,172 4,005 3,455 Source: SDAR Closed Sales Detached & Attached homes Southern Sector San Diego County CY 2019-2021 202120192020 82 82 7.15 7.6 Future Growth in South County Since our first OWD forecast in 2013, there has been substantial commercial/residential activity in the OWD service area and still much more to come. In the exhibit below, we have listed the transportation-related projects that are in the pipeline or have been recently completed: the Otay Mesa Crossing, an expansion of the Cross Border Express, initiation of a 26-mile South Bay Rapid Transit Bus Route and expansion of the Tijuana Air Cargo Logistics Park. ZIP Area 2019 2020 2021 Change % Change Change % Change 91902 Bonita 701,000$ 785,000$ 942,500$ 84,000$ 12.0%157,500$ 20.1% 91910 Chula Vista No.560,000$ 601,500$ 750,000$ 41,500$ 7.4%148,500$ 24.7% 91911 Chula Vista So.511,999$ 570,000$ 671,500$ 58,001$ 11.3%101,500$ 17.8% 91913 Chula Vista Eastlake 610,000$ 655,000$ 800,000$ 45,000$ 7.4%145,000$ 22.1% 91914 Chula Vista NE 774,900$ 803,500$ 1,002,500$ 28,600$ 3.7%199,000$ 24.8% 91915 Chula Vista SE 615,000$ 650,000$ 785,000$ 35,000$ 5.7%135,000$ 20.8% 92154 Nestor Otay Mesa 520,000$ 580,000$ 670,000$ 60,000$ 11.5%90,000$ 15.5% ZIP Area 2019 2020 2021 Change % Change Change % Change 91902 Bonita 397,500$ 342,500$ 444,197$ (55,000)$ -13.8%101,697$ 29.7% 91910 Chula Vista No.370,000$ 380,000$ 472,500$ 10,000$ 2.7%92,500$ 24.3% 91911 Chula Vista So.350,000$ 375,000$ 435,000$ 25,000$ 7.1%60,000$ 16.0% 91913 Chula Vista Eastlake 405,000$ 435,000$ 530,000$ 30,000$ 7.4%95,000$ 21.8% 91914 Chula Vista NE 416,000$ 454,500$ 555,000$ 38,500$ 9.3%100,500$ 22.1% 91915 Chula Vista SE 435,000$ 461,507$ 590,000$ 26,507$ 6.1%128,493$ 27.8% 92154 Nestor Otay Mesa 375,000$ 407,000$ 490,000$ 32,000$ 8.5%83,000$ 20.4% 2019-2020 2020-2021 SF Detached SF Attached Sales Prices Detached & Attached homes Southern Sector San Diego County CY 2019,2020,2021 2019-2020 2020-2021 83 83 7.16 2021 was a very productive year for south San Diego County residential and commercial development. Perhaps the most notable event was the completion of the 3.4 million square foot Amazon distribution center in Otay Mesa. A second Amazon facility of 702,000 square foot is under construction across the street from the 3.4 million square foot facility. We have divided the projects report into two sectors: Projects that were completed in the 2017-2021 timeframe (shown above) and those that are in progress or planned for the next few years, shown here. Time Span Major Progress since last report 2017-2021 Completed Activity Category X X 26-mile South Bay Rapid Transit Bus Route - serving the Otay Ranch area - Now in Service Transportation X X Completion of Mesa de Otay II Port of Entry (20 northbound lanes)Transportation X X Cross Border Express with major plans for adjacent properties (2.9 million users in 2019)Transportation X X Development of 40-acre Sheriff's Vehicle Operations Course Employment X X Expansion Tijuana Air Cargo Logistics Park Matrix Transportation X X Substantial improvements in the San Ysidro crossing - Now Completed ($750 Million)Transportation X X Transfer of SR-125 to CalTrans; Major reduction in toll fees Transportation (1) not all projects are within the OWD service area Transportation Projects Completed Otay Water District Service Area South San Diego County 2017-2021 84 84 7.17 Projected 2021-2022 2023-2028 Projected Activity Category X Amazon Fulfillment Center - 3.4 M Sq.Ft.Employment X X Major commercial development on eastern side of Tijuana Employment X X Employment Growth along SR-125 and SR and 905 Employment X Goodwill Industries Employment X Development of St. Katherine University in Otay Ranch Education X Amazon Fulfillment Center - 700,000 Sq.Ft.Employment X Development of major employment center on both sides of SR11 (area has 4,000 acres, 40% of County's developable employment land)Employment X X Near completion of Eastern Urban Center (Millenia) development - 2,500 units Residences X X Build-out of additional housing on Otay Ranch (20,000+ units total)Residences X X Build-out of housing on Otay Mesa (10,000+ units)Residences X Salvation Army with 120 Beds Residences X X Sunroad to build 3,258 residential units and 765,000 s.f. of industrial space and 78,000 square feet of retail space on on its 253 acres - Now in JV with Majestic Realty Co.; 227,000 SF of industrial space completed Residences & Employment X Major reconfguration of Otay Town Center Residences X Sunbow to rezone from industrial to 700 apts. Residences X X Widening of La Media to six lanes btn. Route 905 and Siempre Viva Rd.Transportation X Completion of SR-11 Transportation X X Widening of I-805 - one additional lane in each direction, under way Transportation X Brown Field commercial traffic expansion; cargo volume increase Transportation X Third Border Crossing Transportation X Completion of 3 more interchanges on SR- 125 Tollway Transportation Planned Projects Effecting Otay Water District South San Diego County 2022-2028 85 85 Snapshots: Exhibits of substantial activity in the five projects near the border appear below: 1. Sunroad’s Residential/Commercial Development The industrial portion is now built out but there remains land to accommodate 3,154 residential units and retail space. Note, however, that the residential land is in escrow to a third party and will most likely build out 2,000-2,200 units rather than the 3,154 units allocated. 7.18 86 86 2. Cross Border Express 7.19 Until COVID, CBE was on target to serve 3.0 million in 2021, but COVID intervened. This past year the Cross Border Xpress received approval for an expansion plan that will include a parking garage (1st phase), a hotel, a gas station and retail shops. The third phase (no certain date) will complete the garage with 2,240 spaces, another 170 hotel rooms and 400,000 square feet of industrial space. 3. RIDA Convention Hotel In addition to the projects noted above, there is substantial activity on the western side of Chula Vista, including the $1.1 billion RIDA/Marriott 1,600 room hotel conference center on the Bayfront. The Center will include a 415,000 square foot convention center. They anticipate closing escrow on the land in 2022 and complete the project by 2025. The OWD does not serve this area. 87 87 7.20 4. Otay Mesa Completion SR-11 The completion of the SR-11 Otay Mesa Crossing is scheduled for 2021-2024. In 2021 there were two major studies completed that focus on Otay Mesa. The first is the National Freight Strategic Plan prepare by the U.S. Department of Transportation. The study provides a highly detailed analysis of freight movement on the U.S. borders. The plan notes that 30% of U.S. foreign trade is with Mexico. The second is the California Baja Masterplan. That plan focuses on Otay Mesa East, a map of which is shown here: 7.21 88 88 The exhibit below diagrams the construction program for Otay Mesa East, indicating a completion in the second quarter of 2024. 7.22 5.0 South Bay Rapid Transit In 2020, the Metropolitan Transit District initiated Rapid Bus Service from Otay Ranch to downtown San Diego. In 2023, they will have a new route from Otay Mesa to Imperial Beach via State Route 905 and Coronado Avenue. The District recently purchased electric buses for use on the new route. The route map below shows service from Otay Mesa to downtown. 7.23 89 89 7.7 Major Development in Otay Mesa Outside the OWD Service Area South of the 905 but outside the OWD Service Area are two major residential projects that will change the face of the 905 corridor: Pardee’s Southwest Village with 5,000+ units and Colrich’s 94-acre Central Village (EPOCA) with 2,000+ units. The EPOCA plans are in place for 1,112 sale and rental units to be built out by 2024. 7.24 Southwest Village is in active development by TriPointe (formerly Pardee). Ultimately, the project will have more than 5,000 housing units. The exhibit below notes the projects that are in the development stages now. Project Location No. Units Projected Yr. of Completion Airway Gardens (Silo) Phase 1 Britannia Blvd. & Airway Rd.160 2022 Mason 130 Rental Townhomes, Phase 1 (Mason)Epoca, Cactus Rd. at Airway 65 2022 Total 2022 225 Mason 130 Rental Townhomes, Phase 2 (Mason)Epoca, Cactus Rd. at Airway 65 2023 Ironwood Apartments, Phase 1 Epoca, Cactus Rd. at Airway 100 2023 Reed for sale Condos, Phase 1 Epoca, Cactus Rd. at Airway 59 2023 Willow, For Sale Condos, Phase 1 Epoca, Cactus Rd. at Airway 65 2023 Total 2023 289 Airway Gardens (Silo) Phase 2 Epoca, Cactus Rd. at Airway 294 2024 Epoca Affordable Housing (Sisal)Epoca, Cactus Rd. at Airway 119 2024 Ironwood Apartments, Phase 2 Epoca, Cactus Rd. at Airway 60 2024 Reed for sale Condos, Phase 2 Epoca, Cactus Rd. at Airway 59 2024 Willow, For Sale Condos, Phase 2 Epoca, Cactus Rd. at Airway 66 2024 Total 2024 598 Total 1,112 Projected Colrich Development EPOCA Airway/Britannia/905 2022-2024 90 90 7.25 7.8 Forecast of Future Employment The SANDAG forecast of employment for the year 2050 recognizes the strong growth of south county and projects that south county will account for 30.4% of all new employment between 2020 and 2050. The City of Chula Vista will account for most of that growth. Importantly, SANDAG is projecting that south county will have almost 200,000 jobs by 2050, only 30 years from now. Acres 472 Units 5,277 Project Units Sales Start Remaining Sq.Ft. Playa del Sol n/a 2021 0 1,310-1,915 Marea 143 2021 30 1,321-1,875 La Brisa 177 2021 168 1,244-1,946 Solmar Sur 108 2022 108 1,321-1,915 Nakano 157 2023 157 n/a Project No. 683789 129 2023 129 n/a Remaiing 592 Development Plans Southwest Village TriPointe Otay Mesa 91 91 7.26 Year City South County County So. Co. as % of Co. City as % of County 2020 82,146 129,084 1,604,615 8.0%5.1% 2050 121,555 187,952 1,798,372 10.5%6.8% Change 2020-2050 39,409 58,868 193,757 30.4%20.3% Source: SANDAG Employment Forecast Chula Vista, South County & San Diego Co. 2020-2050 92 92 Section 8: Future Development – OWD Service Area Section 8 addresses the residential and commercial development that will take place in the Otay Ranch and in the Otay Mesa region that is served by the OWD. 8.1 Ongoing Residential Development In 2016, there was minimal residential development in the Otay Water District area. Since then, the area has exploded with new single family and multi-family development. As a result of “booming” sales, the inventory of new homes for sale remaining has declined markedly. 8.1 At the current time, there are only three single family detached projects actively selling and four multi-family projects. During 2021, of the two dozen projects active during the year, 15 of the projects sold out. In Exhibit 8.2, we compare the pricing of units remaining for sale at the end of year 2021 and compare it with the pricing at the end of year 2018. The pricing of attached units was slightly higher in 2021 than in 2018. The prices in 2021 were substantially higher for detached product but almost equal for attached product. Detached product is steadily disappearing from Otay Ranch. Status No. Projects No. Units %No. Projects No. Units % Sold Out 3 0 0%8 0 0% 1-10 Remaining 4 9 4%0 0 0% 11-20 Remaining 1 1 0%0 0 0% 20+ Remaining 3 197 95%4 267 100% Total 11 207 100%12 267 100% Total 474 Source: Aranoff & Associates Detached Attached Remaining Inventory - Number of Projects Detached & Attached New Homes Offered for Sale at Year End 2021 Otay Ranch 93 93 8.2 Exhibits detailing the inventory of housing is in the Appendix of this report. Notably, in the past three years, there have been 50 projects opened for sale. Of those 14 have units remaining for sale and of the 14, four are virtually sold out. A list of the 50 projects appears in the appendix. 8.2 Future Residential Development Virtually all new residential construction in the OWD service area that will take place over the next few years will be in the greater Otay Ranch area, although Sunroad’s East Mesa project has completed their initial industrial project (but not their residential sector). Most of that development in the 2022-2028 timeframe will take place in Villages 2, 3, 8, 9 and 10 of Otay Ranch and in the Sunroad Enterprise property. Type Low High Low High Detached 2,678 3,014 648,219$ 678,791$ Attached 1,437 1,922 406,017$ 472,969$ Type Low High Low High Detached 1,947 3,340 645,000$ 1,190,000$ Attached 1,116 1,938 390,000$ 612,000$ Source: Aranoff & Associates 2021 Sq.Ft.Price Sq.Ft.Price Prices of Remaining Homes Otay Ranch as of Year End 2018 & 2021 2018 94 94 8.3 Although it is difficult to project home sales and apartment construction going out five or six years, we have contacted the relevant landowners and developers in the Otay Ranch community and have been able to prepare an exhibit that shows a total of some 8,000+ units that are anticipated to come on-line in that timeframe. Most of the future activity is anticipated to take place in 2022 through 2028 and most of it by HomeFed. 8.3 Five Major Landholders In this section, we will review the future development plans of the five major Otay Ranch landholders (Millenia, HomeFed, Baldwin, Jackson Pendo, Sunroad) and then break out the development by type (sale, rental, etc.). The non-residential development will be discussed in Section 9. Millenia Millenia is nearing completion, with the exception of its office lands. The last major residential projects at Millenia are now under construction: the 480-unit Ryan apartments and the 200-unit Columbia Apartments, both of which will be complete in 2023. A hotel with 120-rooms is in the preliminary planning stage. 95 95 The Chesnut-owned office land is still seeking its first tenant. 8.4 HomeFed HomeFed is the largest owner/developer on the Ranch. Its future plans include both residential and commercial development. HomeFed provided their best estimates of development through 2028, as shown here: Community Developer Open for Sale 2023 2024 2025 2026 2027 2028 Total SFA- For Sale Palisade n/a 50 50 Total 50 50 Apartments Millenia Ryan 240 240 Columbia Chelsea - Total Apts.240 - - 240 Total Resl.290 290 Hotel Rooms Meridian 120 120 Retail Sq.Ft.Meridian 29,000 29,000 Office Sq.Ft.Chesnut 100,000 100,000 100,000 100,000 100,000 500,000 Source: Meridian Development 6 Years of Future Projections Projected Development Activity Multi-Family For Sale & Apartments & Non-Residential Millenia Otay Ranch 2023-2028 96 96 8.5 Area 2023 2024 2025 2026 2027 2028 Total SFD - For Sale Village 2 West - Village 3 (Escaya)- Village 3 - Flatrock - Village 4 - Village 8 (W/E) (1) (Cota Vera)240 125 125 125 615 Village 9 50 100 150 Village 10 - Total 240 125 125 125 50 100 765 MFA - For Sale Village 2 West 125 125 Village 3 (Escaya)119 119 Village 3 -Flatrock - Village 4 - Village 8 (W/E) (1) 114 250 250 250 250 250 1,364 Village 9 200 200 200 600 Village 10 - Total 233 250 375 450 450 450 2,208 Total - For Sale Village 2 West 0 0 300 0 0 0 300 Village 3 (Escaya)177 0 0 0 0 0 177 Village 3 -Flatrock 0 0 0 0 0 0 0 Village 4 0 0 0 0 0 0 0 Village 8 (W/E)354 375 375 375 250 250 1,979 Village 9 0 0 0 200 250 300 750 Village 10 0 0 0 0 0 0 0 Total 531 375 675 575 500 550 3,206 Apartments Village 2 West Village 3 (Escaya)225 225 Village 3 - Flatrock 100 100 200 Village 4 - Village 8 (W/E)396 250 250 250 250 1,396 Village 9 300 300 300 300 1,200 Village 10 - Total 621 250 650 650 550 300 3,021 Total Village 2 West 0 0 300 0 0 0 300 Village 3 (Escaya)402 0 0 0 0 0 402 Village 3 -Flatrock 0 0 100 100 0 0 200 Village 4 0 0 0 0 0 0 - Village 8 (W/E)750 625 625 625 500 250 3,375 Village 9 0 0 300 500 550 600 1,950 Village 10 0 0 0 0 0 0 - Total 1,152 625 1,325 1,225 1,050 850 6,227 % Apartments 54%40%49%53%52%35%49% Source: HomeFed 6 Years of Future Projections Projected Development Activity Single Family & Multi-Family For Sale & Apartments Home Fed Otay Ranch 2023-2028 97 97 The newest of the HomeFed development areas is in Village 8 and known as Cota Vera. Its 285 acres will encompass 1,200 homes and 1,100 apartments as well as 120,000 square feet of commercial space. It has offered homes starting in late 2021. Its entry is at La Media & Santa Luna Street. The first five projects are under construction now: three by Lennar and two by Shea. Shea will be starting additional subdivisions using the brand name: Patria. 8.6 Shea and HomeFed are planning a 127-unit retirement project in Village 8 (Trilogy). It was originally going to be 350 units. HomeFed activity will contain a substantial number of multi-family for rent units. Of the 7,000+ units projected by HomeFed in Villages 3, 8 and 9, almost half are apartments. Baldwin Sons Baldwin Sons has been active in Village 4 but also has land in Village 2. In Village 2, they will have 1,200+ homes and apartments. Currently, Baldwin has sold out their projects that were actively selling in 2021: Monte Villa, Parc Place, Cantamar, Bella Sitia, Suwerte and Alay. Project Developer Type Units Price Bluestone Lennar TH 116 $500,000-600,000 Trevi Lennar TH 108 $500,000-600,000 Whitmore Lennar SFD 106 $650,000-700,000 Fuse Shea TH 43 $465,000-595,000 Lucca Shea SFD 117 $826,000-883,000 Savona Shea SFD 115 n/a SFD 338 TH 267 Total 605 Cota Vera Homes Lennar & Shea Otay Ranch Detached & Townhomes 98 98 Their plans for the next few years includes the development of several townhome projects, two hotels and retail space, as shown here: 8.7 Baldwin also owns Village 13, a 1,100-acre master-planned community with a total of 1,938 units and plans for a 150-room resort hotel. The start date for development of Village 13 is uncertain as environmental interests have caused a cessation in development. Developer Type Area 2023 2024 2025 2026 2027 2028 Total SFA - For Sale MU1 Attached V2 - R10 Attached V2 - R8B/R9B Attached V2 - R5b Attached V2 - PA12 Suwerte Attached V2 - PA12 -Building B Attached 60 60 60 60 60 41 341 C1/MU3 Attached 80 80 80 80 80 87 487 Total SFA - For Sale 140 140 140 140 140 128 828 Apartments R25A V2 - Baldwin V12 - Affordable 96 96 Total Apts.96 - - - - - 96 Total Residential 236 140 140 140 140 128 924 Hotel Element PA12 150 150 Residence Inn or similar 150 150 Total Hotel 150 150 300 Retail C1/MU3 11,500 11,500 Note: Uncertain of development of Village 13. Source: Baldwin & Sons 6 Years of Future Projections Projected Development Activity Single Family & Multi-Family For Sale & Apartments Baldwin - Village 2 & 12 Otay Ranch 2023-2028 99 99 8.8 Jackson Pendo’s Adara (Village 14) Adara is on the far eastern edge of Otay Ranch and is master-planned for 1,100 homes and a 150-unit apartment project. The timing on development is uncertain, environmental interests have caused a cessation in development. 100 100 8.9 8.4 Otay Ranch Future Development by Product Type The exhibit that follows summarizes the projected development acti4ity in Otay Ranch. The projections total 8,588 units. Of that total, 1,065 are single family detached homes, 3,086 attached for sale homes and 4,437 apartment units. Notably, one half of the production is apartments over the 2022-2028 period. 101 101 8.10 The following exhibits display the projected single family and multi-family for sale and apartment development activity at Otay Ranch and in adjacent areas: ➢ Single Family Detached Homes Most of the single family detached homes and townhomes in the 2022-2028 period will be produced on lots owned by HomeFed. Type 2023 2024 2025 2026 2027 2028 Total Single Family Detached 240 125 125 125 200 250 1,065 Single Family Attached 423 390 515 590 590 578 3,086 Apartments 1,137 430 830 830 730 480 4,437 Total 1,800 945 1,470 1,545 1,520 1,308 8,588 Single Family Detached 13%13%9%8%13%19%12% Single Family Attached 24%41%35%38%39%44%36% Apartments 63%46%56%54%48%37%52% Total 100%100%100%100%100%100%100% Source: BIA, land owners, builders & City of Chula Vista Percentages Projected Development Activity SFD, SFA & Apartments Otay Ranch 2023-2028 6 Years of Future Projections 102 102 8.11 ➢ Attached Homes for Sale As with single family detached product, HomeFed’s supply of land for townhomes will dominate the Otay Ranch. Community Developer 2023 2024 2025 2026 2027 2028 Total Villages 2,3,8,9,10 HomeFed 240 125 125 125 50 100 765 Village 2 Baldwin 0 0 0 0 0 0 0 Millenia Meridian 0 0 0 0 0 0 - Total 240 125 125 125 50 100 765 Village 13 Moeller/Baldwin 50 50 100 Village 14 Jackson Pendo (Adara)50 50 100 Planning Areas 16 & 19 Jackson Pendo (Adara)50 50 100 Villages 13,14, 16,19 (1)- - 150 150 300 Total 240 125 125 125 200 250 1,065 (1) development start of 13,14,16,19 delayed by court action in 2021 Source: BIA, land owners, builders & City of Chula Vista Projected Development Activity Single Family Detached - For Sale Otay Ranch 2023-2028 6 Years of Future Projections 103 103 8.12 ➢ Rental Apartments In the 2021-2026 period, there are plans projected for more than 4,000 apartment units. We are uncertain of the market’s ability to absorb 4,000 units but are reporting the number provided to us by the developers. Community Developer 2023 2024 2025 2026 2027 2028 Total Village 2,3, 8 HomeFed 233 250 375 450 450 450 2,393 Village 2 Baldwin 140 140 140 140 140 128 946 Millenia Meridian 50 - - - - - 50 Total 423 390 515 590 590 578 3,389 Village 3 R-6 & R-20 Village 13 Baldwin - - 50 50 100 Village 14 Jackson Pendo 50 50 100 Planning Areas 16 & 19 Jackson Pendo 50 50 100 Villages 13,14,16,19 (1)- - - - 150 150 300 Total 423 390 515 590 740 728 3,689 (1) Villages 13,14,16,19 are involved in litigation which is anticipated to be lengthy. Source: BIA, land owners, builders & City of Chula Vista Projected Development Activity Multi-Family - For Sale Otay Ranch 2023-2028 6 Years of Future Projections 104 104 8.13 The following exhibit charts these apartments by year: Project Developer Units Completion Millenia Columbia Chelsea 200 2022 Millenia Ryan Ryan 480 2023 Under Constr 680 HomeFed Village 2 West HomeFed 300 2019 Village 3 (Escaya) Meta Housing - HomeFed 177 2020 Village 3 - Flatrock Lennar & Shea - 2021 Village 4 HomeFed - 2022 Village 8 (W/E)HomeFed 2,313 2022 Village 9 HomeFed 600 2021-2026 Village 10 HomeFed - 2023-2026 Total 3,390 Baldwin Village 2 86 Village 12 93 Total Baldwin 179 Otay Town Center Brookfield 900 2022-2025 Complete 1,157 In Planning 5,304 Total 6,461 Rental Apartments In Planning, Under Construction and Completed Otay Ranch 2022-2028 105 105 8.14 8.5 Projects Outside Otay Ranch Outside of Otay Ranch there are numerous for sale and rental properties in the pipeline. There are six properties that will move forward with development in the near-term future: Chula Vista Center (Brookfield), Sweetwater Vistas (KB).); Sweetwater Village (KB); Salt Creek (Lennar) and Aventine (Lennar). They total more than 1,500 units. • Sweetwater Village is now under construction. The 1,854-2,095 square foot homes are offered at $565,000 to $597,000. This project is nearing sell-out. • Sweetwater Vistas (i.e. The Pointe) was sold by Douglas Wilson Company to KB Homes. The project will have 140 low density condominium units and 60+ detached homes (all master-metered). • Aventine by Lennar is nearing sell-out. • A fourth project is in the initial planning stage: Sunbow/Olympic Parkway being planned by Macro-Z for 718 apartments/condominiums. It is currently zoned for industrial. • A failed Sears store will be replaced with 258 townhomes by Brookfield. Community Developer 2023 2024 2025 2026 2027 2028 Total Villages 3,4,8,9 HomeFed 621 250 650 650 550 300 3,401 Village 2 Baldwin 96 96 Millenia Meridian 240 - - 240 Total 957 250 650 650 550 300 3,737 Otay Town Center Brookfield 180 180 180 180 180 180 900 Total 1,137 430 830 830 730 480 4,637 Source: land owners, builders & City of Chula Vista Projected Development Activity Apartments Otay Ranch 2023-2028 6 Years of Future Projections 106 106 • Salt Creek is in process of negotiating a purchase by Lennar. 8.15 An aerial photograph of Sunbow is shown here: Project Locale Status Developer Unit Type No. Units Sweetwater Vistas (Crestline)Spring Valley Under Construction - 2022 KB Homes 78 Detached & 226Townhomes (1)203 Spring Valley Retail Center (11 Acres) - Aventine Spring Valley Approaching sell out Lennar SFD 92 Sweetwater Place Spring Valley Under Construction KB Homes SFD 122 Sunbow/Olympic Pkway. (135 acres)Otay Ranch Proposed Macro-Z Townhomes/Co urtyards 718 Salt Creek Chula Vista In negotiation Lennar n/a n/a Chula Vista Center Downtown CV Proposed Brookfield Towmhomes 258 Total 1,393 (1) Detached homes and townhomes are master-metered Xpera 3.2022 Proposed/Under Construction Residential Development Sweetwater Springs, Sunbow Areas, Central Chula Vista as of March 2022 107 107 8.16 Apartment Projects Outside Otay Ranch We have identified ten apartment projects outside Otay Ranch that are in the pipeline for the next few years. In total, there are 2,206 units. The three largest are two Airway projects (Colrich) with a total of 239 units and Bayfront by Pacifica with 450 units. The Bayfront project may be condominiums and the groundbreaking date is uncertain. Sunbow 108 108 8.17 Project Locale Developer Units Completion Urbana (385 H St)Urban CV Mountain West 135 2020 260 Broadway (The Broadway)Urban CV Silvergate 62 2021 C&C Flats Urban CV Alliance 43 2021 230 Church Avenue Urban CV Silvergate 29 2022 Airway Urban CV Colrich 454 2022 Bonita Glen Urban CV Silvergate 170 2022 Total 893 Bayfront (1)Bayfront Pacifica 450 in planning Epoca Affordable - 2240 Cactus Rd.Otay Mesa Colrich 120 in planning Epoca Affordable 55+Otay Mesa Colrich 119 in planning The Colony Condominiums Urban CV n/a 162 in planning 305 E Street Urban CV n/a 52 in planning 3rd & E Streets Urban CV Tierra del Mar 53 in planning Total 956 1350 Industrial Blvd.Bayfront n/a 42 n/a Vista Lane Affordable Urban CV Mirka/Cummings 315 u/c Total 2,206 (1) may be condominiums Apartments & Condominiums In Planning, Under Construction and Completed Urban Chula Vista & Western Otay Mesa as of year end 2021 109 109 Section 9: Non-Residential Development There are several non-residential projects within the OWD service area (and nearby) that are in the pipeline for the near future that will result in demand for more water. We will review the retail, hotel, office and industrial markets and projects: ➢ Retail Space Surprisingly, given the pandemic’s effect on in-store spending, the retail space market in South County is very strong with a vacancy rate of 5.3%, which is consistent with an overall Countywide vacancy rate of 5.7% at the end of 2021. 9.1 There were no new shopping centers completed in 2021 in south county. In future years, HomeFed has plans for a total of 130,000 square feet, including a 90,000 square foot center in 2024. Plans for the 90,000 square foot center are not formalized. Submarket Sq.Ft. Vacancy Rate Central San Diego 16,826,527 3.9% Downtown 735,525 10.3% East County 11,224,262 4.9% North County 21,847,804 7.0% South County 9,889,465 5.3% Total 60,523,583 5.7% Retail Space San Diego County as of 4th Quarter 2021 110 110 9.2 The retail market is considered strong, but there are two regional centers in south county that have not done well. One is Otay Town Center and the other the Chula Vista Center in downtown Chula Vista. Both are owned by Brookfield. The Otay Town Center will close down with the exception of the Macy’s store (which Brookfield/Simons owns) and build 900 apartments on the site. The Sears in the Chula Vista Center has been shuttered and Brookfield (the owner) intends to build townhomes there. Those are two of the four regional centers that have recently failed in San Diego County. The other two are Horton Plaza in downtown San Diego and Parkway Plaza in El Cajon. The all new Campus at Horton (Stockdale) will include 700,000 of office space and 300,000 square feet of retail space when rebuilt. The Shoppes at Carlsbad, Mission Valley East and North County Fair will all undergo major renovations in the next few years. ➢ Hotels Baldwin is planning a 150-room hotel for delivery in 2023 and another 150 rooms as early as 2024. Baldwin is also planning a 200-room resort in Village 13 should that project come to fruition. Millenia is also planning a 120-room hotel and the Cross Border Express is approved for 340 rooms, the first phase of which will be 170 rooms. Year Sq.Ft. 2020 10,000 2021 - 2022 15,000 2023 15,000 2024 90,000 2025 - Total 130,000 Source: HomeFed Retail Space Development HomeFed 2020-2025 (Projected) 111 111 9.3 ➢ Office Space/Flex Space Office space is not a major factor in the south County commercial market, totaling barely 3.5% of the San Diego office marketplace. The overall vacancy rate for office space in Chula Vista/Otay Mesa is 12% as of year end 2021. Flex/R&D space in south County totals 1.5 million square feet and accounts for 2.8% of the County’s total Flex/R&D space. The south County vacancy rate is 5.9%. Hotel 2022 2023 2024 2025 2026+ Baldwin Element 150 Baldwin n/a 150 Baldwin resort V13 200 CBX 170 170 Millenia 120 Total 170 150 270 170 200 Otay Ranch & Vicinity as of January 2022 Hotels In Planning Area Sq.Ft. Vacancy Rate Sq.Ft. Vacancy Rate Chula Vista 1,387,277 2.3%2,915,269 65.0% South San Diego 86,361 0.0%319,824 2.0% Southeast San Diego - 460,835 13.7% Total 1,473,638 2.3%3,695,928 5.0% San Diego County 52,015,914 5.9%105,974,850 12.1% OM/SC as % of SD County 2.8%3.5% Source: Voit Office Space & Flex R&D Market Chula Vista/Otay Mesa and San Diego County as of year end 2021 OfficeFlex & R&D 112 112 9.4 The major office development that is actively planned is the “Millenia Office” – a project that could ultimately have more than 1.0 million square feet of space. The project is by Chesnut Properties, a local firm that has substantial success in other parts of the County. The first Chesnut project is 318,000 square feet of Class “A.” The groundbreaking date is an unknown. There is no office space under development at the current time in Otay Mesa or Otay Ranch or the City of Chula Vista. ➢ Industrial Space Planned and Active Industrial Development The industrial space market in San Diego County is experiencing its strongest occupancy rates in recent memory with a County wide vacancy rate of 4.4%. The total inventory of industrial space is 146 million square feet, one-fifth of it in South County. As of year-end 2021, there are more than 16.0 million square feet of industrial space in Otay Mesa. The vacancy rate on completed buildings is 6.3%. 9.5 The following exhibit notes the individual major projects in planning, under construction and in the pipeline in Otay Mesa. Sq.Ft.Sq.Ft.% Vacancy Rate Sq.Ft. Under Construction Total County 146,112,872 100%4.4%5,364,164 South County 30,002,113 21%5.4%5,191,110 Otay Mesa 16,341,479 11%6.3%5,286,610 Source: Voit Real Estate Services The Industrial Space Market Otay Mesa and San Diego County 4th Quarter 2021 113 113 In the past few years, almost 5.0 million square feet of industrial space has been completed. Currently, there are 2.4 million square feet under construction and another 1.0 million square feet in planning, as shown in Exhibit 9.6. Two projects worthy of note: Sunroad Enterprises is building out and has fully leased its 845,000 Landmark at Otay project and Amazon is under construction on its 702,000 square foot Fulfillment Center across the street from its now operational 3.4 million square foot project. 9.6 Amazon is quickly becoming the largest occupant of industrial space in San Diego County. The exhibit below shows the properties now under control of Amazon: Project Locale Developer Status Sq.Ft.Acres Amazon Fulfillment Ctr. II 6971 Otay Mesa Rd.Seefried Complete 3,400,000 65.0 Vogt Industrial Park 99505 Airway Rd.IRE Development Complete 100,214 n/a 8150 Airway Rd.8150 Airway Rd. Rockefeller Group Complete 135,623 7.8 Otay Crossings Alta & Otay Mesa Road.Kearny Real Estate Complete 150,000 31.0 Otay II Commerce Center 7707-7715 Paseo de la Fuente Cabot Complete 152,469 n/a Otay River Business Park 2945 Main Street Sudberry Complete 409,500 33.5 Copart Auto Auction @ Brown Field 7847 Airway Rd.n/a Complete n/a 50.0 Gateway Energy Storage Otay Mesa Rd. NE of Paseo de la Fuente LS Power Complete n/a n/a Brown Field Tech Park 1695 Continental St.Murphy Development Complete 124,223 n/a Brown Field Tech Park 7255 Otay Mesa Rd.Murphy Development Complete 105,457 n/a BorderPooint Business Park Calle de Linea BKM Complete 173,557 n/a Piper Otay NWC SR-125 & SR 905 Interchange at Otay Mesa Rd.Phelan U/C 400,000 24.8 California Crossings 717-755 Harvest Rd.Sudberry U/C 449,680 29.0 Amazon Fulfillment Ctr. II Across Street from Amazon I Clayton U/C 702,535 42.0 Landmark @ Otay NEC Otay Mesa Rd. & Harvest Rd.;Andrews Ave.Sunroad U/C 845,830 50.0 Airway Logistics Center So. Side Airways Rd./ west of La Mesia Rd.Badiee Development Planned 247,480 13.1 Sanyo Logistics Center 7133 Airway Rd.Badiee Planned 242,969 14.2 So. Bay Distribution Center 1609 Alisa Ct.Hamann Cos.Planned 335,000 16.6 Brown Field Tech Park - Bldg. 1 So. of 905 Murphy Planned 140,000 n/a Brown Field Tech Park - Bldg. 2 So. of 905 Murphy Planned 103,070 n/a Total 8,217,607 Complete 1,351,043 Complete - Amazon 3,400,000 Under Construction 2,398,045 Planned 1,068,519 Industrial Projects Planned, Under Construction & Planned in Otay Mesa 2020-2022 114 114 9.7 The aerials below denote where Amazon and other industrial developers have major projects under way No.Locale Comple tion Date Sq.Ft. 1 National City 2017 91,541 2 Otay Mesa 2021 3,400,000 3 Tijuana, Mexico 2021 344,000 4 Otay Mesa 2022 702,535 Border Sites 4,538,076 5 Rancho Bernardo 2017 180,946 6 Poway 2020 533,950 7 Vista 2020 221,660 8 Carlsbad 2020 85,310 9 San Diego 2020 72,716 10 Carlsbad 2021 175,258 11 Kearny Mesa 2021 104,510 12 Kearny Mesa 2021 65,572 Other - San Diego County 1,439,922 Total 5,977,998 13 El Cajon Pending 142,746 14 Otay Mesa Pending n/a Amazon Holdings San Diego County and Tijuana as of Year End 2021 115 115 9.8 9.9 Looking to the future, it is highly likely that the Amazon project will become a mecca for firms that provide goods to Amazon, thereby creating a major demand for more industrial space near the Border. 116 116 Section 10: Projections for OWD Development Activity 2022-2028 In this section, we discuss the projections for both residential and non-residential development in fiscal years 2022-2028. 10.1: Residential Development Projections We are confident that the next few years will be unusually vibrant on the Otay Ranch as the major landholders will continue to develop shovel-ready lots. Better yet, we anticipate that the market for the product developed there will be well accepted, as it represents a wide range of product types and prices/rents. For definition’s sake, we are assuming that “for sale” multi-family product will be townhomes or other varieties of attached for sale product. The rental product is assumed to be multi-story flats, but, at some point, developers may produce “for sale” flats – i.e. vertical condominiums. In the projection below, we anticipate that most of the development in the OWD service area will be in the Otay Ranch. Having said that, there are four projects that could surface during our 2021-2027 period: those four are Village 13 and 14, Salt Creek and the Sunroad East Otay Mesa project. It is important to note that in this year’s projections, HomeFed’s and Baldwins latest projections call for a heavy concentration of apartments. Similarly, the Sunroad project is anticipated to have a substantial share of their units as rentals. Should the developers’ projections and our net projections prove accurate, developers will produce far more units than the City of Chula Vista will have produced annually in the 2010-2020 period. In the exhibits below, we have prepared projections for detached and attached “for sale” housing and rental apartments. The number of units projected are approximately the same as last year, with the exception of 2021- 2022 which over-projected apartment construction. The developers provided us with projections in calendar years, but the OWD statistics relate to their fiscal years. Therefore, we have adjusted the calendar year projections to fit into a fiscal year format. 117 117 10.1 In the projections, we have placed a heavier weight on the multi-family market, for two reasons: first, apartment developers have a growing appetite for Otay Ranch product and, second, townhomes will prove to be the most affordable sale product on the Ranch and therefore most popular with young families. The land prices in the OWD service area and government fees are most often substantially less than in the more urban areas of the County, making it highly attractive to multi-family developers. We also recognize that the ebullience of the economy may fade somewhat in a few years and interest rates may climb. Either of those events would soften the market for sale product but perhaps not for rental product. Fiscal Years:2023 2024 2025 2026 2027 2028 To t a l For Sale Detached Otay Ranch 240 125 125 125 200 250 1,065 Outside Otay Ranch Total Detached 240 125 125 125 200 250 1,065 Attached Otay Ranch 423 390 515 590 590 578 3,086 Outside Otay Ranch 355 428 300 200 200 100 1,583 Total Attached 778 818 815 790 790 678 4,669 Total For Sale 1,018 943 940 915 990 928 5,734 Apartments Otay Ranch 1,137 430 830 830 730 480 4,437 Outside Otay Ranch 200 400 400 318 200 200 1,718 Total Apartments 1,337 830 1,230 1,148 930 680 6,155 Total Detached for Sale 240 125 125 125 200 250 1,065 Total Attached for Sale 778 818 815 790 790 678 4,669 Total Apartments 1,337 830 1,230 1,148 930 680 6,155 Total 2,355 1,773 2,170 2,063 1,920 1,608 11,889 % For Sale 43%53%43%44%52%58%48% % For Rent 57%47%57%56%48%42%52% Residential Development Projections Otay Water District Service Area Calendar Years 2023-2028 6 Years of Future Projections 118 118 Comparison of 2020 and 2021 to this year’s projections: The differences between last years and this year’s report are primarily due to over- ambitious projections by apartment developers. It is unlikely, however, that the number of apartment units projected in last year’s report for 2022-2026 will be achieved unless Sunbow, Sunroad and HomeFed are more aggressive than we think they will be. In the single-family sector, in the 2022-2028 timeframe, it is likely that, if the strength of the market continues, that it will be possible to sell the number of units projected in last year’s report, but this year’s projections are probably more realistic. And as we have noted earlier in the report, the detached sector is becoming an increasingly smaller part of the output. 10.2 Fiscal Years:20 2 0 - - 2 0 2 1 20 2 1 - 2 0 2 2 20 2 2 - 2 0 2 3 20 2 3 - 2 0 2 4 20 2 4 - 2 0 2 5 20 2 5 - 2 0 2 6 20 2 6 - 2 0 2 7 20 2 7 - 2 0 2 8 To t a l Single Family Detached for Sale 2020 Report 160 260 360 290 250 250 1,570 2021 Report 160 260 360 290 250 250 1,570 2022 Report 240 125 125 125 200 250 1,065 Attached for Sale 2020 Report 200 400 450 450 450 450 2,400 2021 Report 200 400 450 450 450 450 2,400 2022 Report 778 818 815 790 790 678 4,669 Apartments 2020 Report 482 790 1,500 1,200 1,000 1,000 5,972 2021 Report 250 800 800 700 700 700 3,950 2022 Report 1,337 830 1,230 1,148 930 680 6,155 Total 2020 Report 842 1,450 2,310 1,940 1,700 1,700 9,942 2021 Report 610 1,460 1,610 1,440 1,400 1,400 7,920 2022 Report 2,355 1,773 2,170 2,063 1,920 1,608 11,889 2023-2028 Projections With Comparison of 2020 and 2021 Report Otay Water District Service Area 119 119 10.2 Non-Residential Product Projecting non-residential development in the OWD service area is not as precise as the residential sector, as it remains largely untested for most product. For instance, the Chesnut office development, which could have as much as 1,000,000 square feet of office space, may break ground in 2023-2024 with its first phase. We have allocated minimal office space other than the Chesnut project as we are very uncertain of demand. HomeFed has planned 90,000 square feet of retail space for 2024-2025 and, like office space, we are uncertain of demand. We have assumed that University Village will move forward in this timeframe, if St. Katherine’s University moves forward with its plan. We are confident that there will be one or two new hotels developed in Otay Ranch in the next few years in addition to the resort hotel in Village 13. We, of course, have not included the RIDA Hotel and Conference Center in Bayfront as it is not in the OWD service area, although most certainly will happen in 2022-2023. Until recently, the vacancy rate in industrial space on the Otay Mesa was 15%+ and has now edged down to the 5% range. Most of the development there is large one-story boxes that, in some cases, have been segmented into smaller incubator spaces. We are taking a fairly aggressive approach to industrial development in the 2022- 2028 timeframe, anticipating some 2.0 million square feet of space coming on-line and, of course, the Amazon space will be completed within the next year. During the next six fiscal years, without Amazon’s square footage, the non- residential square footage is projected to total 6.4 million. 120 120 10.3 <<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>> On balance, we are convinced that the next several years will be highly active ones for the residential and commercial development community in the Otay Ranch/Otay Mesa region. As a result, the Otay Water District will experience a substantial increase in customers and usage. Fiscal Years:Measure 20 2 1 - 2 0 2 2 20 2 2 - 2 0 2 3 20 2 3 - 2 0 2 4 20 2 4 - 2 0 2 5 20 2 5 - 2 0 2 6 20 2 6 - 2 0 2 7 20 2 7 - 2 0 2 8 Total Hotels (2)Rooms 150 410 200 760 Sq.Ft. Per Room (Gross)400 400 400 Total Sq.Ft.60,000 164,000 80,000 304,000 Industrial (1)Sq.Ft.1,350,000 1,700,000 500,000 500,000 500,000 500,000 500,000 5,550,000 Amazon 3,400,000 700,000 4,100,000 Retail Sq.Ft.20,000 90,000 15,000 15,000 140,000 Office (3)Sq.Ft.100,000 100,000 100,000 100,000 400,000 Total Sq.Ft.4,750,000 2,460,000 784,000 690,000 615,000 615,000 580,000 10,494,000 Total Sq.Ft. Without Amazon 1,350,000 1,760,000 784,000 690,000 615,000 615,000 580,000 6,394,000 (3) Assumes 1st phase of Chesnut project is completed in 2023-2024 Non-Residential Development Projections Otay Water District Service Area Fiscal Years 2022-2028 (1) excludes renovation of Sanyo space. And excludes Amazon. (2) excludes the 1,600 room RIDA Hotel and Conference Center which is not in the OWD service area; the hotel in 2025-2026 is in Village 13. 121 121 Appendix 122 122 Project Name Developer Detached Units Sold Units Remaining Low High Price Low Price High Aventine Cornerstone Communities 100 100 0 2,014 2,438 645,990$ 694,990$ Signature Heritage Building & Development 79 79 0 3,340 3,611 980,900$ 996,900$ Monte Villa Pacific Coast Communities 103 103 0 1,948 2,321 613,900$ 705,900$ Estancia Cornerstone Communities 37 36 1 3,409 3,901 1,112,990$ 1,139,990$ Bella Sitia Pacific Coast Communities 68 67 1 3,657 4,300 963,900$ 1,052,900$ Cantamar Pacific Coast Communities 111 110 1 2,631 2,896 1,073,900$ 1,139,900$ Aventine Lennar Homes 92 86 6 1,950 2,143 687,900$ 719,900$ Presidio Otay Ranch New Homes 82 69 13 2,571 2,623 N/A N/A Anacapa Otay Ranch New Homes 60 34 26 2,221 2,249 N/A N/A Whitmore Lennar Homes 106 32 74 1,947 2,166 668,900$ 698,900$ Lucca Shea Homes 117 33 84 2,535 2,831 778,000$ 846,000$ Total 955 749 206 Source: Steven A. Aranoff & Associates New Detached Residential For Sale Projects South San Diego County YE 2021 Square Foot Range Base Price Range Otay Ranch Project Name Developer Attached Units Sold Units Remaining Sq.Ft. Low Sq.Ft. High Price Low Price High Alay Heritage Building & Development 80 80 0 1,938 2,505 544,900$ 629,900$ Vibe Lennar Homes 92 92 0 1,681 2,037 544,900$ 601,900$ Esperanza Cornerstone Communities 100 100 0 1,548 1,830 389,990$ 447,990$ Cleo Lennar Homes 117 117 0 1,182 1,675 444,900$ 536,900$ Pinnacle Meridian Development 126 126 0 1,362 2,522 562,900$ 724,900$ Tesoro Cornerstone Communities 134 134 0 1,410 1,600 476,990$ 517,990$ Parc Place Pacific Coast Communities 162 162 0 1,116 1,587 412,900$ 489,900$ Tosara Pacific Coast Communities 173 173 0 1,635 2,366 445,900$ 501,900$ Fuse Shea Homes 43 14 29 1,132 1,933 465,000$ 606,000$ Suwerte Heritage Building & Development 184 142 42 1,192 2,439 437,900$ 582,900$ Trevi Lennar Homes 108 10 98 1,423 1,741 514,900$ 612,900$ Bluestone Lennar Homes 116 18 98 1,316 1,758 492,900$ 583,900$ Total 1046 779 267 Source: Steven A. Aranoff & Associates New Attached Residential For Sale Projects South San Diego County YE 2021 Square Foot Range Base Price Range Otay Ranch Project Name Developer Detached Attached Total Units Units Sold Units Remaining Sq.Ft. Low Sq.Ft. High Price Low Price High Tesoro Cornerstone Communities 0 134 134 134 0 1,410 1,600 476,990$ 517,990$ Solmar Tri-Pointe 0 182 182 182 0 1,310 1,915 486,500$ 587,000$ Sweetwater Place KB Home 122 122 122 0 1,854 2,095 660,990$ 688,990$ Marea Tri-Pointe 0 142 142 112 30 1,321 1,875 496,990$ 546,990$ La Brisa Tri-Pointe 0 203 203 35 168 1,309 1,946 442,000$ 548,500$ Total 122 661 783 585 198 Source: Steven A. Aranoff & Associates New Residential For Sale Projects - Outside Otay Ranch South San Diego County YE 2021 Housing Type Square Foot Range Base Price Range 123 123 Project Name 2019 2020 2021 Remaining Project No. Cantamar 18 50 11 1 1 Bella Sitia 17 35 15 1 2 Estancia 1 24 11 1 3 Aventine (Lennar)----86 6 4 Presidio 0 0 0 13 5 Anacapa 0 0 0 26 6 Fuse ----14 29 7 Marea --19 93 30 8 Suwerte 28 64 46 42 9 Whitmore ----32 74 10 Lucca ----33 84 11 Trevi ----10 98 12 Bluestone ----18 98 13 La Brisa ----35 168 14 Aventine (Cornerstone)34 35 5 Sold Out 15 Cambria 30 20 --Sold Out 16 Monte Villa 18 34 12 Sold Out 17 Signature 14 27 1 Sold Out 18 Boulevard 37 ----Sold Out 19 Monterra 11 24 --Sold Out 20 Parc Place 37 51 3 Sold Out 21 Lovina 12 ----Sold Out 22 Tosara 21 27 9 Sold Out 23 Element 3 ----Sold Out 24 Skylar 42 ----Sold Out 25 Z 38 5 --Sold Out 26 Metro 10 ----Sold Out 27 Trio 18 ----Sold Out 28 Evo 28 ----Sold Out 29 Indigo 50 2 --Sold Out 30 Sierra 59 6 --Sold Out 31 Valencia 45 23 --Sold Out 32 Prado 52 29 --Sold Out 33 Seville 46 37 --Sold Out 34 Castellana 27 2 --Sold Out 35 Haciendas 34 1 --Sold Out 36 Flora 55 5 --Sold Out 37 Strata 22 ----Sold Out 38 Vista Del Cielo 20 ----Sold Out 39 Veraz 39 60 --Sold Out 40 Moderna 32 ----Sold Out 41 Tesoro 35 29 29 Sold Out 42 Maravilla 2 ----Sold Out 43 Esperanza 27 1 1 Sold Out 44 Alay 14 63 3 Sold Out 45 Solmar 17 66 99 Sold Out 46 Pinnacle --90 36 Sold Out 47 Vibe --50 42 Sold Out 48 Cleo --36 81 Sold Out 49 Sweetwater Place --90 31 Sold Out 50 TOTAL 993 1005 756 671 Source: Steven A. Aranoff & Associates Houses / Units Sold South San Diego County 2019-2021 Annual Sales by Development 124 124 Xpera Group, a Vertex Company, is the West Coast’s most comprehensive team of construction consultants and strategic advisors for the built environment. Having started as a construction forensics firm in 2009, we have expanded our offerings over the years to deliver specialized expertise to clients at all phases of the development process. Having assembled more than 50 highly experienced construction consulting professionals in virtually every specialty trade, we are uniquely qualified to serve a wide range of clients, including contractors, property owners, developers, legal and insurance professionals. As a construction consulting company, we are able to customize service solutions to meet each client’s unique goals, whether it’s ensuring quality standards, avoiding costly construction delays and claims, or achieving successful resolution for troubled projects. One of Xpera Group’s principal services is providing economic research, a category that includes market research studies, development strategies, forensic economics, fiscal and economic impact studies and valuations. The Vertex Company is a 700+ employee construction and real estate consulting firm based in Boston. Xpera Group became part of Vertex in 2020. (Vertexeng.com) 125 125 Disclaimer Although the results, conclusions and recommendations contained within this consultant’s report are based upon a thorough review and analysis of current competitive market conditions and the expertise of the author, Consultant does not in any way represent, warrant or guarantee that any reported results will be achieved as a result of various reasons, including but not limited to the sensitivity to ever-fluctuating market conditions and the efficiency of a Client and its representatives, agent, employees, successors and assigns. 126 126 ALAN NEVIN VERTEX Contact Info: 10911 Technology Place San Diego CA 92127 619-417-1817 Cell E-mail: anevin@vertexeng.com E X P E R I E N C E S U M M A R Y With more than 30 years in practice, Mr. Nevin has an extensive background in providing market strategies for new and repositioned projects; appraisals; financial and economic analyses; fiscal impact analyses; and advice on real estate repositioning and succession planning. He serves as Director of Market Research and Valuation and is a member of the Forensic Services support team of Xpera Group. P R O F E S S I O N A L H I S T O R Y Xpera Group/Vertex 2013 - Present Mr. Nevin brings to Xpera Group an extensive background in real estate development, appraisal, real estate investment economics, lending and market analysis. He has completed a wide range of feasibility and valuation studies in the sale housing, apartment, senior housing, retail, office, industrial and hotel industries. His previous affiliations include: London Group 2011 – 2013 (Principal) MarketPointe Realty Advisors-1997 – 2011(Director of Economic Research) Con Am Research- 1992-1997(Managing Director) Home Fed Bank- 1990-1991(Director, Real Estate Research 127 127 Con Am Securities, Inc.- 1983-1990 (President) Sanford Goodkin and Associates- 1974-1983 (Sr. VP) E D U C A T I O N STANFORD UNIVERSITY Master of Arts Degree Statistics and Research AMERICAN UNIVERSITY Master of Business Administration Real Estate Economics Bachelor of Arts Degree Marketing D E V E L O P M E N T E X P E R I E N C E Co-founder of firms that bought, built, rehabbed and operated more than three dozen Southern California properties valued in excess of $250 million Apartment rehab & development and condominium conversions; office and industrial buildings; custom homes and self-storage L E N D I N G E X P E R I E N C E Past affiliations: Board Member- Equality Savings & Loan, Provident Capital Corp (Subsidiary of Provident Savings of Boston); Rancho Bernardo Savings & Loan; former Director of Real Estate Research, HomeFed Bank; organizer and original board member, 1st Pacific Bank T E A C H I N G A N D W R I T I N G Author, Statewide Curriculum, "Investing in Real Estate" Litigation Economics, CLE Course Creator and Instructor Authored and instructed courses at UCSD Extension, USD Burnham Moores Department of Real Estate; SDSU and National University: Real Estate Investment, Valuation, Real Estate Development, Real Estate Feasibility, Condominium 128 128 Conversion, Apartment Investments, Architectural Monuments, Trends in California Demographics University of San Diego - Instructor, CLE-approved Seminar on Litigation Economics. C O M M U N I T Y A C T I V I T I E S Past President, San Diego Chapter, Lambda Alpha International (LAI), an international honorary land economics society and international editor of Keynotes newsletter. Advisory Board, UCSD Department of Real Estate and Real Estate Development Advisory Board and co-founder, UCSD Economics Roundtable Council of Academic Advisors, University of San Diego Center for Real Estate O R G A N I Z A T I O N S SPIRE (Stanford Professionals in Real Estate); Building Industry Association of San Diego; San Diego County Apartment Association; Named International Fellow of Lambda Alpha International (2017) P U B L I C A T I O N S “The Great Divide” (2016) – a book about the future of the United States based on its demographics and employment. Available on Amazon and Kindle. University of California system-wide course: “Investing in Real Estate” Publisher, monthly newsletter for the San Diego Association of Realtors 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY March 2, 2022 1.The meeting was called to order by President Smith at 3:30 p.m. 2.ROLL CALL Directors Present:Croucher, Keyes, Lopez, Robak and Smith Directors Absent:None Staff Present:General Manager Jose Martinez, General Counsel Dan Shinoff, General Counsel Jeanne Blumenfeld, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Andrew Jackson, Asst. Chief of Finance Kevin Koeppen, District Secretary Tita Ramos-Krogman and others per attached list. 3.PLEDGE OF ALLEGIANCE 4.APPROVAL OF AGENDA A motion was made by Director Keyes, seconded by Director Lopez, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to approve the agenda. 5.PRESENTATION OF THE EAST COUNTY ADVANCED WATER PURIFICATION PROJECT Helix Water District’s General Manager Brian Olney and Systems Operation Manager Michelle Berens provided a PowerPoint presentation of the District’s background and its East County Advanced Water Purification Project. Mr. Olney and Ms. Berens responded to questions from the board. In response to a question from President Smith, Helix Water District’s Public Affairs Supervisor Michelle Curtis stated that various outreach materials were sent to Helix customers to introduce the East County Advanced Water Purification Project. Ms. Curtis indicated that she would collaborate with Otay Water District’s (OWD) AGENDA ITEM 5 2 Communications Officer Tenille Otero to help with outreach efforts to introduce the project to OWD customers. 6.APPROVAL OF AGENDA A motion was made by Director Keyes, seconded by Director Lopez, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to approve the agenda. 7.APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF FEBRUARY 2, 2022, AND SPECIAL BOARD MEETING OF FEBRUARY 15, 2022 A motion was made by Director Keyes, seconded by Director Lopez, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to approve the minutes of the regular board meeting of February 2, 2022, and special board meeting of February 15, 2022. 8.PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. PUBLIC HEARING ITEMS 9.THE BOARD WILL HOLD A PUBLIC HEARING TO CONSIDER APPROVING THE FOLLOWING AGENDA ITEMS AND INVITES THE PUBLIC TO PROVIDE COMMENTS ON THE ITEMS a)REDISTRICTING PRESENTATION: PLANWEST PARTNERS INC. Ms. Colette Santsche and Mr. Jason Barnes from Planwest Partners Inc. (Planwest) provided a PowerPoint presentation to the board and three map options for the redistricting of the District’s five (5) division boundaries. Ms. Santsche stated that at the April 6, 2022, board meeting, it is recommended that the board adopt one of the map options. She noted that the deadline to approve the redistricting of the District’s division boundaries is April 17, 2022. 3 Ms. Colette indicated that Planwest met with the District’s Redistricting Ad Hoc Committee to provide several redistricting map options. The Ad Hoc Committee provided their input and collaborated with Planwest to draft Map Option 3, which they recommended that the full board adopt. President Smith noted that each board member reviewed Map Option 3 prior to the board meeting. b) PUBLIC HEARING ON REDISTRICTING OTAY WATER DISTRICT, BECAUSE OF AN INCREASE IN THE POPULATION WITHIN ITS SERVICE AREA, AS MEASURED BY THE 2020 U.S. CENSUS, WILL BE ADJUSTING THE BOUNDARIES OF ITS FIVE (5) DIVISIONS TO EQUALIZE THE POPULATION WITHIN THOSE DIVISION BOUNDARIES PURSUANT TO CALIFORNIA WATER CODE §71540 AND ELECTIONS CODE § 22001. THIS PUBLIC HEARING IS HELD TO INVITE AND SOLICIT PUBLIC COMMENT ON THE CRITERIA FOR THE COMPOSITION OF THE REDISTRICTING DIVISIONS PRIOR TO DRAWING DRAFT MAPS OF PROPOSED DIVISION BOUNDARIES President Tim Smith opened the Public Hearing at 4:41 p.m. and asked District Secretary Tita Ramos-Krogman if there were any comments or participation from the public. District Secretary Ramos-Krogman stated that there were no comments or participation from the public. With no comments from the public, President Smith closed the Public Hearing at 4:42 p.m. and indicated that Map Option 3 will be presented at the April 6, 2022, board meeting as a Public Hearing Item for consideration of adoption by the board. CONSENT ITEMS 10. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: A motion was made by Director Croucher, seconded by Director Keyes and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to approve the following consent calendar items: 4 a) AUTHORIZE THE GENERAL MANAGER TO ISSUE A PURCHASE ORDER TO INLAND KENWORTH IN THE AMOUNT OF $255,702.60 FOR THE PURCHASE OF ONE KENWORTH T380 UTILITY CREW TRUCK AND TO DECLARE UNIT #136 UTILITY CREW TRUCK AS SURPLUS b) APPROVE CHANGE ORDER NO. 1 IN AN AMOUNT NOT-TO-EXCEED $27,625 TO THE COST OF SERVICE STUDY CONTRACT WITH RAFTELIS FINANCIAL CONSULTANTS, INC. AND AUTHORIZE THE TOTAL CONTRACT NOT-TO-EXCEED AN AMOUNT OF $93,235 ACTION ITEMS 11. BOARD a) STAFF TO CONDUCT REMOTE TELECONFERENCE MEETINGS OF THE BOARD OF DIRECTORS, INCLUDING COMMITTEE MEETINGS, 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 EMERGENCY 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 After a discussion from the board, President Smith stated that a special board meeting may be held at the end of March to consider the continuance of remote teleconference meetings. A motion was made by Director Keyes, seconded by Director Croucher, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to authorize staff to conduct remote teleconference meetings of the board of directors for the next 30 days, including committee meetings, pursuant to Resolution No. 4401 which the Board adopted at a special board meeting on September 17, 2021, and in accordance with the provisions of Government Code §54953(e). b) DISCUSS THE 2022 BOARD MEETING CALENDAR There were no changes to the board calendar. INFORMATIONAL ITEMS 5 12.THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a)SECOND QUARTER OF FISCAL YEAR 2022 CAPITAL IMPROVEMENT PROGRAM REPORT Engineering Manager Michael Long provided a PowerPoint presentation to the board. He responded to comments and questions from the board. b)FISCAL YEAR 2022 MID-YEAR STRATEGIC PLAN UPDATE The board waived presentation from staff. UREPORTS 13.GENERAL MANAGER’S REPORT General Manager Martinez presented information from his report that included the District’s response to the COVID-19 pandemic, Low Income Household Water Assistance Program, and the District’s annual leak detection campaign kick-off meeting. 14.SAN DIEGO COUNTY WATER AUTHORITY UPDATE President Smith reported that CWA plans to repair two segments of its pipeline in the north to prevent a main break. He provided an update on the Imported Water Committee meeting where they discussed on demand management costs from Metropolitan Water District. In addition, CWA approved bond sales that involve two bond issuances, which the first bond was for $170 million with a 3.08% tax exemption. Director Croucher reported that CWA awarded a contract to Black & Veatch for CWA’s 2023 Facilities Master Plan. He provided an update on the Special Admin & Finance Committee who directed staff to work with member agency managers. He shared that CWA is holding a board retreat on March 10th. 15.DIRECTORS' REPORTS/REQUESTS Written reports from Directors Croucher, Keyes, Lopez and Robak were submitted to District Secretary Ramos-Krogman, which will be attached to the minutes for today’s meeting. 16.PRESIDENT’S REPORT At the request of President Smith and CWA, General Manager Jose Martinez and staff will write a letter to the Metropolitan Water District regarding concerns of the agency’s rate increase in the next two years, the addition of 140 staff members, and other concerns that affect CWA member agencies. 6 A written report from President Smith was submitted to District Secretary Ramos- Krogman and will be attached to the minutes for today’s meeting. URECESS TO CLOSED SESSION 17.CLOSED SESSION General Manager Jose Martinez indicated that there were no closed session items for the board to consider. UOTAY WATER DISTRICT FINANCING AUTHORITY 18.NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board. 19.ADJOURNMENT With no further business to come before the Board, President Smith adjourned the meeting at 5:20 p.m. President ATTEST: District Secretary (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Tim Smith Period Covered: Employee Number: 1845 From: 02/01/22 To: 02/28/22 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED (Via Teleconference) MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 02/02/22 OWD Board Meeting Monthly Board Meeting - - 2 02/08/22 Recycled Ad Hoc Committee Meeting Met with Director Croucher, GM Martinez, and Legal Counsel to discuss recycled water agreement - - 3 02/09/22 Quarterly Meeting Quarterly meeting with GM Martinez to discuss District updates - - 4 02/11/22 Committee Agenda Briefing Discuss agenda items that are going to the committee meetings - - 5 02/15/22 EO&WR Committee Meeting Meeting with GM, Legal and staff to discuss agenda items going to the March 2, 2022 board meeting - - 6 02/16/22 Rainbow-Fallbrook Detachment/MSR Meeting Met with Director Croucher, GM Martinez, and CWA staff to discuss Rainbow-Fallbrook Detachment/MSR - - 7 02/22/22 CWA Matters Meeting Discuss CWA Matters with GM Martinez and Director Croucher - - 8 02/23/22 East County Caucus Discuss East County issues with agencies and CWA - - 9 02/25/22 Agenda Briefing Meeting Discuss all of March 2, 2022, board agenda items 10 02/28/22 CWA Matters Meeting In-Person meeting with Director Croucher, GM Martinez, and legal to discuss CWA Matters 26 Total Meeting Per Diem: $ 1,520 ($152 per diem) Total Mileage Claimed: 26 miles 03/07/2022 (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Gary Croucher Period Covered: Employee Number: 7011 From: 2/1/22 To: 2/28/22 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED (Via Teleconference) MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 2/8/22 Recycled Agreement Ad Hoc Committee Meeting Met with President Smith, GM Martinez and legal counsel to discuss Recycled Agreement matters. - - 2 2/15/22 Special Board Meeting Meeting to discuss Closed Session agenda items - - 3 2/16/22 Meeting with Board Pres, Staff and GC Detachment and MSR review and input regarding RNBW and FLBRK agencies - - 4 2/17/22 South County Economic Development Council Elected Officials Workshop - - 5 2/22/22 CWA Matters Meeting with Otay GM, GC and Board President - - 6 2/23/22 East County Caucus Discuss East County issues with agencies and CWA - - 7 2/28/22 CWA Matters and Agency Updates with Board President, Legal and GM Review and Discussion regarding CWA and Otay Issues – in person 10 - 8 9 Total Meeting Per Diem: $1064 ($152 per diem) Total Mileage Claimed: 10 miles 03/02/2022 (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ INSTRUCTIONS ON REVERSE OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Ryan Keyes Period Covered: Employee Number: 1896 From: 2-1-22 To: 2-28-22 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 2-02-22 OWD Regular Board Meeting Monthly Board Meeting - - 2 2-12-22 Engineering Committee Mtg Meeting with GM Martinez - - 3 2-18-22 Quarterly Meeting with GM Meeting with GM Martinez - - 4 2-27-22 CSDA Courses 2022 Annual Employment Law Update - - 5 - - 6 - - 7 - - 8 - - 9 - - 10 -- Total Meeting Per Diem: $608 ($152 per meeting) Total Mileage Claimed: 0 Miles 03/07/2022 (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Jose Lopez Period Covered: Employee Number: 7010 From: 02/1/22 To: 02/28/22 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 2/1/22 South County Economic Development Council Monthly Council meeting 2 2/2/22 Otay Water District Regular Board meeting 3 2/4/22 CV Chamber of Commerce 1st Friday meeting (No Charge) 4 2/8/22 Otay Water District General manager quarterly meeting 5 2/15/22 Otay Water District Special Board meeting 6 2/16/22 Otay Water District Finance/Admin Committee meeting 7 2/17/22 South County Economic Development Council Elected Official Forum “Water Day” 8 9 10 Total Meeting Per Diem: $ 912 ($152 per diem) Total Mileage Claimed: miles 04/01/2022 Mark Robak 7014 From:2/1/2022 2/28/2022 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 2/1/2022 East County Chamber of Commerce Government Affairs & Infrastructure Committee 0 0 2 2/2/2022 Otay Water District Board Meeting 0 0 3 2/3/2022 San Diego Chamber of Commerce Sustainability & Industry Committee 0 0 4 2/4/2022 East County Chamber of Commerce First Friday Breakfast - NO CHARGE 0 0 5 2/4/2022 Friends of the WCG President & JPA President Discuss Water Conservation Garden - NO CHARGE 0 0 6 2/7/2022 LAFCO Commission Discussion of Fallbrook/Rainbow detachment from San Diego County Water Authority 0 0 7 2/10/2022 Otay Redistricting Ad-Hoc Discussion of agency redistricting 0 0 8 2/10/2022 San Diego County Water Authority Board Budget Policy - NO CHARGE 0 0 9 2/14/2022 Meeteing with Otay General Manager Quarterly Meeting 0 0 10 2/15/2022 Otay Special Board Meeting Cost of Service Study, et al.0 0 11 2/16/2022 Otay Finance & Administration Committee Discuss finance & operations issues 0 0 12 2/17/2022 SCEDC Meeting Water Day! Elected Officials Webinar Series - No Charge 0 0 13 2/17/2022 CSDA Quarterly Meeting Priorities as it Relates to Special Districts 0 0 14 2/23/2022 Otay Redistricting Ad-Hoc Discussion of agency redistricting 0 0 0 0 $ 1,520 Miles GM Receipt: Date: ___________________ FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $_____________ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To:Period Covered Employee Number Total Mileage Claimed: Director Signature ($152 PER MEETING) Total Meeting Per Diem: 03/01/2022 1 MINUTES OF THE SPECIAL BOARD MEETING OF THE BOARD OF DIRECTORS OTAY WATER DISTRICT March 29, 2022 1.President Smith called the meeting to order at 12:03 p.m. 2.ROLL CALL Directors Present:Croucher, Keyes, Lopez and Smith Directors Absent:Robak Staff Present:General Manager Jose Martinez, General Counsel Dan Shinoff, General Counsel Jeanne Blumenfeld, Communications Officer Tenille Otero, District Secretary Tita Ramos-Krogman and others per attached list. 3.PLEDGE OF ALLEGIANCE 4.APPROVAL OF THE AGENDA A motion was made by Director Keyes, seconded by Director Croucher and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Smith Noes: None Abstain: None Absent: Robak to approve the agenda. 5.PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. ACTION ITEMS 6.BOARD a)STAFF TO CONDUCT REMOTE TELECONFERENCE MEETINGS OF THE BOARD OF DIRECTORS, INCLUDING COMMITTEE MEETINGS, 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 AGENDA ITEM 5 2 §54953(e) FOR THE NEXT 30 DAYS BECAUSE (1) A STATE OF EMERGENCY 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 Director Croucher indicated that he may not be able to attend the April 6, 2022, board meeting as he may be traveling due to a family health issue. A motion was made by Director Croucher, seconded by Director Keyes, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Smith Noes: None Abstain: None Absent: Robak to authorize staff to conduct remote teleconference meetings of the board of directors for the next 30 days, including committee meetings, pursuant to Resolution No. 4401 which the Board adopted at a special board meeting on September 17, 2021, and in accordance with the provisions of Government Code §54953(e). b) ADOPT RESOLUTION NO. 4406, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT, PLACING IN NOMINATION JOSE MARTINEZ AS A MEMBER OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES REGION 10 BOARD MEMBER General Manager Jose Martinez indicated that he submitted his application as a candidate for the ACWA Region 10 board member position. He responded to questions from the board. A motion was made by Director Smith, seconded by Director Keyes, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Smith Noes: None Abstain: None Absent: Robak to adopt Resolution No. 4406 placing in nomination Jose Martinez as a member of the Association of California Water Agencies Region 10 board member. 7. ADJOURNMENT With no further business to come before the Board, President Smith adjourned the meeting at 12:11 p.m. 3 President ATTEST: District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 6, 2022 SUBMITTED BY: Jose Martinez, General Manager W.O./G.F. NO: DIV. NO. APPROVED BY: Joe Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Redistricting of Directors’ Division Boundaries GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District Board of Directors adopt Resolution No. 4407 (Attachment A)_reapportioning the five (5) divisions within the District as presented in the attached Directors’ Division Boundary Map (Exhibit 1 to Attachment A). PURPOSE: Elections code requires the District to adjust division boundaries after each federal decennial census, and using that census as a basis, adjust the boundaries of its Board of Director divisions so that the divisions are, as far as practicable, equal in population and in compliance with Section 10301 of Title 52 of the United State Code. The deadline to provide this information is April 17, 2022. ANALYSIS: At the November 3, 2021, board meeting, the President established a Redistricting Ad-Hoc Committee (Committee) to review potential redistricting solutions. The Committee held its first meeting on January 24, 2022 and met with its redistricting consultant Planwest Partners Inc. (Planwest) who provided a background of the company, a timeline of the redistricting process and a preliminary summary of the 2020 census data as it related to the existing divisional boundaries. AGENDA ITEM 7b On February 2, 2022 the Board of Directors held it’s first public hearing requesting solicitation from the public on the redistricting process and the maps that were to be drafted. In addition, the Committee held several meetings in February to: •Review redistricting procedures, laws, and mandated guidelines •Analyze how the District’s population had changed over the last ten years •Review three (3) redistricting options for the Board’s review and comment Before the proposed new divisional boundaries can be adopted, the District is required to hold a public hearing on the composition of divisions and draft maps in accordance with Elections code Section 22001. The purpose of the hearing will be to invite and solicit public comment on the draft division maps, which are being published by the District prior to the Board of Directors considering adoption of a new division map. The code also requires that the District publish an ad in a newspaper prior to the public hearings. To comply with this requirement, staff provided a notice to the public of the District’s intent to change the boundaries of its divisions and that a hearing would be held at the District’s scheduled regular board meetings on March 2, 2022 and April 6, 2022 to receive the public’s comments. Staff published legal notices in the following publications on the dates as noted in compliance with State statute: The East County Californian February 18, 2022 March 25, 2022 The Star News February 18, 2022 March 25, 2022 In addition to providing notice in the above publications, staff also posted the notices and proposed and existing divisional boundary maps on the District’s website. A second public hearing was held at the March 2, 2022 Board of Directors meeting, where Planwest provided a PowerPoint presentation of three map options for the proposed Division boundaries. Board members reviewed and discussed each option. After opening and closing the public hearing with no comments from the public, the Board recommended the adoption of Option 3 (See Exhibit 1 of Attachment A) for the proposed Division boundaries. Before the proposed new divisional boundaries can be adopted, the Board of Directors will hold a final public hearing on the composition of divisions and draft maps in accordance with elections code to solicit public comments at its April 6, 2022 regular board meeting. FISCAL IMPACT: None. LEGAL IMPACT: None. Attachments: Attachment A: Resolution No. 4407 Exhibit 1 - Map of Proposed Directors’ Division Boundaries RESOLUTION NO. 4407 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT REAPPORTIONING THE FIVE DIVISIONS WITHIN THE OTAY WATER DISTRICT WHEREAS, the five Divisions within the Otay Water District (herein "District") were previously redefined and reapportioned pursuant to District Resolution No. 4187, adopted on February 1, 2012; and WHEREAS, the District has recently completed a study of population changes within the District and its Divisions based on the 2020 census and has reported to the Board of Directors that there is an imbalance of the number of persons residing within the various Divisions of the District; and WHEREAS, Election Code Section 22000 requires the District to adjust division boundaries after each federal decennial census, and using that census as a basis, adjust the boundaries of its Board of Director divisions so that the divisions are, as fas as practicable, equal in population and in compliance with Section 10301 of Title 52 of the United State Code; and WHEREAS, a plan has been presented to the Board of Directors to relocate certain Division boundary lines so as to equalize the population in the respective Divisions giving consideration to the following factors: (1) topography, (2) geography, (3) cohesiveness, contiguity, integrity, and compactness of territory, and (4) community of interests of the division; and Attachment A WHEREAS, the Board has solicited input from the public by holding three public hearings; and WHEREAS, it is the opinion of the Board of Directors that a sufficient change of population has occurred within the District to require a change in the boundaries of the Divisions, from which the Directors are elected; NOW, THEREFORE, BE IT RESOLVED: 1. That the five Divisions of the Otay Water District are hereby, as of this date, redefined and reapportioned as set forth in Otay Water District Directors' Division Boundary Map, presented at a regular Board meeting held on April 6, 2022, a copy of which is attached. 3. That, in accordance with law, the Directors now in office for each numerically designed Division shall remain Directors for the newly-redefined Division bearing the same number. 4. That the District Secretary of the District is hereby directed to give immediate notice of such boundary changes to the Registrar of Voters of the County of San Diego. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 6th day of April 2022 by the following vote: AYES: NOES: ABSENT: ABSTAIN: __________________________ President ATTEST: _________________________ Secretary Mexico ¬«54 ¬«94 §¨¦5 ¬«67 ¬«905 ¬«125 §¨¦805 §¨¦8 ¬«94 §¨¦8 Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA,USGS, AeroGRID, IGN, and the GIS User Community Sources: Boundaries, Roads, San Diego County GIS, U.S. Census Otay Water DistrictRedistricting - Option 3 Map Date2/23/2022 0 52.5 Miles ´ Otay Water DistrictOption 312345 EXHIBIT 1 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 6, 2022 SUBMITTED BY: Stephen Beppler Senior Civil Engineer PROJECT: P2612-001103 P2616-001103 DIV. NO. 4&5 APPROVED BY: Bob Kennedy, Engineering Manager Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Award of a Construction Contract to CCL Contracting, Inc. for the Paso de Luz/Telegraph Canyon (CIP P2612) and Vista Grande/Vista Sierra (CIP P2616) Water Line Replacement Projects GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) authorize the General Manager to execute an agreement with CCL Contracting, Inc. (CCL) for the construction of the Paso de Luz/Telegraph Canyon (CIP P2612) and Vista Grande/Vista Sierra (CIP P2616) Water Line Replacement Projects in an amount not-to-exceed $1,627,440 (see Exhibits A and B for Project locations). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a construction contract with CCL for the Paso de Luz/Telegraph Canyon (CIP P2612) and Vista Grande/Vista Sierra (CIP P2616) Water Line Replacement Projects (Project) in an amount not-to-exceed $1,627,440. AGENDA ITEM 8a 2 ANALYSIS: The existing 711 Pressure Zone (PZ) ductile iron water line between Paso de Luz and Telegraph Canyon Road, located in the City of Chula Vista, runs within a District easement up a steep sloped vegetated embankment. Excessive leakage on the line has required the pipeline to be taken out of service and designated for replacement. The existing 978 PZ 14-inch Cement Mortar Lined and Coated (CML&C) Steel pipe that runs between Vista Grande Road and Vista Sierra Road, located in the Hillsdale area of San Diego County, was constructed in 1959. Several water main breaks have occurred in the area on similar CML&C piping installed under the same contract has led to a determination that the pipeline has reached the end of its useful life and should be replaced. This is the first of two phases to replace CML&C water line in this area, with the second phase to be assessed based on findings during construction of phase one. The scope of work generally consists of the construction of approximately 1,750 linear feet of 12-inch water line, connections to existing water lines and services, removal and abandonment of existing water lines, pavement and surface restoration, traffic control, cathodic protection, and all other associated work and appurtenances as required by the Contract Documents. The Project was advertised on January 13, 2022 using Periscope S2G (formerly BidSync), the District’s online bid solicitation website, on the Otay Water District’s website, and in the Daily Transcript. Additionally, notifications of the Project being out for bid were emailed directly to forty (40) contractors that have previously worked for the District. This is in addition to the notifications provided by Periscope S2G to contractors in the Southern California area, with several hundred identified for the project classifications checked for this Project. Periscope S2G provided electronic distribution of the Bid Documents, including specifications, plans, and addenda. An on-line Pre-Bid Meeting was held on February 3, 2022, which was attended by two (2) contractors and vendors. Three (3) addenda were sent out to all bidders and plan houses to address questions and clarifications to the contract documents during the bidding period. Bids were publicly opened on-line on February 17, 2022, with the following result: CONTRACTOR TOTAL BID AMOUNT 1 CCL Contracting, Inc., Escondido, CA $1,627,440.00 2 Ortiz Corporation, National City, CA $1,697,416.00 3 3 LB Civil Construction, Inc., Escondido, CA $1,887,820.00 4 Blue Pacific Eng. & Constr., San Diego, CA $2,056,410.00 5 SC Valley Engineering, Inc., El Cajon, CA $2,255,543.00 6 El Cajon Grading and Engineering, Inc., Lakeside, CA $2,409,262.00 A bid was submitted by Landmark Consulting for an unrelated project in error and was determined to be non-responsive and removed from the bid results. The Engineer's Estimate is $2,170,000. A review of the bid was performed by District staff for conformance with the contract requirements and determined that CCL was a responsive and responsible bidder. CCL holds a Class A, General Engineering, Contractor’s License in the State of California, which meets the contract document’s requirements, and is valid through August 31, 2023. The reference checks indicated a good to excellent performance record on similar projects. An internet background search of the company was performed and revealed no outstanding issues with this company. CCL has previously worked for the District including the Jamacha Road Water Line and 624 PZ PRSs Improvements projects and their performance was good. They are currently constructing the Melrose and Oleander PRSs project. Staff verified that the bid bond provided by CCL is valid. Staff will also verify that CCL’s Performance Bond and Labor and Materials Bond are valid prior to execution of the contract. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP P2612, as approved in the FY 2022 budget, is $1,250,000. Total expenditures, plus outstanding commitments and forecast, including this contract, are $806,547. See Attachment B-1 for the budget detail. The total budget for CIP P2616, as approved in the FY 2022 budget, is $4,200,000. Total expenditures for phase one of the project, plus outstanding commitments and forecast, including this contract, are $1,519,629. See Attachment B-2 for the budget details. Based on a review of both financial budgets for CIP P2612 and P2616, the Project Manager anticipates the Project will be completed within the budgeted amounts. 4 The Finance Department has determined that, under the current rate model, 100% of the funding for CIPs P2612 and P2616 is available from the Replacement Fund. GRANTS/LOANS: Engineering staff researched and explored grants and loans and found none were available for this 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. SB/BK:jf Https://otaywater365.sharepoint.com/sites/engcip/Shared Documents/P2612 10-inch PL Replacement, 711 Zone, Paso de Luz/Staff Reports/4-6-22 Staff Report P2612-P2616.docx Attachments: Attachment A – Committee Action Attachment B-1 – Budget Detail for P2612 Attachment B-2 – Budget Detail for P2616 Exhibit A – P2612 Project Location Map Exhibit B – P2616 Project Location Map ATTACHMENT A SUBJECT/PROJECT: P2612-001103 P2616-001103 Award of a Construction Contract to CCL Contracting, Inc. for the Paso de Luz/Telegraph Canyon (CIP P2612) and Vista Grande/Vista Sierra (CIP P2616) Water Line Replacement Projects The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on March 15, 2022, and the following comments were made: • Committee questioned if the District would have to get right-of-way up Telegraph Canyon Road? Staff responded, we are going to stay within the 20-foot easement. Staff investigated working with the City of Chula Vista to have a wider area to use, but the cost for doing the extra restoration was going to outweigh what was expected to be received as far as the bid amounts. • Committee requested that if there were any significant cost overruns beyond a certain percentage that this would be brought back to the Board for further discussion. Staff noted that we do have a few allowance items to try and anticipate issues that may come up; however, if there was a significant overrun this would be brought back to the Board. • Committee noted that bidding in this bidding environment that the contractor is already bidding with inflation and there is no expectation that the contractor would come back and ask for more money. Staff responded that specs were modified to include that District would provide additional time, but no money compensation for material delays or supply chain issues. Staff mentioned that CCL understands how long materials will take to be ordered and they have processes to address this issue. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item. ATTACHMENT B-1 – Budget Detail for P2612 SUBJECT/PROJECT: P2612-001103 P2616-001103 Award of a Construction Contract to CCL Contracting, Inc. for the Paso de Luz/Telegraph Canyon (CIP P2612) and Vista Grande/Vista Sierra (CIP P2616) Water Line Replacement Projects Project Budget Details P2612 - Paso de Luz/Telegraph Canyon 711 PZ WL Replacement 2/28/2022 Budget Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost Vendor/Comments 1,250,000 Planning Consultant Contract $4,940 $4,940 $0 $4,940 WSC INC Regulatory Agency Fees $50 $50 $0 $50 COUNTY OF SAN DIEGO Standard Salaries $30,281 $30,281 $0 $30,281 Total Planning $35,271 $35,271 $0 $35,271 Design Construction Contracts $20,430 $20,430 $0 $20,430 KOCH GENERAL ENG INC Consultant Contracts $5,250 $5,250 $0 $5,250 COFFMAN ENG INC $10,700 $10,700 $0 $10,700 NINYO & MOORE $6,000 $6,000 $0 $6,000 STC TRAFFIC INC $90,066 $90,066 $0 $90,066 HAZEN AND SAWYER Service Contracts $12 $12 $0 $12 DAILY JOURNAL Standard Salaries $58,135 $58,135 $0 $58,135 Total Design $190,594 $190,594 $0 $190,594 Construction Service Contracts $500 $0 $500 $500 MAYER REPROGRAPHICS $42 $42 $0 $42 DAILY JOURNAL Consultant Contracts $3,225 $0 $3,225 $3,225 HAZEN AND SAWYER $30,000 $0 $30,000 $30,000 Construction Management Construction Contract $492,300 $0 $492,300 $492,300 CCL CONTRACTING INC $24,615 $0 $24,615 $24,615 Contingency @ 5% Standard Salaries $30,000 $530 $29,470 $30,000 Total Construction $580,682 $571 $580,110 $580,682 Grand Total $806,547 $226,436 $580,110 $806,547 ATTACHMENT B-2 – Budget Detail for P2616 SUBJECT/PROJECT: P2612-001103 P2616-001103 Award of a Construction Contract to CCL Contracting, Inc. for the Paso de Luz/Telegraph Canyon (CIP P2612) and Vista Grande/Vista Sierra (CIP P2616) Water Line Replacement Projects Project Budget Details P2616 - Vista Grande/Vista Sierra 978 PZ WL Replacement 2/28/2022 Budget Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost Vendor/Comments 4,200,000 Planning Consultant Contract $5,970 $5,970 $0 $5,970 WSC INC Regulatory Agency Fees $50 $50 $0 $50 COUNTY OF SAN DIEGO Standard Salaries $31,077 $31,077 $0 $31,077 Total Planning $37,097 $37,097 $0 $37,097 Design Regulatory Agency Fees $312 $312 $0 $312 COUNTY OF SAN DIEGO Consultant Contracts $1,965 $1,965 $0 $1,965 WSC INC $17,120 $17,120 $0 $17,120 NINYO & MOORE $5,760 $5,760 $0 $5,760 PSOMAS $115,260 $115,260 $0 $115,260 HAZEN AND SAWYER Service Contracts $500 $500 $0 $500 CHICAGO TITLE $12 $12 $0 $12 DAILY JOURNAL Standard Salaries $84,864 $84,864 $0 $84,864 Total Design $225,793 $225,793 $0 $225,793 Construction Service Contracts $500 $0 $500 $500 MAYER REPROGRAPHICS $42 $42 $0 $42 DAILY JOURNAL Consultant Contracts $4,300 $0 $4,300 $4,300 HAZEN AND SAWYER $30,000 $0 $30,000 $30,000 Construction Management Construction Contract $1,135,140 $0 $1,135,140 $1,135,140 CCL CONTRACTING INC $56,757 $0 $56,757 $56,757 Contingency @ 5% Standard Salaries $30,000 $1,640 $28,360 $30,000 Total Construction $1,256,739 $1,681 $1,255,057 $1,256,739 Grand Total $1,519,629 $264,571 $1,255,057 $1,519,629 OTAY WATER DISTRICT PASO DE LUZ WATER MAIN REPLACEMENT PROJECTLOCATION MAPEXHIBIT A CIP P2612F C:\Users\donald.bienvenue\Otay Water District\ENG CIP - Documents\P2612 10-inch PL Replacement, 711 Zone, Paso de Luz\Graphics\Exhibits-Figures\P2612 NOE-Location Map.mxd NEW WATER PIPELINE 0 220110 Feet !\ VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS TELEGRAPH CANYON RD MEDICAL CENTER DR P A S O D E L U Z OTAY WATER DISTRICTVISTA GRANDE/VISTA SIERRA WATER LINEREPLACEMENT PROJECTLOCATION MAP EXHIBIT B CIP P2616F C:\Users\donald.bienvenue\Otay Water District\ENG CIP - Documents\P2612 10-inch PL Replacement, 711 Zone, Paso de Luz\Graphics\Exhibits-Figures\P2616 Exhibit B-Location Map.mxd NEW 12" WATER MAIN 0 325162.5 Feet !\ VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS VISTA GRANDE RD PENCE DR VISTA SIE R R A DR STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 6, 2022 SUBMITTED BY: Lisa Coburn-Boyd Environmental Compliance Specialist PROJECT: Various DIV. NO. All APPROVED BY: Bob Kennedy, Engineering Manager Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Award of Two (2) Professional Services Contracts for As-Needed Grant Writing & Administration Services to Engineering Solutions Services and Hoch Consulting for Fiscal Years 2023- 2025 GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award two (2) professional service contracts for As-Needed Grant Writing & Administration Services and to authorize the General Manager to execute two agreements with Engineering Solutions Services (ESS) and Hoch Consulting (Hoch), each in an amount not-to-exceed $300,000. The total amount of the two (2) contracts will not exceed $300,000 during Fiscal Years 2023-2025 (ending June 30, 2025). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into two (2) professional services contracts for As-Needed Grant Writing & Administration Services with ESS and Hoch, with each contract in an amount not-to-exceed $300,000 for Fiscal Years 2023-2025. The total amount of the two (2) contracts will not exceed $300,000 during Fiscal Years 2023-2025. AGENDA ITEM 8b 2 ANALYSIS: The District will require the services of two (2) professional grant writing and administration consultants on an as-needed basis to help the District identify and research supplemental funding opportunities for District programs and projects, assist District staff in the preparation and submittal of applications for any viable opportunities, and provide administrative services for any successfully funded programs or projects for a period of approximately three years (depending on number of task orders). It is more efficient and cost effective to issue an as-needed contract for grant writing and administration to provide the District with the ability to obtain these services in a timely and efficient manner as funding opportunities arise. This concept is being used successfully for other disciplines such as engineering design, geotechnical, electrical, and environmental services. District staff will identify tasks and request cost proposals from the two (2) consultants during the contract period. Each consultant will prepare a detailed scope of work, schedule, and fee for each task order, with the District evaluating the proposals based upon qualifications and cost. The District will enter into negotiations with the consultants, selecting the proposal that has the best value for the District. Upon written task order authorization from the District, the selected consultant shall then proceed with the project, as described in the scope of work. Staff believes that a $300,000 cap on each of the As-Needed Grant Writing and Administration Services contracts is adequate for the three-year period of the contract. Fees for professional services will be charged to the Operating Budget or CIP projects, whichever is relevant for the project funding opportunity. The As-Needed Grant Writing and Administration Services contracts do not commit the District to any expenditure until a task order is approved to perform the work. The District does not guarantee work to the consultants, nor does the District guarantee to the consultants that it will expend all the funds authorized by the contract on professional services. The District solicited grant writing and administration services by placing an advertisement in the Daily Transcript, on the Otay Water District’s website, and using Periscope S2G, the District’s online bid solicitation website on December 1, 2021. The Request for Proposal (RFP) for Engineering Design Services was sent to all seven (7) firms resulting in six (6) proposals received on January 27, 2022. 3 They are as follows: • Engineering Solutions Services (Laguna Hills, CA) • Hoch Consulting (Oceanside, CA) • Intuitive Group (Capitol Heights, MD) • MNS Engineers, Inc. (Ontario, CA) • Polytechnique Environmental, Inc. (Bellflower, CA) • T & M Associates (Ontario, CA) The one firm that submitted a Letter of Interest (LOI) but did not propose was Villa Civil. In accordance with the District’s Policy 21, staff evaluated and scored all written proposals and interviewed the top four (4) firms on March 1 and 3, 2022. ESS and Hoch received the highest scores based on their experience, understanding of the scope of work, proposed method to accomplish the work, and their composite hourly rate. Both consultants have provided similar services to other local agencies and are readily available to provide the services required. A summary of the complete evaluation is shown in Attachment B. ESS and Hoch completed the Company Background Questionnaire, as required by the RFP, and staff did not find any significant issues. In addition, staff checked their references and performed an internet search on the company. Staff found the references to be excellent and did not find any outstanding issues with the internet search. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The Finance Department has determined that the funds to cover these contracts will be available as approved in future budgets for these projects. The funds for these contracts will be expended on a variety of projects, as previously noted above. These contracts are for as- needed professional services based on the District's need and schedule, and expenditures will not be made until a task order is approved by the District for the consultant's services on a specific project. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to 4 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." GRANTS/LOANS: Not applicable. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B – Summary of Proposal Rankings ATTACHMENT A SUBJECT/PROJECT: Various Award of Two (2) Professional Services Contracts for As-Needed Grant Writing and Administration Services to Engineering Solutions Services and Hoch Consulting for Fiscal Years 2023-2025 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on March 15, 2022, and the following comments were made: • A question was raised by the Committee as to whether there were any other staff at the District that may have worked on the preparation of grant applications in the past five years. In response, staff stated that in addition to several in Engineering, staff from Communications and Customer Service have also been involved in the preparation of grant applications. • The Committee made a comment that getting more funding would provide staff with the opportunity to work with the grant funding consultants. Staff commented that it is important to get more staff involved as the District pursues opportunities so that staff becomes more comfortable working on grant applications. • The Committee commented that working with the grant funding consultants on grant applications would help staff to develop these skills in-house and over the course of five to ten years, we could have the skill set in-house. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item. Qualifications of Team Responsiveness and Project Understanding Technical and Management Approach INDIVIDUAL TOTAL - WRITTEN AVERAGE WRITTEN TOTAL Consultant's Commitment to DBE Additional Creativity and Insight Strength of Project Manager Presentation & Communication Skills Responses to Questions INDIVIDUAL TOTAL - ORAL AVERAGE ORAL TOTAL TOTAL SCORE WITHOUT FEE TOTAL SCORE 30 25 30 85 85 Y/N 15 15 10 10 50 50 135 150 Poor/Good/ Excellent Steve Beppler 25 22 27 74 13 13 8 7 41 Andrea Carey 26 23 27 76 12 12 9 7 40 Lisa Coburn-Boyd 26 22 27 75 12 13 8 8 41 Tenille Ortero 27 23 27 77 12 10 9 8 39 Kent Payne 26 22 26 74 11 11 6 8 36 Steve Beppler 26 23 28 77 13 13 8 8 42 Andrea Carey 28 22 27 77 13 13 7 9 42 Lisa Coburn-Boyd 27 23 27 77 13 12 7 8 40 Tenille Ortero 27 23 28 78 13 10 7 9 39 Kent Payne 28 25 27 80 12 12 8 8 40 Steve Beppler 25 20 25 70 Andrea Carey 22 21 24 67 Lisa Coburn-Boyd 23 20 25 68 Tenille Ortero 26 20 27 73 Kent Payne 23 21 24 68 Steve Beppler 26 22 27 75 11 12 8 7 38 Andrea Carey 25 22 26 73 13 12 9 8 42 Lisa Coburn-Boyd 26 22 27 75 12 12 8 8 40 Tenille Ortero 26 23 29 78 10 12 9 7 38 Kent Payne 24 21 25 70 7 13 10 8 38 Steve Beppler 24 20 24 68 Andrea Carey 25 22 25 72 Lisa Coburn-Boyd 25 21 25 71 Tenille Ortero 24 23 25 72 Kent Payne 24 22 25 71 Steve Beppler 28 23 29 80 14 13 8 7 42 Andrea Carey 29 24 29 82 13 14 8 9 44 Lisa Coburn-Boyd 29 24 28 81 14 13 8 8 43 Tenille Ortero 29 25 29 83 14 14 8 9 45 Kent Payne 29 24 29 82 13 14 9 8 44 Notes: Consultant Weighted Fee Score 1. Review Panel does not see or consider proposed fee when scoring other categories. The proposed fee is scored by Engineering staff not on the Review Panel. Engineering Solutions Services $152 5 Intuitive Group $67 15 Polytechnique Environmental $158 4 T & M Associates $179 2 Hoch Consulting $184 1 Firm Not Interviewed Firm Not Interviewed 69 124 84 117 39 121 73 127 41 119 39 113 REFERENCES 69 Y 78 ExcellentY 75 Y FEE SCORING CHART Y74 YT & M Associates YHoch Consulting Excellent 71 ATTACHMENT B SUMMARY OF PROPOSAL RANKINGS As-Needed Grant Writing and Administrative Services - Fiscal Years 2023 - 2025 WRITTEN ORAL MAXIMUM POINTS Engineering Solutions Services Intuitive Group Polytechnique Environmental 114 82 44 126 71 MNS Engineers STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 6, 2022 SUBMITTED BY: Stephen Beppler Senior Civil Engineer PROJECT: P2677-001103 DIV. NO. 1 APPROVED BY: Bob Kennedy, Engineering Manager Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Approval to Increase the CIP P2677 Budget in an Amount of $300,000 and Authorization to Execute a Reimbursement Agreement Between the City of San Diego and the Otay Water District for the La Media/Airway Road Water Line Relocation (CIP P2677) Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board): 1. Approve to increase the CIP P2677 budget by $300,000 (from$1,500,000 to $1,800,000); and2. Authorize the General Manager to execute a ReimbursementAgreement (Agreement) between the City of San Diego (City) andthe District for La Media/Airway Road Water Line Relocation (CIP P2677) Project (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board approval to increase the CIP P2677 budget by $300,000 (from $1,500,000 to $1,800,000) and to authorize the General Manager to execute an Agreement (Exhibit B) with the City for costs associated with construction of the La Media/ Airway Road Water Line Relocation Project. The Agreement provides that the District will AGENDA ITEM 8c 2 deposit an amount to the City within ninety (90) calendar days of the City’s written confirmation of the Project cost after the opening of bids. It is expected the Project will be bid in May 2022 and by July 2022 the City will request a deposit amount estimated to be about $1,517,000, to be adjusted to reflect actual bid results. Staff will bring this back to the Board if the deposit exceeds the CIP budget. ANALYSIS: The City of San Diego is improving and widening La Media Road between State Route 905 and Siempre Viva Road in the Otay Mesa area. The work also includes significant storm drainage improvements at the Airway Road intersection. The Franchise Agreement between the District and the City requires the District to relocate and adjust its facilities within the City’s right-of-way at the District’s cost. In order to minimize impacts to the Otay Mesa community and avoid coordination issues, District staff and the City are coordinating their efforts to combine the contract documents for the utility relocations and the road work into one bid package. The City will incorporate the District's utility relocations into their bid package and bid their project and the District's as one project. It is anticipated the City will advertise the "Project" in April and they want a reimbursement agreement in place with the District prior to this advertisement. The City will administer the Project with District staff providing assistance during bidding and construction activities as needed. District inspection personnel will perform oversight of the water line construction. Award of the Project is anticipated in July 2022 with completion of construction expected by June 2024. The District scope of work includes installation of approximately 1,100 linear feet of 16-inch and 18-inch potable water lines and facilities along La Media Road and Airway Road to avoid conflicts with road and storm drain improvements. The construction cost associated with the utility relocations is estimated at $1,187,307 plus a ten (10) percent contingency of $118,731. The City’s Construction Administration Cost is estimated at 15 percent of the construction cost or $178,096. An allowance of $32,891 has been estimated for the design engineer, Rick Engineering, to provide construction support. The total construction estimate, to be administered through the City, is $1,517,025. This amount will be adjusted prior to the District’s payment to the City to reflect the actual bid amount. The attached agreement (Exhibit B) provides for reimbursement to the City to cover the actual “as-bid” costs. With the exception of emergencies, prior to the approval of any 3 construction change or change order affecting the District, the City will obtain the written consent of the District. The design of the Project was completed by Rick Engineering, the City’s consultant for the road and storm drainage improvements design. The District was not advised regarding the project until the design of the overall project was about 90 percent complete, so Rick Engineering agreed to complete the water utilities design as part of the overall project design to avoid delaying the project. The $300,000 budget increase is needed to account for scope of work adjustments and higher construction costs from inflationary factors. FISCAL IMPACT: Joseph Beachem, Chief Financial Officer The FY 2022 budget for CIP P2677 is $1,500,000. Total expenditures, plus outstanding commitments and forecast, including this agreement, are $1,743,728. See Attachment B for budget detail. Based on a review of the financial budget, the Project Manager anticipates that with a budget increase of $300,000, the Project will be completed within the new budget amount of $1,800,000. The Finance Department has determined that, under the current rate model, 100% of the funding is available from the Replacement Fund for CIP P2677. GRANTS/LOANS: Engineering staff researched and explored grants and loans and found none were available for this 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: The District’s General Counsel and the City’s City Attorney have reviewed and accepted the agreement as to form and legality. SB:BK:jf 4 https://otaywater365.sharepoint.com/sites/engcip/Shared Documents/P2677 La Media Road and Airway Road Utility Relocations/Staff Reports/BD 04-06-2022, Staff Report, P2677 La Media WL City of San Diego Reimbursement Agreement (SB-BK).docx Attachments: Attachment A – Committee Action Attachment B – P2677 Budget Detail Exhibit A – Location Map Exhibit B – Agreement ATTACHMENT A SUBJECT/PROJECT: P2677-001103 Approval to Increase the CIP P2677 Budget in an Amount of $300,000 and Authorization to Execute a Reimbursement Agreement Between the City of San Diego and the Otay Water District for the La Media/Airway Road Water Line Relocation Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on March 15, 2022, and the following comments were made: • Staff reported that for construction efficiency, the water system improvements (OWD) will be bid with the road project (City of San Diego), with the District to reimburse the City of San Diego for the District’s costs. • Staff mentioned that the scope of work consists of the replacement of approximately 1,100 LF of 16-inch and 18-inch potable water lines on the 870 Pressure Zone with appurtenances. • Staff noted that legal representation assisted in reviewing the drafting of the reimbursement agreement that was prepared by the City of San Diego. • Staff detailed that project costs to be reimbursed will include: o Direct construction contract amount; o Construction contingency of 10% of the construction cost; o City’s construction administration of 15% of the construction cost; and o Engineer’s construction support allowance • Staff mentioned that the District will review water system related material submittals and perform daily inspections so that the quality of the work is built to District standards. • Committee asked if the nature of the work in this area is the storm drain? Staff responded that it is really bad drainage in this area and the District receives complaints from lot owners and property owners and it goes towards the District and the City of San Diego and we have done a lot of work ruling out our system and making sure it is not the District contributing the issue and it comes down to the storm drain and how that works. Staff is hopeful that this will not only solve the issue for the City of San Diego, but even reduce inquiries the District has been receiving over the last couple of years. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item. ATTACHMENT B – Budget Detail SUBJECT/PROJECT: P2677-001103 Approval to Increase the CIP P2677 Budget in an Amount of $300,000 and Authorization to Execute a Reimbursement Agreement Between the City of San Diego and the Otay Water District for the La Media/Airway Road Water Line Relocation Project Project Budget Details P2677 - La Media/Airway Road 870 PZ WL Relocation 2/28/2022 Budget Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost Vendor/Comments 1,800,000 Design Standard Salaries $25,000 $12,907 $12,093 $25,000 Total Design $25,000 $12,907 $12,093 $25,000 Construction Construction Contract $1,187,307 $0 $1,187,307 $1,187,307 CONSTRUCTION CONTRACTOR (ESTIMATE) $118,731 $0 $118,731 $118,731 CONSTRUCTION CONTINGENCY (10%) $178,096 $0 $178,096 $178,096 CONSTRUCTION ENGINEERING/ SOFT COSTS (15%) $32,891 $0 $32,891 $32,891 CONSTRUCTION SUPPORT (RICK ENGINEERING) Project Contingency $151,703 $0 $151,703 $151,703 10% CONTINGENCY Standard Salaries $50,000 $0 $50,000 $50,000 Total Construction $1,718,728 $0 $1,718,728 $1,718,728 Grand Total $1,743,728 $12,907 $1,730,821 $1,743,728 OTAY WATER DISTRICTLA MEDIA RD AND AIRWAY RD UTILITY RELOCATIONSLOCATION MAP EXHIBIT AC:\Users\donald.bienvenue\Otay Water District\ENG CIP - Documents\P2677 La Media Road and Airway Road Utility Relocations\Graphics\Exhibits-Figures\Exhibit A-Location Map.mxd !\ VICINITY MAP DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 PROJECT SITE ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS PROJECT SITE CIP P2677F 0 1,100550 Feet SR-905 OTAY MESA RD SR-125 AIRWAY RD SIEMPRE VIVA RD LA MEDIA RD 1 REIMBURSEMENT AGREEMENT FOR PAYMENT OF COSTS OF RELOCATION AND ADJUSTMENT OF CERTAIN WATER FACILITIES BY AND BETWEEN THE OTAY WATER DISTRICT AND THE CITY OF SAN DIEGO La Media Road Improvements and Otay Water District CIP‐P2677 THIS REIMBURSEMENT AGREEMENT FOR THE PAYMENT OF COSTS FOR RELOCATION AND ADJUSTMENT OF OTAY WATER DISTRICT FACILITIES (the “Agreement”), dated ________________, _______, is entered into by and between the Otay Water District (“District”) and the City of San Diego (“City”) to establish the terms and conditions under which the City will design, bid, and cause to be constructed certain District facilities, and District will reimburse City for all expenses related thereto. District and City may be referred to herein individually as “Party” or collectively as the “Parties.” RECITALS WHEREAS, District has approved, within its Capital Improvement Program, the relocation and adjustment of certain existing, reclaimed, and potable water facilities (referred to herein as “Existing District Facilities”) with the City of San Diego; and WHEREAS, District is authorized, pursuant to applicable laws, to contract and to pay for all of the cost of the installation, relocation, adjustment, and construction of any building, facility, structure, or other improvements required by District in connection with a District service; and WHEREAS, the City of San Diego is constructing improvements to La Media Road between SR‐905 and Siempre Viva Road. These improvements are specifically defined below as “City Improvements”; and WHEREAS, the relocation and adjustment of Existing District Facilities would constitute a substantial benefit to District, which include, but are not limited to, reductions or savings in terms of time, money, construction hazards, and traffic impacts; and WHEREAS, in order to achieve such benefits, District desires that City incorporate the relocation and adjustment of Existing District Facilities into the construction documents and contract for the City Improvements; and WHEREAS, City is willing to incorporate the relocation and adjustment of District’s Existing District Facilities into the contract for City Improvements, provided that District agrees to reimburse City for all associated costs; and NOW, THEREFORE, in consideration of the mutual covenants herein contained, the Parties agree as follows: ARTICLE 1. DEFINITIONS Unless the context otherwise requires, the terms defined in this Article 1 shall, for all purposes of this Agreement and of any amendment thereto, and of any certificate, opinion, estimate or other document herein mentioned, have the meanings herein specified. “District” means the Otay Water District, a municipal water district duly organized and existing under the Municipal Water District Law of 1911, as set forth in the California Water Code. EXHIBIT B 2 “City” means the City of San Diego, a municipal corporation. “City Improvements” means the full scope of the City’s construction of improvements to La Media Road, and specifically, the widening of La Media Road between SR‐905 and Siempre Viva Road such that La Media Road will be widened to a six‐lane primary arterial from SR‐905 to Airway Road, and La Media Road will be widened to a five‐lane major arterial between Airway Road and Siempre Viva Road with three southbound lanes and two northbound lanes, as well as drainage improvements at the intersection of La Media Road and Airway Road. “District Costs” means the total dollar amount of costs associated with the relocation and adjustment of District’s Existing Facilities including, but not limited to, costs of materials, labor, oversight, contractor burden and profit, bidding, permits, change orders, construction management costs, engineering costs, inspection costs and the fair share of Joint Costs. “District Project” means the relocation and adjustment of District’s reclaimed and potable water facilities, defined as “Existing District Facilities,” within the limits of the City Improvements. “Existing District Facilities” means the following reclaimed and potable water facilities plus other appurtenances as stated in Exhibit “A” to be relocated or adjusted: Reclaimed and Potable Water Improvements Total Estimated Quantity 16” ACP water at the intersection of La Media and Airway Road 304 LF 16” PVC to be installed 18” ACP water at the intersection of La Media and Airway Road 129 LF 18” PVC to be installed 16” CCP water in La Media Road north of Airway Road 282 LF 16” PVC to be installed 16” ACP water in Airway Road West of La Media Road 239 LF 16” PVC to be installed 18” CCP water in Airway Road East of La Media Road 150 LF 18” PVC to be installed Cut and cap existing 24” PVC reclaimed water line in La Media Road north of Airway Road 1 “Joint Costs” means those costs of relocations and adjustments, which, due to their nature, (1) will not be bid by City’s contractor as separate, allocated line items to City and District, or (2) cannot be attributed solely to the District Project or solely to the City Improvements, yet from which both public entities derive benefit, or (3) those costs that both Parties would have incurred had their respective facilities been constructed independently of each other (e.g. slurry seal would have been necessary to cover the District’s trench and would also have been required for the City street). “Project” means, collectively, District Project and City Improvements. “Soft Costs” mean District Project delivery costs, including the cost to complete planning studies, engineering design, bid, award, inspection, and administration. 3 ARTICLE 2. PRECONSTRUCTION 2.1 Design and Specifications – Generally. Prior to advertisement of an Invitation to Bid (ITB) for the construction and installation of the Project, District shall submit designs and all associated plans and specifications (collectively “District Design Documents”) for the District Project to Rick Engineering. The District has retained Rick Engineering as its design consultant for the District Project. The City has retained Rick Engineering as its design consultant for the City Improvements. Rick Engineering will prepare all design documents for the entirety of the Project. Each party will provide its design requirements to Rick Engineering who will create a final set of plans and specifications for the Project that will incorporate the District’s design requirements for the District Project as well as the City’s design requirements for the City Improvements (“Final Set of Plans”). 2.1.1 City’s ITB. Rick Engineering’s Final Set of Plans will be included in the City’s ITB for the construction of the Project. The City will not be responsible for any costs, claims or disputes arising out of District’s provision of its design requirements or District Design Documents to Rick Engineering. 2.1.2 Design and Preparation Costs. All costs associated with design and the preparation of District’s Design Documents shall be borne solely by the District. Exhibit A to this Agreement, Rick Engineering Company’s Proposal for La Media Road Improvements Project – Otay Water District Infrastructure Construction Support and Cathodic Protection Services (Rick Engineering Company Job Number 18429) sets forth Rick Engineering Company’s proposal and estimate of the construction support and cathodic protection services relative to the District Project. 2.1.3 Bidding and Award. City shall be responsible for all aspects of bidding and award of a contract for the construction and installation of the Project (“Construction Agreement”). 2.1.3.1 Bid Package. City shall be responsible for preparing and circulating the bid package. 2.1.3.2 Meetings. City shall organize all pre‐bid meetings and shall give the District timely notice of the time, date, and location of such meetings, so that a representative of the District may be present to clarify any issues related to and prepare addenda for the construction of the District Facilities. District will bear the cost of responding to any issues or preparing addenda for District Facilities, including costs related to responses to Submittals and Requests for Information regarding the District’s Design Documents. Any additional costs associated with the failure of District to attend meetings, clarify issues, or submit addenda to City for distribution shall be the obligation of the District. 2.1.3.3 Selection of the Lowest Responsible Reliable Bidder. City, at its sole discretion, shall determine the lowest responsible reliable bidder, which determination shall be binding on the District. Accordingly, City shall be solely responsible for handling and responding to any bid protests or other bid‐related disputes. 2.1.3.4 Execution of Construction Agreement. City shall be responsible for executing the Construction Agreement. 4 ARTICLE 3. CONSTRUCTION 3.1 Compliance with Specifications. City will include provisions in the Construction Agreement that require the City’s contractor to construct the relocations and adjustments associated with the District Project in strict compliance with the Final Set of Plans, and that any and all deviations from the District Design Documents must be approved by District, in writing, prior to being incorporated into the work. 3.2 Project Completion and Warranty. District and City anticipate that Project will be completed on or about June 2024. The Project, however, will not be deemed completed or accepted until both City and District have accepted their respective facilities or improvements in writing in accordance with the Greenbook section 3‐13. City’s contractor shall warrant all work for a period of no less than one year from the date of acceptance, which shall be deemed to be the later of the dates City and District accept their work performed and facilities constructed pursuant to the Construction Agreement. 3.3 Construction Engineering. District shall review and respond to any Requests for Information and shop drawing submittals related to the District Project. The City shall transmit the submissions between the contractor and the District in a timely manner. The estimated total cost for the construction of the District Project will include the costs estimated by Rick Engineering for responding to Requests for Information related to the District Project, for which the District will reimburse City per Article 4 below. ARTICLE 4. REIMBURSEMENT OF COSTS 4.1 The entire cost of the construction of the District Project shall be paid by the District. The Current Total Estimated Cost for the construction of the District Project is $1,517,024.75 as shown in the table in section 4.1.1. Prior to awarding the construction contract City will recalculate the Current Total Estimated Cost to reflect the bid amount for the construction of the District Project and will appropriately adjust the Construction Contingency and Construction Engineering/Soft Costs to arrive at the Revised Total Estimated Cost of the District Project. Subsequently, the City will advise the District of the Revised Total Estimated Cost of the District Project. Within ninety (90) calendar days of the City’s written confirmation of the Revised Total Estimated Cost, District shall pay City the Revised Total Estimated Cost for the construction of the District Project. The Parties acknowledge that this payment will be the total sum of the apparent lowest responsible reliable bid amount for the construction of the District Project, plus 10% of the total bid amount for Construction Contingency, plus 15% of the total bid amount for Construction Engineering/Soft Costs known by the parties at that time, as well as Exhibit A, Rick Engineering Company’s Cost Proposal for La Media Road and Truck Route Improvements Project – Otay Water District Infrastructure Construction Support and Cathodic Protection Services (Rick Engineering Company Job Number 18429) (“Revised Total Estimated Cost”). The parties acknowledge that the actual construction and design costs for the District Project could be less than or greater than the Current Total Estimated Cost, or the Revised Total Estimated Cost, and the parties will engage in a certification of costs at the conclusion of the Project as set forth in section 4.1.3 below. 5 4.1.1 Current Total Estimated Cost for District Project The components of the Current Total Estimated Cost for the design and construction of the District Project are as follows: Item Estimated Cost Construction Cost $1,187,307.00 Construction Contingency 10% $ 118,730.70 Construction Engineering/ Soft Costs 15% $ 178,096.05 Rick Engineering Construction support (Per Exhibit A) $ 32,891.00 Total Estimated Cost $1,517,024.75 4.1.2 Replenishment of the Ten Percent Construction Contingency. The parties further acknowledge that there could be change orders that increase or decrease the construction and design costs. The City will notify the District, when and if, the initial 10% Construction Contingency is depleted and request that the District replenish this amount by providing an additional 10% Construction Contingency to be paid to the City within 90 days of said request. If, and when, the additional 10% Construction Contingency is depleted, the City will request a further 10% replenishment. The District will pay any further 10% replenishments within 14 days of City’s request. Any accrued interest earnings from the original deposit may be used to offset the District’s additional Contingency contribution. 4.1.3 Certification of Costs. Upon completion of the District Project, City will provide written certification to the District of the actual total construction and design costs, including Joint Costs (“Actual Certified Costs”) incurred for the District Project. If the Actual Certified Costs are less than the District’s payment, the City will return the difference, including interest earnings, to the District within 30 days of the date of the written certification. If the Actual Certified Costs are more than the District’s payment, the District will pay the difference to the City within 90 days of the date of the written certification. 4.2 Apportionment of Joint Costs. Joint Costs shall be apportioned as follows: 4.2.1 When a percentage of use can be determined, Joint Costs shall be apportioned based on the respective percentages of use. 4.2.2 When a percentage of use cannot be determined, but the work is necessary for both the installation and construction of City Improvements and the District Project, Joint Costs shall be divided equally. 4.3 Use of Project Contingency. The Construction Contingency may be used for unforeseen changes in work; however, it shall not be used for work required due to contractor’s failure to perform work or services according to the terms of the Construction Agreement or according to the Construction Documents. 6 ARTICLE 5. CHANGE ORDERS 5.1 Written Approval of Construction Changes and Change Orders. With the exception of Emergencies, defined below, prior to the approval of a construction change or change order concerning or affecting District Project, including any changes to City Improvements that might affect District Project in any way, City shall obtain the written consent of District. 5.1.1 Approval of Change Orders. District shall respond to a change order request within twenty (20) working days of the date it is received by District. 5.1.2 Additional Costs. District will bear any increased costs due to a delay in approving a properly submitted construction change and/or change order request. 5.2 Changes Due to Emergency Situations. City may authorize its contractor to proceed with any proposed construction changes and/or change orders without consulting with District or obtaining District’s approval if an emergency arises, as determined in the sole discretion of City, or if the failure to act would result in delays and cost overruns (collectively “Emergency” or “Emergencies”); however, City shall use best efforts to immediately, or as soon as reasonably possible, inform the District of the changes. The District shall be responsible for any increased costs of construction for the District Project due to an Emergency. 5.3 Errors and Omissions. City shall not make payment to a contractor or charge District for any costs or expenses of a Change Order resulting from an error or omission for which the contractor is solely responsible. ARTICLE 6. INSPECTION 6.1 Inspection Team. District shall appoint an individual or team responsible for inspections and responsible for approving the installation of District Project. 6.2 Inspection Stages and Obligations. District shall have the right to conduct inspections of the District Project and construction methods pertaining thereto as deemed necessary by District. District shall provide copies of all District inspections to City within ten (10) working days of an inspection. District shall be responsible for verifying that all work on District Project is completed in accordance with the approved plans and specifications. It is specifically understood that District’s inspectors shall have the authority to enforce District’s plans and specifications for District Project, which authority shall include the authority to require that any and all unacceptable materials, workmanship, and/or installation be replaced, repaired, or corrected by City’s contractor without additional cost to District and/or City. District shall inform the City within ten (10) working days of an inspection of any and all unacceptable materials, workmanship, and/or installation and shall make any request for replacement, repair, or correction. 6.3 Inspection Costs. All costs incurred by District in its inspection and approval processes will be borne by District. 6.4 Notification. The Parties agree to develop mutually acceptable procedures for notification of inspections required or deemed necessary by either Party. 7 ARTICLE 7. INSURANCE 7.1 Contractor’s Insurance. City shall ensure that its contractor provides evidence of insurance coverage, as required by City, for the entire construction and, if applicable, warranty period. Such insurance shall, at a minimum, include a comprehensive general liability policy in an amount sufficient to cover all contractual obligations of the contractor under the construction contract, and no less than $2,000,000. 7.2 Parties’ Insurance. District and City shall maintain insurance as customary in connection with their respective facilities and obligations. ARTICLE 8. INDEMNITY 8.1 Indemnity. Each Party hereto agrees to defend, indemnify, protect, and hold harmless (“Indemnitor”) the other Party, its agents, officers, and employees (“Indemnitees”) from and against any and all claims asserted or liability established for damages or injuries to any property or person, including death and dismemberment, which arise from the negligent acts or omissions or willful misconduct of the Indemnitor or its agents, officers or employees, in performing the work, services, or obligations herein and all expenses of investigation and defending against same; provided, however, that each Party’s duty to defend, indemnify and hold harmless the other shall not include any claims or liability arising from the sole negligence or sole willful misconduct of the other Indemnitee, its agents, officers or employees. District and City agree that in the event of any claims of joint or concurrent negligence, they will apportion any established or agreed upon liability proportionate to their respective degree of fault. For the purposes of this provision, City’s contractor and any subcontractors shall not be considered an agent of City or District. 8.2 Survival. Indemnitors’ obligations under Article 8 shall survive the termination of this Agreement. ARTICLE 9. RECORDS 9.1 Retention of Records. City shall require contractor to maintain data and records related to this Project for a period as defined in the Construction Agreement. 9.2 Audit of Records. City shall make available and shall require that its contractor make available for examination at reasonable locations and during normal business hours, all of the data and records with respect to all matters covered by this Agreement and the Construction Agreement. City will permit the District to audit all invoices, materials, payroll, records of personnel, and other data and media relating to District Project. Likewise, District shall make available to City for examination at reasonable locations and during normal business hours any records relating to District Project. ARTICLE 10. NOTICES 10.1 Writing. Any demand upon or notice required or permitted to be given by one Party to the other Party shall be in writing. 10.2 Effective Date. Except as otherwise provided by law, any demand upon or notice required or permitted to be given by one Party to the other Party shall be effective: (a) upon personal delivery, (b) on the second business day after mailing by certified or registered U.S. Mail, return receipt requested, 8 (c) on the succeeding business day after mailing by Express Mail or after deposit with a private delivery service of general use (e.g. Federal Express) postage or fee prepaid as appropriate, or (d) upon successful transmission of facsimile. 10.3 Recipients. All demands or notices required or permitted to be given shall be sent to all of the following: District: Otay Water District 2554 Sweetwater Springs Boulevard Spring Valley, California 91978 Fax: 619‐670‐8920 Attention: District Project Manager City: City of San Diego Engineering & Capital Projects 525 B Street, Suite 750, MS 908A San Diego, CA 92101 Fax: 619‐533‐4654 Attention: Doran Aivati, Project Manager 10.4 Change of Addresses. Notice of change of address shall be given in the manner set forth in this Article. ARTICLE 11. MISCELLANEOUS 11.1 Headings. All article headings are for convenience only and shall not affect the interpretation of this Agreement. 11.2 Number. Whenever the context requires, the use herein of the singular number includes the plural number. 11.3 Reference to Paragraphs. Each reference in this Agreement to a section, refers, unless otherwise stated, to a section of this Agreement. 11.4 Incorporation of Recitals. All recitals herein are incorporated into this Agreement and are made a part hereof. 11.5 Covenants and Conditions. All provisions of this Agreement expressed as either covenants or conditions on the part of City or the District, shall be deemed to be both covenants and conditions. 11.6 Integration. This Agreement and the exhibits and references incorporated into this Agreement fully express all understandings of the Parties concerning the matters covered in this Agreement. No change, alteration, or modification of the terms or conditions of this Agreement, and no verbal understanding of the Parties, their officers, agents, or employees shall be valid unless made in the form of a written change agreed to in writing and signed by both Parties or an amendment to this Agreement 9 agreed to in writing and signed by both Parties. All prior negotiations and agreements are merged into this Agreement. 11.7 Severability. The unenforceability, invalidity, or illegality of any provision of this Agreement shall not render any other provision of this Agreement unenforceable, invalid, or illegal. 11.8 Drafting Ambiguities. The Parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms and conditions of this Agreement, and the decision of whether or not to seek advice of counsel with respect to this Agreement is a decision that is the sole responsibility of each Party. This Agreement shall not be construed in favor of or against either Party by reason of the extent to which each Party participated in the drafting of the Agreement. 11.9 Conflicts Between Terms. If an apparent conflict or inconsistency exists between the main body of this Agreement and the exhibits, the main body of this Agreement shall control. If a conflict exists between and applicable federal, state, or local law, rule, regulation, order, or code and this Agreement, the law, rule, regulation, order or code shall control. Varying degrees of stringency among the main body of this Agreement, the exhibits, and laws, rules, regulations, orders, or codes are not deemed conflicts, and the most stringent requirement shall control. Each Party shall notify the other immediately upon the identification of any apparent conflict or inconsistency concerning this Agreement. 11.10 Prompt Performance. Time is of the essence for each covenant and condition set forth in this Agreement. 11.11 Good Faith Performance. The Parties shall cooperate with each other in good faith and assist each other in the performance of the provisions of this Agreement. 11.12 Further Assurances. City and District each agree to execute and deliver such additional documents as may be required to effectuate the purposes of this Agreement. 11.13 Exhibits. Exhibit A: Rick Engineering Company’s Proposal for La Media Road and Truck Route Improvements Project – Otay Water District Infrastructure Construction Support and Cathodic Protection Services (Rick Engineering Company Job Number 18429) 11.14 Controlling Law. The laws of the State of California shall govern and control the terms and conditions of this Agreement. 11.15 Jurisdiction and Venue. The venue for any suit or proceeding concerning this Agreement, the interpretation or application of any of its terms, or any related disputes shall be in the County of San Diego, State of California. 11.16 Agency/ Municipal Powers. Nothing contained in this Agreement shall be construed as a limitation on the powers of the District as a municipal water district or the City as a charter city and municipal corporation in the State of California. 11.17 Third Party Relationships. Nothing in this Agreement shall create a contractual relationship between City or District and any third party. 10 11.18 Limitation on District Remedies and Waiver of Claims. District understand that the sole purpose of this Agreement is to establish a method to reimburse City for obligations of the District for payment of the costs of the installation and construction of District Facilities, which costs would otherwise be due directly to City contractor. In accordance with such purpose, the District agrees that its sole remedy for construction defects, breach by City contractor, damage to property or persons, including death, to District personnel or any third parties, or other claims arising out of or related to the work performed to install and/or construct District Project shall be against City’s contractor or its subcontractors and agents, and hereby, waives any and all claims it may hereafter have against City, arising out of the same, except those claims arising out of the sole negligence or sole willful misconduct of City or covered by the indemnity provisions of Article 8. 11.19 Non‐Assignment. Except as relates to the Construction Agreement, City shall not assign the obligations under this Agreement. 11.20 Successors in Interest. This Agreement and all rights and obligations created by this Agreement shall be in force and effect whether or not any Parties to the Agreement have been succeeded by another entity, and all rights and obligations created by this Agreement shall be vested and binding on any Party’s successor in interest. 11.21 No Waiver. No failure of either City or the District to insist upon the strict performance by the other of any covenant, term, or condition of this Agreement, nor any failure to exercise any right or remedy consequent upon a breach of any covenant, term, or condition of this Agreement, shall constitute a waiver of any such breach of such covenant, term or condition. No waiver of any breach shall affect or alter this Agreement, and each and every covenant, condition, and term hereof shall continue in full force and effect to any existing or subsequent breach. 11.22 Administrative Claims Requirements and Procedures. No suit or arbitration arising out of this Agreement shall be brought against City, unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in the California Government Code. Upon request by City, District shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. Similarly, no suit or arbitration arising out of this Agreement shall be brought against the District unless a claim has first been presented in writing and filed with the District and acted upon by the District in accordance with the procedures set forth in the California Government Code and Otay Water District Policy No. 29, as same may from time to time be amended, the provisions of which are incorporated by reference as if fully set forth herein, and such policies and procedures used by the District in the implementation of same. Upon request by District, City shall meet and confer in good faith with District for the purpose of resolving any dispute over the terms of this Agreement. 11.23 Dispute Resolution. If a dispute arises out of or relates to this Agreement, or the breach thereof, the Parties agree to engage in good faith negotiations to attempt to resolve the dispute. The Parties agree that if informal negotiations do not resolve the dispute, the Parties shall engage in non‐ binding mediation to attempt to resolve the dispute before any formal legal action is pursued by either Party. 11 11.24 Administration of Contract. City hereby designates Doran Aivati, as City Project Manager for the construction of Project and as the primary contact for all matters relating to this Agreement, including the submittal of City invoices for reimbursement. District hereby designates Stephen Beppler, P.E. as District Project Manager for District Facilities and as the primary contact for all matters relating to this Agreement, including the processing, documenting, and approval of City invoices. 11.25 Signing Authority. The representative for each Party signing on behalf of such Party hereby declares that authority has been obtained to sign on behalf of City and District, respectively. This Agreement may be executed in multiple counterpart copies, any one of which, when duly executed, with all formalities hereof, shall be fully binding and effective as the original of this Agreement. IN WITNESS WHEREOF, City and District have executed this Agreement thereby indicating that they have read and understood same and indicate their full and complete consent to its terms. City of San Diego By:___________________ Cindy Crocker, Deputy Director Purchasing & Contracting Dated:__________________ Otay Water District By:_________________________ Jose Martinez, General Manager Dated: _______________________ Approved as to Form: This ____ day of ______ 20__ MARA W. ELLIOTT, City Attorney By: _______________________ Deputy City Attorney Approved as to Form: This _____ day of ______ 20__ District Counsel ________________________ June 23, 2021 Revised July 19, 2021 Mr. Doran Aivati, PE City of San Diego 525 B Street San Diego, CA 92101 SUBJECT: PROPOSAL FOR LA MEDIA ROAD IMPROVEMENTS PROJECT - OTAY WATER DISTRICT INFRASTRUCTURE CONSTRUCTION SUPPORT AND CATHODIC PROTECTION SERVICES (RICK ENGINEERING COMPANY JOB NUMBER 18429) Dear Doran: Rick Engineering Company is pleased to submit our proposal for construction support and cathodic protection services for the La Media Road Improvements project for the Otay Water District Infrastructure Improvements. Attached is our detailed Scope of Services, Exhibit A; Compensation Schedule, Exhibit B; and Fee Proposal, Exhibit C. We appreciate the opportunity to provide this proposal and look forward to working with you on this project. Should you have any questions regarding this proposal, please feel free to contact me at (619) 291-0707. Sincerely, RICK ENGINEERING COMPANY Kevin R. Gibson, PE R.C.E. No. 52295 Principal, Public Works Division K:\Files\18429\text\18429.Cover Letter.008.docx Attachments EXHIBIT A SCOPE OF SERVICES SUBJECT: LA MEDIA ROAD IMPROVEMENTS PROJECT – OTAY WATER DISTRICT Pursuant to your request, the following outlines our proposed scope of work to provide construction support services for the above-mentioned projects associated with Otay Water District (OWD) items of work. SCOPE OF WORK 1. CONSTRUCTION SUPPORT SERVICES A. Construction Progress Meetings Pre-Construction Meeting. The Design Consultant’s Project Engineer and Project Manager shall attend and participate in the pre-construction meeting including a project site visit. Construction Progress Meetings. The Design Consultant’s Project Manager shall attend up to 4 Construction Progress Meetings and provide consulting services for the construction that pertains to the construction of the OWD infrastructure. B. Requests for Information (RFIs) The Consultant shall review the written requests for information or clarification (RFI/RFC) from the contractor and the appropriate sections/drawings of the technical documents and prepare a written response to the contractor for OWD infrastructure related RFIs. Consultant is responsible in modifying and revising plans, if necessary, in response to any RFI. (This task assumes 5 RFIs.) C. Contractor Submittals Review The Design Consultant shall review Contractor’s material submittals and resubmittals for conformance to the Contract Documents and OWD Standards. The Design Consultant shall review each submittal for conformance with design intent, materials application, design configuration, and overall compatibility with the facility’s intended use. The Consultant shall respond in a timely manner and address all comments raised on submittals or because of consultant response on the submittals. (This task assumes 6 submittals.) The Design Consultant shall review and evaluate Requests for Substitution, including or equal submissions on shop drawings. The Design Consultant shall provide a written recommendation for approval or disapproval for a substitution request, but final approval will be per the discretion and approval of OWD. D. As-Builts The Design Consultant shall update the original Contract Documents based on information (RFIs, DCs, COs, Redlines) received from the Contractor through the Construction Manager and create the As-built Drawings. The Design Consultant shall follow City of San Diego standards for As-built Mylar Drawings, but will process the drawings for approval and review with the OWD. EXHIBIT A SCOPE OF SERVICES 2. CASINGS AND TEST STATIONS CORROSION SUPPORT SERVICES (RF YEAGER) Design and construction support scope of work of the steel casings includes: A. Corrosion Engineering Services • Review drawings, studies, and reports • Conduct site visit to locate existing test station • Provide CP markups to plan and profile drawings • Provide 90% CP drawings and specifications • Review client 90% comments and provide 100% design • Review remaining comments and provide final signed drawings • Attend 2 project meetings B. Construction Support Services • Review and respond to Contractor RFI’s (2 assumed) • Review and respond to Contractor Submittals (2 assumed) • Review and respond to design changes (2 assumed) • Provide as-built drawings • Attend project meetings (2 assumed) 3. ADDITIONAL SERVICES If requested by OWD, Rick Engineering Company will provide additional engineering services upon prior authorization by OWD, up to $5,000.00. DIRECT CHARGES Direct charges shall include project printing, blueprinting, deliveries, and mileage for project site visits and meetings. GENERAL ASSUMPTIONS AND EXCLUSIONS The following items may be required but are not included in the scope of work outlined above. Additional authorization will be required for these services. • Application and permitting fees for the City of San Diego • Construction Surveying Services • Construction Inspection • Construction Materials Testing K:\Files\18429\scope of services\18429.Scope of Services.005.docx EXHIBIT B COMPENSATION SCHEDULE RICK ENGINEERING COMPANY PROJECT: La Media Road Improvements Project (OWD) SUBJECT: Construction Support Compensation Schedule 1.CONSTRUCTION SUPPORT SERVICES A.Construction Progress Meetings $3,259 B.RFI's $4,629 C.Contractor Submittals Reviews $5,432 D.As-Builts $2,701 Construction Support Services Total $16,021 2.CASINGS AND TEST STATIONS CORROSION ENGINEERING (RF YEAGER) A.Corrosion Engineering Services $6,965 B.Construction Support Services $4,655 Casings and Test Stations Corrision Engineering Total $11,620 3 ADDITIONAL SERVICES A.Rick Engineering Company $5,000 Additional Services Total $5,000 Casings and Test Stations Corrosion Engineering Total $32,641 Reimbursable Expenses Total $250 Project Fee Total $32,891 % of Task RF Yeager Engineering 35% List of Subconsultants:Fee $11,620 K:\Files\18429\table\18429.Fee Schedule.010.xlsx Exhibit C Fee Schedule LA MEDIA ROAD IMPROVEMENTS PROJECT TASK:PRINCIPAL ENGINEER PROJECT MANAGER SENIOR CIVIL ENGINEER ASSOCIATE PROJECT MANAGER CIVIL DESIGNER CAD TECH- NICIAN SUBCONS- ULTANT TOTAL REVISED PROPOSED COST($):Task Total($): Hourly Rate $242.00 $227.00 $185.00 $170.00 $134.00 $113.00 - CONSTRUCTION SUPPORT SERVICES Construction Progress Meetings 2 15 $3,259 RFI's 2 5 15 5 $4,629 Contractor Submittals Reviews 1 6 24 $5,432 As-Builts 1 1 2 4 12 $2,701 $16,021 CASINGS AND TEST STATIONS CORROSION ENGINEERING (RF YEAGER) Corrosion Engineering Services $6,965 Construction Support Services $4,655 $11,620 ADDITIONAL SERVICES Rick Engineering Company $5,000 $5,000 Expenses $250 $250 PROJECT TOTAL:6 1 26 41 9 12 $11,620 $21,271 $32,891 K:\Files\18429\table\18429.Fee Schedule.010.xlsx STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 6, 2022 SUBMITTED BY: Michael Long Engineering Manager PROJECT: R2084-001103 DIV. NO. 1 APPROVED BY: Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Reimbursement Request from Baldwin & Sons, LLC, a California Limited Liability Company, for a Portion of the Capital Improvement Program Project RecPL - 20-Inch, 680 Zone, Village 2 – Heritage/La Media (CIP R2084), Project Location Santa Victoria Road GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approve the request to reimburse Baldwin & Sons, LLC, a California Limited Liability Company (Baldwin & Sons) for the completed construction of a 20-inch recycled water pipeline on Santa Victoria Road between Santa Carolina Road and Santa Alexia Avenue, for a portion of the Capital Improvement Program Project RecPL - 20-Inch, 680 Zone, Village 2 – Heritage/La Media (CIP R2084), for the amount of $265,911.45. COMMITTEE ACTION: Please see Attachment A. PURPOSE: That the Board authorizes the General Manager to reimburse (see Attachment B) Baldwin & Sons for the completed construction of a 20- inch recycled water pipeline on Santa Victoria Road between Santa Carolina Road and Santa Alexia Avenue, for a portion of the Capital Improvement Program Project RecPL - 20-Inch, 680 Zone, Village 2 – Heritage/La Media (CIP R2084), for the amount of $265,911.45. AGENDA ITEM 8d 2 ANALYSIS: At the May 4, 2016 Board Meeting, the Board authorized the General Manager to enter into a Reimbursement Agreement (Attachment B, Tab 6) with Baldwin & Sons, LLC, for the pipeline capital improvements associated with Village 2 Development. On June 6, 2016, the District entered into a Reimbursement Agreement with Baldwin & Sons (the “Reimbursement Agreement”) for a Portion of the Capital Improvement Program Project RecPL - 20-Inch, 680 Zone, Village 2 – Heritage/La Media, Project Location Santa Victoria Road (CIP R2084). CIP R2084 was included within the Sub-Area Master Plan (SAMP) approved by the District in June 2006 and subsequently included in the Reimbursement Agreement. Baldwin & Sons submitted its reimbursement request on August 30, 2021, along with the necessary invoices from the lowest responsive bidder for a total amount of $265,911.45 (CIP R2084). After evaluation, staff concurred with the $265,911.45 (CIP R2084), and recommends reimbursing Baldwin & Sons the requested amount for CIP R2084. This project was listed in the District’s Five-Year CIP Plan, as well as on the approved SAMP. District staff inspected the construction of the work associated with the reimbursement request submitted by Baldwin & Sons, LLC and found it to be in compliance with the approved plans and in accordance with District Policy No. 26 for administration of Reimbursement Agreements. After reviewing the budget for the CIP projects included in the Baldwin & Sons, LLC request dated August 30, 2021, staff compared the budget for FY 2022 and found that this Project has sufficient funds available to support this reimbursement request. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP R2084, as recommended in the Fiscal Year 2022 budget, is $365,000. Expenditures to date are $4,303.81. Total commitments to date, including this Agreement, are approximately $270,215.26 (see Attachment C for budget detail). The Project Manager anticipates that, based on the attached financial analysis, the budget for CIP R2084 is sufficient to support the reimbursement request. The Finance Department has determined that, under the current rate model, 100% of the funding will be available from the Expansion Fund. 3 GRANTS/LOANS: N/A. 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/RP:jf P:\WORKING\CIP R2084 Santa Victoria Reimbursement\Staff Reports\2022-04-06\BD 4-6-22, Staff Report, Baldwin Reimbursement Request.docx Attachments: Attachment A – Committee Action Attachment B – Reimbursement Request Attachment C – CIP R2084 Budget Detail ATTACHMENT A SUBJECT/PROJECT: R2084-001103 Reimbursement Request from Baldwin & Sons, LLC, a California Limited Liability Company, for a Portion of the Capital Improvement Program Project RecPL - 20-Inch, 680 Zone, Village 2 – Heritage/La Media (CIP R2084), Project Location Santa Victoria Road COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on March 15, 2022, and the following comments were made: • Staff reported that the developer received three responsive bids for the pipeline construction and submitted copies to the District. Staff evaluated and certified that the bids are in compliance with Policy No. 26 requirements. Baldwin & Sons selected the lowest responsive and responsible bidder and constructed the CIP portions of the Project based on the unit prices. Cass Construction, Inc. was the lowest responsive and responsible bid. • Staff responded to a question from the Committee that this was the project where staff did testing on the pipe and the pipe passed inspection. Staff verified that the pipeline was installed according to District’s standards. A third party tested the quality of the pipeline and staff was satisfied and accepted the project. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item. TAB NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. REIMBURSEMENT REQUEST TABLE OF CONTENTS Baldwin & Sons, LLC R2084-000000 -RecPL -20-lnch, 680 Zone, Village 2 -Heritage Rd La Media Rd TABLE OF CONTENTS Reimbursement Request Letter Price Quantity and Reimbursement Verification Bid Sum mary Pavment Backuo Contract with Cass Construction Company, Inc Executed Reimbursement Agreement, dated June 6, 2016 First Amendment to Agreement, dated January 20, 2022 OWD Board Approval to enter into Reimbursement Agreement; Board Packet, dated May 4, 2016 OWD Engineering Committee Report to request Reimbursement Agreement; Com mittee Packet, dated April 19, 2016 CIP Sheets Developer Project Acceptance for Project D0740-090205 Otay Ranch Village 2 Back Bone Improvement Plan Otay Water District Policy No. 26 Accounting Deoartment Aooroval of Reimbursement Binder l/ttps:llotaywaterJ65.sf,arepoi111.cor,v'sites/e11gpublicsenrices/Sl,ared Documems/Public Services New/CIP Projects/lU08.J-OOOOOO-RecPL -20-Iuch, 680 Zone, Village 2 -Heritage RI/La Metlia Rd/l'A.8lt OFC0NTl':NT$ FOR Rl':IMIJURSl':Ml':NT IJINDl:.'R.docx ATTACHMENT B R2084 BALDWIN & SONS, LLC REIMBURSEMENTSUBMITTALS PACKET Project R2084 Summary: ►The developer is requesting reimbursement of the 20" recycled pipe per CIP R2084. ►The developer turned over to the District the completed project as a fixed asset. The asset was capitalized by finance on February 15, 2022 at 09:54:51 AM by Polly Chan for permit number DEV-15-013. ►Notice of completion is on page 178 -180 of the PDF. ►The developer Notice of Completion serves as the completion date for CIP R2084. Timeline: ►May 4, 2016 o Board Approved $265,994.00 for the construction of a 20" recycled pipeline associated with the Capital Improvement Program CIP R2084, Rec PL -20-lnch, 680 Zone, Village 2 -Heritage/La Media, 680 Zone. ►June 6, 2016 o Reimbursement Agreement Executed ►May 11, 2021 o Related Developer Project D0748-090205 is accepted. ►June 17, 2021. o Notice of Completion recorded. ►January 20, 2022 o Reimbursement Agreement Amendment No. 1 Executed P2084 BALDWIN & SONS, LLC REIMBURSEMENTSUBMITTALS PACKET Relmbtnernent Request Letter August 30, 2021 Mr. Vu Tran Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2096 C/P Number: R2084 Project Title: RecPL -20-inch, 680 Zone, Village 2-Heritage/La Media Dear Tanya: Baldwin & Sons has commenced construction of the Village 2 CIP Project R2084. The project is located on Santa Victoria Road between Santa Carolina Road and Santa Alexia Avenue. Per the Reimbursement Agreement dated 5/20/16 and in conjunction with the Sub-Area Master Plan ("SAMP") dated 6/1/2006 upon which the CIP facilities are identified, Baldwin & Sons is submitting a reimbursement request in the aimount of $265,911.45. CIP project R2084's reimbursement package consists of the following documents: 1)OWD Staff Report from meeting dated May 4, 2016 supporting Staff's recommendation to approve the reimbursement agreement for CIP project R2084-RecPL-20-inch, 680 Zone, Village 2-Heritaige/La Media 2)Analysis and copies of Developer Bids for Cass Construction, Schilling and LB3 3)Subcontract agreement for Cass Construction, Inc. 4)Invoices, cancelled checks, lien releases Please review the submitted request and advise if you need additional information to process our reimbursement request. Sincerely, BALDWIN & SONS Mora de Murguia Public Finance Manager Attachments P2084 BALDWIN & SONS, LLC REIMBURSEMENTSUBMITTALS PACKET Price, Qua,tlty and Relmburaement Verfflcatlon ANALYSIS OF DEVELOPER BIDS Olay Ranch VIiiage 2 South Backbone Improvements, Sta 60•39.94 to STA 80♦11.51 Santa Victoria Rd Developer Project No. d0740.090205, CIP R2084 20-lnch Reclaimed Water Main CaH Conatruc-don Shllllng LB3 0&S<:r1Pti0n Quanbly Ufth Cc,t,I Unit Cost Subtotal Untl coat 20" WATE.R MAIN 1,9n S79.00 SlSS,788.00 s,u.oo $220,864 00 $88.00 6" BLOW-Off SS,32S-00 $l0,6SO.OO $7,025.00 $14,0SO.OO SS,870.00 4" AIR VAC.REL£ASE VALVE 57,50000 $1).00000 510,130.00 Sl0.260.00 SJ.946.00 20" 8UITTRfLY VALVE 4 $8,800.00 Sll.200.00 $8,350.00 $33.400.00 59,200.00 20" DEFLECTION COUPLING 17 $1,115000 5ll,4S0,00 S0.00 so.co 51,9ll 00 CONNECT TO EXIS'TING 20" 2 $2.610.00 $5,2,000 $4,100.00 sa.200.00 S3.2SO.OO 5253,328.00 Total 52<J6.n4.00 Total 512,666.40 5'% Soh Cost 51038.70 5%SoltCost S216,tMAO $311,612.70 Ou.y Water District VerfflcaUon Subtotal UnltCOSt Subtotal Commeni. Quaolrty based °" plan SI 73,536.00 51 13.19 5223,210.68 Slatlonlng Sll,740.00 SS,8SS 00 $11,7 10 00 SIS.892.00 $3,097 28 $6,194.56 $36,800.00 SS,S90.69 $22,362.76 Deflection coupllng m unn S32.S04.00 5000 so.oo cost Of water main $6,500.00 $3,060 00 56,120.00 5276,972.00 Total $269,598.00 $13.848,60 5%SoltCost 513.479.9'0 1290,820,60 $283.077 . .0 Exhibit F -Bid Schedule Addendum #2 Village 2 South Wet Utilities �ASS CONSTRUCTION, INC. 11/25/2015 OTAY RANCH VILLAGE-2 SOUTH PG 1 OF 3 SEWER, WATER, AND STORM DRAIN PROPOSAL BASED ON THE FOLLOWING PLANS: Olay Ranch Villaga-2 Rough Grading Plana By Hunsaker & Associates Received (10-19-15) Sheets 1-40 Olay Ranch Vlllage-2 Backbone Improvement Plans By Hunsaker& Associates Received (10-19-15) Sheets 1-34 Olay Ranch Villag.e-2 lntract lmproveme-nt Plans By Hunsake� & Associates Received (10-19-15) Sheets 1-26 Unit Item Description Qty Units Price Total Phase 1a Storm Drain 1 18" HOPE 1,289 LF 60.00 $77,340.00 2 24" HOPE 478 LF 71.00 $33,938.00 3 30" HOPE 217 LF 82.00 $17,794.00 4 36" HOPE 55 LF 110.00 $6,050.00 5 42" HOPE 936 LF 111.00 $103,896.00 6 48" HOPE 525 LF 142.00 $74,550.00 7 18" RCP 76 LF 87.00 $6,612.00 8 24" RCP 40 LF 104.00 $4,160.00 9 54" RCP 490 LF 241.00 $118,090.00 10 60" RCP 1,161 LF 263.00 $305,343.00 11 24" Concrete Collar 1 EA 1,070.00 $1,070.00 12 60" Concrete Collar 1 EA 2.425.00 $2,425.00 13 Cleanout (Type A-4) 15 EA 4,215.00 $63,225.00 14 Cleanout (Type A-5) 5 EA 4,905.00 $24,525.00 r, 15 Cleanout (Type A-6) 8 EA 5,425.00 $43,400.00 16 Type B Inlet 4 EA 3,450.00 $13,800.00 17 Type B-1 Inlet (L= 7') 1 EA 3,740.00 $3,740.00 18 Type B-1 Inlet (L=9') 4 EA 3,970.00 $15,880.00 19 Type B-1 Inlet (L=10') 1 EA 4,200.00 $4,200.00 20 Type 8-1 Inlet (L=11 ') 1 EA 4,370.00 $4,370.00 21 Type B-1 Inlet (L=13') 4 EA 4,600.00 $18,400.00 22 Type B-1 Inlet (L=14') 1 EA 4,890.00 $4,890.00 23 Type B-1 Inlet (L=15') 2 EA 5,000.00 $10,000.00 24 Type B-1 Inlet (l=16') 1 EA 5,060.00 $5,060.00 25 Type B-1 Inlet (L=18') 1 EA 5,175.00 $5,175.00 26 Type B-1 Inlet (L=19') 1 EA 5,290.00 $5,290.00 27 Type B-1 Inlet (L=21 ') 2 EA 5,750.00 $11,500.00 28 Type 8-2 Inlet (L=15') 1 EA 5,175.00 $5,175.00 29 Type 8-2 Inlet (L=18') 2 EA 5,700.00 $11,400.00 30 Oesilting Basin Outlet-30" 2 EA 3,620.00 $71240.00 Storm Drain Subtotal $1,008,538.00 Sewer 31 8" PVC SOR 35 3,652 LF 29.00 $105,908.00 32 6" PVC Lateral 131 LF 26.00 $3,406.00 33 8" PVC Lateral 42 LF 32.00 $1,344.00 34 60" Sewer Manhole 13 EA 4,210.00 $54,730.00 35 6" PVC Sewer Cap 3 EA 40.00 $120.00 36 8" PVC Sewer Cap 1 EA 50.00 $50.00 37 Connect 8" Sewer 2 EA 1,000.00 $2,000.00 38 House Service -SF 28 EA ,890.00 $24,920.00 Sewer Subtotal $192,478.00 Potable Water 39 8" PVC (Class 200) 165 LF 61.00 $10,065.00 1 of 6 11/13/15 Exhibit F -Bid Schedule Village 2 South Wet Utilities �Y Ranch Village-2 Backbone Improvement Plans By Hunsaker & Associates Received (10-19-15) Sheets 1-34 Otay Ranch Vlllage-2 lntract Improvement Plans By Hunsaker & Associates Received (10-19-15) Sheets 1-26 Qty Potable Water Subtotal Reclaimed Water Reclaimed Water Subtotal Phase 1a Subtotal Phase 1b/c �torm Drain 2 of 6 Total $2,27'1 134.00 Exhibit F -Bid Schedule Addendum #2 Village 2 South Wet Utilities �y Ranch Vlllage-2 Backbone Improvement Plans By Hunsaker& Associates Received (10-111-15} Sheet$ 1-34 Otay Ranch Vlllage-2 lntract Improvement Plans By Hunsaker & Associates Received (10-19-15} Sheets 1-26 U111it Item Description Qty Units Price Total 4 18" RCP 75 LF 87.00 $6,525.00 5 48" RCP 734 LF 193.00 $141,662.00 6 Cleanout (Type A-4) 2 EA 4,215.00 $8,430.00 7 Cleanout (Type A-5) 1 EA 4,905.00 $4,905.00 8 Cleanout {Type A-6) 3 EA 5,425.00 $16,275.00 9 Type B Inlet 4 EA 3,450.00 $13,800.00 10 Type B-1 Inlet (L=14'} 2 EA 4,890.00 $9,780.00 11 18" Concrete Collar 3 EA 1,050.00 $3,150.00 12 48" Concrete Collar 2 EA 1,400.00 $2,800.00 13 Desilting Basin Outlet-30" 3 EA 3,620.00 $10,860.00 Stonn Drain Subtotal $256,244.00 Sewer 14 8" PVC SOR 35 2686 LF 29.00 $77,894.00 15 8" PVC Lateral 70 LF 32.00 $2,240.00 16 60" Sewer Manhole 10 EA 4,210.00 $42,100.00 17 8" PVC Sewer Cap 2 EA 50.00 $100.00 18 House Service -SF 33 EA 890.00 $29,370.00 Sewer Subtotal $151,704.00 Potable Water 19 8" PVC (Class 200) 33 LF 61.00 $2,013.00 � 20 8" PVC (Class 305)1,788 LF 61.00 $109,d68.00 21 12" PVC (Class 305) 1,210 LF 84.00 $101,640.00 22 4" PVC Lateral 62 LF 52.00 $3,224.00 23 6" PVC Lateral 44 LF 55.00 $2,420.00 24 8" PVC Lateral 121 LF 61.00 $7,381.00 25 4" Gate Valve Assembly 2 EA 1,525.00 $3,050.00 26 6" Gate Valve Assembly 1 EA 1,985.00 $1,985.00 27 8" Gate Valve Assembly 17 EA 2,535.00 $43,095.00 28 12" Gate Valve Assembly 6 EA 3,835.00 $23,010.00 29 4" Cap with Thrust Block & Blowoff 2 EA 5,060.00 $10,120.00 30 6" Cap with Thrust Block & Blowoff 1 EA 5,070.00 $5,070.00 31 8" Cap with Thrust Block & Blowoff 3 EA 5,115.00 $15,345.00 32 8" DI Tee with Thrust Block 5 EA 610.00 $3,050.00 33 12" DI Tee with Thrust Block 8 EA 1,560.00 $12,480.00 34 Air-Vac Assembly 2" 9 EA 4,510.00 $40,590.00 35 Blow off Assembly 2" 7 EA 2,800.00 $19,600.00 36 Deflection Coupling 8" 22 EA 285.00 $6,270.00 37 Deflection Coupling 12" 7 EA 610.00 $4,270.00 38 Fire Hydrant Assembly 5 EA 7,085.00 $35,425.00 39 House Service -1" 34 EA 1450.00 $49,300.00 Potable Water Subtotal $498,406.00 Reclaimed Water 40 6" PVC (Class 200) 1,582 LF 55.00 $87,010.00 41 6" Gate Valve Assembly 3 EA 1,985.00 $5,955.00 42 6" DI Tee with Thrust Block 1 EA 545.00 $545.00 43 6" Cap with Thrust Block & Blowoff 1 EA 5,070.00 $5,070.00 � 44 Air-Vac Assembly 2"2 EA 4,510.00 $9,020.00 45 Deflection Coupling 6" 25 EA 175.00 $4,375.00 46 2" Irrigation Service Assembl� 7 EA 31235.00 $22,645.00 Reclaimed Water Subtotal $134,620.00 3 of 6 11/13/15 Exhibit F -Bid Schedule Addendum #2 Village 2 South Wet Utilities �Y Ranch Village-2 Backbone Improvement Plans By Hunsaker & Associates Received (10-19-15) Sheets 1-34 Otay Ranch Vlllage-2 lntract Improvement Plans By Hunsaker&. Assoclatff Received (10-19-15) Sheets 1-26 Unit Item Description Qty Units Price Total Phase 1 b/c Subtotal $1,040,974.00 Phase 2 Storm Drain 1 HDPE-18" 1,042 LF 79.00 $82,318.00 2 HOPE-24" 902 LF 71.00 $64,042.00 3 HOPE-42" 258 LF 111.00 $28,638.00 4 RCP -18" 41 LF 87.00 $3,567.00 5 RCP-24" 7 LF 104.00 $728.00 6 RCP(YvTJ)-42" 58 LF 168.00 $9,744.00 7 Cleanout (Type A-4) 12 EA 4,215.00 $50,580.00 8 Cleanout (Type A-5) 2 EA 4,905.00 $9,810.00 9 Type B Inlet 2 EA 3,450.00 $6,900.00 10 Type B Inlet (L= 7') 2 EA 3,740.00 $7,480.00 11 Type B Inlet (L=10') 1 EA 4,200.00 $4,200.00 12 Type B Inlet (L=11') 1 EA 4,370.00 $4,370.00 13 Type B Inlet (L=12') 2 EA 4,485.00 $8,970.00 14 -r:ype B Inlet (L=13') 1 EA 4,600.00 $4,600.00 15 Type B Inlet (L=15') 1 EA 5,000.00 $5,000.00 16 Type B Inlet (L=16') 5 EA 5,060.00 $2.5,300.00 17 Type B Inlet (L=18') 1 EA 5,175.00 $5,175.00 � 18 Type B Inlet (L=20') 1 EA 5,520.00 $5,520.00 19 Type B-1 Inlet (L=21') 1 EA 5,750.00 $5,750.00 20 Type B-2 Inlet (L=7') 2 EA 4,025.00 $8,050.00 21 Type F Catch Basin 1 EA 3,220.00 $3,220.00 22 Wingwall-42" 1 EA 4,025.00 $4,025.00 23 18" End Cap (HOPE) & Mortar 1 EA 1,570.00 $1,570.00 24 24" Concrete Collar 1 EA 1!070.00 $1,070.00 Stonn Drain Subtotal $350,627.00 Sewer 25 PVC-8" Pipe 10,596 LF 29.00 $307,284.00 26 PVC-1 O" Pipe 1,200 LF 32.00 $38,400.00 27 PVC-8" Lateral 39 LF 32.00 $1,248.00 28 Sewer Manhole-60" (New) 45 EA 4,210.00 $189,450.00 29 Sewer Cap -8" 5 EA 50.00 $250.00 30 House Service (SF) 238 EA 890.00 $211,820.00 31 Connect 8" Sewer 16 EA 1,000.00 $16,000.00 32 Connect 1 O" Sewer 1 EA 1,100.00 $1,100.00 Sewer Subtotal $765,552.00 Potable Water 33 8" PVC (Class 200) 3339 Lfc 61.00 $203,679.00 34 8" PVC (Class 305) 11278 LF 61.00 $687,958.00 35 12" PVC (Class 305) 663 LF 84.00 $55,692.00 4" PVC Lateral 21 LF 52.00 $1,092.00 36 6" PVC Lateral 52 LF 55.00 $2,860.00 37 8" PVC Lateral 300 LF 61.00 $1i8,300.00 4" Gate Valve Assembly 1 EA 1,525.00 $1,525.00 38 6" Gate Valve Assembly 2 EA 1,985.00 $3,970.00 39 8" Gate Valve Assembly 53 EA 2,535.00 $134,355.00 8" Cap with thrust block 2 EA 435.00 $870.00 4 of 6 11/13/15 Exhibit F -Bid Schedule Village 2 South Wet Utilities �y Ranch Vlllage-2 Backbone Improvement Plans By Hunsaker & Associates Received (10-19-151 Sheets 1-34 Olay Ranch Vlllage-2 lntrac1 Improvement Plans By Hunsaker & Associates Received (10-19-15) Sheets 1-26 Item Oescrilptlon 4" Cap with Thrust Block & Blowoff 40 6" Cap with Thrust Block & Blowoff 41 8" Cap with Thrust Block & Blowoff 42 8" DI Tee with Thrust Block 43 8" DI Cross with Thrust Block 8" DI 45 Degree fitting with Thrust Block 8" DI 90 Degree fitting with Thrust Block 44 8" DI Spool (18"} 45 12" DI Tee with Thrust Block 12" DI Spool (18") 12" x 8" DI Reducer House Service - 1 " House Service -2" 46 Fire Hydrant Assembly 47 Air-Vac Assembly 2" 48 Blow off Assembly 2" Deflection Coupling 8" 49 Deflection Coupling 12" 50 Connect to 8"51 Connect to 12" Potable Water Subtotal �Reclaimed Water {' -.., 52 6" PVC (Class 200) 6" PVC (Class 305} 53 2" Irrigation Service Air-Vac Assembly 2" Blow off Assembly 2" Deflection Coupling 6"6" Cap with Thrust Block 54 Connect to Existing 6" Reclaimed Water Subtotal Phase 2 Subtotal Project Total Summary Phase 1a Phase 1blc Phase 2 Total Qty Units 1 EA 3 EA 37 EA 17 EA 4 EA 6 EA 4 EA 12 EA 10 EA 4 EA 1 EA 237 EA 3 EA 27 EA 24 EA 22 EA 140 EA 19 EA 17 EA 2 EA 1459 LF 348 LF14 EA 2 EA 2 EA 10 EA 2 EA 3 EA Unit Price 5,060.00 5,070.00 5,1115.00 610.00 1,210.00 490.00 510.00 555.00 1,560.00 755.00 695.00 1,450.00 3,235.00 7,085.00 4,510.00 2,800.00 285.00 610.00 1,510.00 1,635.00 55.00 55.00 3,235.00 4,510.00 2,800.00 175.00 385.00 1,100.00 SD Sewer PW $1,008,538.00 $192,478.00 $703,081.00 $256,244.00 $151,704.00 $498,406.00 $350,627.00 $765,552.00 $2,160,911.00 $1,615,409.00 $1,109,734.00 $3,362,398.00 Total $5,060.00 $15,210.00 $189,255.00 $10,370.00 $4,840.00 $2,940.00 $2,040.00 $6,660.00 $15,600.00 $3,020.00 $695.00 $343,650.00 $9,705.00 $191,295.00 $108,240.00 $61,600.00 $39,900.00 $11,590.00 $25,670.00 $3,270.00 $2,160,911.00 $80,245.00 $19,140.00 $45,290.00 $9,020.00 $5,600.00 $1,750.00 $770.00 $3,300.00 $165,115.00 $3,442,205.00 $6,754,313.00 Addendum #2 RW Total $367,037.00 $2,271,134.00 $134,620.00 $1,040,974.00 $165,115.00 $3,442,205.00 $666,772.00 $6,754,313.00 nmittlng a proposal, Contractor aknowledges all schedule requirements and has included all necessary manpower, equipment, overtime, materials, and coordination to meet said schedule. s of 6 11/13/15 Exhibit F -Bid Schedule Village 2 South Wet Utilities �y Ranch Vlllage-2 Backbone Improvement Plana By Hunsaker & Associates Received !10-111-15) Sheets 1-34 Otay Ranch Vlllage-2 lntract Improvement Plana By Hunsaker & Associates Racelved (10-19-15) Shaets 1-26 Qty Total Addendum #2 11/13/15 < � c H, cw ·r--J 4.r�� eJNUf Exhibit F -Bid Schedule Addendum#2 Village 2 South Wet Utilities Unit Item Descrietlon Qty Units Price Total Phase1a Storm Drain 1 18" HOPE 1,289 LF S74.00 $95,386.00 2 24" HDPE 478 LF $68.00 $32,504.00 3 30" HOPE 217 LF $84.00 $18,228.00 4 36" HOPE 55 LF $137.00 $7,535.00 5 42" HDPE 936 LF S128.00 $119,808.00 6 48" HOPE 525 LF $166.00 $87,150.00 7 18" RCP TG 76 LF $103.00 $7,828.00 8 24" RCP TG 40 LF $128.00 $5,120.00 9 54" RCP (352 TG, 138 WT) 490 LF $284.00 $139.160.00 10 60" RCP (736 TG, 425 WT) 1,161 LF $335.00 $388,935.00 11 24" Concrete Collar-INCLUDED 1 EA $0.00 $0.00 12 60" Concrete Collar-INCLUDED 1 EA S0.00 $0.00 13 Cleanout (Type A-4) 15 EA S5.800.00 $87,000.00 14 Cleanout (Type A-5) 5 EA S7,085.00 $35,425.00 15 Cleanout (Type A--6) 8 EA $7,850.00 $62,800.00 16 Type 5'8 Inlet 4 EA 54,575.00 $18,300.00 17 Type 8-1 Inlet (L= 7'} 1 EA S5,140.00 $5,140.00 18 Type B-1 lnlet(L=9') 4 EA $5.600.00 $22,400.00 19 Type 8-1 Inlet (L=10') 1 EA S4,300.00 $4,300.00 20 Type 8-1 Inlet (L=11') 1 EA $5,467.00 $5,467.00 21 Type 8-1 Inlet (L=13') 4 EA S6.450.00 $25,800.00 22 Type B-1 Inlet (L=14') 1 EA $6,865.00 $6,865.00 23 Type B-1 Inlet (L=15') 2 EA $7,365.00 $14,730.00 24 Type B-1 Inlet (L=16') 1 EA $7,050.00 $7,050.00 25 Type 8-1 Inlet (L=18') 1 S8,HO.OO $8,170.00 26 Type B-1 Inlet (L=19') 1 EA $8,300.00 $8,300.00 27 Type B-1 Inlet (L=21') 2 EA S8,500.00 $17,000.00 28 Type B-2 Inlet (L=15'} 1 EA S7,010.00 $7,010.00 29 Type B-2 Inlet (L=18') 2 EA S8.050.00 $16,100.00 30 Desilting Basin Outlet-30" 2 EA $6,800.00 $13,600.00 Storm Drain Subtotal $1,267,111.00 Sewer 31 8" PVC SOR 35 3,652 LF $42.00 $153,384.00 32 6" PVC Lateral 131 LF $38.00 $4,978.00 33 8" PVC Lateral 42 LF $57.00 $2,394.00 34 60" Sewer Manhole 13 EA $4,065.00 $52,845.00 35 6" PVC Sewer Cap 3 EA $0.00 $0.00 36 8" PVC Sewer Cap 1 EA $0.00 $0.00 37 Connect 8" Sewer 2 EA S920.oo $1,840.00 38 4" Sewer Lateral-SF 28EA $1,050.00 $29,400.00 Sewer Subtotal $244,841.00 Potable Water 39 8" PVC (Class 305) 839 LF S46.00 $38,594.00 40 8" PVC (Class 305)-0 LF SO.OD $0.00 41 12" PVC (Class 305) 3,435 LF S62.00 $212,970.00 42 6" PVC Lateral 149 LF $45.00 $6,7105.00 43 8" PVC Lateral 267 LF $46.00 $12,282.00 44 6" Gate Valve Assembly 4 EA S1,900.00 $7,600.00 45 8" Gate Valve Assembly 12 EA S2,350.00 $28.200.00 46 12" Gate Valve Assembly 12 EA S3,950.00 $47,400.00 47 6" Cap with Thrust Block & 81owoff-INC. 3 EA S0.00 $0.00 1 of S 11/13/15 & with or 62 Potable Water Subtotal Reclaimed Water � 77 Reclaimed Water Subtotal Phase 1 a Subtotal Phase 1b/c Storm Drain 2 4 Exhibit F -Bid Schedule Village 2 South Wet Utilities Price $49.00 5 EA SO.OD 1 EA 2 EA $2,432,541.00 2 EA 1 EA 2 of s Exhibit F -Bid Schedule i:;;c ii L,LI rJi Addendum#2 Village 2 South Wet Utilities Unit Imm Oescrietion Q� Units Price Total Stonn Drain Subtotal $305,852.00 Sewer 14 S"PVCSOR 35 2686 LF $36.00 $96,696.00 15 S" PVC Lateral 70 LF $39.00 $2,730.00 16 6-0" Sewer Manhole 10 EA $4,150.00 $41,500.00 17 8" PVC Sewer Cap-INC. 2 EA $0.00 $0.00 18 4" Sewer Lateral -S:F 33 EA $1,150.00 $37,950.00 Sewer Subtotal $178,876.00 Potable Water 19 a·· PVC (Class 200) 0 LF $0.00 20 8" PVC (Class 305)-1,821 LF $40.00 $72,840.00 21 12" PVC (Class 305) 1,210 LF $59.00 $71,390.00 22 4" PVC Lateral-Per WS-05 62 LF $382.00 $23,684.00 23 6" PVC Lateral 44 LF SSS.00 $2,420.00 24 8" PVC Lateral 121 LF $52.00 $6,292.00 25 4" Gate Valve Assembly 2 EA $1,860.00 $3,720.00 26 6" Gate Valve Assembly 1 EA $1,900.00 $1,900.00 27 8" Gate Valve Assembly 17 EA $2,350.00 $39,950.00 28 12" Gate Valve Assembly 6 EA $3,950.00 $23,700.00 29 4" Cap with Thrust Block & Blowoff-INC 2 EA SO.CO $0.00 30 6" Cap with Thrust Block & Blowoff-INC 1 EA $0.00 $0.00 31 8" Cap with Thrust Block & Blowoff-INC 3 EA $0.00 $0.00 ,.., 32 8" 01 Tee with Thrust Block-INC 5 EA $0.00 $0.00 33 12" DI Tee with Thrust Block-INC 8 EA $0.00 $0,00 34 Air-Vac Assembly 2" 9 EA $5,200.00 $46,800.00 35 B!ow off Assembly 2" 7 EA $3,800.00 $26.600.00 36 Deflection Coupling 8"-INC. 22 EA $0.00 $0.00 37 Deflection Coupling 12"-INC 7 EA $0.00 $0.00 38 Fire Hydrant Assembly 5 EA $7,700.00 $38,500.00 39 House Service -1" 34EA S1,500.00 $51,000.00 Potable Water Subtotal $408,796.00 Reclaimed Water 40 6" PVC (Class 200) 1,582 LF $37.00 $58,534.00 41 6" Gate Valve Assembly 3 EA $1,930.00 $5,790.00 42 6" DI Tee with Thrust Block-INC. 1 EA $0.00 $0.00 43 6" Cap with Thrust Block & Blowoff-INC 1 EA $0.00 $0.00 44 Air-Vac Assembly 2" 2 EA $5,200.00 $10,400.00 45 Deflection Coupling 6"-INC 25 EA $0.00 $0.00 46 2" lrri9ation Service Assemblt 7 EA $3,965.00 $27,755.00 Reclaimed Water Subtotal $102,479.00 Phase 1b/c Subtotal $996,003.00 Phase 2 Storm Crain 1 HOPE-18" 1.042 LF $76.00 $79,192.00 2 HDPE-24'' 902 LF $69.00 $62,238.00 3 HDPE-42" 258 LF $128.00 $33,024.00 4 RCP-18" 41 LF $113.00 $4,633.00 5 RCP- 24" 7 LF $195.00 $1,365.00 � 6 RCP (WT J)-42" 58 LF $245.00 $14,210.00 7 Cleanout (Type A-4) 11 EA $5,900.00 $64,900.00 3 ofS 11/13/15 Exhibit F -Bid Schedule �;1 i),;rY-< Addendum #2 Village 2 South Wet Utilities Unit lt.m Oescri(!tl0n Q� Units Price Total 8 Cleanout (Type A-5) 2 EA $7,425.00 $14,850.00 9 Type 5'8 Inlet 2 EA $4,025.00 $8,050.00 10 Type B Inlet (L= 7') 2 EA $5,140.00 $10,280.00 11 Type B Inlet (L=10') 1 EA $4,425.00 $4,425.00 12 Type B Inlet (L=11') 1 EA $5,467.00 $5,467.00 13 Type B Inlet (L=12') 2 EA $6,090.00 $12,180.00 14 Type B Inlet (L=13') 1 EA $6,500.00 $6,500.00 15 Type 8 Inlet (L::::15') 1 EA $6,830.00 $6,830.00 16 Type B Inlet (L;:ac16') 1 EA $7,050.00 $7,050.00 17 Type B Inlet (L=18') 1 EA $7,930.00 $7,930.00 18 Type B Inlet (L=20') 1 EA $7,725.00 $7,725.00 19 Type B-1 Inlet (L=211 1 EA $8,080.00 $8,080.00 20 Type B-2 Inlet (Laa?") 2 EA $4,750.00 $9,500.00 21 Type F Catch Basin 1 EA $3,030.00 $3,030.00 22 Wingwall-42" 1 EA $4,930.00 $4,930.00 23 18" End Cap (HOPE) & Mortar-INC 1 EA $0.00 $0.00 24 24" Concrete Collar-INC. 1 EA $0.00 $0.00 Stonn Drain Subtotal $376,389.00 Sewer 25 PVC-8" Pipe 10,596 LF $35.00 $370,860.00 26 PVC-10'' Pipe 1,200 LF $39.00 $46,800.00 27 PVC-8" Lateral 39 LF $45.00 $1,755.00 28 Sewer Manhole-60" (New) 45 EA $4,090.00 $184,050.00 r, 29 Sewer Cap -8"-INC. 5 EA $0.00 $0.00 30 4" Sewer Lateral-(SF) 238 EA $1,050.00 $249,900.00 31 Connect 8" Sewer 1 EA $920.00 $920.00 32 C:onnect 1 O" Sewer 1 EA $925.00 $925.00 Sewer Subtotal $855,210.00 Potable Water 33 8" PVC (Class 200) 0 LF $0.00 $0.00 34 8" PVC (Class 305) 1172 LF $42.00 $49,224.00 35 12" PVC (Class 305) 663 LF $60,00 $39,780.00 36 6'' PVC Lateral 26 LF $60.00 $1,560.00 37 8" PVC Lateral 169 LF $54.00 $9,126.00 38 6" Gate Valve Assembly 1 EA $2,100.00 $2,100.00 39 8" Gate Valve Assembly 12 EA $2,350.00 $28,200.00 40 6" Cap with Thrust Block & Blowoff 1 EA $0.00 $0.00 41 8" Cap with Thrust Block & Blowoff 7 EA $0.00 $0.00 42 8" DI Tee with Thrust Block 1 EA $0.00 $0.00 43 8" DI Cross With Thrust Block 1 EA $0.00 $0.00 44 8" DI Spool (18") 4 EA $0.00 $0.00 45 12" DI Tee with Thrust Block 6 EA $0.00 $0.00 46 Fire Hydrant Assembly 3 EA $7,700.00 $23,100.00 47 Air-Vac Assembly 2" 3 EA $4,950.00 $14,850.00 48 Blow off Assembly 2" 3 EA $3,900.00 $11.700.00 49 Deflection Coupling 12" 19 EA $0.00 $0.00 50 Connect to 8" 1 EA $1,200.00 $1,200.00 51 Connect to 12" 2 EA $1,300.00 $2,600.00 Potable Water Subtotal $183,440.00 Reclaimed Water 52 6" PVC (Class 200) 653 LF $40.00 $26,120.00 ,., 53 2" Irrigation Service 1 EA $4,125.00 $4.125.00 54 Connect to Existing 6" 1 EA $1,100.00 $1,100.00 4ofS 11/13/15 Item Description Reclaimed Subtotal Phase 2 Subtotal Project Total Summary Phase 1a Phase 1bfc Exhibit F -Bid Schedule Village 2 South Wet Utilities Qty Unit Price PW Total $31,345.00 $1,446,384.00 $4,874,928.00 Addendum#2 By submitting a proposal, Contractor aknowledges all schedule requirements and has included all necessary manpower, equipment, overtime, materials, and coordination to meet said schedule. 11/13/15 Project Specific Notes: Proposal is a Unit Price Proposal and not a "Lump Sump" Proposal. Quantities were used based off a Schedule of Values provided at Bid time. A Phasing map was provided, specific Station starting points and stoping points were not provided and quantities provided were different than our take off due to the map. Pricing for this proposal is based off contract provided for all phases. Pricing is subject to change if all phases are not contracted at the same time. HOPE Pipe is priced to install using the "Burrito Wrap" method. End caps, Deflection cplgs and Temp. Blow offs, are included in proposal 4" lateral with Meter is per WAS WS-05 which includes the Vault (3) Mobilizations are included in the proposal (1) for each Phase. Additional Mobilizations will be$ 1200.00 each.Adjust to grades must be completed within 180 days of energizing the line. Unless specifically addressed in proposal, the following are excluded: Drilling, blasting, cover up, rock breaking, and rock removal to be performed on a T & M basis. If any unknown existing utilities or underground strucrures are in conflict with our excavation efforts. or the ability to create a safe excavation, all costs associated with the work will be performed on a T &M basis. Any street restoration and or llardscape replacement, retaining or perimeter walls, traffic barrier posts barriers, replacement of landscape Staking/survey, engineering, permits, inspection, SWPPP (plan or implementation), testing. bonds, dewatering or handling of any contaminated/hazardous material. General Conditions If, in the course of excavation, Schilling Paradise Corporation should encounter any rock or soil conditions that a 320 CAT Excavator is unable to excavate productively to the required depth excavation rock handling to be performed on a T & M basi Drilling, blasting, cover up, rock breaking, and rock removal to be performed on a T & M basis. Trench and concrete product spoils to be evenly spread on trench area (loader smooth). Removal of excess spoil (rock, asphalt. or concrete debris), will be perfonned on a "Time and Materials" basis. Fine/finish grading by others. All other trade work and equipment must be out of the path of work for pricing to be honored. Any back charges to shall be acknowledged in writing by Schilling Paradise Corporation. Schilling Paradise Corporation will not honor any back charge unless Schilling Paradise Corporation is given the opportunity to make the corrections. Note: This proposal DOES NOT include City performed Wet Tap or Connection Fees. Trench line grade to be at+/-.5' from finish grade before Schilling Paradise Corporation will perform its scope of work. Construction water and meter with a 2" minimum outlet provided by owner. Schilling Paradise is to receive a flat working area which has a minimum wi:dth (25 feet plus the depth of the utility beingconstructed.) measured from centerline on either side of the utility being installed. Schilling Paradise shall receive the work zone free of encumbrances that prohibit an OSHA legal I: I excavation. At a minimum the work zone shall have a ratio of I foot vertical to l foot horizontal measured from I foot below the bottom of pipe. Temp power is to be installed in a way that does not interfere with the performance of the work. Schilling Paradise reserves the right to re price the work in the event temporary facilities are installed in a manner that reduces productivity. Unless specifically addressed in this proposal trench restoration includes base paving only. Grind and cap to be perfonned by others. Unless specifically referenced in this proposal, permenant trench restoration extends grind and cap to I' beyond trench line only. Survey/control must be provided for fire risers so that proper placement can be be accomplished to avoid rework. Any attempt by SPC personnel to assist the site supervision in locating the fire risers is performed without transference of risk to SPC. Any and all work associated with rework or modification due to riser/risers being installed in an improper location without survey will be the responsibility of others. One set of current construction drawings is to be maintained on site by the s"ite superintendent for the recordation of as-built conditions and field changes as they arise. SPC will update the red line drawings weekly Page 5 of 5 OTAY RANCHI VILLAGE-2 SOUTH SEWER, WATER, AND STORM DRAIN PROPOSAL BASED ON THE FOLLOWING PLANS: Exhibit F • Bid Schedule Village 2 South Wet Utilities Olay Rancl! Vlllllg6-2 Rough Grading Plans By HunNktr & Auocl1lea Reetlvtd (10-19-15) Sheets 1-40 Olay RallCh Vllllg•Z Backbona lmprcvtmont Plana By Hunukor & AuocllltH Reeolvod (10-U-1S)Shffts 1-U Otay Ranch Vlltag•2 lntnct Improvement Plan• By H1111aaker & Auoc:latu Received (10-111--15) Shoots 1-2'6 Item D99Crlptlon Phase 1a r-, Stonn Drain 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 18" HOPE 24" HOPE 30" HOPE 36'' HOPE: 42" HOPE 48" HOPE 18" .RCP 24" RCP 54"RCP 60" RCP 24" Concrete Collar 60" Conmte Collar Cleanout (Type A-4) Cleanout (Type A-5) Cleanout (Type A-6) Type B Inlet Type B-1 Inlet {L= 7'} Type B-1 Inlet {L=9') Type B-1 Inlet (L=10') Type B-1 Inlet (L=11 ') Type B-1 Inlet (L•13') Type B-1 Inlet (L=14') Type B-1 Inlet (L=15'} Type B-1 Inlet (L=16') Type B-1 Inlet (L=18') Type B-1 Inlet (L=19') Type B-1 Inlet (L=21 ') Type 8-2 Inlet (L=15') Type B-2 Inlet (L=18') Des1ltlng Basin Outlet-30" Storm Drain Subtotal Sewer 31 8"PVCSOR35 32 6" PVC Lateral 33 8" PVC Lateral 34 60" Sewer Manhole 35 6" PVC Sewer Cap 36 8" PVC Sewer Cap 37 Connect B" Sewer 38 House Service• SF Sewer Subtotal Potable Water r"t 39 8" PVC (Class 200) 40 8" PVC (Class 305) Qty Units 1,289 LF 478 LF 217 LF 55 LF 936 LF 525 LF 76 LF 40 LF 490 LF 1,161 LF 1 EA 1 EA 15 EA 5 EA 8 EA 4 EA 1 EA 4 EA 1 EA 1 EA 4 EA 1 EA 2 EA 1 EA 1 EA 1 EA 2 EA 1 EA 2 EA 2 EA 3,652 LF 131 LF 42 LF 13 EA 3 EA 1 EA 2 EA 28 EA 165 LF 674 LF 1 of 5 LB3 �17� (9�Addendum#2 11/25/2015 PG1 OF3 Unit Price Total 63.00 $81,207.00 69.00 $32,982.00 86.00 $18,662.00 121.00 $6,655.00 111.00 $103,896.00 138.00 $72,450.00 86.00 $6,536.00 99.00 $3,960.00 248.00 $121,520.00 258.00 $299,538.00 1,300.00 $1,300.00 3,800.00 $3,800.00 4,910.00 $73,650.00 5,210.00 $26,050.00 5,870.00 $46,960.00 3,600.00 $14,400.00 3,800.00 $3,800.00 4,005.00 $16,020.00 4,433.00 $4,433.00 4,560.00 $4,560.00 4,871.00 $19,484.00 5,040.00 $5,040.00 4,980.00 $9,960.00 5,020.00 $5,020.00 5,010.00 $5,010.00 5,100.00 $5,100.00 5,600.00 $11,200.00 5,080.00 $5,080.00 5,619.00 $11,238.00 3,988.00 $71976.00 $1,027,487.00 31.00 $113,212.00 25.00 $3,275.00 32.00 $1,344.00 4,470.00 $58,110.00 10000 $300.00 125.00 $125.00 1,250.00 $2,500.00 860.00 $24,080.00 $202,946.00 59.00 $9,735.00 62.00 $41,788.00 ll/B/15 Addendum#2 Unit Item Dncrl(!!!on Qty Units Price Total 41 12" PVC (Class 305) 3.435 LF 86.00 $295,410.00 42 6" PVC Lateral 149 LF 57.00 $8,493.00 43 8" PVC Lateral 267 LF 63.00 $16,821.00 44 6" Gate Valve Assembly 4 EA 2,030.00 $8,120.00 45 8" Gate Valve Assembly 12 EA 2,615.00 $31,380.00 46 12" Gate Valve Assembly 12 EA 3,984.00 $47,808.00 47 6" Cap with Thrust Block & Blowoff 3 EA 4,877.00 $14,631.00 48 Hous,e Service -1" 28 EA 1,390.00 $38,920.00 49 2" House Service 1 EA 3,712.00 $3,712.00 50 8" Cap with Thrust Block & Blowoff 2 EA 4,960.00 $9,920.00 51 3" House Service 1 EA 15,977.00 $15,977.00 52 8'' DI Tee with Thrust Block 3 EA 700.00 $2,100.00 53 6" Cap with Thrust Block 2 EA 515.00 $1,030.00 54 12" DI Tee with Thrust Block 11 EA 1,700.00 $18,700.00 55 8" Cap with thrust block 3 EA 620.00 $1,860.00 56 • 12" DI Cross with Thrust Block 2 EA 1,815.00 $3,630.00 57 12" x 8" 01 Reducer 3 EA 622.00 $1,866.00 58 12" x 18" DI Spool 8 EA 900.00 $7,200.00 59 Fire Hydrant Assembly 9 EA 7,140.00 $64,260.00 60 Deflection Coupling 12" 30 EA 575.00 $17,250.00 61 Alr-Vac Assembly 2" 8 EA 4,650.00 $37,200.00 62 Blow ,off Asst!Jfflbly 2" 5 EA 2,970.00 $14,850.00 63 Connect to 12" 2 EA 2 250.00 $4,500.00 Potable Wabtr Subtotal $717,161.00 Reclaimed Water 64 6" PVC (Class 200) 829 LF 59.00 $48,911.00 65 20" PVC (Class 165) 1,966 LF 88.00 $173,008.00 66 6" Gate Valve Assembly 3 EA 2,030.00 $6,090.00 67 20" Butterfly Valve Assembly 9,200.00 $36,800.00 68 6" Cap with Thrust Block & Blowoff 2 EA 5,361.00 $10,722.00 69 6" x 24" Long DI Spool 5 EA 718.00 $3,590.00 70 20'' DI Tee with Thrust Block 1 EA 3,044.00 $3,044.00 71 20" x 24" CML&C Spool 2 EA 3,615.00 $7,230.00 71 20" x 6" CML&C Cross with Thrust Block 1 EA 6,680.00 $6,680.00 72 2" Irrigation Service Assembly 6 EA 3,740.00 $22,440.00 73 Air-Vac Assembly 2'' 2 EA 4,817.00 $9,634.00 74 Air-Vac Assembly 4" 2 EA 7,946.00 $15,892.00 75 Blow off Assembly 2" 1 EA 2,977.00 $2,9TT.OO 76 Blow off Assembly 6" 2 EA 5,870.00 $11,740.00 77 Deflection Coupling 20" 17 EA 1,912.00 $32,504.00 78 Deflection Coupling 6" 10 EA 190.00 $1,900.00 79 Connect to 20" 2 EA 3 250.00 $6,500.00 Reclaimed Watar Subtotal $399,662.00 Phase 1a Subtotal $2,347,256.00 Phase 1b/c Stonn Drain 1 18"HDPE 82 LF 80.00 $6,560.00 2 24" HOPE 269 LF 74.00 $19,906.00 3 42"HDPE 116 LF 113.00 $13,108.00 4 18" RCP 75 LF 88.00 $6,600.00 5 48"RCP 734 LF 181.00 $132,854.00 6 Cleanout (Type A-4) 2 EA 4,973.00 $9,946.00 7 Cleanout (Type A-5) 1 EA 5,440.00 $5,440.00 2of 5 11/13/15 Exhibit F • Bid Schedule � Village 2 South Wet Utilitles Olay Ranch vmag•2 BackboM lmp,...,•=t Plana By Hunwker ll A»oclatn Received (10·1'·15) Sheets 1 � Olay Ranch V!Uage-2 lntraet lmprovoment Pl1n1 By Hunukor & Aasoclatn Rec:tlVed (10-19•16) Sheltla 1·28 Item Oucrlptlon 8 Cleanout (Type A-6) 9 Type B Inlet 10 Type 8-1 Inlet (L=14') 11 18" Concrete Collar 12 48" Concrete Collar 13 Desiltina Basin Outlet-30" Storm Drain Subtotal sewer 14 8" PVC SOR 35 15 8" PVC Lateral 16 60" Sewer Manhole 17 8" PVC Sewer Cap 18 House Service -SF Sewer Subtotal Potable Water 19 8" PVC {Class 200) 20 8" PVC (Class 305) 21 12" PVC {Class 305) 22 4" PVC Lateral 23 6" PVC Lateral 24 8" PVC Lateral � 25 4" Galle Valve Assembly 26 6" Gato Valve Assembly 27 8" Gate Valve Assembly 28 12" Gate Valve Assembly 29 4" Cap with Thrust Block & Blowoff 30 6" Cap with Thrust Block & Blowoff 31 8" Cap with Thrust Block & Blowoff 32 8" 01 Tee with Thrust Block 33 12" DI Tee with Thrust Block 34 Air-Vac Assembly 2" 35 Blow off Assembly 2" 36 Deflection Coupling 8" 37 Deflection Coupling 12"38 Fire Hydrant Assembly 39 House Service-1" Potable Water Subtotal Reclaimed Water 40 6" PVC (Clns 200) 41 6" Gate Valve Assembly 42 6" DI Tee with Thrust Block 43 6" Cap with Thrust Block & Blowoff 44 Air-Vac Assembly 2" 45 Deflection Coupling 6" 46 2" lrriaation Service Assemb!� Reclaimed Water Subtotal Phase 1b/c Subtotal Phase 2 f'-'ftorm Drain 1 HDPE-18'' 2 HDPE-24" � Units 3 EA 4 EA 2 EA 3 EA 2 EA 2 EA 2686 LF 70 LF 10 EA 2 EA 33 EA 33 LF 1,788 LF 1,210 LF 62 LF 44 LF 121 LF 2 EA 1 EA 17 EA 6 EA 2 EA 1 EA 3 EA 5 EA 8 EA 9 EA 7 EA 22 EA 7 EA 5 EA34 EA 1,582 LF 3 EA 1 EA 1 EA 2 EA 25 EA 7 EA 1,042 LF 902 LF 3 ofS �/ Addendum#? Unit Price Total 5,780.00 $17,340.00 3,790.00 $15,160.00 4,918.00 $9,836.00 1,300.00 $3,900.00 1,750.00 $3,500.00 4,100.00 $8,200.00 $252,350.00 31.00 $83,266.00 32.00 $2,240.00 4,780.00 $47,800.00 100.00 $200.00 822.00 $27,126.00 $160,632.00 59.00 $1,947.00 63.00 $112,644.00 86.00 $104,060.00 48.00 $2.976.00 50.00 $2,200.00 64.00 $7,744.00 1,470.00 $2,940.00 2,030.00 $2,030.00 2,600.00 $44,200.00 3,835.00 $23,010.00 4,570.00 $9,140.00 4,866.00 $4,866.00 5,300.00 $15,900.00 715.00 $3,575.00 1,700.00 $13,600.00 4,810.00 $43,290.00 2,975.00 $20,825.00 300.00 $6,600.00 575.00 $4,025.00 7,140.00 $35,700.00 1,390.00 $47 260.00 $508,532.00 59.00 $93,338.00 2,030.00 $6,090.00 600.00 $600.00 4,900.00 $4,900.00 4,830.00 $9,660.00 190.00 $4,750.00 3,700.00 $25,900.00 $145,238.00 $1,066,752.00 77.00 $80,234.00 78.00 $70,356.00 11/B/15 � � Exhibit F -Bid Schedule Village 2 South Wet Utilities ► Item Description Storm Drain Subtotal Sewer Sewe:r Sewer Potable Water Gate ValVe & Tee Deflection Potable Water Subtotal 1 EA 1 1 EA Price Total Addendum#? Exhibit F -Bid Schedule VIiiage 2 South Wet Utilities Otay Ranch Vlllage-1 Backbcno Improvement Plona By Hunsaker a Assoclai.a Received (10-18-18) Sheets 1-34 Olly Ranch Vf111ge-2 lnlnlct Improvement Pllns By Hunaaker & Aaaoclat" Received (10-19-16) Shttll 1-26 Unit Item Description Units Price Reclaimed Water 1 EA Existing 1 EA Reclaimed Water Subtotal Phase 2 Subtotal Project Total Summary Sewer PW Phase 1a Phase 1b/c Phase 2 Total $1,506.486.00 Total $1,451,238.00 $4,865,246.00 RW Total f'\ubmlttlng a proposal, Contractor aknowledgn all scn&dule ruqulrements and has Included all nece55ary manpower, equipment, overtime, matertals, and coordination to meet said schedule. LB3 Enterprises Inc. Contractor COfflrlCt Terms and Conditions Because of fluctuatlrc costs, this proposal shan be void if not accepted within (30) thirty days of the date of the proposal. Unless expre<Slv provided above, this quotation does nor include: A)p,mnit; Including any required fees or bonds; B) engineering, testing or staking; C) bond premiums Unll:il e:xpres.sty Included in the above list in,: or work to be dof"le, all import or export of materials, .and other debris. wl11 be: dOM OI\ a cost plus basis., or negotiated otherwise, OwMrs shall schedule and coordinate the progress for the woric so that L83 Enterprises, Inc. may proceed to completion without undue inter.uption, and it is understood Iha! ina<much as LB3 Enterprises, Inc. does not have control of the other subcontractors, !he owner will be responsible for any damages. by other subcontractors, al'ter field tem. Unless expru,ly induded herein, this contract shall not Include any drilllng or blasting of rock. The excavation, handling. export or import or rock or other material determined to be unsuitable by L83 Ente,prises, Inc. shall be an extra charge and bllled on the basis of time and marerlals plus twenty percent (15%) proflt. Payment of prO[lrcss blfing invoices is due within 30 days of receipt of the invoice by owner. Any paym,nt past due shall bearintere,t at the rate of 18% per year calC1Jlated daily. 1r arbitration, suit, or other legaf actlori Including the hiring of an ctttorniev ls commenced to enJorce any provision hereof for d-irriagt, for breach her�in the defoultin£ party will pay, In addition. reasor,able attorney's fees and costs, expenses of preparing. and pro.se:c\lting suck arbitration. This agreementexpre<Ses ,he entire agreement between the parties, and shall become a part of any contract. Changes shall be in writl ng and signed by both parties. The quantities referenced herein are approximate. Actual payment hereunder shall be based on the actual field measurement as Installed, and final �mounts due hereunder shall be adjusted ,ccordin1lv. Unless expressly included herein, this contract shall not lnelude resurfacing of streets, stockpiling excess material. lot capping and mini,.g, de-watering or the removal of any water. whether from natural or ma11-made causes, or control of erosion from said causes. This Proposal does not indud• tnicking and •xport of any materials from the site. Proposal Includes dust control for all octlvities on -site. All parties accepting this proposal hereby agree to pay 100% of the contract price and any changes for extras and/or delavs caused to L83 Enterprises Inc within 7 days after subst•ntial completion of the wor, contained herein and any and all extl'll work performed Bid Summary P2084 BALDWIN & SONSLLC REIMBURSEMENTSUBMITTALS PACKET LB3 Dffe�ptlOn Unltc-i 20" WATER MAIN 1,972 $79.00 $155,7'1.00 $1U.OO $220,864.00 $88.00 6" BLOW-OFF 2 $5.,325.00 $10,650.00 $7,025.00 $14,050.00 $5,870.00 4" AIR VAC.RELEASE VALVE 2 $15,000.00 $10,130.00 $20,260.00 $7,946.00 20" BUTTERFLY VALVE $8,350.00 $33,400.00 $9,200.00 20" DEFLECTION COUPUNG 17 $1,.850.00 $31.450.00 $0.0D $0.00 $1,912.00 CONNECT TO EXISTING 20" 2 $5,2<10.00 $4,100.00 $8,200.00 $3,250.00 $253,328.00 S296,n4.oo K-c.t $12.666.40 $14,838.70 0tay Wa_, Otatr1ct V..-ttlUtlon Sublollll Unit Coot Quantity based on plan $173,536.00 $113"19 $223,210.68 llationJn.g $11,740.00 $5,855.00 $11,710.00 $15,892.00 $3,097.28 $6,194.56 $36,800.00 $5,590.69 $22,362.76 De!ledlcn coupling In un/1 $32,504.00 $0.00 $0,00 cost of water ,miin $3,060.00 $6,120,00 $276,97200 $269,598.00 $13,848.60 $13,479.90 Payment Backup P2084 BALDWIN & SONS, LLC REIMBURSEMENTSUBMITTALS PACKET OWD CIP Project #R2084 RecPL-20-inch, 680 Zone,Village 2 -Heritage/La Media August 27, 2021 Contract 587 Bid Item Description Quantity Unit Cost Total Cost 20" PVC 1,971 $ 79.00 $ 155,709.00 6" Blow-Off 2 $ 5,325.00 $ 10,650.00 4" Air Vac Valve 2 $ 7,500.00 $ 15,000.00 20" Butterfly Valve 4 $8,800.00 $ 35,200.00 20" Deflection Coupling 17 $ 1,850.00 $ 31,450.00 Connect to Existing 20'" 2 $ 2,620.00 $ 5,240.00 $ 253,249.00 5%Soft Cost $ 12,662.45 .Il!l!!. $ 265,911.45 _ PC442-00002 $ 140,138.10 $ 4,792.50 $ 13,S.00.00 $ 31,680.00 $ 28,305.00 $ $ 218,415.60 $ 10,920.78 s 229,3-36.38 11826 •nd 11827 8/17/2016 PC442-00003 $ $ 4,792.50 $ $ $ $ 4,716.00 $ 9,508.50 $ 475.43 j_[l,983.93 11931 9/1/2016 Un• lt•m• rech1<ed by 10,C, retet1llon held. RC442-00001 $ $ $ $ $ $ $ $ s 7,785.45 532.50 750.00 1,760.00 1,572.50 262.00 12,662.45 633.12 13,295.57 12603 12/7/2016 In.voices RC442-00002 RC442-00003 RC442-00004 s 3,892.72 $ s 266.24 $ s 375.00 $ s 880.00 $ s 786.25 $ s 131.00 $ $ 6,331.211 $ s 316.56 $ s 6,647.771 s 1"'60 10/27/2017 & 10/11/17 1,916.36 $ 133.15 $ 187.50 $ 440.00 $ 393.12 $ 65.50 $ 3,135.631 $ 156.78 $ 3,292.411 s IS1S4 3/7/2018 1,976.37 133.11 187.50 440.00 393.13 65.50 3,195.61 159.78 3,355.39 16614 8/29/2018 Paid to date Balance $ (155,709.00) $ $ (10,650.00) $ $ (15,000.00) $ $ (35,200.00) $ $ (31,450.00) $ $ (5,240.00) $ $ (253,249.00) $ $ (12,662.45) $ $ (265,911.45) s r Bldtlwin & Sou, LLC 20 Corporai, Plaza Dr. N,wporl JHacJ,, C4 92660 (P49) 640-8]00 °"Te Auguat 17, 2018 Pay:••-•Two hundred eighty-two thousand five hundred etghty-thf'N dollerl ............................................................... and 52 cenll PAY TOTltE �OOIOF Call Construction, Inc. #\cl Weslllm Water Works Supply Co P.O. 8o)(309 El CajOn, CA 92022-0309 IC w CHECl<NO. 11828 .. , ........... m ✓ ', i .• /,, ·� •,. ,. ,_. Date:09/07/2016 Sequence:103005502 Account:9406947519 Amount:$282,583.52 TR:122239131 Trancode:O serial:11826 EAF:O InsttD:9 DbCr:O Endpoint:9934 Appid:10 ReturnttemCode:O XMlTAcct:9406�47519 To8ank:O FromBank:9 Branch:O Teller:O . ,) ': 105,2Q16 ELEC�NIC,:l,LL 'f F1P£5ENTEO . 1 u 4/24/2Q17 Baldwin & Sons, LLC DATE INVOICE NO 6/30/16 PC442-00002 u CHECK 8/17/16DATE Baldwin & Sons, LLC 20 Corporate Plaza Dr. Newport Beach, CA 92660 (949) 640-8300 I CHECK NUMBER PrintDocument 2167 Cass Construction, Inc. . (DESCRIPTION. ... -OR V2 South 11827 I TOTAL> PLEASE DETACH ANO RETAIN FOR YOUR RECORDS First Bank & TNsl 4301 MacA1111ur Blvd. 2nd Floor Newport Beaell. CA 92660 DATE CHECK NO. August 17, 2016 11827 -INVOICEAMOUNT', 32899.78 32899.78 � 1222 AMOUNT *$32,899. 78 Pay:•*****Thirty-two thousand eight hundred ninety-nine dollars and 78 cents PAY TO THE UROER Of Cass Construction, Inc. P.O. Box 309 El Cajon, CA 92022-0309 Baldwin & Sons, LLC DATE INVOICE NO 6/30/16 PC442-00002 CHECK 8/17/16 I CHECK DATE NUMBER u -DESCRIPTIONOR V2 south 11827 I TOTAL> 2167 .: ·-.. : �. � : ,-.; ·;: Green Check Copy ""VOID ., VOID* VOID - .... NOT NEGOTIABLE ..... Cass Construction, Inc. ' ·.INVOICE AMOUNT, .. 32899. 78 32899.78 PLEASE DETACH ANO RETAIN FOR YOUR RECORDS https ://cloud3.docstar.com/#Retrieve/vieN/5e9bOa2f-4a29-e711-811e-Oeaede1c6822/index/1/page/1 2/6 Pri ntDocument Baldwin & Sons, LLC 2167 Cass Construction, Inc. , : : •• ':.< . ; • , · • ·-,1NVO1CE'MAOUNT .; .. u 6/30/16 PC442-00002 OR V2 South CHECK DATE 8/17/16 CHECK NUM8ER 11826 TOTAL> PLEASE DETACH ANO RETAIN FOR YOUR RECORDS Baldwin & Sons, LLC 20 Corporate Plaza Dr. Newport Beach, CA 92660 (949) 640-8300 First Bank & Trust 4301 ,._c:Arthur Blvd, 2nd FIOOr Newport Beaeh, CA 92660 DATE August17,2016 CHECK NO. 11826 Pay:.._ .... Two hundred eighty-two thousand five hundred eighty-three dollars 282.583.52 282583.52 fAC0. .. �•91,.,.,.11 ... , __ II 1222 AMOUNT *$282,583.52 •••••• .... •••••••••••••••••**••••• .. ••••**•** ...................... and 52 cents Green Check Copy PAY TO THE URDEROF Cass Construction, Inc. and Westem Water Works Supply CoP.O. Box 309El Cajon, CA 92022-0309 Baldwin & Sons, LLC DATE INVOICE NO . DESCRIPTION · · 6/30/16 PC442-00002 OR V2 South CHECK 8/17/16 I CHECK 11826 I TOTAL> DATE NUMBER . ' 2167 •• VOID • VOID * VOID - **** NOT NEGOTIABLE .... Cass Construction, Inc. � .... ' .INVOICE AMOUNT 282 583. 52 282583.52 PLEASE DETACH ANO RETAIN FOR YOUR RECORDS https J/cloud3.docstar .com /#Retrieve/view/5e9b0a2f-4a29-e711-811 e-Oeaede 1 c6822/index/1 /page/1 1/6 4/2412917 Pri ntDocument u . CASS CONSTRUCTION, INC. GENERAL ENGINEERING CON'l'RAC'I!ORS P.O. BOX 309, 1100 1fAGND DRIV2 BL CAJON, CALIFO!UfIA A 92022 PRONK (619)590-0929 L:IC. NO, 298336 NAME: BALDWIN AND SONS, INC. ADDRESS: 20 CORPORATE PLAZA DRIVE NEWPORT BEACH, CA 92660 RECEIVED JUL O 5 20\6 PC442-00002 PROJECT: OTAY RANCH VILLAGE 2 SOUTH OUR JOB#: 16-2442-0C BALDWIN & SONS u YOUR ACCT#: 2003 CONTRACT#: 587 PROGRESS BILLING#: 2 LESS RETENTION: LESS PREVIOUS BILLINGS: TOTAL DUE------------------> .. Inv.# P��C/d.-0000'-$'J/S'.jll;_ Contract# Coding 1st Approval 2nd Approval A/P Entered Acct Mgr https://cloud3.docstar.com/#Retrieve/view/aeed2cb1-4929-e711-811e-Oeaede1c6822/index/1/page/3 • 0 DATE: 06/30/16 mrmw -r-=== 582,242.00 58,224.20 2os,s34·.so 315,483.30 1/4 8 � & ____ ,. ___ -·-· -1liCIW: �== ... 'lr�O:nu,� .. PVC:- D.i:r� = 2 'Jl:l"P',C--- ' ... --. ·--- ,r0ilill,-.1ft,Th'ut(b-t..&Ob,o,of � -1'>-,.M<.�moct y rx;,,-,-a...._... 'llf'Dl,-_ .. 11""-ltllkxa ,. ,Vr-,,rt:Ml..&C- - II 1.,... .. .,.Qll.8(:���Bb:11. u. r--..,..•- ., uv111:-..�r .. Nt'I.-: �4' " _,. .. �- " .,._.,,.__r " IL 00' .. ti-� .. JO, ,��,.. ;;,,=,· ... •<i'. .... ..._ • ._.:..-... ;:tfS--• rPYt:-xx.'l 7" ---�� �r .... r....-.,r -----=� � -0.0, _,_ c--~ ---~ ....~· ,,. ..... ,-"""' ,,_,. ,.,., ,.., .... --,,_,. ,,_,, .. "',n.i, ..... ....... ?7-1• , ...... .. P-Jf' .IW , .....-.« UOf-' --- 11-U ,. � ........ ..... ....... ,,.., .. H,�"-.00 ,.,_,. .. ..... c.,-a.oa ..... ---.. ,,_,. ' <A .. ..... ..... ' ...... ··-- ,,.,. " ll.llll EA ,-.. ... ,. .. 41•1;1\ •75Jl0 ,,.,. 111"' , ""'"' ... ,. ' .. ·--�,,�. ! . .--:;�...: ,.,_,. ... =• IH !A !>MOO :r,.11 ,_ ..,---·· 1111 F-A ,..,,oo ,,.,.. IT5.00 � ... -. ·-····------.. --·- ElOIIIITB l�I §111 - I l�I fj..._!!!!!!!1111:I !!!.!!!ii __ .... y ... ,,.,. .....==-� ..... , -�.--"-°""'" T_, ....... , ...1.� , ... •· er··• •·· --., .•.. ; .. , .:' , ...... �- S21f'll0.Gil 'l'l .. lJO.� . ., .. _ .. � "'""' MU .. ,O ,w---�·,,, __--·-Nit-- -··•oa-1.1 ,10• ${�111 m-- !:l1.1I0II: l!UMI« nui•• .... m11111ooo .,..,. -... I ...,. OUM .... M� ,,.,. ... = I .J\.,;fV .,.,._,. hOll• .... 11•1m I11 )UIC' a.asuc •·�anoc -"'"''" m u�•• ... ,. ... ---.. "-4»,ot UfflJ< u.,ssoo irn ..,---,u,,., 'Jtecl'HOO ...... --� � .. .... , ..... M "" '.; '""""''" N•-• ,, __.. . � fl•,_IZI ,,.,. ..fll.C:,OOll .... � .. ..... i "n• SJ1,Sllt .. Pl».• ... ..jn-,oc n-H . --.... ___ .., " ... i ,/._, , •.. !�•.,�,;-._h., { 1:u--st,m m.o, ,.., "§ � .. .. -,.., i n1m-oc .,,.. .. a "" , .., ... .. moo IOM g "'" ..-'"' I, .. , C C --------. ·-···--. ··-....................··-----·· ---= .. - --- -· --.. -- --.. o..oo .IIUIO •a m• 1-x:-l°"'i:l-wl c.,c,_.� -,,., .... -....... --_,.,,.. ..... .... .. .... . _., .... -· ..... .... ... ..... -_,_ .... -.. -- ,·-· :,, -��--�:.:. 1 .......... 1 sn4,,0n• ---... .. ....... , .... ..,", -- _,,.,. ..... .... .. -.... • MW• --·.·:· -.... ---- ' . ,,, .. . ---- .,,,....,. -.... .. .. ... 4/24/2017 u PrintDocument 2442 Baldwi� & Sont, loo. Vlll•s• 2 Solllh • Slorm Drain Contl'llCI IS7$ Coat Code: 27,06 Sob No. 0l,0010·S16/OVERALL Conditional Waiver and Release Upon Progress Payment . (California) Type 1 Form Pursuant to Civil Code 8132 (Effectlve 7/1/2012) NOTICB THIS DOCUMENT WAIVES THE CLAIMANTS LIBN, STOP PAYMBNT NOTICE. AND PAYMENT BOND RIGHTS EFFECTtvB ON RECEIPT OF PAYMENT. A PERSON SHOULD NOT REL V ON Tii!S DOCUMENT UNLESS SATISFIED THAT TiiB CLAIMANT HAS R.ECEIVED PAY• MENT, Claimant: Customar. Job Locallon; Ownor. Tbro1111h Date: Bo,ldwio & SOJII roe ymm 2 south srorm Proto Cootract: 575, 576, 585, & 587 Ylllm II ot Olay HB Syb A $ynrwh r.,1111 Plltptfl, LLC 6/30/16 This document waives and releases lien. stop paymentnollce. 1111d paymenc boodrights tbo �lalmant has for labor1111d service provided, and equipment and material doli...,rod, to tho C\l.llomer on ltti.t Job lhrough !ho Throuah Date of this �ment. Right& based upon labor or 1ervlce provided, or equlpincnt or material delivered, pur,ua�I 10 a wrlne11 cbanae order that has been fully o�ecwted by the parties prior to tho dale tbnt 1h11 do�1uneat Is slaaed by the clal111ant, are waived llld reloasod by thb document, unless llsted as an Exception below. Thi, doc:umtat fl effective 011ly on tho cl■lmant• receipt of payment II-om lhe tlnaaclal Institution on wlilcb lhe check J• drawn: Maker of Check: Amo1111t of Check: a.eek Payable To; Ba!l!wlol son, UC $315 483.30 EKceptkm•: Thu docwnent does nol affi:01. any of lh• followlna: (I) ltelentlons. ('2) 8,ctraa for wbicb tho olelma.nl hu not rooelvod paymoct. (3) Tho foUowina prOfrost payment, for wbloh lht chimmt hu previously given a conditioaaJ waiver and release but has not reoo!ved payment. Potc(s) of waiver 111d rclcuc: 5/31 /16 Amoun1(1) of unpai'd progress p1yment(s)i s 208,534.50 (4) Conll'ICt rights, including (A) a rl(lht based on re1ci11lon, abandonment. ·or breach of coctract. and (ll) the right to recover cornpeasation for work not compensated by &he payment: The following invoices .-id pay appllcetion1 ere included In the above refercn�d amo�at; Date sianod: __ 7 __ /_5 ___ /_1_6 ___ _ Cass Construction, Inc, · (Tltlo) yNamc� ,. oa,,� (619)590-0929 Cl■immri Pll1mc No, https://cloud3.docstar.com/#Retrleve/vi �/aeed2cb1-4929-e 711-811 e-Oeaede1c6822/index/1/page/3 214 Boldwln 4c Sons, LLC 10 Corporate Plaza Dr. Nnvporl B,och. CA 91660 (P49) 6-lo-8300 fntllr,k&T1111t 001 M1CA11tu IIMI. 2nd Flllar Newpartlludl,CA9Zella DATE CHECK NO September1,2016 11931 Pay:••*** .. Flfty-five thousand three hundred fifty-four dollars and 50 cents PAY TOTH& ORDER OF Cass Construction, Inc. P.O BOlC309El Cajon, CA 92022.0309 •-• --·• __ , •• ......... •• •••• -•••••;t •· ·•r. ·•-•·-• -·•-· 11•0000 � iq r�·iii·· 1: ,.i!.i! i!'3'cj '3 ,1:Ci�or.·q'1;15 fqi• .. ,.� ....... . vn- AMOUNT *$55,354.50 I I . "" f Cate:09/07/2016 Sequence:550022220 Account:9t06947Sl9 Alllount:$55,354.50 TR:122239131 Trancode:081 Serial:11931 EAE":0 InetID:9 DbCr:O Endpoint:9934 Appid:10 ReturnitemCode:O XHITAcct:9406947519 ToBank:O FromBank:9 8ranch:O Teller:O ·------.. ·-·. ·•-···•-· ---·----- ,. ,. &. .: ' ,, !..". =I . ( . 4/24/2017 u Baldwin & Sons, LLC . DATE ..· · INVOICE NO' ' 7/31/16 PC442-00003 CHECK 9/01/16DATE Baldwin & Sons, LLC 20 Corporate Plaza Dr. Newport Beach, CA 92660 (949)640-8300 I CHECK NUMBER ,!, .:• PrintDcx:ument 2167 Cass construc.tion, . Inc. . · '·. OESCRIP.TION ORV2 South 119311 TOTAL> PLEASE DETACH ANO RETAIN FOR YOUR RECORDS Fnt Bank & TMI 4301 Mac:Allhur IMYd, 2nd FIOof Newport Beach, CA 92660 DATE CHECK NO. September 1, 2016 11931 INVOICE AMOUNT 55354.50 55354.50 � 1222 AMOUNT ·$55,354.50 Pay:*'"*,..**Fifty-five thousand three hundred fifty-four dollars and 50 cents PAY UTOTHE OROER OF Cass Construction, Inc. P.O. Box 309 El Cajon, CA 92022-0309 Baldwin & Sons, LLC OATE INVOICE NO 7/31/16 PC442-00003 CHECK 9/01/16 I CHECK DATE NUMBER Green Check Copy 0 VOID •VOID* VOID•• •••• NOT NEGOTIABLE -•• 2167 Cass Construction, Inc. DESCRIPTION ..INVOICE AMOUNT ORV2 South 55354.50 119311 TOTAL> 55354.50 PLEASE DETACH ANO RETAIN FOR YOUR RECORDS - https :/f cloud3.docstar.com/#Retrievelview/c b6d 140e-4b29-e 711-811 e-Oeaede 1 c6822/i ndex/1 /page/1 ( 1/3 41?-412017 u PrintDocument CASS CONSTRUCTION, INC. GENERAL ENGINEERING CONTRACTORS P.O. BOX 309, 1100 WAGNER DRIVE EL CAJON, CALIFORNIA A 92022 PHONE (619)590-0929 LIC. NO. 298336 NAME: BALDWIN AND SONS, INC. ADDRESS: 20 CORPORATE PLAZA DRIVE NEWPORT BEACH, CA 92660 RECElVED JUL 2 9 20\G B1'LDW\N & soNS PROJECT: OTAY RANCH VILLAGE 2 SOUTH OUR JOB#: 16-2442-0C YOUR ACCT#: 2003 PC442-00003 DATE: 07 /31/16 ======�m===•==rm-=====m;;::�===-=-am-rma=m==--aa-==:===-----rm==m• u CONTRACT#: 587 PROGRESS BILLING#: 3 LESS RETENTION: LESS PREVIOUS BILLINGS: TOTAL DUE------------------> F�:�--��;j,j�--.()O-_-.. o-o_3_$_S._'S'._. 3-.�-r. c1�f"§�r.a,;I,, S07 i C::;0,;: :1 --- t��IP{.i�D ��;·; I , .�·1U Appr,,v,d,. ____ _ '. '.�'T_ E' 1!�_::�9 _________ . _A_c_c_t _M...;.g_r ---...1 https://cloud3.docstar.coml#Retrieve/view/c 7 4af3b5..4a29-e711-811ir0eaede1c6822Jindex/1/page/1 643,747.00 64,374.70 524,017.80 55,354.50 1/4 . ;; -8 li!,fllCONTilAs;:Jft s...,.,_ ......... _ %-'i::7.?'"----nc;.;;atmA.Wii ..... �!!!Ill ,,_..,._ C-W.-T.,. ........ c.--....,.CX'O., ••,t,,w) tl!W,, ....... �_ --Go,c, 01-.... a-..a o._,a.., ~-� c..-,~ Onto�------... ,T_. ·-.,_,._. , ... T•D&• ,� h� ....... .... ,-,.,. ,,,.,. .. "" -, . --��i .. -, �.,, .,., ,-P,Cr•--,,. .. �� ""'"' UltDOQII 1:!1UlOOC: , ... .01•_m110 .... Sltfl2000 _!!!.!!! � ... ---,,.,. ,.,, , __ r --SU11"tllll S �\lC'J 0 ,..,, .S11UQU0 ,.,, S1�10)00 ..... U"C...V.,_ .......s,--s1u·--llll'IO.."" U NIii) U,PUM ....... .1--e,.o,.�v .... � ,,.,. ,_,. .. --,,, __ ,,, __ nS)CIOM s::u--.1-"'-"'11!1l'hRal..-�a-· -""'' l.111� .S.�01000 =--·-f:l{�IO.OQ SU IOOCI SI� IG.lrll .... tr�wlal'7bu,.l� ,..., , .....nutt __ ;mm ---.. I ff'r'IIIT---.n.r.a1Rbm. ""' , ......_., .... rx2-4• .. -.. ... ,. ...... -,� "'"" sim.oo SJ.4?$00 n..,tt ,-..I'XT�T•W'fllhl,_ll'lel ...... .. 1.,, ••-•oo tt jl,.tll: ----·-·--,. '10"'1',,_, ........ ,... .... ..... Ott £A �•uo ____ ., .. --,.,,. .. ; _, .._ .... 'PJlcr"QM.&C.�--TW\alll,o; ,.,..,U< .. ....... U-u:too u.,,,m: .. .,, ..) ll r-�•--,,,., 2< ,.� .. .. -... "----<o.l'JOeo ""'-""'" MVIIC'"''"-7 2M9 . .. , .... -14�l0.00 = ... tt ..,..,m ..,_ .. ...... �,0.-Sl11'1• j>_ ... N,Vae•· --� "" -·-oo SJjOOCJ(IC: 11,c,c,ofllll 11'1"1111)11.til � u .._ .. �r ,,,. .Uallt'CI 11'°9-l!C 11·--., ...... .... � .. &biltalf-1" ,, . .,' "" ...---HCL&.•,ruw: ,C6,011C -·--,,_., .,.,.,_,. � n �-�2-rr ,,_� 17 ··-A '""'"" Ut 9!1• 101.UOtta .. ,.--,, "···---i"· --r ,,_, ., ••• EA , .... S1 H-J'J.11',00 -·-.oo " . ""'-'"-.. 17•'J 111l0.llll ,,_.,,_ n-M ... .. ..� 1,,_.,,.. 11--1, '10: EA ·--n·-.. ···-..... l ..-..1 • •1;,,T-� :\.....,_, �-� ' ... •: :; �,. ... .;1...-¥ .-. ) go:,:� -·. .. •y' ·t;.-.."I ·•),"'o!"\J?:� . � •,.,"!'--�CS"PVC 0-.X& n:. ,.. l.M.DO LF ,.m ,,--sn••• '.. , .... .... i e-r----..inwu.Blcdt :n.1, le<IEA 385.CO """ fll!IOCI C .... .. .. "'!! i r--.-..-IJ.1♦ )_NI CA I .. --�Jin• ,.,,., -·•,.ex, ! Hio-d!� ....... 21-U lot FA ""'""' .,.., ..n-,o .,_..,,. bM I nuo., l1•" '""' 11500 -·.,.. .. ''""" ,.,. --i , ...u (. ----=• . ... ... ... C I �_::._:I r·-·--: �: :i: - ,,�a, SLIDIIOC ... .. .. lft:11! '"' .... . GrHdToal .. I�.:-., lo..;-.:•f &, .. n-�I SM.;._•.-• -s:m:..:... C.c.<a--,, .. U..,11:1 .. W ,,.., ,. .. ,,.,. .... ............. ...... ..... ...... .... 111Wti,'11J.GII .,.. .. .,_ ....... ..... ..... .... ... ..... � .. lofl -ffl.00... ............ .._ .. - J6M,m°' °""°" .,,,,,,.,. . .. ..... ..... ,. .. ..... -- ""' ... .... �-- �.Ol7.IO ... ..... -.. ... .. .. c ...... _ --- , ... "·" "'" � ... C -� u u PrintDocunnent 2442 B11IJ\Vl11 & Soru, he. VilL,a• 2 S01Jlh • Storm Dc;,h1 Coulrnc:t #.17S Co,c Codo: 27-06 Job No. 02-0020-$16/0VERALL Conditional Waiver and Release Upon Progress Payment (California) Type I Form Pursuant to Civil Code 8132 (Effective 7/1/2012) NOTrCS THIS DOCUMENT WAIVES THE CLAIMANTS LfEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RJGHTS EFl'BCTIVE ON RECEIPT OF PAYMENT. A PERSON SHOULD NOT RELY ON THIS DOCUMENT UNLESS SATISftEO THAT TH.£ CLAIMANT HAS RECEIVED PAY MENT. Cioimanl: Customer: O,,,s Ccmnuctiou Co11 Baldwin & Sop1 lnc Job Location: Village 2 Sonth. s1oan Pc•iu Contract: 575, 576, 585, & 587 Owner: Vlllm II of Otay HQ sub & Synranch CjpUal Ptanm. LLC Tbtough Ooce: 7/31 /16 TI1is document waive• and rolcoses lieo, stop poymcat notico, and payment bond ri9bts the ul•imnnc hu for labor nnd service provided, ond equipment Md mat:rial delivered, to the cu1tomcr on tbl3 job through the Through 011e of this document. Righu based upon labor or service provided, or equipment or uuteriftl delivered. p�rsunnt to a wrluon choose order thal has been fully excculod by the parties prior 10 U10 da!o lhat this documen! Is signed by the claimani. arc waived And rclel!cq by this dooucnonc, unles, !isled u on Exuption below. This docum�nl Is effective only on 1hc cloimants receipt of payment from the 11.aancial lnscinnlon on which 1hc check rs drown: Maker of Check: Amount of Check: Check Payable To: B;ildwtn & Son1. llC $55,354.50 CW eon,qµcdon, Inc Exceptions: This document does cot e1ffcct ■ny of 1he foflowtng: (1) R.c1eo1ions. (2) Extru for which Ille claimanl bu not received payment. (3) TI1e following progress poymen!$ for whiob tho ollllmoat hu previou,ly given I conditional waiver aud release but ha.s aot received pay,nonl Datc(s) of w11iver end release: 6/30/16 Amount(,) of unpaid pro,ress poyment{sJ: s 315,483.30 (4) Con1rac1 rigbcs. including (A) a right b .. od on ros ciulon, abfll1don111enc. or brooch of contmcl. aud (BJ the right to recover compensation for work nol compeusa1cd by U,c paymtnt: The following invoices nnd p•y npplication.s arc Included in the above referenced amoun1: D•<• signed: ___ --.:7--.J/'-3::.....:.1..:../_1;..6;;.__ {Tille) (619)590-0929 Claima11t's Piton� No. https://cloud3.docstar .coml#f{etrieve/vifNl/c 7 4af3b5-4a29-e 711-811e-Oeaede1c6822/i ndex/1/page/1 '214 Baldwin & Sons, LLC 20 Corparat� Plaza Dr. Newport Bun:h. CA 91666 f'J'9) 640-8.JOO Fntllallll&Tnlll oQ01 MlcAllwlllvd, Zlld Floor NNporl�CA82IIO DATE CHECK NO December 7, 2016 12503 Pay:-"Thlrty-four thousand five hundred forty-eight dollars and 56 cents PAY TOTltE ORCEROF Cass Construcbon, Inc. P.O. Box309 El Cajon, CA 92022-0309 .. .__.. .................... . r.. .. Dato:12/13/2016 Sequence:5500215?0 Account:9406941519 Al!lount:$34,548.56 TR:122239131 Trancode:081 Serial:12603 EAF:0 tnstI0:9 DbCr:D Endpoint:9934 Appld:10 ReturnitemCode:O XMITAcct:9406941519 ToBank:O FromBank:9 Branch:O Teller:0 :-' t !-· I ,. I·· .. ' r j',·I:': l. j... I c.1• : : I . . i ._ ;-L • . .. !· .. :.· . I' ,. , ' I C ;: Cl ' ,.,, ,. ,. CASS CONSTRUCTION, INC. GENERAL ENGINEERING CON'I'RAC'I'ORS P.O. SOX 309, 1100 WAGNER DRIVE EL CAJON, CALIFORNIA 92022 PHONE (619)590-0929 RC442-00001 NAME: BALDWIN AND SONS, INC. ADDRESS: 20 CORPORATE PLAZA DRIVE NEWPORT BEACH, CA 92660 PROJECT: OTAY RANCH VILLAGE 2 SOUTH OUR JOB#: 16-2442-0CYOUR ACCT#: 2003 DATE: 10/31/2016 �-�===========--=----==========�==========·==============-= ----===------ CONTRACT 1f: 587 TOTAL RETENTION BILLING: 34,548.56 u n.0000 1n,u<ux1 , •. so 1&1.n 10,u,.oo U.ff " OUl-U-001)1 ,\t,tl'l. o:»ffM'TlOlollVIU'TAIU: KJI.TJ,S.P' CCI N'C no MlDltl. C/0 U OU"·U-1'tl0 .. ii.A,. to• or,� nn: Dl'TU1U• en NC IU ).)CI.OO.Oe )J0,0.00 ,,.,$0.00 1,.1n." ''1I,1H,U• J,!10.00 t,♦Ol.U 17,:114.l!o ,.,u.oo l,2H.O) 2,u,.u L2•S u 20,IU,.OO• IM,tn.u l,lll,U Ut.'U U1.H u,.,. u,.st u.n H,otl. 11" U,\t.t,St• 121.n ,,.,, )4,)41.))• ·-·.,. • .,_ o.n.-, u10,1u l)'ti.-T'-2 H ,- ,,,.so 111.t!J ,. ,, H,\H,'4• u u 2442 Baldwin & Sous, Inc. Vilhis;c 2 South• Scorm Drain C:0111roc1 #575 Cost Code: !7-06 Job No. 02•0-020-516/0VERALL Conditional Waiver and Release Upon Progress Payment (California) Type I Fonn Pursuant to Civil Code 8132 (Effective 7/1/2012) NOTICE THIS DOCUMENT WAIVES THE CLAIMANTS LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS EFFECTIVE ON RECEIPT OF' PAYMENT. A PERSON SHOULD NOT RELY ON THIS DOCUMENT UNLESS SATISFIED THAT THE CLAIMANT HAS RECEIVED l'AY· MENT. Claimant: Cw Coostructiot Customer: flaldwio &. Sons lac Job Location: YillngclSouchSLonnPrnio Contract: 575, 576, 585, & 587 Owner: Through Dale: Vil!ise II of otav He sub & sunranch capital Partners, L:LC 10/31/16 This document waives ond releases lien, stop payment notice, and payment bond rights the claimant has for labor and service provided, and cquipmcnl and material delivered, to the customer on this job through the Through Date orthis document. Rights based upon labor or service provided, or equipment or material delivered, pursuant to a wrinen ch,ongc order that hos been fully executed by the porties prior to the date thU this document is signed by the claimant., are waived and releosed by this document, unless listed os on Exception below. This document is effective only on the claimants receipt or payment from the financial institution on which the check is drawn: MRker of Check: Baldwin & sons. uc Amount of Check: 34,548.56 Check Pnyable To: Cass ConsmJClion Inc Exceptions: This document does not affect any of the followini: (I) Retentions. (2) Extras for which the claimnnt has 1101 received poyme11t. (J) The followina progress payments for which the clainiant hos prcvi,ously ;iven a conditional waiver and rcl�se but has not received payment. Date(s) of waiver and rele,sc: NA A ,nount(s) of unpaid progress poymcnt(s): s 0.00 (4) Co111rac1 rights. including (A) a right based on rescission, abandonment, or breach or con1ract, and (B) the right 10 recover compensation for work not compensated by the payment: The following invoices and pay applications arc included in the above referenced amount: Date signed: �I 0=/-3�1�/�16 _____ _ Cass Construction, Inc. (Title) (619)590-0929 Claimant'.• Phone No. Baldwin & Sons, LLC 2167 Cass Construction, .Inc. .,.,,.,-: '.',DATE .'r-�'?°:-':i',"' INVOICE NO::;'�;: · .• ~ �,i: .":ii,��,•.�::,.;,; (DESCRIPTION f.� "'-,' '="·' ,• ,· -. ;,·,;i�tF�' ·", l<�\r'. •. "· •• :-: •· i\' .-; ,;.r,;,, _,-.·.1NVOICE AMOUNT.��•t��.,;;:.1? 8/31/17 RC442-00002 CHECK 10/27/17 DATE Bal<lwin & Sons, LLC 20 Corporate Plaza Dr. Newport Beach, CA 92660 (949) 640-8300 l CHECK NUMBER V2 South 50% Ret 8/31/17 141571 TOTAL> PLEASE DETACH AND RETAIN FOR YOUR RECORDS MECHANICS BANK 610 Newport Center Dr. Suite 100 Newport Beach, CA 92660 DATE October 27, 2017 CHECK NO. 14157 15848.80 15848.80 9D-4485 1222 AMOUNT *$15,848.80 Pay:*********Fifteen thousand eight hundred forty-eight dollars and 80 cents PAY Cass Construction, Inc. P.O. Box 309 TO THE ORDER OF El Cajon, CA 92022-0309 Baldwin & Sons, LLC ., ·.,DATE_;_· 0-•:· .INVOICE NO .• •-·•··•:; �-...... ·. 8/31/17 RC442-00002 l CHECK 10/27/17 CHECK DATE NUMBER Beige Check Copy **VOID* VOID* VOID** _ **** NOT NEGOTIABLE**** 2167 Cass Construction, Inc. �,:•--�,_'.DESCRIPTION.;.'·.· •. :1_;-. ·.{I. � .· ..., ...,,_: • ...! : .. �. '., • ·:: .. •·.� i_ ·..,:,,:_ :�'·' ;·�·•.,_'·INVOICE AMOUNT '-:· ·, ,_ ··� ...V2 South 50% Ret 8/31/17 15848.80 : : •. •, 141571 TOTAL> 15848.80 PLEASE DETACH AND RETAIN FOR YOUR RECORDS j Baldwin & Sons, LLC ' DATE. . . , · .'•INVOICE NO · ,:.', �.'rd.,�:·:,� 8/31/17 RC442-00002 CHECK 10/11./17 DATE Baldwin & Sons, LLC 20 Corporate Plaza Dr. Newport Beach, CA 92660 (949)640-8300 I CHECK NUMBER 21.67 Cass Construction, Inc. : �N ·.•··DESCRIPTION:,:i··.' . :: · ... -� . � . ·.�· '(�'�-�--¼ . -� .. ;. ', . .. V2 South 50% Ret 8/31/17 140601 TOTAL> PLEASE DETACH AND RETAIN FOR YOUR RECORDS MECHANICS BANK 610 Newport Center Dr. Suite 100 Newport Beach, CA 92660 DATE October 11, 2017 CHECK NO. 14060 . · .. INVOICE AMOUNT 3202.75 3202.75 90-4485 1222 AMOUNT , . -�� .·. *$3,202.75 Pay:*********************Three thousand two hundred two dollars and 75 cents PAY TO THE ORDER OF Cass Construction, Inc. and Hanson Aggregates P.O. Box 309 El Cajon, CA 92022-0309 Baldwin & Sons, LLC , DATE'.": ) INVOICE NO'-. ),:--. � .. · 8/31/17 RC442-00002 CHECK 10/11./17 I CHECK DATE NUMBER .. Beige Check Copy **VOID* VOID* VOID** **** NOT NEGOTIABLE **** 2167 Cass Construction, Inc. . •.·', ;, •,,DESCRIPTION r · '·� • ·, ''. · ... .� ;• - • ,; I .. -• ',• : ·.:. · ..... �·1':"" ;, J. .·_. ·::s ·.INVOICE AMOUNT •, ', : V2 South 50% Ret 8/31/17 3202.75 140601 TOTAL> 3202.75 PLEASE DETACH AND RETAIN FOR YOUR RECORDS CASS CONSTRUCTION, INC. GENERAL ENGINEERING CONTRACTORS P,O. BOX 309, 1100 WAGNER DRIVE EL CAJON, CALIFORNIA 92022 PHONE (619)590-0929 RC442-00002 NAME: BALDWIN AND SONS, INC. ADDRESS; 20 CORPORATE PLAZA DRIVE NEWPORT BEACH, CA 92660 PROJECT: OTAY RANCH VILLAGE 2 SOUTH OUR JOB#: 16-2442-0C YOUR ACCT#: 2003 �SCAIJNED DATE: 08/31/2017 =====-=================================== =====-======= =======-============== CONTRACT#: 58? RECEIVED AUG 21 2017 BALDWIN & SONS TOTAL RETENTION BILLING: 19,051.55 Invoice# (2..c.. 4 $ -=-=-..:....,..-=-�--=-� Contract# _'-'-'-..__ _____ --I Coding --.---,------� pproval ---=-=--------------p Entered \I ✓ P.D. 8oilo9 Elcit:?"CA'lD!O-CIJ.>t ·-..-COlllnd-lmtOllpCCO#J) EXHIBITB Ut,7".W l'l'»,JIU4 Cose OI1pll Q.uct l.nisd Orfd,nllCtn1r_rat1 CbantTOmr Oo4c COfllrlCIOr. <lr'rtOtJ Qty U.lr tlfllrS TorAt ..,._.J knlltdToral ToD.u 1, $0PVC{Cltu200\ l7-l9 :ua4 20" PVC lO.H:S 195) 21-19 17-19 17-19 2'1·19 2'1-19 l'J.l9 U AltVK •�•�2" ?Mt e· PVC le&ass 3Q5.1 21-11 g• Caa \Jlilth Thrus1 Bk>d: lMI 2'"lmlta1Jon5efYKe l1-l, Blow on AiH ........ 2' 11-1, � .. ,,._ ........ &· 11-1, 6 Conne�toExit"'.in:tG• r,.1, ---- 1,911 " " 41 , .. l,91400 1./! SSSO< lfJIOOLF moc 600 EA ll,N.:5111' <OO EA ,uoooc JOO EA JS,070111' 100 EA ""'" 100 EA J:5,4;5rll >OO EA -" , .... S,8580, 200 EA P1�50C 100 EA 13,4S5111' 2'00 EA J::J.2'50C "'"'' $4,5100( 200 EA 17,500111' l.00 EA Sl,IOOOC 200 EA 15,325111' 1'.00 EA 1.85000 4100 EA 17500 200 EA 11COOO tl400 LF 5500 l 00 EA 385.CO ]00 EA 3'MCC() IOOEA 280000 •oo EA 17500 Sllt.1231!1' S!n?Otnr s11,1onr SJJJOOOC SUJIOOC fJUOC u.,oo n,moo tU!IOO SUlOCO U.4»00 ffl.'�00 $U.()600C> JI ,...,,,.(1) .U60000 .SI0.6SOflCI m,,.,000 J?.IJSOO Sl23000 Sll,l7000 59.70$00 ,,...,., ,10000 J'J:19.12000 ltUOO IU$101HG SlltlOro ,oo UUOOCO ..,. SU.J:1000 ,oo JlljOO 100 1!4!00 100 $30!00 ,co !t2,Ulflll 1,0 S6.3'000 "" u.moo 100 S11,t.400C "" S21,0ISODI: ,oo SU,OCUOO "" .,...,., $10,,6.SODO ,., $31.4,0IO 1100 $1.l1$DO Sl.20000 100 S1U(I( 100 S,_')Ojl)() '" 100 uoooo ,oo 100 EA 1,10()00 Sl.10000 Sl,!0000 JOO 1012 �-111!'1*'' .,._ SltOSI-" S0.00 s1,,on.$4i htorlitlinc T0D1.1, ---·· UU1DOO ,.:.,::�.? :.. su�oo M ., 100 ,. � 'i··�-•. S7000D, • , • ."' 4M • .. --.� •• -,..;-1:1 S100M .,., • _;-,.. Toral .,., """'°' .,., .,..,,, ., .. .,..,,. .... ,..,00 "'" ""°" ., .. .,., ,.., $1162: ,000 .. .., 1000 mu !000 11.5M" ,.,. S!"61T7 $400 SIU:.99 .... $6.')&$1) ,.., $.1HOO .,,. SUO(N) .,., SJ66H .. ., S'J16l-S .,., S1,..31 S,00 $}JOO .... StlCO Sltll SOCIO S.,.'7 $000 $1000 .... 117JO EXHIBrTB lil.LriO�O • 1,11,1-1111,n "· . ....,. p-. • 1n1n.i, -....-c.N.-.«-,,, �c;:� ..... , P.O. Bo.\J09 EICallXlpCA9lOl�09 "'6.ffl,� �A-SltlHLH .., ....Co• Or'cJ:.lJ C'b#tac llnbd �Coamn c::iau.01iSa Od,n u,.� a .... c-..,., S'l'::'-516.14 ·-CD<k Coamc1 On Ordff Qlr Qtr U&II l]al( s Tw.1 Tot., Jl.nist' Told To l)Mir COfllltlon"'"mllffl#�Clggl920" l'f!Clai!'l'lonS.'1111&1:ic'-cA',Fete) 02:• COil 001M1WACl<BOME Remowi1rmnt••l!d�d•ct1to u!alllblle!tvltlfflJ{RFC 110, ez. n-n CO n 0020-51"8ACll:80H'E 21-.SS B�toSehilllng P.-..dM·C-.1 ��er1ndffl00Med2ITRW 00 n R.FC '17 0.Z..OOI0-41&18Aa<SOM: Z"I·-" Dig upandt'tWJl2"waliirRnoiDI on RC fDf pall SIi�. bleAAl1 T W'l'.s: W.IYIDI! I 0:>U (RFC•l0)8ACK80N�..U Z'J.S, 100 ,., loo 100 EA 1UJt?80 S3•.mao 100 100 $ttU�ll ""' .$111,lltill 100 ,000 n,0001 100 ,., Cr.andTot•I , ... ,.,, ka.C:-.0. SAi.OD &-llilltlf:f:f SltlHl.)4 -·- ToDwir ~ ,. To<• °""""' Toni ' .. :, SJU11,1>' , . ..,.._100 sooo •• "t ·, � •• • ".'•'1·••.r', $10,836,1 ·:. ••• !J.'"{."100 .... ,.., ,.., ., .. $19 ""' SJUOJOQ -SltMI" SC.IUll.U .Sl9.0Sl.$5 ...... .,,, ... S-.71,0 $1,64.$) Sl!>.451.55 U:1IJwi11 & Soni, In�� Vilt.age 2 South• S1\)rn, Or:.i11 Job N1> 02-00lO-Sl6/0Vl:RALL Ct111lri\CI '-.S7S Cos1 CM< 27-06 Conditional Waiver and Release Upon Progress Payment· (California) Typl.! l Form l'mslinnt co Civil Code 8132 (Effective 7/1/2012) NOTICE THIS DOCUMENT WAIVl.!S TIIE CLAIMANTS l,WN, STOP Pl\ YME>JT NOTICI,, /\NO PAYME!-:T DONO RIGHTS EFFECl'IVE ON RECEIPT or PAYMENT. /\ l'IC:RSON SHOULD NOT RELY ON TJ-IIS DOCUMENT UNLESS S/\'flSFIIW TJ-1/\ T TH.E CLAIMANT I IAS RGCEIVED l'J\ y. MENT. Cus1omc1: na1dwi11 & Sons. 1.o .• ·._ __________________________ _ Job Locntion: Owner. ·n,rough Dole: \l,U;wc:: :il>Jllh S]OrII) Pc•i•J Contract: SIP Village II cf Otay HS Svb & Sunran,n C•pital Partner, I IC 8/31/17 ·n,is documeni waives and releases lien, stop pn}�nenl notice. nnd pn)�ncnl bond rights th� cl�i,nom hns (or lnbor o.nd service provided, and equipment and 1upccri•I dclive1etl, IP the customer 011 this jub throu11h th� ·1111ough 03te of 1his document. Rights bnsrJ upon labor (tr sen•icc provided, or equipment or ma1crinl delivered, pursuon1 10 • wtmcn cbnnge order 1h•1 hos !teen r11fl>• c.,cculcd l>y 1hc r•nrlies prior co 1he d3tc that this doc111nc11t i� <l!ln<-d by the clui111nn1. nrc ,,..,iv('d ;1n<l r<lcased by lhis documcn1. nuh:.u listed a� fm fl'\:c.cplion befow. This doclfilh!III ·is cn�c-tivc onl)• on the cl;luuont') rcec1pt of prsyin,'nt frorn 1hc lioanciul ins1i11nio11 on which th.: check is dr:iwn: Maker ofChccJ.;: Safdwin & Sons, llC Atno11n1 of Check: 19,051.55 u,cek Payable To: J:i!ll Gs,1is1n,ction. Inc Exccrtions: This documc111 dues nol nffecl on)' or the following: (I) Re1en1ion�. (2) E.,tr�.• lor \\hich the clnimn11t has not received payment (3) 1·11� foilowi11i: pro3ress 1uyn1cr,1< for which lhc claimonl has prc�1ousfy given • conditionul wajvca and ,cl�nsc but htts not received p:t)'mc1u. Da1c{s) of w41vcr ond tckasc: NA i\rnount(s) ofunpoid progress paymcnc(s): $ 0.00 (�) Concr�ct ngh1s. including (A) o right based on rc·scission, abandoninc111, or breach or co111rnct, and (0) the riuht 10 rccov1?r compcns:uion for work uot cumpe:,isat�d b)· Che pnymcnl: The rollowit:(l i11vuicc1 and ray arplic�uons ore iuclud�d In 1h� obovc referenced 1moun1: 03tc signed: _,.8._../3._l..,/'-..11.,_7 ______ _ Cass Construction, Inc. ��,��'{) (C�o ,y Name) (Sisn�tur ) Shannon Burke, Controller (Tille/ (6 J 9) 590-0929 Cf:tunant·s Phone No. j J&e. �" u-,�n-oc-.Jali-><.-., v...1.Y !'Na •n.u,c.1 .1: v.ict;:M ;'v,Unc-t It-ui 1ho('f1ptlc,;a .. "' ... �'"•H•l!�n cc,,o:rer ro u· v,,. �ICJ,� • fllTIUL'T ,,I • I •�"'�l ,• -:,_\� •�• t1 •·•, f •i.."-,'Jo ,..,,,. •••• ��? •• 1c-,,!�'V'f<'.,'HIW �-'-H (:�H ,:e;.:;i.c, 'i. :,.1.1.t.� \' �1 ""'= •l •�atC/0 •l 1,,c,,.oee� Hll.-4' t• C'lln-lJ 11 Z('OJ HUt4 '1.0 �•-1 l,l\,UIIMUI NQ se>t,:.$, flle • --lu-tC:-ll'U:1. f)H"'tl'°r """"'-i.t ... oo�G u,e">O ,., 11, l't&,t� .,,:.,,.I)) Tc:-Hl Ullotd C-..,.Ut, J,)H,GC-:0 �.-iss.c.:. �-,.:., .. ,, ne.o: . '' ·"' .. �� ill-tr. �Id 0rlf1H1 CICJfltUU ,...,.. ... t, u, • ..,n • .eo CMJlfC ::!:::t;9-�::t.l:..:�:: --,,;:,-;,.;;��.;.::.;,�: .. ,..,.,u t• ••n o..,...,,n,. i,S20.00 1t.H" U).7$ 1•1 ., .. ;:'",;.:;;·;:�·1 �···· -· 1,n,,00 J.UJ',dO 1,J$).)l • .,,.1 �•u ... C•t•• u/un, :l'y!'t.,,. 'h-1 U112J - ,:t,,11.)♦• , .• �o.oi Qu.1.fltlt.)" a. .Z-U,U \:1.n co,t :z,,s,o.oo . co .oo ,,on.so s.ozs.u 101.us.oo• .co ,.on.so Beldwln & Sons, lno. V!flago i South• Storm Drain lo� No, 02-0020.s 16/0VBR.ALL ContlllOI M,75 CGII Codo: 27-06 Conditional Waiver and Release Upon Progress Payment (California) Type 1 Form Pill'.suant to Civil Code 8132 (Effective 7/11.2012) 2442 NOTICB THIS DOCUMENT WAIVES THE CLAIMANTS LIBN, STOP PAYMENT NOTICB, ANDPAYMENT BOND RIGHTS BPPECT{VE ON RECEIPT OF PAYMENT. A PERSON SHOULD NOT RELY ON THIS DOCUMENT UNLESS SA TISPIBD THAT THE CLA[MANT HAS RECBIVED PAY• MBNT. Cldniaut: Customer: Cm Constn>cttou, Jno, Job Location: Owner: ym,sa 2 south storm o1a;n Contract 57 5, 576, 585, & 587 ��ilil.li.V HP Sub 8s Synrnnch CapltaJ Pil"DS:t', LlC This dccmnonl wAlvos and releues lien, slop p1cymont notlco, and payment bond rights tho olabuant has for labor end 1erv!ce provided, and equipment end material dollveced, to the customor on this Job througbc tho Through Date 1>ftlll5 document. Rights baaed upon labor or service provided, or equlpmont or mntor!al doUvorcd, pum,ant ton written ohango order thllt hns bee11 fiilly executed by tho patties prior 10 the dnto Iha& this dooumont Is signed by tho clabnant, arc waived and relea,e<I by thb docu1nont, unleH ll&ted u an Bxccptlon bolow, This document ls effective only on U10 claimants receipt of payment from the financial institution on which tho check is drawn: Maker ol"Check: Bn)dwJn & son,, Ltc Atnounl or Check: Ch<!cl< PayablB To: Exceptions: 'Thu document doea not affocl 11ny of Ille following: (I) Re:tonrloQ.S. (2) Bxll'BB for which the olQ1man1 has not received payment. (3) The followlnc; prOllJ'CIIS payments for whicl, fho cldmant bu previously given n condltfonnl w11iver and releue but ha.s not received paymont. Da1e(1) of we.Iver Md 1elC{lse: Amount(s) of unpaid progrcu poymont(s): l•-5:,J-SS---·_5..._'::\..___ __ (4) Contract rights, h1eludlng (A) o rlghC baaed on rcaclsslon, PbllJldonment. or bl'Ollch of �lltraet, and (B) the rlgJ1t to recover coinpensnt!on for work 1101 00111pensoted by the poyment: Tho following hivoiccs and pay appUclUlona aro included In the nbove referenced aniount: Due signed: __ q---\o--_ \__,__,,d-:;:..\_...\..,_\.;c.:\ ........ __ RECEIVED OCT 3 2017 BALDWIN & SONS Cl�lmant'• Pbono No. 2442· 13nldwln & Sons, Inc. Villoio :I South• S!orm Pr11iu Contract 11 ,7.S Co,t Cod�; 27-0G Job No. 02-0020-Sl6/OVERALL Unconditional Waiver and Release on Progress Payment (California) Type 2 Form Pursuant to Civil Code 8134 (Effectlve 7/1/2012) None� TO CLAIMANT: THIS DOCUME!IIT WAIVES AND RELEASES I.IE!\", STOP PAYMENT NOTJCE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RJGRTS. TIDS DOCUMENT IS ENFORCEABLE AGAINST YOU IF YOU SIGN IT, EVEN IF YOU HA VE NOT BEEN PAID. IF YOU HA VE mmN PAID, USF. A CONDITIONAL WAIVER AND RELEASE J;QRM. This document waives nnd rclc11ses llen, slop payment notice, and payment bond rlg!,1ts the elnimant has forfobor and service provided, and equipment and mnteriol delivered, to the customer on this job through. the Through Date of this document, Rights based upon labor or service provlded, or equipment or material delivered, pursuant to a written change order thnt has been fully executed by the parties prior to U1c darethat this documcn( is signed by the claimant, arc waived Rnd rcle.ased by tl1is document, unless listed as nnException below, This claimant has received the following progress payment:$ 5 q5 · �Y Clalmant: \-\�Gf\$0 (\ 1½_7..'-4{!.;-\;c;S Qc,,.c;£'--��----- Custorncr: C as� c o n st rn ct Ion • Inc . Job Location: Vil)age 2 south Storm prajn Contract: 575, 576, 585, & 587 Owner: l£!!1,yL!!.9f Otay HB Sub & suoo.!!lncubuC�•l!!Plt,..a1.1J r:st•uct!!lnC:i;Cli,., ul t�c ________________ _ Through Date: "\ \ ?--\ \ \'J E;xccptlons: This document docs not affect nny of the following: ( I) Relent ions, (2) F.xtraR for which theclaimant has not received payment, (3) Contract rights, Including (A) a right based on rescission, nbnndonmcnt,-or breach of contract, and (tl) the right to recover compensotion for work not compe,nsnted by the payment, The following invoices and puy applications arc included in the above referenced amount: Date signed: _ID_\ b.__,\..,.l I___,_ __ _ (TIiie) C!Dimant's Phone No, D:lldwin & Soas. Inc. Villogo l South • Shmn Drain Job !'lo. 02.0020.s16/0VF.RALL 2442, Collltacl #S?S Cos1 Codo: 27-06 Unconditional Waiver and Release on Progress Payment (California) 1'ype 2 Fol'm Pul'sunnt to Civil Code 8134 (Effective 7/1/2012) NOTICE TO CLAlMANT: TI-IIS DOCUMENT WAIVES AND RELEASES LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAYE BEEN PAID FOR GIVING UP THOSE RIGHTS, THIS DOCUMENT JS ENFORCEABL,E AGAINST YOU IF YOU SIGN IT, EVEN IF YOU HAVE NOT BEEN PAID, IF YOU HAVE BEEN PAID, US.EA CONDITIONAL WAIVER AND RELEASE FORM, This document waives and releases lien, stop payment notice, nnd payment bond righlS the claimant has for labor 11nd ser,,lce provided, nnd equipment and material delivered, to the customer on thls Job through the Through Date of this ·document, Rights based upon lnbor or service-provided, or equipment or moterinl delivered, pursunnl to n wrinen change order that hns been fully executed by the parties prior to the dale that this document is slgned by the olaimnnl, ore waived and released by this document, unless Hsted as nn Exception below, · This cla!mnnl hns-received the following progresJ payment; $.,�B�.3�:..1.::.5��3"'-i.1,,L.. _______ _ I Claimant: Western Water Works Supply Co. Customer: C II s s C o n st r u c I j o n , I n c , Job Location: YIIJ•ge 2 south Stenn Denio Contract: 575, 576, 585, & 587 owner: Yilruc n of Otev HB sub & sunc•ocb caoftal P•ctaecs Ltc Through Dote: _,��)µ3£.....ll.._.)�l,._J....L.. ___________________ _ Exccpllons: This document does not affect any of the following: (I) Retentions, (2} Exlra8 for which the clnimnnt has not received payment, (3) Contract rights, including (A) a right based on rescission, abandonment, or breach of contract, and (B) the right to recover compensation for work not compensated by the payment, The following invoices end pay applications are included In the nbovc referenced nmount: Date signed: ID/ r1 } I 7r I Western Water Works Supply Co. � (Signalure) MCfeAK«I (Title) qoq-597-7()00 ,Clolmnnt's Phone No, 2442- Oaldwln & SoN, lno. Vlll,111 2 So�lh • Stom, DrRin ContnctU7$ Cool Codo: 27-06 Job No, O2-0020•516/0VBIV,Ll.. U11couditional Waiver and Relonse on Progress Pnyment (California) Type 2 Form Punuant to Civil Code 8134 (Effective 7/1/2012) NOTICE TO CLAIMANT: THIS DOCUMENT WAIVES AND RELEASES LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. THIS DOCUMBNT IS ENFORCEABLE AGAINST YOU IF YOU SlGN IT, EVEN IF YOU HAVE NOT BEEN PAID, IF YOU HAVE BEEN.PAID, USE A CONDmONAL WAIVER AND RELEASE FORM, Thi! document wolves and rcloases lien, stop paymoot notice, and pnyment bond rights the claimant has for lnbor Rnd s�vloc provided, and equlpJiu:nt and material dclfvorcd, to 'tho custom¢T on th!s job through the Thro11gh D11te of this documont, Rights based upon labor or sorvicc provided, or ,equipment or material delivered, pursuant to a written charige order ttlot has been fully executed by tho parties pl'lor lo the date thM this doourriont ls !lg11cd by the clalmnnt. are waived and released by this docum,ent, unless listed as nn Bxception below, This clalmMlhllll received the following prog�u pn)'ll1cn1: ,._$ __ _.Q ...... .....,QC>_..-'"' ________ _ Claimunt: CSUOS\vdt Eqvip ffi{ nt Customer: Cnss Construotlon, Ino. Job Location: !i!1llm 2 South Smrm Drain Contract: 575, 576, 585, & 587 Owner: Ylllm II of01av Hll Sub &;Sunrans;h Cap)U( P•rto•CJ 11 C Through Date: 813\ I Lpl t Exceptions: This document does not affect any of the following: (1) Retentions, (2) Extras for which the ola.lmant hu not received payment, (3) Conll'ncl rights, including (A) aright based on rcscl.ulon, abandonment, or breach of contract, and (8) the right to recover compon.sotlon for work 1101 compcnsat9d by the payment, . The followini: Invoices 1111d p&y applic11tions aro included In the above referenced Amount: Onto signed: 0\ -J J-I J St�m+e EC4vt p� (Compan,-Name) � A-ccovn +- (T1110) l.P02: V6s-22J� Claimant'• Phone No, Oatdwln & Soni, lJu,. Vllla11e 2 So�Ch • Storm Dniln Job No. 02-00lo-516/0VBllALL 2442, ConlnlotlU7S Coat Codo: 27-0G Unconditional Waiver and Release on Progress Payment (California) Ty11c 2 Form Pursuant to Civil Code 8134 (Effective 7/1/2012) NOTICE TO CLAIMANT1 THIS DOCUMENT WAIVES AND RELEASES LmN, STOP PAYMENT NOTICE, AND .PAYMENT BOND RIGHTS UNCONDmONALLY AND STATES THAT YOU RAVE BEEN PAID FOR GMNG UP THOSE RIGHTS, THIS DOCUMENT JS ENFORCEABLE AGAINST YOU Dr YOU SIGN IT, EVEN IF YOU HA VE NOT BEEN PAID, Ill' YOU HAVE DEEN PAID, US& A CONDITIONAL WAIVER AND RELEASE FORM, This document wolves 11nd rolea,es lien, stop payment notloc, and payment bond rlghta the claimant bns for labor and service provided, and equipotent and matotlal delivered, to tho customer on this job through the Through Date of tMs document, Rights bnsed upon labor or aervloo provided, or equipment or material delivered, pursuant to fl written change order that bas been fully exeoutod by the parties prior to tho dato that this dooumcnt la signed by th11 11liumant, aro waived and released by this dooument, unless listed u en B,cceptlon below, This claimant b111 rece/vo1 the followl11g progress payment: $..,--0 __ (){)_....,. __�=-------- ClaJmant: tv\Q,t(\ \1J.U\ tJ-0 ICM l6Jhv Customer. C III s Co o s tr t\ ct Io a, I 9 ° , lob Location: YID•ap2soutl1StonnDrnlo Contract: 575, 576, 585, & 587 Ellcepflonsr This docwnent docs not aftcct any of tho following: (1) R.ctentJon!, (l) ExtraB for which the claimant hu not �lvod payment, (3) Contraot right.,, Including (A} n right based on rescission, abaodonment, or brea()h of conl.tact, and (B} tho rlgh.t lo reoover compensation for work not oomponsnt�d by the payment, Tho following JnvolGOs and pay npplicatlons 111'0 lnoludod In tho above ret'erenocd amount: Date signed: °'\ \ 2,\\1 hl\OJf\\QJn hlulev\al 5 (� (Signature) w (Title) 0t444S4JsD Cla.imo11t's Phone No, 2442, Baldwin & Son,, lno. VUl-a• 2 Sowth • Storm Ot11ln Conttaol M$1$ Cost Codo: 21-06 Job No. 02-0020-Sl6/0VBRALL Unconditional Waiver and Release on Progress Payment (California) Type 2 Form Pursuant to Clvll Codo 8134 (Effective 7/112012) NOTICE TO CLAIMANT: THIS DOCUMENT WAIVES AND RELEASES LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS UNCONDmONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. THIS DOCUMENT 18 ENFORCEABLE AGAINST YOU IF YOU SIGN IT, EVEN IF YOU HA VE NOT BEEN PAID, IF YOU HAVE BEEN PAID, USE A CONDITIONAL WAIVER AND RELEASE FORM, This document walvos nnd releases lien, stop payment notice, and payment bond rights the claimant hiu for 11\bor Md service provided, a11d equipment and material delivered, to the customer on this Job through the Through Date of this document, Rights based upon labor or s�rvlcc provided, or equipment or mntenal delivered, pursuant to a written Qhange order that has boon fully executed by tho parties prior to the dote that this document la signed by the olairuant, arc waived 1md relCflSed by this document, unless llatod as an Bxceptfon below, ThO ''""""'' .. , Modvod lh< loUo!;s"'" poym"" $ /eJ Claimant: lt�w.f>d(A, 0-¥ Gr0v( Customer: {;.ass Construotjon, Ino, .!Job Location: Vjlio,ge .2 South Stenn Drain Contract: 575, 576, 585, & 587 Owner: vinm: II o(O!jy H8 Sub & $1101'.,)l)Ch C•Qlt1l P•ctnm, llC Through Date: !3t//7 ... H... ........ 0.-,.,..--------------------------- Exccptlon.t; This dooumcnt docs not affeot a.ny of tho following: (1) Retentions, (2) Extta8 for whfoll the claimant has not received payment, (3) Contrnot rights, including (A) a-right based on re,clssion, abandonment, or breach of contract, and (B) the rlgnt to recover compensation for work not compcnsot�d by the payment, . Tf!c followlng Invoice., and ppy 11ppl!catlons are included in the above referenced amount: Date signed: <t/1/f? Clo.lmant's Phone No, Boldwln & Sons, Inc. VIII•� 2 South• Storm Drain Job No. Ol-0020-516/OVi;RALI.. 2442• Concmet#:17� Coat Code: 27..0� Unconditional Waiver and Release on Progress Payment (California) Type 2 Form Pm"?Junnt to Civil Code 8134 (Effective 7/1/2012) NOTICE TO CLAIMANT1 THIS DOCUMENT WAIVES AND RELEASES LIEN, STOP PAYMENT NOTICE, AND PAYMKNTJJOND RIGHTS UNCONDITIONALLY ANl> STATESTJ:IAT YOU HAVE BEEN PAID FOR GIVING ur THOSE RIGHTS. THIS DOCUMENT IS ENFORCEABLE AGAINST YOU IF YOU SIGN IT, 'EVEN IF YOU HA VE NOT BEEN PAID, IF YOU HAVE BE.EN PAID, USE A CONDITIONAL WAIVER AND RELEASE FORM:. This document waives and releases lien, stop payment 11otlce, and payment bond tights the claimant has for labor and service provided, and cqul.pment and material delivered, to the customer on this job through the Through Dato of this document, Rights based upon labor or service provided, or ,cqulpmenl or material delivered, pu1�1.11111.t to II written change order that has been fully executed by the partlos prior to the date that this document ls signed by the c-laima.nt, 111·e walved and released by this document, unless listed os nn Exception below, Thb '" "':) ""'"' ,,. followmg /4'.:Z� P"Ym"" $ E: �'.::�:� c,�,��W.�'IJ;l({;;,�---- Job Location: Ylllage 2 so11th S1onn Duin Contract: 575, 576, 585, & 587 ExcoJltlous:. This document does not affect any of the following: (1) Retentions, (2) BxtrnB for which the cl!dmant has not received payment, (3) Contract rights, lnclnding (A) u(ght based on rescission, abandonment, or bre11ch of contract, and (B) the l'ight lo recover compensation for work not compensalpd by the pnym�nt, The following invoices 11nd pny appllc_�tlons are included in the abo·ve referenced nmou:nt: Dnte signed: �9k�d-7 _ • (Title) ( (&63) 71/f-�111 '61a!m11ni's Phono No, 2442, B�l4wln & Sona, !no. VillAgo 2 8011th -Stonn Praln Collll'llOI #$75 CortCodo: 27•06 !ob )lo, 02..0020-$ I &/OVl'!RALJ. Unconditional Waiver and Release on Progress Payment (California) Type 2 Form :Pursuant to Civil Code 8134 (Effective 7/111012) NOTICE TO CLAIMANT: THIS DOCUMENT WAIVES AND RELEASES LIEN, STOP PAY• MENT NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BERN PAID FOR GIVING UP THOSE RIGHTS. THIS DOCUMENT IS ENFORCEABLE AGAINST YOU IF YOU SIGN IT, EVEN IF YOU HA VE NOT BEEN PAID. IF YOU HAVE BEEN PAID, USE A CONDITIONAL _WAIVER AND RELEASE FORM, This document waives and relca•es Ilcn, rtop payment hotlce, and payment bond rights the clalm1mt has for Jnbor and scrvlco provided, and cqulpn1ont 11nd material delivered, to ihe customer ,on this Job through the Through Date of this document, Rights based upon labor or service provided, or equlpmcnt or material delivered, pursuant to a written ohango order that has been fully executed by the p-.artloa prior to tho dD!c that this document Is signed by tho clfllmant, are waived and releasod by this document. unless listed 11s an Exception below, Thia claimant bas received the following progyess payment: $.:..._-�6<'---101--'7...1::.IZ_""'=�-O�,�)'------- Clalmant: __ ,R:.......:.._¥'_· -'-C __ O;;..._�.....;,___>l,,l(!__.;;;;....:..7U___;;__/<_t:=0 _________ _ Customer: Cau Conatructlon, Ino. Job Looat!on: yjllag!!:ZSPuthStgnnQrnfn Contract: 575, 576, 585, & 587 Owner: Ylllm 11 of Otay H!I Sub & SliDCIDGb CQplbl! PiaDfil· LLC Through Dato: Exceptions: This documont docs not afteot any of the followlng: (1) Retent!onll, (2) Extra8 for which the claimant hu not received payment, (3) Contract rights, Including (A) it right based on rcaciaslon, 11b1u1donm�t. or broach of contract. and (B) the right to recover oompen,ation for work not compcnsat� by the p11yment, . T�e following Invoices nnd pay applications are Included In the above referenoed emount: Datl' signed: __ Cj.;...-_7_-..;./_7.:,..__ Clalmant's Phone No, 2442, B1ildwln & Son., !no. Vlllago l Boulh • Storm Otalu Contraot #J7S ColtCodo: 27-06 Job No. 02-0020-516/0VBRALL Uucondftioual Waiver and Release on P1•ogress Payment (California) Type 2 Form Pursu11nt to Civil Code 8134 (Effective 7/1/2012) NOTICE TO CLAIMANT: TlilS DOCUMENT WAIVES AND RELEASES LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS UNCONJ)fflONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP TIIOSE RIGHTS. THIS DOCUMENT IS ENll'OR�ABLE AGAINST YOU IF YOU SIGN IT, EVEN IF YOU BAVE NOT BEEN PAID. DI YOU HAVE BEEN PAID, USE A CONDITIONAL WAIVER AND RELEASE FORM. This document waives and releases lion, 1top payment notloc, Md payment bond rights the cl11lmant has for labor and service provided, and equipment and materiel delivered, to the customer on this Job through the Through D11te of this document, Rights based upon labor or service provided, or cquJpment or mnterlcl dellvered, p11rsu11n1 to a wrllton change order that has been fully executed by the p1111ies prior to the date that this document Is signed by the olalmant, are waived 11nd released by this dooument, unless llstcd as EU\ Exception below, This claimunt ba.s received th.c following progross payment:$ f't\::\I>:t1:> OW¥rf;: Claimant: fr:t\ut S. QY(\��-no<) Sv{Jpl� , l',1(.. • Customer: Cau Construction, Inc. Job LooAlion: Ylllnso ;south Stpnn Pntln Contract: 575, 576, 585, & 587 Owner: ymm II pfotay HB $Yb & SOQ@QCh CJRl!al r•ncers, LLC Through o a tc: Oo -3 l -n ExccptJona:' This document does not affect any of the following: (1) Retentions, (2.) Bxtra8 for which tho claimant has not roccived payment, (3) Contract rights, Including (A) 11 right hued on rc.solsalon, abandonment, or breach of contract, and (B) tho rlght to rocover compensation f<1r work not oompcns11t9d by tho pn)'lnent, . The following Invoices and pay appll�atlons 111'0 laoluded l.n the:: above referenced amount: Date 1lgned: 09-0'5 -\7 �� '177 2,oa Claimant's Phone No. Baldwin & Sona, lno. Ville.go 2 South• Slorrn Drain /ob No. 02-0020-516/OVEltAL.L 2442- Contract 1#575 Cost Code: 21-06 Unconditional Waiver and Release on Progress Payment (California) Type 2 Form Pursuant to Civil Code 8134 (Effective 7/1/2012) NOTICE TO CLAIMANT: THIS DOCUMENT WAIVES AND RELEASES LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATES TiiAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. THIS 'DOCUMENT IS ENFORC EABLE AGAINST YOU IF YOU SIGN IT, EVEN IF YOU HAVE NOT BEEN PAJD. IF YOU HA VE BEEN PAlD, USE A CONDmONAL WAIVER AND RELEASE FORM, Thls doo11mcnt waives and releases lien, stop pnyment notice, and payment bond tights tho olaimant has forlnbor and service provided, and equipment and motcrinl delivered, to the customer on this Job through the Through Dr.le of this document, Rights based upon labor or service provided, or equipment or mntcrialdclivcrod, pursuant to a written ohange order that has been fully exec\tted by the partlos prior to the date that this document Is signed by the claimant, are walved and released by this document, unless listed as anException below, This o1ahnant bas received the following progress payment: --�-------------- Clahnant: \ht\00,(\ O\Cl,-\er, cd <;. Customer: Coss Consttuct!on. Ino. Job Location: ym11ee z south Storm pra,!n Contract: 57 5, 576, 585, & 587 ExccpUons: This dooumont docs not riffect any of the ·rollowing: (1) .Retentions, (2) Extro8 for which the0111:!mont has not roccl vcd payment, (3) Contract rights, including (A) a right b1U1ed on rescission, abandonment, or brcaoh of contract. and (B) tho right to recover oompcnsatlon for work not compensat� by the payment, The; following involc� and pay appllcariona are !noludcd In tho above referenced amount: Dato signed: _q.._,.[£14-f/ f__._7 _\ lul tllt\. yY\a-\t'r �a 1 ��mvcttA (Slgnaturo) 0[ "f'd d-(Y\.cuttac, er(Title) (j 855'✓ �-CJ'/!</ Claimant's Phone No, 2442, B•ldwln l Soni, lno, Vlllago 2 So,,rth • Storm Drain Coniract #51$ Coot Cede: 27-06 Job No. 02.0010.,16/0VBAALL Unconditional Waiver and nelease on Pro&P'ess Payment (California) Type 2 Form Pursuant to Civil Code 8134 (ltffectlve 7/1/2012) NOTICE TO CLAIMANT: THIS DOCUMENT WAIVES AND RELEASES LIEN, STOP PAY· MENT NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATES THAT YOU HA VE DEEN PAID FOR GIVING UP THOSE RIGHTS, THIS DOCUMENT· IS ENFORCEABLE AGAINST YOU IF YOU SIGN IT, EVEN IF YOU HA VE NOT BEEN PAID, IF YOU HAVE BEEN PAID, USE A CONDmONAL WAIVER AND RELEASE FORM. This documont w•lves 11nd rclouca lien, atop payment notice, and payment bond rlglits the olnlmant has for labor and service provided, and equipment and material delivered, to the ous1omcr on thl1 job lhroush lhc Through Dato of ehla document, Rights billed upon labor or service i,rovlded, or cqulpmcnl or mlltcrlal dollvered, purruant to a wriimn chango order lhl!t has been fully executed by the panics prior to the date 1hat thla document la signed by the olalmnnt, ere walvcd and released by 1h11 dooumont, unless lbted as an Exooption below, This clnhnnnt hu rccolvcd the followlng progrcu peyment: $'--: __ 7.,,e{-=---4L'--'z&?tj==-· -="'�--..... ---- Claimant: /J?/9.1'< -C..,ON FR.. O L:>U-eTS Customer: Gou Construotton Ino, Job Looatlon: YIUAU 2 south Storm prn!n Contract: 575, 576, 585, & 587 OWoor. Yi'lm H QfOtwkB $lib & Sunrancb CfPll!l eartoea, UC Through Date: Y:.3/-/7 E:,u:eptlona: This document doea not affect any c:rf the followfns: (I) Rotc ot!oos, (2) Extn18 for which tho olalmont has not received poy111ent, (3) Contract rights, lnoludlng (A) a rlsht baaed on re.,olsslon, 11bondonn1ent, or brooch of contract, and (B) the right to recover compensation for work not compensated by !he payment, Tho following lnvoloe& Alld PIIY applications are IJloluded In tho ab<lve referenced amount: Doto signed: CJ -7 -17 7/40 ... 7</t/-3355 Clalmemt's Phone No, I 2 l I I I l ! Bnldwln & Son,, Inc, Vlll•s• 2 South• Storm. Drain Job Ho, 02--0020,, t 6/0VBR.ALI, 2442, Contract II 57 $ Co3t Code; 27-06 UncondltlonnJ Waiver a.nd Release on Progress Payment (California) Type 2 Form Pursuant to Civil Code 8134 (Effective 7/1/201:2) NOTICE TO CLAIMANT: THIS DOCUMEN'I' WAIVES AND RELEASES LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. THIS DOCUMENT IS ENFORCEABLE AGAINST YOU IF YOU SIGN IT, EVEN IF YOU HAVE NOT BEEN PAID, IF' YOU HAVE DEEN PAID, USE A CONDITIONAL WAIVER AND RELEASE FORM, Thia doo\lment waives 1111d releases lien, stop p11ymcnt ootlco, and paymont bond rights the claimant has for labor and service provided, 11nd equipment and mntorlal dollvcrcd, to tho customer on this Job througll tho Through Date or this dooutncnt, Rights besod upon labor or ,ervlce provided, or equipment or mate.rial delivered, pursuant to a wrl�n change order 1ht1t has boon fully oicocutod by the partlos prior to the dntc thut this documont it algned by the olalmant, 11rc waived tnd �leased by this document, unle89 listed as an Bxoeption below, This clalm1111t hu rcoelvcd the following progress payment: $!.,._ ___ o_.o_o __________ _ Cle11mai1t: ____ WE_S_T_C_O_A_S_T_S_A_N_D_A _N_D_G_RA_V_E_,L,'-I_N..:.C .... ________ _ cu�tomer: .Coss Constrnotfon Ino, Job Looatlo11: YJllnso z south Storm Pcnin Contract: ·575, 576, 585, & 587 Ownor; vw,so II o{Olay HS Syb & sun11ncb CIDIJ81 P1nners, LLC Through Dato: 8/31/2017 Excoptlons: T}lls document doos not affect any of the followlns: (I) Retoottons, (2) Extrt18 for whloh tho olalm1mt baa not received payment, (3) Conttnat rights, in0!11dtns (A) a right b11sed on re4o{sslon, t1b1111donment, or broach of oon tract, and (B) the right to recover compensation for work not eomponsntl)d by tho payment, . Tho follow Ing lnvoioea i,.od pay appl lcatiol\3 nro lncludod in the above rofercnoed amount: NONE Dato signed: __ 9/_6_/2_0_1_7 __ _ WEST COAST SAND AND GRAVEL 1:rr��{)CA-"� (Slgnatur ASSISTANT OFFICE MANAGER (Title) 7 I 4 -� J-2.. ..--U '1 cl.? Claimant's Pho11c No, ' \ \_ �,.,.,. •�,w;acsowt.._flC.Nt1 -..,,..,....... V ,__""'•"-u V v.'en-W,w-""611,J .. � - .-.c� ...._ _ _.,,,,, ""4'M'll•nMl1erl.if1,llt(.. ,,,.,,,--!.__,.. V --�-��halk�o..tt (tit co. .. a-c,-..-.""�c... �( ..... Cit.'-.,, W""t"' Wllff Worb U,(� .. k ,.__---�Pwrer� cu,t:onrul'.CbCl"lnc V11w111s-o,-..ac-..c:ss1S i.i1so,,c��eo,,,ir11C1Ut; VJ--!.WRC.�&.� lltllMlllilcllll'YKtl:in&s"K i.i,�c.on•�s1s1s,, V?IMl'Jiln&SH&"l VJ�snun • -...:-j._ �., . "VJ:�sn1:s1i; Zt v:z1111unam V:Zs..ttil1Sa.D, '-'lAIHilllUl&.Uf .,_ VU<Mll)H&Sl\l s.r..-Vkt.,...a, • IW ZA-UC....-.wtMl '--"""'-S.SnUA:e.. �ffl liJ"8.,.-..-1!C.11tr.ctMI V1MIH.U.• ......... c..-i,-.c1'41 l'!t!lfl-.-M Vll'tPt\W•t.lMel-w -iw•��-l4d-l C--K1'41 ,... M1a�v.r.,r,,wc.-t,ae1.M1 �Cr-MMMIP'I •.;J..�r·,•,n.bl.t...._�., .. .1..i;.,,., . t,oczc»••----,.-Ol.(ICllOS,1 760&CMC020!!ttllltrxtll?UO i ""�'.i.' , ...... 11. ,·..-t .. ... r-,.;-,a. :.I• ·y-::,;,_�·:.'J''-•l"#b-J 't�-� rr<. •• ! "' .•• "'""" cznv:.1 1,10C-4YIOCI ..•.. , LUllOCIOCC Cl/l>l.i11 I< UJDIOCI ... ---··-·· s . ..,,., ---,.. .,, • .iii I< ,,.,,. 01(11\1)1 ,,--, IS .,,_,..,.,..,. ··-·· I ....... .,, 03Jt�Nf1'.t:i,I .. --· _.IS ..... t.UDUJC Ol/1'11' �u ' 1000000) ..,, .... Olll&h, $ ........ --·, I< .,.... ..--··· Is .. _, Is uo.u,.it ..,---;.;;, 1,-00 . _,,;,. I I , __ ,. ""'"' ,.,,,;;. I< ., ttlfl" 11 1vo1i1, I nmD' ,..-,. I< ,,. ..... ll/ l I I """"" ,=, tll/D?II, .. '"",--·, I m-ao .......,·-·· "'""'.. �.,,.U/'"'' I ...... ,_ •-m 1,nuu � ..... .,--, , .... , ...... Baldwin & So..ns, LLC DATE INVOICE NO 1/31/18 RC442-00003 CHECK 3/07/18 DATE Baldwin & Sous, LLC 20 Corporate Plaza Dr. Newport Beach, CA 92660 (949)640-8300 I CHECK NUMBER 2167 Cass Construction, Inc. DESCRIPTION V2 South Ret 1/31/18 151841 TOTAL> PLEASE DETACH AND RETAIN FOR YOUR RECORDS MECHANICS BANK 61 o Newport Center Dr. Suite 100 Newport Beach, CA 92660 DATE March 7, 2018 CHECK NO. 15184 INVOICE AMOUNT 9525.77 9525.77 90-4485 1222 AMOUNT *$9,525.77 Pay:*************Nine thousand five hundred twenty-five dollars and 77 cents PAY TO THE ORDER OF Cass Construction, Inc. P.O. Box 309 El Cajon, CA 92022-0309 Baldwin & So11s, LLC DATE INVOICE NO 1/31/18 RC442-00003 CHECK 3/07/18 I CHECK DATE NUMBER Beige Check Copy ** VOID * VOID * VOID ** **** NOT NEGOTIABLE **** 2167 Cass Construction, Inc. DESCRIPTION INVOICE AMOUNT V2 South Ret 1/31/18 9525. 77 151841 TOTAL>9525.77 PLEASE DETACH AND RETAIN FOR YOUR RECORDS I \-;'f'�OoN' CASS CONSTRUCTION, INC. GENERAL ENGINEERING CONTRACTORS P.O. BOX 309, 1100 WAGNER DRIVE EL CAJON, CALIFORNIA 92022 PHONE (619)590-0929 RC442-00003 NAME: BALDWIN AND SONS, INC. ADDRESS: 20 CORPORATE PLAZA DRIVE NEWPORT BEACH, CA 92660 PROJECT: OTAY RANCH VILLAGE 2 SOUTH OUR JOB#: 16-2442-0C YOUR ACCT#: 2003 DATE: 01/31/2018 ============================================;=====----------------------------- CONTRACT#: 587 TOTAL RETENTION BILLING: 9,525.77 l.l(o+ RECEIVED BALDWIN & SONS 0-d•d<,• ·�-·hlf•I& -c,-�-,, 11i-r-i�ccn 11;11 c.i1 011-,011 (>.Iott ll.f1,� Co4c Cur,...,Qr1 Ot4ttQlr <:.c, flCMIBIJ8 0.i,:il'tlCHnur �t 0r4c1 u.1,s TN.ill Ttt.11 ........... ,..,..i j ............ ,�,, st.31u1 CW,ra1111P.1•1 .,,,,;.,.·e1ot,et.1•t 1.•1�1111' ""' ""' m.:v: ,.w- ,.- ·'"'""' ..... l ' . "" Sl,t.u...U ,.,. UIS.&+ ,.., S.Hil.00' -St, .... 11 ...... SSU"' Utlffl _:., · ... "" l:t�•l .. .. , ... jJJ.7:, ,., ""' s:•u: � .. ...... "" st.OIJ J9;,:a.,ui .. ,.,, f�; 1--l='"-!"'"'.:!J'�"''"""'""" ··•c.· ----+-""""·"+--''l----+-..!"':!<'!j! ... ��•!c••.!!""""'!!I---.J'"-'"2'·••e,"'•"l----+-=�1--_i"l--""'"'"""'"'�;_-_J,$j..."--"",?,""""'""'·" 1-�-�.,.l---""'4 51f1,,.. '"' 1--'-""'-f"'-="'"'""'"""m-,.,.,,_· ---+=+--''1----+--''"'"''l'EA"'-lf-"''-'"'"'-''°"l----'"'""'" .. "'•'l· ---+--"J'"::.'"'"'"'"'l---�"'1--.,,"..,.=•-"l----'''""• l---"""'""�"f-"'-· __ "· �1----"""'lill,I s1».u · l--'-!°'·'-1'"'",._,=.•=--=:,'-·---l-,!!"""'"'-1----'-'l----+--"""''l'"'"-11-"''"'°"'-"00'-4--_..Cs"';'.:i·•!-t:,O�"!---l---"""'""""'"'1---!'-"il---"""'',..,;'-"1----""""l---"�"",;"'""'l--";..C·•C..•. _ _,",'-!----""-"'=-!:»f),U;1--""�· -!°"=-=· •=!0,!r;_ __ -4-.!!";e·"+--!!!i----+-.!!"�"!i!'!.' +.1•,a"e,"'+-....!l".!l"ll''!!l---+-.!":,!·'!1''·!'1---�l--''"''·''°'"��--"•·"1-"-..!'!!!'·'!:l"t!·" !------,-4---=-! u,,_.: 1--'-'"'-· -l'"'-"""K'"'"-""""'""'°'-""r----+-""::;·"+--'l----+--''"'"'l'"'"-lµ,'•'""'°"'"''+---"-""'"1---l---''"'?�'""'"'-'11-------'"'!---''"'l,!jie,<,."'1------'�"'l---''"''"""''"'l--"--�1-----"'"'""'-t nus �:::::�°"'::·:"':'.'.":'.'. ... ':::;;:,:;;,..,;;;::::::t:'.'"::'·":t:::::'t::::t::::'."'.'.'.'t"'::��'.:'.''':'°:·.,�====:'.'.�:'"':�:::::t:::''.:'.'.:'.'.:'.t:::::'.''.:'."�==='':'':"':"�::::'.:'.:'.'.�===•'::'':":"t:::::'::'.:t:::::"'�" ..,.,. t--'---+.!:''.!:"'::>'C,!Cltii!!!!'-"'°"-''---1-"'';e"+--'""�--+--'"'"'-"'"'I'''-' +-""'"'°''1---...J!l.2.!'1---+-l!""'"-"'be!Ooi---"'"1--1!''"-'>• "-�"!-•��·_..;. •ei,'' "'!--..!!"!!!"S!•.!!a�l----+--"-�!!..O(I IHl,1J 1--""--l--'-""="-"'""�"""""'""'...,."""-'--1-!!"""·"+--''l----+---''"'·'":;,""-ll-'"'"'"'"4---'"'"c..:'ffl"l---1-----"=1----''"'l-"---"'"""',,,..:.'·-�··._,,_,,;;l--_.,_,u:;""l--·-_;.__l-_-"',.,."'-lrs,:,..:] f---"..-f-£T_,,,.•� .. ,,,,..,.,_., ...... ,,·.,�;_ __ µ"-""c+-�'l-----l---''"'"•'j'"'"-Cf-"',nce,eSOO'-j-----"""-'"f----+--''!2'·�S,,-'i°'f---'-'"l-"-..!>:O,•·"'?l'"4-"--2'°!------'""-""'l-..,;.--+---"'""'l°"• �'OUI_ '--.:.'--''-""""''°'°''-''',=•-=T'---J....:!:,C:C."'-'---'"--......L-...2'c:,°'"",wc.te,IOO=.OO"'---"""''"°"''•er....--.l--'"="-"''°''=----='--''"''""=">-�---'=----"-'='---''---'---=.J J"•°'.il l \I ieicio. '!.:'- �C01slM'10A: �="" .. ,__ ____ _r,ce,.eX ... ssma ••t•• Cttl Od",-1-..J CII.MIJ( c..-c-1 ... 1(!1, 0t.s.1Qt1 EXHll:IITS ,,....:_ . ......., ..... ·� ·� JP>:J,TI :::--J ONt...rlllW� hdl�•GtffNlol 1e-Ltt� OlfA)u.l Ctr.lf.1(1 �"' o,m (Jrr u.;. µ•:e,•'e<' +-!!'":!"-+-'"''"'"'---+"'"!!'"'"-"'":!"'f-.!'•!!01'!•L• -+--'''"""'"'-' -+--"""'"--+--"'�"'"-+--" "•-='""-+---"""----{1-.L-l--J.!""'='"'=·==r--'--l-.£''""'"+----''1----l--...!'.!?l"�c�•-l--...!'!J."J.!"'!J-----''�"'2!""'1---+-...!:'..,2'1!!�1----'!!l---...!:""'="+-----'4--...!:!!ll!!I---''-:.+--"""-! M-7.S • t::::j:::""""""::::..�··�-"-�-;,.._,,-�-;•·;:::::t::::::t:::::t:::::t::::':"'r"'=:l:':':00::00'.!:::::::'::�:::::±::::':'·':"':�t::::::':"'t:::::':,.,:00:'t:::;:::·:"-=·[="t:::::':':":�t·::::::::t::::'::·'""':1 m.». �lffl.....,:�09�<'0"' 1MW110-.�,,.c;p,llf,��l Ol-1-�«0,e,•o_• -f::....,e,.e,le,O°""e;.,"'•�"'::"=,'--,�,-,_,--,-, .-c .. -,-+.":P.J"''+--f--'"'1---'-'·�"f"EA'-1-'""''·a!"a:"''!----""''!-'-''u"".,"'n.:,•t-"'"'""''"''-""!----"'_"½-_..,u .• ..,,.,"',-"1--,--�'---"u"'m"'""l-"---l----,."'"'"ls.i....,,.n �!lilVl."'°•�tlll-C•IOt Cl-ct,,,1 DDU•)1V,,\(lqll)HE �w��••C\11 IIVl-:><>dnot-wtVRYI 'I f-'"'=''-l"'OFC"-'::c"c:Ol,;:«::,l>ecl,:;O"-""="'K8:::0li::c·e'--+-"ll"",ll'-+--+--"'l---"'!--l--""-=l---'""'l--'"""""l--'="'1----=!--''"''·'"'"-"'+---,-!'.=ta'--"•"a=�•!1�.--..:.--l---'�-l�:.":al.·'J,; 1� .... •:1.�J '" " )�_4;:l�j .... IMJil.�) °'tWM'd<rnf.lli"r.llW�IDtlllC f-"C:,:O:,",J,:::�C::�::::"'°::!.';"::::i'�="'::;O°""'::;;,r::;w::;;;::;::'c.. __ ._L.::"'-L...-...l._..!.!"--'""-_,JC....,="1-----"'"1--�=Cj.-�=f--,-'4'"--'le,,,:'Joce•O�•·�--""f---'""'""""'""J-•---+---"'""'flA _S;,'8�v "' ,,.. �.:"' ,. .. i'>'l-"' _./ , ..!Cr1111dT01:11 1'U.lfr .. SB,1.1.1, fl'U.!IUl ,<V I Od�ot� l0-;«�:�,.1�To1�IC1f1Ct,kOI...,...._..,. !Mt JM,j :1.r, !>aC'-'..., �uiu.,,J Nll'IV..:.t .... ..... ,.., Ul1.)U.S• ......... ,..,,. .. ""-m" 1)'.lllM ,om .... WWl.ffl;OC S!,\t,U.U,� mt,,m,.,,. �..,.: CM\Oti: et,r.1·0t. ,�, �.!.."U,.I �1.Ht-01 .....""'sr..w ,.., ·-� c�;1�4�.s> __ .....,,,,,,,.,,.m�·",_')_.., C)5z..s . .-::i I ,�T«d l SM).,?�U m,::: '"' "" I c., ..... -rot.t I 1t'J,U,Pl � .. ..,. �,. "" .. oo Baldwin & Sons, Inc. Village 2 South• Storm Onun Job No. 02-0020-516/OVERALL 2442 Contract #S.75 CoSI Code: 27-06 Conditional Waiver and Release Upon Progress Payment (California) Type 1 Form Pursuant to Civil Code 8132 (Effective 7/1/2012) NOTICE Tl-l!S DOCUMENT WAIVES THE CLAIMANTS LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND IUGHTS EFFECTIVE ON RECEIPT OF PAYMENT. A PERSON SI--IOULb NOT RELY ON THIS DOCUMENT UNLESS SATISFIED THAT THE CLAIMANT HAS RECEIVED PAYMENT. Clnimuni: Customer: Job Location: Owner: 111rough Dote: Cnss Constniaion Inc. Bnldwin & Sons Inc. Village 2 South Storm Drnin Contract: 587 VIiiage II of Otay HB Sub & Sunranch Capital Partners. LLC 1/31/18 This document waives and releases lien, stop payment notice, and payment bond rights the claimant hns for labor ond service provided, and equipment nnd moteriol delivered, to the customer on this job through the Through Date of this document. Rights based npon labor or service provided, or equipment or material delivered, pursuant to n written change order thnt hos bee1t fully executed b;; the portics prior to lhe dote that thi� document is signed by the claimant, nrc waived and released by this document, unless listed as an Exception below. This document is effective only on the claimoms receipt of payment fron, the financial institution on which the check is drawn: MnkerofCheck: Amount of Check: Check Payable To: Baldwll) & Sons. LLC 9 525.77 Cass Constniction Inc. Gxccpiions: This document does not affect ony of the following: (,I) Retentions. (2) Extms for which the clni mant hos not received payment. (3) The following progress payments for which the claimant hos previously given a conditional waiver and release but hos not received payment. Dote(s) of waiver and release: NA Amount(s) of unpaid progress pn;·mcnt(s): 0.00 (4) Contract rights. including (A) o right based on rescission, obundonmcnt, or breach of contract, ond (13) the right 10 recover compensation for work not compensated by the payment: The following invoices nnd pay applications ore included in the above referenced amount: Date signed: �l�/3=1/�1�8�------Cass Construction, Inc. (�anyNnm� �-'-Olhc<�',-'-'?,\.�V (Signature) Shannon Burke, Controller (Title) (619)590-0929Cloimont's Phone No. I u ( � � u 8/27/2021 Baldwin & Sons, LLC 20 Corporate Plaza Dr, Newport Beach CA 92660 (949)640-8300 Imaging -Vi-Transaction MECHANICS BANK e,o Newport Cemer or. Suite 100 � 8eecll, CA 112660 DATE August 29, 2018 CHECK NO. 16614 Pay:*!'""."'" .... ..,. ................................ Eight thousand dollars and no cents PAYTOTHE ORDER OF ,-- . Cass Construction, Inc. .P.O. Box 309 El Cajon, CA 92022-0309 12Z2 AMOUNT *$8,000.00 0 □ o. 0 -u !l! §�C !�i 0 m g -t :z: I m m 0 ::u 0 ::u 0 Q !:: 0 ::u z )> � z ;;,;; https://Web17 .secureintemetbank.com/EBC_EBC1151/AccountDetalls/lndex/c97d46c-85a8--4116-9713-a4bb38e275a3?Token=pE5ZWX0nyN2hjW82c... 1 /1 CASS CONSTRUCTION, INC. GENERAL ENGINEERING CONTRACTORS P.O. BOX 309, 1100 WAGNER DRIVE EL CAJON, CALIFORNIA 92022 PHONE (619)590-0929 RC442-00004 NAME: BALDWIN AND SONS, INC. ADDRESS: 20 CORPORATE PLAZA DRIVE NEWPORT BEACH, CA 92660 PROJECT: OTAY RANCH VILLAGE 2 SOUTH OUR JOB#: 16-2442-0C YOUR ACCT#: 2003 RECEIVED Jul 2 I. ?1)'0 • _ -10 BALDWIN & SONS DATE: 07/31/2018 -------------------------------------------------------------------------------------------------------------------------------------------------------------- CONTRACT#: 587 TOTAL RETENTION BILLING: 8,000.00 Invoice# Q..c l-\41-- QOcD 4 _$ 80QD. cO. Contract# <;3 +Coding lApproval NP Entered IJ:ll1h�:JB & Soni!, In� V,11.,gc 2 Smuh • S1orn1 Drnm Joli Nv O�·OO�U-�16/0Vl,lll\l,I. 2442 Co1111:1t.·1 IIS'JS C'osl C1,,lc J"/-00 Conditional Waiver and Release Upon Progress Payment (Cul i forn ia) Type I Form Pursuant to Civil Code 8132 (�ffcctivt: 7/1/2012) NO'I ICE THIS POCUMI:oNT \VJ\IVl:::S THE CL,'\IM1\NTS UEN, STOI' 1'1\ YMENT NOTICE, AND f'>A YMENT DON!> RIGHTS £FFECT1VI:: ON RECEIPT OF I'.\ YMl!NT. A l'ERSON SHOULD NOT Hl:1. Y ON Tl IIS DOCUMENT UNLESS S,\TISFIED Tl IAT Tl 11: CI.All'vlANT H:\S RECEIVED l'AY· MIZNT. Cla1m.t11l. Cu.Slomer .loh Localicin Owner: Through Dn1c; �Uil.lllctim�'�•�·�---------------------------- lhJdwrn & Sons, In Yilhrnc 2 S<1111h S1onu Prniu Contract: 587 Villptq II of Otoy t<B Sub & Sunr•ncb� __ , _P?�'~tn_._,.-,�ll�(�--------------- 7/31/18 ·nus doeu111cn1 wn1vcs and n:knses hen, stop µ:t.)'ml'nt 1101icc. nnJ p-aymcu1 bond richts the clo1im:rnt hns for labor nnd service provided, and cquip111c111 and malcrinl delivcrctl, 10 lhc cuslomcr on 1his Joh through the Thruugh Dote of this docunu:ut. Righ1s trnscd upon Jal,or ur service JHo,•idcd. or eqm1,mc11t or nrnttrinl Udivcrcd, JJU1sun111 to J, wr111cn chnngc 01dt!1 thnl hns been nilly t?.\:cc111cd U)1 1hc parties prior 10 the d:uc thnt this doc11111cnt is slgnccJ by the clnimnnr, nrc wniwd and released hy 1his document. unless IISlcd ns "" Ex�•cplion below. 1'111s docum•nl is cffcclivc only 011 the .:l:dmunl.'i receipt of 1u,yincn1 from 1hc 1inunc1nl iust1u11ion on \\ hich 1hc chcc:k is druwu � l,,kcr of Check· ,\,un11111 of Check· la!!bY!!l..!,j�!!le.-,cl�-------------------------- 8,000,QO J:�i.£00llll!£,Ul.!l.!...LW...------------------------ Excep1ions: Tlus doc11111cnl docs not nffeci ony of the followinu. (I) Rc1c11tiuns. (2) Ex1rns for which the cloimn111 hns 1101 rccc1\'0d pa)''"'''" (3) The followinu progress 1rny111c111s for whicl1 1hc clninrnnt hos previously �11·c11 n condiliOnAI ,,111vcr and rclcnsc bu1 hns not rccei\'cd pa)·mcn1. Daic(s) of 1111i\'Cf 011d rclcnsc· NA Amo,ml(>) of unpoid p1o{lrcu pn)'mCnl(s): 0.00 (�J C,101raci nslns, 111cludm� (,\) a fl!:hl based on rcsc,ssion. nbnndonmcnl, or breach of contract. and (0) the right 10 f�covc, com1H:nsntio11 for work 11ot compt!llsn1c:d by 1he pnynH!lll. Th� followmg 111vo1<.;..:s ;111<l 1>uy appl1catio1,s are inctuch:d in the nl>uvc 1cfc.·1cncc<! :11uornH: !)31c Sl@ncd: 7/ . ..,J'-'l'-'/_,1..,_8,__ _____ _ =="-=��J::£i!��\£J_...._\j (Sig1111lUr·) ::ihannon Uurkc. CFO __ (Titk) (619)590-0929 Claimi\111's Phone No !1-1'1 17 1.011 e:. EXHIBIT B S!'.>4500 1 ,0000 u.��•• oo S�.:.11,1111. t-----,-.:•..:·P..:•:.::C""'Cb='"-'3C="'--------'i----'-'':::'•0:.:,'+---'2"'"':+----+-'":u"""'"'l>-lf'--+-__, .. :c-00""-l--�'""'"""'"''""''·"l-----l--"""-"""'"''@cc•1---''"'"'--'"""1---..!!"-'-'""""-'°""1-----''"'.,_."_,."l---''"'""'''"'"-"'"'t' ----+-----'-'':,.,""'"-! 38500 Oe!Sea!Ol'l Coupl:nc b Cl&ll c0nfc:n Cot,.!"°"l,m.m�eraatl'lftile�2V' r�:Tl on $&rn3 VieWM(f:tfC 116) 0'2- fl,1Jll! .. iu c�, Cod, CO • I l)Q20-51WACK80NE 21-\� !Remove 1rv.-atf:niM andl ro-o,g �1:gi :o HtaC.bhci'.e-... :ior.s (RiC :SlC) Ol-('() •? Oll&D-�11M$t..CK80NE ?M\ eact:::'lMJe io S::,.:.i; Paca.::11�r -C1.:c out, M.v.!ler ancl fttt>Meci 20" RW C-0 •J P.!='C * 17 02,0020-,!; IGfDACKDONE ?1-!'$ 0g up 31'od .-i.s'..ll Z-water Ml� on RC 1ir, s:ar,: Sile.�• rw� ul"llt""...e co...i (R�C>!2?)8.ACJ<80N£127-� .?M� C11>111,.1n .. ,11,:rtt•1 (l llmug,b cco tlJ) ,.., I 00 '"" J UCI EA 1.10000 C,uc CON Oin1iNlio• !� l'i' li-;5 ?; 29 ,-.io:.ttJ1>e1I .... oi Us,.;-J Nr-tUw-d EXHIBITB 0rii;j11;1I Contr•ct O,,.,.J:c0nrtr l<>ffNA�tlt1 ,C-uil<I•: e ...... ,aao,o· C.....:rM1: �°''"" Toul Toc;i,I Ro•.i:wilTot� S! \frQOO S41<'11 srn.uu, ,10000 SUOOOI) SlCl.llJ(,JI I 0ri,:in..J Cn111r,1,:t !Ct,:.;w Ord-trl I Tt.Oi'•I Tor;i,J ll,n,-i,:f'4 Tolal s�.,:-2.w $000 ''"'" "'"' S0.00 «IOI} ., .. S5'9,l.t--15-l """' S-0.(lo.1 sooo sooo Ut,o.;r-.oo s�_1.i.;� ''""' sooo ,.,,. S0.00 S666,ii:.OO SS9_,.u,s..i !!iTiii,51� 01C'l;k O!t.': Clffi 01\ <..,...,,i. 0.: '"' \"ill."'t�Rn'"'""""'·'"'' ,.., �Ullt. l,...,;;z,N IS9,:-M • .!o' Cu,,11il11ivf T111 ll (tu,Ml:c ToO.trt ·�· 11• 1"1>0 .. ,, S?iXHJO Sl,ll)lttJO S..U.IA7M'I $1U,,lll,H �-;1,.220.M �JiiD� sooo '°"' ., .. sooo s1:.-.'»l.l1-: 01cd,;m;. ·�· 100 IIIU..li',:CJ't'.111(111): i,,,..r,tDa1r: WM1:i-:■fftkr; la,oa,""'-1: ., •• t."'-11.i;; .. : Tot:.l S7WOI! SI lo1HIO SH l!l�MCI s1u.o,.J1 S1U,.�J11H su;.��-6S �j,f",1)(19 S0.00 "'-"' """' SU(al S116,.,J9()1; 0,ci.tOK ,,111A.'1)1.J1• tntl.!l!IS 1tCn� $:1,l)OO,IIO S!l..00 -11,v..1:.,:; Cimn1c IJ.illiui 1b•1oi•.,..•i«01>.nl"1 Oir,11111/1,-Tm� .. �, Sl)o(I $8,000.00 c,.nc•I Tot•I I S.'ll.lX!C:00 S0.00 �1)1) sooo $0.M sooo 5,-_U'.)J(!> Ol,,::d;Ot- Baldwin & Sons, LLC Date Invoice Description 2167 Cass Construction, Inc. 08/31/18 RC442-OOOO5 V2 South Ret 8/31 /18 Check 12/05/181 Date Baldwin & Sons, LLC 20 Corporate Plaza Dr. Newport Beach.CA 92660 Check 17296 Number . I Total > Mechanics Bank 610 Newport Center Dr. Suite 100 NEWPORT BEACH.CA 92660 Date December 05, 2018 Check 17296Pay:*******************************One Thousand Five Hundred Twenty-Five And 77 / 100 Pay to The Order Cass Construction, Inc.P.O. Box 309 El Cajon, CA 92022-0309 0BSLLC 17296 Amount Paid $1,525.77 $1,525.77 90-4485 1222 Amount $1,525.77 34209 I CASS CONSTRUCTION, INC. GENERAL ENGINEERING CONTRACTORS �r.�r, Iii I P.O. BOX 309, 1100 WAGNER DRIVE EL CAJON, CALIFORNIA 92022 PHONE (619)590-0929 1/ RC442-00005 / NAME: BALDWIN AND SONS, INC. ADDRESS: 20 CORPORATE PLAZA DRIVE NEWPORT BEACH, CA 92660 )'\ 'b , � � RECEIVEDCb' AUG 2 8 2018 BALDWIN & SONS PROJECT: OTAY RANCH VILLAGE 2 SOUTH OUR JOB#: 16-2442-0CYOUR ACCT #: 2003 DATE: 08/31/2018 ---ac---------------=-----------•••==•••=---=a---=-----=-------=--=--�=---=---- CONTRACT#: 587 TOTAL RETENTION BILLING: 1,525.77 Invoice# C f-iLt'L-oooos$ l 25.':\� Contract# 5c&-:\--. Coding ---=:::...--:.. ____ __ pprova/ P Enter:e:::;-d��...1..U�----..J blNI■ c.,. c-.. ,. Onai• ... c .. , O<, ' �•-�.-27-l!.1 • • Comec:t lo � ......... a-ll-19 1 �.,., ... ICcne.ltOft .. � •hie clig9tl,g 20'" �cnSanlaVclonl(RFCae!) 02-CO•I �tll8ACK80Nf H•SJ R� 1r.-.--■r1n■a!ldn-cfi; dicctl 110 iNta"OWt.,...abrlnl(A:FC•10) 02-COil OOzo.611/BACKBONE ?J.Sj � LO Sctiling P'9f»N • CU IM_cltwlwar'ld�20"RW co,;; RFC •� 1 oi,eo20,.51&19ACKB()lo1E !1-SJ 0.,�W.-.wlTMNt'�onAC 'fotP""S.baddilTWfl'MSl!t'YIC:AI co,� (RFC '20) BACKBONEm'-S.S H,SS EXHIBITB .,_,..,_ (ltwo.pCCO•J.) �-..,, ... On,;.MC:U..Rd t.."w■JTO™T Q<, """ \J■llt s T•� T"� ,,..EA 175.00 s1uooo 1.00 EA 1100.00 Sl,IOIIIOO 100 100 EA SJ..l.1:11 IO .. .,:D<l,111IO 100 100 SIIU}&JI ''"" Sw,1>631 I 00 100 S'9.UOGl .... J').•XI o,} 100 100 U.�'90.W .... SS.l'JO«t c-•-., c-�-°"'""('-IIG! < � '-"·c--. lrwi.�Toc-i S?OOOO Sl,10000 "4,111U s,or.-(.lt S9-000J SSJINI_,. ""M ""'-,ffl.N Sff 1M.Jt S'26,114S41 C..•ul•iivrTOfoll (iodate Q,,,aky A-• T•O»u• T•D•t ,.., S70000 100 Sl.10000 "'' SJ.U1180 I 00 Sl6-"6.}I ,o, SV.-000, I 00 ......... CrandToU1I ..... .,,. ... �.1 ..... � 5'7?4,,!H,..� {\/ . ....$7.?t.,JIU4 ................ ,. .. "" S12'.Sl6..5-I I ""•"""c..,..,, IC.-•O...,I I lo... ...... T .... I : T.-� : Toe� :R�Toof: Cotr CHc Oistrikuiea 27,19 Ui66.7i'1.00 IOJJO kle,6.n2.oo S671.ll0.M ?7.55 I0.00 SS9.144.S.l 559,:'.a� St SSJ,710..0'9 11� IOOO IOOO S0.00 Sl-'!S.'7 NO<""" sooo I0.00 '"' .... NocU,.,.'11 S0.00 so.oo sooo S0.00 Notl.,'lc,d sooo sooo sooo '°"" S666.712.00 SS9.7,U.,S.t SiU..!165"' S1?6.Sl6.S.. <.lta:'kOt.: Chcd:o.: Ch.\:tOK 0-...0K 2of2 n.. .. .,.,. £V lltL&.c,:IIJPl'.alOO: ...,.D-, -....... "'-"'<: PriofBilliQ T•� ,.oo ""°"' 100 SI 10000 1.00 SMll110 100 UG,l)l,)I ,. .. s-,,.0001 , ... .U,J-,o.+O S?U.,J16,J.t ti '"71 &/)I/MIS ,.,..._ SISU,17 , .... , .... C.mac lit:li•� '"hui1oroitt,oal-.- n...-il .. To<,& sooo ''"' .., .. '""" "'" .. ,,. .... SI_ .. Sljn ,.l(v - S1k,¥,)O 1 $1S2$.n Pr.«T .. .t I C.,.,..Tvt .. Sl'i4J.110oS Sl,S!5.7i SS.J.7;()09 I0.00 S!,000.00 I0.00 '"' sooo ., ...IQ.DO .... S0.00 S?:U,'90.n s1.sin: o«-tOK O«tO< JOtlNAMI'-' -m.- iw,,.c--.... , ciu.o, ToO� 600 EA "" EA ,oo EA IOOEA '6.J,000 '716..IOOIJ 6tl(l EA $?7.�00 600 2 EA EA 17°1'1 S! !11()Clll s::oai.-. Sl?.'7000 U-,00 Sl!17C1110 11-1? 1.00 ] S?.111Hlo Oaldw,n & Sons, In� Vlll�s• 2 South • S1or111 Ora111 Job No. 02-0020·S I 6/0VERI\LI. 2442- Controcl •s,s Cost Cc>do, 27-06 Conditional Waiver and Release upon on Final Payment (California) Type 3 Fon11 Pursuant to Civil Code 8136 (Effective 7/1/2012) NOTlCE TIIIS DOCUMENT WAIVES THE CLAJMANTS LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS EFFECTIVE ON RECEIPT OF PAYMENT. A PERSON SI-IOULD NOT RELY ON THIS OOCUMENT UNLESS SATISFIED TIIAT THE CLAIMANT HAS RECEIVED PAYMENT. Claimant: Cass ConstrucUon lnc, �orrer: Pflld)Mn & Sons, Inc, Job Location: Village 2 Sou1h Stom, Pc•io Contract: 587 Owner. VjUm II of Otgy HB Sub Through Date: 8/31/ 18 This document waives and releases lien, stop payment notice. and payment bond rights the claimant has for lnbor and service provided, and equipment and material delivered, to the customer on this job through the Through Date of this document. Rights based upon labor or service provided, or equipment or material delivered, pursuant to a written change order that has been fully executed by the parties prior 10 the date 1h01 this document is signed by the elaim.1111, ore waived and released by this document, unless listed as an Exception below. This document is effective only on the claimants receipt of payment from the financial institution on which the check is drown: MakcrofCheck: Baldwin & Son:✓ Amount of Check: _l_,_52_5_.7_7 __ l_�--------------------- Check Payable To: Cnss Cons1□1ct1on lnc Exceptions: This document does not 11ffcc1 any of the following: Disputed claims for exlras in the amount of: $, __ t�) _ ___, ____ _ IJatc signed: 12/06/18 Cass Construction, Inc. �n�=�J (��e) Shannon Burke, CFO (Title) (619)590-0929 Claim8nt's Phone No. ------------------------------�--------- l3ft1dwin & So1•i.1 lno. VillAoe 2 South -Storm Drnin Job No. 02-0020-S I 610VERA L.L 2442- Contract IIS1S CoSI Cude. 27-06 Unconditional Waiver and Release upon on Final Payment (California) Type 4 Form Pursuant to Civil Code 8136 (Effective 7/1/2012) NOTICE TO CLAIMANT: THIS DOCUMENT WAIVES THC CLAIMANTS LLEN, STOP PAYMENT NOTlCE, AND PAYMENT BOND RIGHTS UNCONDlTTONALLY AND STATES THAT YOU HAVE BEEN PAID FOR UIVJNG UP THOSE RIGHTS. THIS DOCUMENT IS ENFORCEABLE AGAINST YOU IF YOU SIGN IT, EVEN IF YOU HA VB NOT BEEN PAID. IF YOU HAVE NOT BEP.N PAID, USR A CONDTTIONAL WAIVBR AND RELEASE FORM. This document wnives and releases lien, slop payment notice, and payment bond rights the claimant has for l11bor and service provided, nnd equipment nnd material delivered, to the customer on this job. Rights based upon lubor or service provided, or equip111e11t or mnlerial delivered, pursuant 10 a wri llco chnnge order th111 has bce11 fully cxcctHcd by the parti,cs prior to the d11tc that this document is signed by the claimimt, .ire waived nnd released by this documcnl, unless listed os nn Exception below. The clai111an1 hus been paid in full. Claimant: Atlas_yonstruction Supply, Inc. Cu8tomer: C q s s C o n st r u cl ion , Ip c , Job Locntlon: .YiUnee 2 south Storm Rrnin Contract: 575, 5761 585 1 & 587 Owner: v(llage II or Otay HO Sub & sunranch canl!al Partners, LLC Exceptions: This document does not affect any of the following: t>isputcd claims for extras in the amount of; $ 0.00 Dute signed: 10/5/2018 Atlas Construction Supply (�pony Name) \.,,.C_ / �\lQfitJU1Y)(). (J TJfJ_{J7--(y(Signatmc) Accounts Receivable Manager (Title) 714-441-9500 Claimant's Phone Nu. ORl<lwiu & Soos, h10. Vill.19c 2 South• Storm Dmin Joh No. 02-0020...IIGIOVER/ll,L 2442, Co111nicl 1/S7.I Cost Code: 2'/-06 Unconditional Waiver and Release upon on Final Payment (California) Type 4 Form Pursuant to Civil Code 8136 (Effective 7/1/2012) NOTICE TO CLAIMANT: THIS DOCUMENT WAIVES THE CLAIMANTS LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATESTHAT YOU HAYE BEEK PA[D FOR GIVING UP THOSE RIGHTS. THJS DOCUMENT rs E>IFORCEABLE AGAINST YOU IF YOU SIGN IT, BVBN TP YOU HAVE NOT BEEN PAID. IF YOU HAVE NOT BEEN PAID, USE A CONDITIONAL WAIVER AND RELEASE FORM. This document waives and releases lien, stop payment notice, and payment bond rights the cluimant has for labor and service p1·ovided1 nnd equipment nnd material delivered, to the customer on this job. Rights based upon lobar or service provided, or equipment or material delivered, pursuant to a written chnngc order that has been fully executed by the parties prior to the d11te that this document is signed by the claimtmt, nrc waived nnd rclens:cd by this document, unless listed ns an Exception below. The cloimnnt hns been paid in foll. �-//c Clolmont: � U3)'1\ lJUGt \-e.¥ WO( k�Customer: 9_@ si C on st r y ct i Q n I 1 c. Job Locntion: .Village 2 south stonn Vrpin Contract: 575, 5761 585, & 587 Owner; YIHase Hof Ot;v HB Sub & S.unn,och Capital Partners 11 C Exceptions: This document docs not nffect any of the following: Disputed claims for extras in the amount of: Datesigncd: l O / Y (rs $ ().00 ·fex-8V�Oh lllt-b-wor,ks(Com Nftme) -, _,,,,e__,; ignature) CJ( e..c\ 1 ·:r t\:§1Std vrt (Tltlc) 8Sf2·-1Y;Jz. -5s?.)q Clnimnnt's Phone No. 2442· Doldw111 & So!ls, loo. V1lla30 2 Soulh • Slonn D<11in Coo:ntct MS15 Cos1cocla�IVED Job I-lo. 02-0020-�16/0V!;!lAI.I. NOV 2'g 2018 BALDWIN & SONS Unconditional Waiver and Release upon on Final Payment (California) Type 4 Form Pu.-sunnt to Civil Code 8136 (Effective 7/1/2012) NOTICE TO CLAIMANT: nus DOCUMENT WAIVES nm CLAIMANTS LIBN, STOP PAYMENT NOTICE, AND PAYMBNT BOND RIGHTS UNCONDITIONALLY AND STATES THAT YOU HA VE BEEN PAID FOR GfVlNO UP THOSE RIGHTS. TH1S DOCUMENT IS ENFORCEABLE AGAINST YOU IF YOU SIGN lT, BVBN JP YOU l·IAVB NOT DBBN PAID. IF YOlJ HAVE NOT BEEN PAID, USE A CONDITIONAL WAIVER AND RELBASB FORM. This document woive$ and releases lien, stop payment notice, and payment bond rights the claimant has for labor and service provided, nnd equipment and material delivered, to tho customer on this job. Rights based upon lobar or sorvicc provided, or equipment or material delivered, pursuant to a written chnngc order that has been fully executed by the parties prior 10 the dnle thnt this document is signed by the clahnnnt, nre waived and releoRcd by this document, unless listed ns an Exception below. The elolmant has been paid in full. Claimant: Customer: i.,Cc.1Pwl!1..,SL.l.C._o!Llln.,1S.1.!LCUll..!<.0.1.I 1u· PLIDll..>.., .1.(.1.1D..1<0 ... , _____________________ _ Joi> 1.ocHtion: .�.i.lJ.aec 2 south stoon Druio Contract: 575, 576, 585, & 587 Owner: Y.lllitt� HJ) Sub&; Synranch <:agital Partners, UC Onie signed: Clniinnnt's Phone No. 2442, O�ldwin A Sons, Inc. Vill•ao 2 souch. s IO(lll Pmi11 Contnol RS15 Co,i Code: 17-06 lob No. 02-00Z0-5 Id/OVERALL Unconditional Waiver and Release upon on Final Payment (California) Type 4 Form Pursuant to Civil Code 8136 (Effective 7/1/2012) NOTICE TO CLAIMANT: Tl-US DOCUMENT WAIVES TI-IE CLAIMANTS LIEN, STOP PAYMBNT NOTfCB, AND PAYMBNT BOND RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAYE BEEN PAID FOR OMNO UP THOSE RIGHTS. nns DOCUMBNT rs ENF'ORCEABLB AGAINST YOU IF YOU SIGN IT, BVBN IF YOU HA YB NOT BBBN PAID. JF YOU HAVE NOT BEEN PAID, USE A CONDITIONAL WAIVER AND RELEASE FORM. This do.umcnt waives and releases lien, slop payment notice, and payment bond rights the olaimanl has for labor nnd scrvic:c provided, and cqu lpmcnt nnd material delivered, to the customer on this Job. Rights based upo11 labor or service provided, or equipment or material delivered, pursuant to a written chnnge order rtuu has been fully executed by the partlos prior to the dnte thnt this dooumont Is signed by tho claimant, nre w_aived and rcleued by this document, unless listod n� an Exception below. The clo!mnnt hu been p4id in full. Claimant: Customer: C n f., C o n.sJ..LU-Xl i o n • Inc , --------------- Job Locution: Yill•i•c 2-5.oJ•.lll.Sll.!lm Drnln Contract: 575, 576, 585, & 5_8_7 ___ _ Owner: �eJlo(Pt•YJ1ll.ill�h.caoJtil..ei.tl=,.....,._ ________________ _ Excoplions: This document docs not nt'fcct any of the following: Disputed claims for extras in the amount of: $ ________ _ Date signed: JD) \�I�\& Clnhnnnt'a Phone No. Dahlw111 & Sons, Inc. Viii•!!• 2 South • Storm Dn1in lob No Ol,0020-516/0V�JV\LI. 2442, Contract 1575 Cosr Code. 27-06 Unconditional Waiver und Rclcosc upon on Final Puyment (California) Type 4 Fol'm Pul'suunl lo Civil Code 8136 (Effective 7/1/2012) NOTICE TO CLAIMANT: THIS DOCUMENT WAIVJ3S Tiffi CLAIMANTS LfHN, STOP PA YM8NT NOTICE, AND PA YMBNT l:30ND RIGHTS lI'.'ICONDITIONAI.LY AND STATES Tl·IAT YOU HA YR BEEN PAIT) FOR GCVJNO UP THOSE RIGHTS. TIITS DOCUMBNT IS !1NPORCBAl3LE AGAINST YOU ff YOU SION IT, EVBN IF YOU HAVl3 NOT DEEN PAID. Ir-YOU HAVE NOT BEEN PAID, USE A CONDITIONAL WAIVt.m AND R.ELilASB FO.RM. This document wai vos and rolcoscs lion, stop pnymcnl notice, nud 1>11ymon1 bond rights the clnimnnt hos for lxbor nncl service provided, nnd equipment and materinl delivered, 10 tho customer on this job. Rights ba.sed upon lubor or service provided, or equipment or material dclivcl'ed, pur�u11nl to u wriltcn change order that has been fully executed by tho ponies prior 10 the date thal this document is signed by Lhc clafmnnt, nre waived nnd released by this document, unless listed n� nn E!xccption below, The cloi11111nt hns !>eon paid in full. Clo11nont: Customer: C n s a Con ti.Lil cJ.i.2..0���-------------------- Job Locntion: 'illl"L'Q 2 south Sl!lmLD..mi Contract: 575, 576, 585, & 587 Owner: lo!1111ao Ii or Ot;1y 110 Sub & suo@ncb Ciotta' Pmocu, LLC Exceptions: This document docs not nfl'ect any or the following: D isputcd elcims for extrns i11 Jhc amount or: Dnto�igned: $ ________ _ AA Oflnktvr/Jllt/ trials � (Signature) 00 (Title) &t aMfJLH fJJ Clnimont'a Phonc No. 2442· ilaMw111 4 Son, Inc. VdhltJ� 2 South• Sto,in On1in Con1rac1 IS'l.S Cost Code. 27-0t Jot, �•o. Ol-0020-SIO/OV!,HAl,I. Unconditional Waiver and Release upon on Final Puymcnt (California) Type 4 Form l'ursuanl to Civil Code 8136 (Effective 7/1/2012) NOTICE TO CLAIMANT: THIS DOCUMENT WANES THE CLAIMANTS LIEN, STOP PAYMENT NOTICE, AND PAYMBNT BOND RIGHTS UNCONDITIONALLY AND STATES TIIAT YOU IIAVP. BEEN PAID FOR GIVING UP TI-IOSB RIGHTS. TJ-11S DOCUMENT IS 1::--IFORCEAl)I.P. AGAINST YOU IP YOU SIGN IT, EVIDI IF YOU HAVE NOT DEEN PAID. IF YOU 11/IVF-: NOT BEEN PAID, USE A CONDITIONAL WATVER AND RELEASE FORM. TIHS document w11ives nnd releases lien, slop payment notice, and payment bond rights the clnimanl has for labor ancl scrvi1:c provided, nnd equipment nnd material delivered, to tho customer on lhis job. Rights based upon labor or 5Crvicc providcct, or equipment or mnlerinf delivered, purRu11nl 10 n written chnngc order that Im� bc.:n fully ei-ccutcd by the parties prior to the date that this documcnl ts signed by the claimnnt, nre waived nnd ,�lco�cd by this documcuc, unless llslcd es an Exception below. The claimant hns l>ccn paid in ful!. Cln1111:1nl: Re 0 . .STB\ )c Jt )6F,S Cu�lf)lncr: <;;_nJ!�QJULI ... u�i e�1 i ... o�n� .... i�o ... c""'------------------ Joh l.ocntion: Yilllu:.1Lli11.1Uh Storm Dmin Contrac�_: 575, 576, 585, & 507 <Jwi,ct �R.ILQLO_ta_yJlB Sub & SUnranch Capl1;,I Partners, LLC F.xccplions: This document docs not nffecl any of the followlng: Disputed clnims for cx1rns in tho nmount of: $ ________ _ Dal.:�igned: Jal DS 'ao13 A-j R vY\ l:\J.l B tr E g,(Tille) Cfllol '\) 1l tl l · 3�-S. Cfnimnnl'� Phone No. llaldwi11 & Sous, !no. VillaQo 2 South• Storm Drnin Jv� No. 02-0020-516/OVERALL 2442, Controot 157l Cost Code. 27-06 Unconditional Waiver and Release upon on Final Payment (California) Type 4 Form Pursuunt to Civil Code 8136 (Effective 7/l/2012) NOTICE TO CLAIMANT: Tl·US DOCUMENT WAIVES THE CLAIMANTS LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONAi.LY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIOJffS. TIIIS DOCUMENT !S ENFORCEABLE AGAINST YOU IF YOU SIGN IT, EVEN IF YOU HAVE NOT DEEN PAID. Ir YOU HAVE NOT BEEN PAID, USE A CONDITIONAL WAIVER AND RELEASE FORM. Tltis document waives nnd releases lien, stop payment notice, and payment bond rights the elnimant has for labor nnd service provided, one! equipment and material delivered, to the customer on this Job. Rights based upon labor or service provided, or equipment or material delivered, pursuMI to a written change order that has been fully executed by tho parties prior to the date that this document is signed by the claimant, arc wnivec.l n11d released by this document, unless listed ns an Bxccptlon below. The clnlmant hns heen paid in full. Customer: C n s s C on st r u c Ii o o , r n c, Job Location: J'.illAee 2 south s,900 Proia Contract: 575, 576, 585, & 587 Owner: lllliUUUll.�Y HQ Syb & suoranch Capital Pmncrs UC Exceptions: This document docs not nffcct any of the following: Disputed claims for cxtrns In tho amount of: Dntoslgned: \Op/201� .5..rs.\ QI l c Eq u i t:rn (Company Name) I . . . Accour,t Rq> (TIiie) lp,02... l.83 2? I O L:,Claimant's Phone No 2442• Baldwin & Sons, Inc. Village 2 South • S1or1n Dmln Controct #S1$ Cost Code: l7-06 lob No. 02-0020-516/0VERALL Unconditional Waiver and Release upon on Final Payment (California) Type 4 Form Pursuant to Civil Code 8136 (Effective 7/1/2012) NOT[CE TO CLAIMANT: THIS DOCUMENT WAlVBS THE CLAIMANTS LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. THIS DOCUMENT [S ENFORCEABLE AGAINST YOU IF YOU SION lT, BVBN IF YOU HA VB NOT BEEN PAID. JP YOU HAVE NOT BEEN PAID, USE A CONDITIONAL WArvER AND RELEASE FORM. This document waives and releases I icn, stop payment notice, and payment bond rights the claimant has for labor and service provided, and equipment and matcrlal delivered, to the customer on this job. Rights based upon lnbor or service provided, or equipment or material delivered, pursu1111t to a written change order that has bce11 fully executed by the part ics prior to the date that this document is signed by the claimant, are waived nnd released by this document, unless listed os an Exception below. The claimant has been paid in full. Claimant: l!owf5'0� f, pe-Grwf Customer: C11u Construction, Inc. Job Location: vmaae 2 south sionn DDlfo Contract:575, 576, 585, & 587 Ow11e1: Y)Um II of Olay HB Sub & 5\loranch C,pl!JI Partners. LLC Exceptions: This document docs not affect any of the following: Disputed claims for extras in the amount of: Date signed: -"-/_'2--t/_1./--J/'-/<8...;;_ ___ _ Cloimant'• Phone No. O•lrtwin &. Sons, Inc. Villa�<' 2 Soulh • :Storm Drnin Jub No. 02-0020-516/OV EHALL 2442• Con1ract #575 Cost CcMlo. 2'/-06 Unconditional Waiver and Release upon on Final Payment (California) Type 4 Form Pursuant to Civil Code 8136 (Effoctive 7/1./2012) NOTICE TO CLAIMANT: TI-llS DOCUMENT WAIVES THE CLAIMANTS LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. THIS DOCUMENT IS ENFORCEABLE AGAINST YOU IF YOU SIGN lT, EVEN IF YOU HAVE NOT BEEN PAID. IF YOU HAVE NOT BEEN PAID, USE A CONDITIONAL WAIVER AND RELEASE FORM. This c.Jocumcnt waives anc.J relca,cs licit, stop payment notice, nnc.J payment bond rights the clnimant has for labor and service pro-vided, ond cquip111cnt ond material delivered, lO \he customer on this job. Rights based upon labor or service provided, or equipment or mnterial delivered, pllrsunnl lo a written cho11ge order thal has been fully exec111ed by the parties prior to the dote that this document is �igned by the claimnnt, nre waived nnd released by this document, unless listed as an Exception below. The claimant hos been paid in full. Claimant: Customer: �.Jl s s r: on s,..,,t_,_r.llu-"c ..... t,._,i o,_1u..J ._, _.1 .... n..,.cc.., __________________ _ Job Locution: .'li.ll.6�2ll11Lfilll.t.m..l2m· Contract: 575, 576, 585, & 587 -------- Owner: Yllla3c II of Otay HB Sub & Surmnch c.,p�,,iu...!,.L..,,L ----------------- Exceplious: This docu111c11l docs not nffecl any of the following; Disputed claims for extras in the amount of: Date signed: l l l Ct, l L '{\ L Lro.V\ VY\u_ -\f rcecC\ �IZ:e)\/urA (Signature) (Title) Ot'bbJe Vo1't Credit Maoager gs� .-'S3(J-CJ<-{('-{ Cloimnnt's Phone No. 2442• Oaldwon & Son,. lno. Viii•&• 2 So,�h • S1orm Dmln Con1111c1 IS1S Cost Code: 27•00 Job No. 02•0020•S l6/0VERALL Unconditional Waiver and Release upon on Final Payment (California) Type 4 Form Pursuant to Civil Code 8136 (Effeotlve 7/1/2012) NOTICE TO CLAIMANT: nus DOCUMENT WAIVES THE CLAIMANTS LIDN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. THIS DOCUMENT IS ENFORCEA13LB AGAINST YOU IF YOU SION IT, BVBN JP YOU HA VB NOT BBBN PAID. IF YOU HAVE NOT BEEN PAJD, USE A CONDITIONAL WAIVER AND RELEASE FORM. This !.locument woives and releases lion, stop payment notice, and payment bond right• the claimant has for labor and service provided, ond equipment and material delivered, to the customer on this job. Rights biued upon lnbor or serv lee provided, or equipment or malcriftl delivered, pursu11nt to n written chongc order thnl has been fully executed by tho parties prior to the dftte thot this document Is signed by the claimant, nre waived nnd released by this document, unless listed as an Exception below. The olol m11nt hns beon paid In full. Cloimont: WEST COAST SAND AND GRAVEi INC Customer: C a u C o n st CY o I I o n , I n o, Job Location: �Isae 2 sonlb siorm Qcalo Contract: 575, 57 6, 585, & 587 Owner: Y!Oocc n of PIAY HO sub & suacanch cao11a1 Partners uc Exceptions: This document docs not ol'fect any of the following: Disputed claims for extras In tho amount of: $ 0.00 --------- Dntoslgncd: 10/05/2018 ASST OFFICE MANAGER (Title) 714-522-4524 Cloimont's Phone No. ll�ldwin & Som,. Inc. Vl1h,gt.! 2 So\l!h � Sto1m Dmin Job llo. Ol-0020-S l�/OVERAI.I. 2442· Co1mno1 IH15 Co,i Code: l?-06 Unconditional Waiver nnd Relcnse upon on Final Puymcnt (C11Jifornia) Type 4 Form Pursunnt to Civil Code 8136 (Eft'eotive 7/1/20 J 2) NOTtCE TO CLAIMANT: THIS DOCUMENT WAIVES THB CLAIMANTS LIEN, STOP PAYMBNT NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATESTHAT YOU HAVE BBEN PAID FOR GlVJNG UP THOSB RlGHTS. TJIIS DOCUMENTIS TINflORCEABLE AGAINST YOU JF YOU SIGN IT, EVEN IF YOU HAVE NOT BEEN PAID. IF YOU I-IA YE NOT BE6N PAID, USB A CONDITlONAL WAIVBR AND RELEASE FORM. This document wnivcs nnd releases !Ion, stop payment ,rntice, nnd pny111cn1 bond rights the clalmanl has for 1,,bor nncl service provided, nnd cqulp111cn1 nnd mnterlol delivered, to the customer 011 this job. Rights b�sed 1111011 h1bor or service provided, or equipment or mnlerinl delivered, pu1·�uaot to n wriltcn chnngc orctc,· thnl hus been fully executed by tho parlios 11rior to the dote lhnt this clocumcnl is signed by tho ulaiinnnt, ore waived nod rclcnsed by this doct1ment, ,mlMs listod os on Exocplion below. The clalma11t hns been paid in full. Claimant: Western Water Works Supply Co. Customer: C n s s Construe Ii 0_111_�[.,.,,..,o'-'-------- Juh Loc,,iion: �lllt'J..U:.\!lll�,�.l!l.!Jll.ll!!•.I Contrac':_:�_576, 585 1 & 587 Owuer: :{IJl..li!J' P of Otay HI} Sub & Suoc,nch Caplt;uJ.;l_(Ulll!_l,.11..1'. -----------·--·� Exccptlo,rn: This document docs not nffcct Hn)' of lhc following: Disputed claims for extms in the amounl of! Dntc signed:.1 _1_/0_6_/_1_8 ___ _ s None Western Water Works Supply Co. (Company Nnmc) ��(3� (Signature) AR Clerk (l'itle) 909-597-7000 Clnhnnnl'• Phone No. Subcontrocto, Vtttdor I Supplier Prtlim/Job (Ill) or Contl'Od (CIIJ JobNumMr OOte R«. the: Prtlim Dot� on the ftrtlim Amto,,�lim Cus Coonrucuon, Inc.. V2 South Storm Drain Contr.)ct 575 516/0vttaft/27-06 03/02/16 02/29/16 $ 1.100.000.00 Cass Construction, lne. V2 South Sewtt Contract 576 60 & 020020516 03/03/16 02/l'J/16 s 1,120,000.00 Cm Construction, Inc. V2 Swlh 575 & 576 10/08/16 10/07/16 s 1,600.00000 Aec"d Re�ase--No Prehm Atlas Construction Su ... .-J... Inc.. ,t--V2 South St0tm Otain Contract S75 Rec'd N U-,dltloanl r1nol 8/3/16 Ob:leline lumber Co.OBA Probuild Is oo W.IJ V2 South 575 & 576 03'14/16 03/10/16 $ U,000.00 ,. fer•uson Waterworks � V2 E>st 575 & 576 03/17/16 03/15/16 $ 100,000.00 I· Fe:r•uM>n Waterworks v v:z South 575&576 03/21/16 03/18116 s 100.000.00 .. H�nson A--re•-1tt1 PM:ific; Southwest Crtd1t .)( V2 South Cotltl'"Mt 575 & 576 03/04/16 03/01/16 s 5,765.00 f Hanson 6ureutes Pacific SouthwHt Credit V V2 South 08/29/16 08/25/16 s 16,000.00 A Mar-Con Products ..x.V2 South 575 & 576 03/10/16 0)/08/16 s 60,000.00 I Moont111n M�t<l-115, Inc. V V2 South 515 & S76 I 04/1)/16 04/11/16 s 12,500.00 I R&C StrlKtvres Inc. x' V2 Sou-th 515 & S76 03/10/16 03/08/16 s 177,000.00 Sunsate Equipment (o_ �Santa VK:1:oria & San� AJe•ia Contract 575 11/07/16 11/03/16 s 2,970.06 Thompson Pipe Group tX' V2 Randi JI 575 & 576 06/13/16 06/08/16 s 280,119.34 Vulcan Mattri�s Co. ,>(" V2 Sou1h Storm Ot-ain & Sewer OJ./03/16 03/01/16 $ 19,000.00 -, West Ccmt �nd & Gr-1vel, Inc.. vi. V2 South conttxu S75 & S76 Ol/02/16 02 /29/16 s 4.000.00 Western Water Works ""'V2 South $75 & 576 Ol/28/16 03/08/16 $ 900.000.00 '-.. Weit Coast Sand & Gravel. Inc.. V V2 SOuth S85 06/11/18 06/05/18 s 3,000.00 I ' Hanson -"-"•rHatM Pacific Southwest Cr�lt V I V2 Sou-th 585,587 08/20/18 I 08/10/18 I s S.800.00 P2084 BALDWIN & SONS, LLC REIMBURSEMENTSUBMITTALS PACKET Contrad with Cass Construction, Inc Doldwln & Sons. In�. ('onaxl ,511 Vill•�C 2 Saum-�lolmcd Waler Casi Code 27-19 fah Ne, 02·0020.,tO/PACKBONE/27 • .S.S • S6)9,21UJ0 & 02-0020.Sl6/1NTRACT5n7•3' • S27.$GO.OO Subcontract Agreement No. 587 This Agreement is made in San Diego, CA on May 17, 2016 between: Baldwin & Sons, Inc. 610 W. Ash Street, Suite 1500 Son Diego, CA 92101 herewith referred to as I.he Contractor and/or Owner Cass Construction, Inc. P.O. Box 309 El Cajon, CA 92020-0309 herewith referred to u the Subcontractor. Subcontr1clor shall perform its pOftlon or the woric according 10 the plan, and specifications applicable addenda, and the followina cenns and condiliol\$. 1 Contract Documents "Contract Documents• means this subcontractor agreement llld the Project Manual includina, but not llmi1cd 10, lbe plal'ls ind -1pc,ifi�rions, S11bcon1m;tor ccrtifi� lhn! ii is fully f1mili1r wllh all of1hc Con1111ct Documents, the location of the jobsile, and the conditlo11S undec which the work Is to be performed, that it enters into this Agreement based upon its own investigation of all such mauers, and that it is not relying on any opinions or repre.seotatlons of Contnictor. This Aarccment represents the entire agreement between Contractor and Subcontractor. and supersedes any bids, prior oral or written egrcemcnts, or r1.11rcscntations. 2 Scope Subcontractor shall furnish all labor, service.,, equipment, materials and other facilities required to perform the work to complete the work specified In Exhibit F {Subconcractor bid proposal) and Exhibit 8 Scope of Work in accordance with the Contract documents. lfany dispute occurs between Contractor and Subcontractor over the scope of Subconlroctor.s work under the Contract Documents, Subcontractor will not stop work but will prosecute the work diligently to completion as directed by Contract.or, and the dispute will be resolved under the dispute resolution procedures in !his Agreement. 3 Contract Price Coruractor shall pay Subcontractor for the strict perfonnance of its worlc the sum of: Six Hundred Sixty. Six Thousand, Seven Hundred Seventy-Two US Dollars ($666,771.00) or 11s set out in the Special Provisions, below, subject to additions and deductions for changes in the work u may be directed in writing by Contractor, and to make payment according to the payment provisions in this Agreement. 4 Payment Contractor shall pay Subcontractor in monthly progn:ss payments of 90% of the value of labor and ma.tcrials provided and installed. Final payment to Subcontractor shall be made, af\er the entire work required by this subcontr1ct agreement ha, been fully completed and delivered lo and ac:copted by Owner. Subcontnctor slutll furnish, when requested by Contractor and in a form ac:ccplllble to Contn1ctor, payroll affidaYits, receipts, vouchers and releases of claims for labor and metcri11l, and shall furnish same Jrom its subcontnictors, matcrialmen and lessors who performed work or furnished marerials or equipment used in the performance of this Agreement. No payment is due and payable until such documents have been furnished, if n:quested. Contractor may malice any payment reundcr by check made payable, jolmtly to Subconlrtctor and any of its subconrract0r5, matcrialrnen o Page I [nilial: I Subcollr.letor Bolcl,vin & So.._ Inc. C'onlracl#5 87 Villo,c 2 Sou,h-Rc-cbimed W>l<r C'o.1 C'odc: 27-19 lob No 02-0020-S 16/0ACKBONE/27-H -S6l9.2 ll.00 ,t 0l-DU20-S I 611NTRACiSf17 •SS • S11,S60.00 No p11yment made hereunder, prior to the final payment �ferred to above, sh,oll be construed as evidence of acccplana: or acknowledg1cmcnt of complellon of any part ofSubeon1n1ctors work, nor shall it be consb'Ued as II waiver ofany of Conln!cton rights. Time is of the essence of this Agreement. When requested by Conlnlctor, Subcontn1c1or shall provide scheduling infonnotion and a proposed sechedule for its work in o fonn accept.able to Conts;actor. S11bcontractor sl111II confunn lo a mutu11lly agn:cablc pmgres.1 schedule and all n:visions or ch11ngcs m1de thereto. Subcontractor shall prosecute its work in a prompt and diligent manner in eccoroanco with I mutually agn:CGbh: progn:ss schedule without delaying or hindering Co111tn1clors work or the work of others on the jobslte. Subconlnlclor shall coordinate the work covered by this Agreement with the work of Contractor. and the work of all other contractor:, and matcrialmcn, in 11 maMer that will facilitate the efficient completion of the entire work. TfSubcontractor fails to maintain its part of Contractors mutually agreed upon schedule due to facton; wi1hin Subconlnlctor's control, Subconlrllclor shall, without additio11J1I compcns.ation, accelerate its work 11s Coniractor may direct until Subconln!ctors work is in eccoroance with that schedule. Contnictor and Subcontractor shall mutually egrce on the time and order in which work shall be pcrfonned, the: relative priority of the work of Subcontractor and otlter conbraclors, and 111 other matters pertaining to the timely ond orderly conduct of Subcontractor's wort< on thejobsitc:. If any act or omission for which Subcontractor is responsible causes delay 10 the prime contract work, Subcontractor shall be liable for all losses, costs, expenses, l.i1bilitics and damages, including consc:quc:mial d1magC$ 1nd liquidotc:d d■ma&Q, sus111incd by Cumrac:tor, o:r fur which Contruwr may be liable to Owner or any other party because: of that act or omission Subcontractor shaJI make no change ro the work described in the Contract Documents and this Agreement unless directed 10 do so, in writ.in&, by Contractor. IfSubcontractor makes any change without wriuen direction from Contractor, Subconlnlctor (a) shall receive 110 additional compensation for 1he changed work end (b) shall be lioble for all losses, costs, expenses, damages and liability of any nature whatsoever arising from or related to such change. Subcontractor shall m■lce all changes in the work described in the Contract Documents end this Agreement as directed, in writina, by Contnlctor. Such writlen direction shall not invalidate this Agreement. Once Subcontractor receive., and agrees to Con1nctors written direction. Subcontractor is solely responsible for timely performance of the work as changed by the wriireo direction. lfnecessal)', the contract price stated in lhls Agreement, and the time for Subcontractors pcrfonnence, shall b-c adjusted by appropriate additions or deductions mutually agreed upon before Subcontractor performs any changed work. Subcontractor shall supply Contr.1ctor with all documentation necessary to substantiate the amount of the addition to or deduction from the price or time. lfSubcon1rac1or intends to submit a claim for the di.sputcd work, it shall give wriucn no1ice of its intention to do so before proceeding with the disputed work. In addition, Subcontractor shall submit its written claim for any additional compensation or time: ex1enslo111. Subcontractor's fallu,-c eill,er to give: the: written notice before proceeding with the disputed work, or 10 timely submit the written claim after the disputed work is pcrfonned, cons1i1u1cs Subeontractor's aareemc:nt that It is entitled to no addltionlll compensation, nor any lime extension, for perfonnance of the disputed work. No change. alteration or modification to, or deviation from, this Agreement or 1hc Contract Documents, whetl1cr made in the manner provided In this section or not, sl1all release or exonerate, in whole or in part., any bond or any surety on any bond given in connection with Ibis Agreemenl, and no nO(ice is required to be given to such surety of any such change, alteration. modification or deviation. Page2 Initial; 1/,/y,J SubcontracCor Bald,,ln & Sons, Inc. t'onlracl IJS7 Vlll•M• 2Sou1h-R<"clolmcd\V11c:r C"0>IC-mr 27•19 Job No 01-0020.,16/llACKDONli/l7,S, • $639.212,00 & 02-CJOl0·516/IN'TRAn"SflMS • S27.360.00 7 Liens and Stop Notices lfany claim, lien, stop notice or lawsuit Is filed fur any labor, services, cquipmonl or tn.11terials claimed to have been provided to or for the project by Subcontnctor's sulx:ontractors, materialmen or lcs.sors, or their subcontroctors, malcti11lmen or lessors or all tiers, Subcontnctor shall defend, indcmnjfy and hold Contractor hannless from such claim, lien, stop notice or lawsuit provided subcontractor has been paid for work pcrtalalna to such lien or claim. Within IO days of written demand by Contractor, Subcontractor shall cause the effect of any such claim, lien, stop notice or lawsuit to be removed from the project. and, if Subcontractor fails so to do, Contnetor, may use whatever meins it deems appropriate 10 cause that claim, lien, stop notice or lawsuit to be removed or dlnniS&od, and the costs thereof, including altomcy fees, shall be immediately due and payable: by Subcontractor to Contnctor. SubcontTector may litigate any such claim, lien, 5top notice or lawsuit, provided it ea uses the effect thereof to be promptly removed from the project and does everything else necessary to assure that Owner will not withhold money from Contractor by reason of such claim, lien, stop notice or lawsult. All money paid to Subcontractor pursuant 10 1his Agreiemcnt shall be impressed with a trust in favor of all laborers, subcontractors, mareri;dmcn and lessors furnishing labor, services, equipment or materials to Subcontractor for �,e work. 8 Inspection and Audit Subcontnictor ihall furnish to Owner, Contractor and their representatives, at ell limes, sarc end imple facilitie.s to inspect work and m1teri1ls 11 thejobsite and in any 1hops, fac1ories or other places where materials required under this Agreement are bcln1 prepared, processed, manufactured, fabricated or assembled. Subcontl'lctor shall fumish, as often as required by Owner, Contractor or their representatives, full report.� of the progress of the worlc at ■ny place where materials required under this Asreement arc being prepared. procmcd, manufactured, fabricated or assembled. Such reports shall be in such detAil es may be required by Owner, Contractor or their rq,rcsentalives, includina. but not limllcd to, plllnS, dnlwings and diagrams. lfo dispute arises between Conrractor and SubconlrllclOr the scope, narurc, quality or timing of any of Subcontractor's work, then, within 10 days of written demand by Cont.nctor, Subconlractor shall produce for inspection and audit by Contractor: (I) All agreements with, invoices from, and records of payment to subcontnlctors, materialmen end lessors for any labor, services, equipment or materials provided 10 or for the project; (2) all records of the lime Subcontractors own forces were employed on or for the project, and all n:cords of payments to and for those: fon:cs, inc.luding all payments of taxel and benefits; ind (3) all n:cords of work done by Subcontractor on or for the project that were made contemporaneously with the performance of that work. 9 Acceptance of Materials or Work of Others If Subcontractor's work Includes installation of materials or equipment furnished by others, or performance of work in arus conslTUctcd or prepared by others, Subcontractor shall examine at the time of delivery or first access, the items or areas so provided, and thereupon shall handle, store and Jnsrall the Items with the ,!till and care necessary to Insure a satisfac1ory completion of the work. Los� or damage to those items or areas due to acts or omissions of Subconmc1or shall be charged to tJ,c accounc of Subcontractor and deducted from money othawlsc due under this A&m:mcnr. 10 Protection of Work Subcontractor shell effectually secure and protect the work done hcn:under and assumes full responsibility for the condition thereof until final accep111nce by Agency, Owner and Contnctor. Subcontractor shall provide such measures as ■re necessary to prolect the work and the worl<men ofContractor, Owner end other con1n1ctors from Subcontractor's operations. Subcontractor shall be liable for any loss or damage: caused by It or Its ag�ts, employees or guests to any work in place or 10 any equipment or materials on thcjobsitc. Page3 Initial: Subeonlltc;tor I� 81ldwin & Sons. Inc. C'.onll"l<I �517 VIIL,ae 2 Sourh-Rc<l1l111<d W11.« C'bst C'odc· 27-IQ Job No. 02.0020-,1618ACKOONE/2MS · 1639.:m.oo & D2·0020•S IMNTRACTSl27-5S •S27.S60.00 11 .Jobsitc Representative Subcontractor shall keep A representative at lhc jobsite during all limes when Subcontn1ctors work is in progress, and such rc:prcscntalive shall be euthorized to rcpr=ent and bind Subcontractor in all mattcn related to Subcontractor's wori<. Prior lo commencement of work, Subcontractor sh:all notify Contractor of the identity of Subcontractors representative, and hcforc any change of rcprcsculative, Subcontractor shall notify Contractor of the identity of the ne\Y representative. 12 Compliance with Applicable Laws :and Regulations Subcontractor shall compty with all applicable federal," state and local laws ond regulations, includin11, but not limited lo, all provisions of lhc Fair labor Stand:mh Act, the Ami:ricaos with Disablliries Act, 11,e Family and Medical Leave Act, lhc California Labor Code, the California Fair Employmcnr and Housing Act and the California Family Righi$ Act Subcontnctor shall defend, indemnify and hold Contractor harmless from any fin.es, forfeitures, domagcs, liabilities, losses, pen•ltles, assessments, attorney's fees, costs or any other expenses arising out of or related in any way to Subcontl"ICtor's alleged or actual failure to comply with any federol, state or local laws or regulations. 13 Insurance and Bonding (See E.thiblt C) 14 Recourse by Contractor 14, l Failure of Performance 14.l.lRight to Adequate InsuranceWhen reasonable grounds for insecurity arise with respect to Subcontraeton perfonnance, Contractor may demand, in writing, adequate assurance of due performance Subconlractors failure to provide,within IO days, such assul'Dnce of due performance as is adequate under the circumstances is a defaultunder thi� A�mcnl. 14.1.2Notice to Cure If Subcontractor (a) refuses or neglects to supply enough properly skilled workers or proper maaerials, (b) fails to properly and diligently prosecute its work, {c:) falls to lllllke prompt payment to its workers,subcontractors, malerlalmen or lessors, (d) falls to make prompt payment to any he.Ith and welfare, pension, vacation, apprenticeship or other employee benefit progr1m or l1'\.1$1, (e) falls to provide adequate assurance of due performance, or (f) otherwise materially brcadu:s this Agreement, and fails within 48 hours atler receipt of written notice of such default to commence and diligently continue satisfactory and timely cor:recrion of the default, then Contractor, without prejudice to any other rights or remedies, may: (A) Supply such workers, materials, equipment and other facilltic:s u Contractor deems necessary 10complete all or any part of Subcontractors work, and to ch11rge the costs thereof to Subcontractor,plu.s a markup of IS¾ on those costs for overhead and profit;(B)Contract with others to perform such part of Subcontractors worlc as Contractor deems willprovide the most expeditious completion of the total work. and to charge the costs thcrcor toSubcontractor, plus III mukUp of 15% on those costs for overhead and profit; and(C)Withhold payment of any money due to Subcontractor lo the extent necessary to cover the costof the corrective action. In an emergency effecting the s11fety of person.� or property, Contractor may proceed as above without notice 10 Subconlnlctor. However Contnactor must notify Subcontractor of emergency within 48 hours of proc�ing with tl1c work. Pagc4 Joid�, w.J I I .,.Su..,.tx:-o"'"ntrsdO--,--· � lloldwln ls-. Inc. C'orUrxl#.SZ7 Vllloac 2 Soulh-Rcdmmcd Wiler C'DII Code 27•10 Job No. 02-CI020,Sl618ACICBONE/21-H-S6)9,2 ll.00 & 02-00l0·Sl61lNTRAC'TS/l7.J5 • t27.$60,00 14.1.3 TennJnation for Default If Subconltllctor fails to commence satlsfactoiy correction of a dcfllult within 48 hours aflcr receipt of a notice lo cure, or lo diligently continue satisl'aclory and timely corTeclion of the default thereafter, then Contractnr (a) may terminate Subcontractors right In pcrfonn under this Agreement, (b) may Ui!C any m11erials, equipment, tools or other facilities furnished by Subcontractor to complete Subcontractors work wiU1out any funhcr compensation to Subcontractor for such use, and (c) may furnish those materials, equipment, tools end other facilities to others to the extent Contractor deems necessary to maintain U1e orderly progress of the work. Subcontractor shall be entitled to no further payment unlll Ilic balance of Subcontmctors work hos been c:omplctcd. At that lime, 1111 of Ilic co!ts incurred by Contractor in performing Subcontractors work, plus a markup of I 5% on those costs for overhead nnd profit. shall be deducted from any money due or to become due lo Subcontractor. Subcontractor shall pay 10 Contractor any amount by which chose cosis and murkup exceed the unpaid balance of !lie Contract Price. 14.1.4 Grounds for Withholding Payment Contnc1or may withhold, or 011 account of subsequen1ly discovered evidence moy nullify, the whole or part of any payment IO the extent necessary lo protect Contractor from loss, including inve.,llgatJon and litigation c0$tS, 011 account of(!) any defective work not timely remedied; (2) any claim J)fescnted 10 Contnlctor or Owner by any worker, subcontractor, 1T111lerialman, lessor or employee benefit progn1m or ttust, (3) any failure to make proper payments lo any worker, subcontractor, material• men, lessor or employee benefit program or trust; (4) ■ reasonable doubt that this Agreement can be completed for the balance then unpaid; (S) any damage to Contractor or another conlrllclor for which Subcontractor is responsible; (6) any penalties assessed for Subcontractor's failure IO comply will, any st.ate, federal or local law or regulation; or (7) any other reason allowed by s1111e or federal law or this Agrc:cmenL When the reason for the withhold is rectified. such amounts as are then due and owing shall be paid or credited to Subcontractor. 14.2 Bankruptcy 14.2.l Termination Absent Cure lh receiver Is appointed for Subcon1T1clor, if Subcontractor makes an assignment for the benefit of credi1on, if Subcontractor seeks protection under the Bankruptcy Code or if Subcontrac1or commiu any Olher act of insolvency, Con1rae1or may terminate this Agreement, unless leplly barred from doing so, upon giving 48 hours written n01ice, by certified mall to Subcontractor, its trustee. and Its surety, If any, unless Subco111rac1or, the surety, or the trustee (a) promptly cure 111 defaults, (b) provide adequale assurance of future performance, (c) compensate Contnclor for aclual pecuniary loss resulting from S11ch defaults, and (d) assume the obligallons of Subcontractor within the statutory time limits .. 14.2.2 Interim RemedieslfSubcontractor Is not performing in accordance with the schedule of work at the lime or entering an Ofdet for relier; or at any subsequent lime, Contractor, while awaiting the decision or Subcontractor or its trus(cc lo reject or to accept this Agreement and provide adequate assurance of its ability 10 perfonn hereunder, may avail itself of such remedies as are reasonably neccssaty to meintaln the schedule of work. Contr11c1or may offic:r against any sums due or to be(:ome due to Subcon1rae1or all costs incum:d in pun uing any of such re.medics, including. but 1101 limited lo, rc.asonable ovcmcad, profil and actual attorney's fees incurred as a result of Subcontractors non•pcrfonn1nce. Subcontractor shall be liable for paymenl of any amount by which such costs exceed the unpaid balance of the Coalracl Price. 15 RJsk of Loss and Indemnity 15.1 Risk of Loss All worlc covered by this Agrecmc,nl, whether pcrfonned on or off of the jobsite, shall be al the risk of Subcontractor exclusively unlil the completed work is accepted by Con1rnctor. PageS lnilial: UAJ Sulx:onlnletOr R•Jd,-in & Sons, Inc. C-on1rac1 JSS7 vui,G" 2 Soull,-Rcclalmcd WM<r C-oJI Cod<: l7-tQ /ob HD. 02-0020-'16/ll,\CKBONf/27-Sj • S6J9,ll2 00 & 07-00l0-Sl6nN1 RI\CTS/27-jj • S-27,560.00 15.2 Scope of Indemnity Except that SubconU'aclor shall be required lo provide no ln<lcmnificuion precluded under California law. Subcontractor shall defend, indemnify ond hold harmless Owner and Contractor, and all of their officers, directors, partnm, joint ventures, agents, 1employees, affilia1cs, parents and subsidiaries("lndemnitccs" ), from any claims, demantls, cawes of action, damages. costs, expenses, anomey·s fees, los,es or liabilities, of every kind and nature whatsoever, arising out of or n:lated to Subcontractors operations under this Agreemcn� whether &rising during or after those operations (Claims), for. but not limited lo, the following: (a)Any personal injury, including, bul not limited to, bodily injury, emotional Injury,sicknes.,, disease or death to any person, including, but not limited co, any employees or 1genlSof Sub-contractor, Owner, Contractor, or any other contractor, alleged to be caused, in wholeor part, by any act or omission of Subcontrnctor, anyone directly or indirectly employed bySubcontractor or anyone for whose acts or omissions Subcontractor may be liable regardlessof whether such pc1'0nal injury is caused by a party indemnified hereunder.(b)Any damage lo property (Including diminution of value and loss of use) alleged to beCIU$ed, In whole or pllrt, by any act or omission of Subcont�ctor, anyone directly or indirectlyemployed by Subcon1r1ctor or anyone for whose acts Subcontnetor may be liable regardles.s ofwhether such property damage is caused by a party indemnified hereunder.(c) Any violation or Infraction of any law, ,111utc, ordinance, reaulatioo, rule, order, citationor slandard (including any penahies) arising out of any act or omission of Subcontrac1or or anyperson ror whose acts or omissions Subcontractor may be liable, including, but not limited to,those pertaining to occupational health and safety or the use or operation of equipment, hoistJ,elevators and sea ff olds.(d)Any alleged infringement of any patent ri&hlS or copyrights. (c)Any liens, nap notices or bond claims by subcontractors, laborers, matcrialmen, lessors,.govern-mental 1gmcics, unions or union tn1s1 funds, including oil lncidenllll or consequentialdamages resulting to C0111ractor or Owner from such liens, slop noliccs or bond claims providingSub-contractor has been paid for work pertaining lo such lic:n or cl■ Im.(f) Any alleged failure of Subcontractor, or any pcrsoa for whose acts or omissionsSubcontractor is responsible, 10 comply with the terms of this Agreement or tlie ContractDocuments, Including, but not limited 10, provisions perlaining to (I) safely and (2) insurance. The foregoing indemnity provisions apply regardless of any passive negligenr acr or omission of lndcnmitees. Subcootractor, however, shall not be obligated to indemnify Owner or Conlractor for claims arising from the sole negligence or willful misconduct of any Cndcmnitce or independent contractors who are directly responsible to lndemnitecs, or for defects in design furnished by such persons. Subcontraclor's indemnity obligations under this section arc not affected by insurance. Subconlnlctor shall pay ■nd satisfy any judgment or decree rcndcretl ag11insl any Jndemnilee Subcontraetor shall reimburse lndemnitecs for any expenses, costs or fees incum:d by any of them in enforcing any indemnity granted in this section. Subcontractor shall, al Subconlnlctors own cost, expense and risk, defend (with independent counsel reasonably approved by Conlractor) all claims, cause.s of 11clion, adminlslnltive proceedings, lawsui1s and arbitrations brought against lndtnmitees by ,ny third persons, including, but nol limited to, govern mental agencies or employees of Subcontracror. 16 Compliance with All Laws and Safety Practices Subcontractor shall comply fully with all laws, starures. onlinanees, regulations, rules, orders, cit1lions and standards applicable to this Agreement or its performance, including. but not limited to, those pertaining lo occupational health and safety, handling and storage of heurdous materials. accident prevention, safety equipment and practices, including the accitlcnt prevention and ufety ograms of Owner em.I Contractor. Subcontractor shall conduct inspections to determine that afc worlcing conditions and equipment cicist wherever Subcontractor i::ondncts any operations. Suhcon etor accepts Page 6 Initial: -r/ I Subconlnlelor --=!'-,�!'-\:- Baldwin & Som, Inc. Conlrlc:I fSB1 VlllaF2Soulh-Rcclnlmcd Waler C-011 C-odc 27-19 Job I-lo. 02-0020-'16/DACKBONE/21•5$. $6)9.212.00 A 01-00:l0,516/INTRACTS/27,,S • S27,'60 00 sole rc.1ponsibility for providing n safe place to work for it, employees and for lhe employees of its subcoouac1ors end suppliers, for the adequacy of 11nd required use of ell safety equipment and for full compliance with the aforesaid laws, statulcs, ordinances, rcgul1tio11s, Nies, orders, citations and s1andards. 17 Warranty Subcontractor warrants to Owner and Contn1c1or 1h11 all malcriels and equipment furnished shall be new, unless otherwise specified, and that all worlc under this Agrccmenl shall be perfunncd in II good and workmanlike manner, free from faults and dtfccts, and in conformance wi1h the Contract Documents. All wort failing to conform to these requirements, including substitulions not properly authorized, may be considered defective. The warranty provided In thi� section is in addition to, and not in limilation of, any 01her warranly required by law or tho Conttact Documents. 18 Use of Contractor's Equipment If Subcontractor uses Contractors labor, equipmenl, materials or f11cilitics, Subcontraclor shallreimburse Contractor a.I the agreed-upon rate, unless otherwise provided in this Agn:emenl Subcon1n1etor ah■II accept Contractor's labor, equlpmeru, materials or (eeilities u-is and without w■rra nties of any kind. Subcontroctor assumes nil rcspoiuibility for any damage to any equipment, materials and facilities used by Subcontractor or its agents, employees or permilees. Subcontractor shall be respoosible for all acts or omissions of Contractors employees while Subco11u-ac1or is using them. 19 Assignment of Contract Subcon1ractor shall not, without written consent of Contnrctor, assign, l11111$ftr or sublet any portion or part of tho work rcquin:d by this Agreement, nor assign any payment hereunder to od1ers. 20 Jmdependent Contractor Subcontractor is en independenl contr1ctor. Subcontractor shall, at its sole cost and C.'tpense, end willrout any increa5e in lite Con1111c1 Price, (a) comply with all laws, sl1tulcs, ordinaoces, regulations, rules, orders, ci1.1tions and standards of all governing bodies having jurisdiction over the worlc, (b) obtain all necessary pcrm1ts and licenses required for Subcontractor's work. (c) pay all value-added tucs, manufachlrers taites, sales taXC$, use taxes and processing taxes, (d) pay for all parking fees, end (e) pay all insurance premiums, federal taxes, state lllXes and contributions for social security and unemployment, which an: measured by w■ges, snlarlt$, or orher remunerations paid to Subcontractors cmployeCJ, whether levied under existing or subsequently enacted laws, rules or replations. Upon n:ques11, Subcontractor sliulll furnish evidence satisfactory to Conrractor that all of lhe foregoing obligations have been fulfilled. 21 Cleanup Subcontraclor shall maintain the jobsite in a clean, safe end orderly condition. Upon comple-tion of Its work, Subcontractor 5hllll remove from thejobsile all hazardous mareriols, temporary suucturcs, debris :and waste incident lo its operations and shall clean 11ll surfaces, fixcures, equipment and olher pieces where Subcontnctor performed any work. If Subcontractor fails to fulfill its obligations under this section, Contractor may use whatever means it deems appropriate to cause that clean-up to be performed, and the costs then:of shall be immediately due and payable by Subcontrac1or to Conlr,actor. 22 Special Provisions All documents and U1ings gcnc,ra1ed under rhis Subcontract, including. but not limited lo, all CAD files, shall be works made for hire by Subcon1nic1or for the benefit of Contractor, and Contn1etor shall own all proprictaiy rights, including copyrights in such documents and t.hlnigs. Contractors arc required to be licensed and regulaled by the Contractors Stile License Board lras jurisdiction to invcstig■tc (a) complaints about any patent acts or omission., wi of the elate of the act or omission, and (bl complaints about any latent acts or omi$sio Page 7 Ba1clwin & Sons, loc. Conll'ICl #S87 Villop<: l SO<Jtll-RecuhllCd W11cr COJ1 t·ock: ll-19 /ob Na. 02-00l0-.11619AC'KBONr:127-5.S • $6)9.212.00 � 02-00?0-S 1611 NTRAC-TS/17-H -fl7.560.00 structurol defects within 10 years of the date of the ocl or omission. Qucsrions concerning a c-onrractor may be 11ddrtsscd to: Registrar, Contractors Stale License Board, P.O. Box 26000. Sacramento, CA 9::.826. Subcontracts and Other Agreements All ponioRS of the Work that the Contractor's orpnizalion does not pcrfonn shall be pcrfonned under subcontracts in accordance with the pcovisicns contained in these Coouact Documtnls. All subconlract, shall conform to the n:quirements of the Contract Docume111ts. By an appropriate wrirten ■gm:ment, 1he Contnclor shall n:qulrc each Subcontractor, 10 the extent of llte Work to be petformed by theSubcontraclor, to be bound lo the Contractor by the terms of the Contnct Documents, and to assume toward theContractor all the obligatioos and n:sponsibilitics which the Contractor, by these Contnct Documents, assumes.Said agreement shall preserve and protect the rights of Contractor under the Contract Document� with respect tothe Work to be penonned by the Sttbcoau�ctor so that the subcontrac1ing thereof will nO( prejudice such rights,and shall allow to t11e Subcon1n1c1or, unless specifically provided olhuwisc in the Contnctor-Subcontraclora,remient, the benefit ofall righ!S, remedies and rcdrcss against the Contractor. Whcl-c appropriate, the Contractorshall require each subcontractor ID enter into similar 1gieements \\ilh hl_s Sub-subcontractors. The Contr■Clor shallmake avallablc to each proposed s\lbcontractor, prior to the execution of the subcontnct, copie of the ContractDocuments to which the Subcontractor will be bound and identify to 1hc Subcon,tractor �ny tenns and conditions of lhe proposed Subcontract which may be at variance with the Contract Documeiits. Each Subcontraetor shall similarly moke copies of such documc:nts available to his Sub-Subcon1r11ctors. Provided Owner pays Contrilctor as provided in these ConlJlld Documents, Contractor shall promplly pay 111 bills for labor and material f!'rfonncd and furnished by iu Subc1m1r1c1m, m11!:rialm� and supplil:rli in conn�lon with the constnJction, fumishing and equipping of the Improvements on the Project and the performance or the Work. Each subcontnK:t shall con lain a provision for a retffltion of ten percent (10-/4), with such retention 10 be payable upon full �eipt of final payment by Contractor from Owner pur.1uant 10 1he provisions of Paragniph 9.5 of these GenC1111I Condirions; provided, however, that upon request by Contr.ictor, retention amount. or if approved, paymerit in ru11 of the retention 11moun1, shall be made by Owner to selected Subcontractors whose work is fully completed during the cerly itage or 1he Project. Feden1l Arbitratlon Act Cootractor end Subcontractor acknowledge 1hat because many of the materials and products incorporated in10 the home an: manuf1cturcd in other .states, this Agreement evidence, a transaction involvlng inlcrstate wmmen:e end the federal Arbitration Acl (9 U.S.C. Section I, et seq.) now in elTcct and as It may be hereafter amended will govern the inlcrpn:tation ■nd enforcement oflhe arbitntion provisions of d1is Agr.:cmcnt Agreement to arbitration of dl,putes By e,cccuting this agreement, Contractor and Subcontra.ct01 agree to have any dispute decided by neutral arbitration in accordance with the federal 1rblb1tion eel and the California arbiln1ion act, to the c.-ttcnt the Caliromia arbitration act is consistent wilh the federal arbitration act, end Conlractor and Subcontractor are giving up any ri3bts Contractor and Subcontractor might possess to have the dispute lltipted in e court or jury trial. Contractor and Subconlractor are giving up their respcclive judicial rights to discovery and appeal, unless those rights arc specifie-elly Included in this section 12. If Conrnclor or Subcontractor refused lo submit to arbitra1ion after agreeing to this provision, such piny may be compelled to erbitnte under the federal arbitration act and the California arbitration act, to lhe extent the California arbitration act is conslstcnl with the federal arbitration act Final end Binding Award Th; da;ision of th; arbilritor or, if an •P�•l is h�rd, lhe d�ision of !he •11�1 1!bi1Btors, shall be liool and binding. A petition to confirm, vacate, modify or cOrTCcl an award may be filed In 11ny court of competent jurisdiccion in tho county in which the Projccr is located, but the award may be vacated, modified or corrected only as pcnnincd by the Federal Arbitration Act. PageS Initial: IMa/ Sllbtonll'DCIOI' I� to to voidable Delays or Ooldwin , S0111, Inc. C'c>•«nlCI lf.SE7 Vilbs:• 2 Soulh-Reclalmtd WIICI' C'asl ('ode,: 27-1 Q Job Mo. 01-0020-$16/IIAC'KBONF.nM.s-SdJ9,21l.OO t: 02-0020-316/INTRhCTSm-ss • .S27..S60.00 Subcontrador hu ■greed 1h11t it will bllild Otoy Ranch Village 2 SoutJ, Reclaimed W11er, which is the subject or this agreement, among odierhnprovcmcnts required by Olny W11ter District and/or d1e Clcy of Chula Vista. Exhibit A Drawing Lisi ■nd Documents Exhibit B Scope of Work Exhibit C Insurance ■nd Bonding Exhibit D Invoice Sample E.'<hibit E Subconltlctors Terms Exhibit F Subconll'llclOr's Bi() Proposal Exhibit G Bid Notes Sicned on: � /3" SUBCONTRACTOR Cass Construction P.O. Box 309 El Cajon, CA 92020-0309 •2016 By. ............ /44.�..:;_;�:c__--- Titlc:_-f1 .... r:'--,��.,,• .-k'::"-lt..L. ___ _ Oote:__,.,¢.L.Jlili��/ft.--__ _ Page 10 Signed on: fl k( / 'j [11:-- CONTRACTOR Baldwin & Sons, Inc. 610 West Ash Street ,2016 By. sz:v � Title;'. 8-t.Mrf\ �1.1,aintel'id Cl\ r L --/61-fi/_ Date:_aa..7_ ........ _...__/ __ t:? ____ _ Initial: WI Subc:oolt1clor I� Oald'"UI 6 So-. In�. C'or.ox1 /#SU Vllloa• 2 Sootlll-ll&lalmc,I Waler Cati Code: 27-11) Job No. 0l-OOJ�,t�ACICJIONE/27-JJ • $639,212.00 � 0l-l020-J 16/INTlti\C"TS/27-JJ • sn.soo.oo Page: 11 Exhibit A Document and Orawins List Bid Set I.Subcontract Asr=ment and all Exhibits. 2. Project Plans/Documents collectively called "Project Drawings" labeled: a.INTRACT & IMPROVEMENT plans, prepared by HUNSAKER & ASSOCIATES dated 7/10/IS sheets! thru 26, and BACKBONE IMPROVEMENT plans, prepared by HUNSAKER & ASSOCIATES dated 9/02/15, Sheets 1-30 and the soils report dated June 611 2014 prepared by GEOCONJNC. 3.Geotcchnical Information a."Otey Ranch Village 2 South -Update Oeotechnlcal Report" dated June 6, 2014 prepared by Gecxon. (Electronic file ·•v2 South Geotechnical Report Update (6-6-14).pdr') Daldwlii & SDU. Inc. C'on1111:1 WJU \/Olaic:2 SO<ltb-ll«IAlmcd W11et C'o,1 ('ode: 27-J? Job No. 02-0020-516!01\CKnONE/27-Jj. S639,2 ll 00 I:. Ol-0020-jl61JJiTRAC"TS/27-jj • 527,SGO.no Exhibit B SCOPE OF WORK This allechment shall nol limit more stringent ri:quin:men1s fouml elsewhere in the contract documents unless specifically listed as an exclusion below. This Exhibit is intended 10 ,upplement the Subcontract Agreement. In the event thar thc:rc is a cooflict fo language or intent. the tams and conditions or Subcontract shall prevail. The SUBCONTRACTOR under this AOREEMENT has n:pn:set1tcd himself as an expert and as such h.as included in his Schedule of Prices, all or the following unless norcd otherwise, labor, material, inS1allation, s1on1gc, tnnsportation, supervision and all applicable taxes and n:-inspection fees. Conslnlction Drawings, described in the Description of Materials, listed hm:io or n(l( specifitally shown, but reasonably Inferable for the completion of the project indicated, shall be included as part of this CONTRACT. SUBCONTRACTOR Is to pcrfonn a complete ·'Tal:e-011'" of bid set plans: SUBCONTRACTOR ls not lo ilSSume the quantities listed are ec:curote. In the event the scope ofwor1c changes or the approved plans dilTCI' from the bid set, R Change Order will be issued afler the scope, price nnd or quantity h.n.s been ogrced upon by both parties. It is the SUBCONTRACTOR'S rcsponsibility to provide the revisions in writing within 45 days of reeeipt of 1he approved plans; feilun: 10 do so will result in non-payment of requested additi0ru1. SUBCONTRACTOR is to provide et rime of bid subminal a copy of his 1ime, Materials, Equipment Rate Sheet and a detailed limelinc schedule or all activities from commenc.emcnt through completion SUBCONTRACTOR is required to upda1c and forward o copy oflhe schedule 10 CONTRACTOR"S Representative II theCONTR.I\CTOR ·srequest every Monday by I 0:00 am unril the project is compiclc. SUDC01'ITRACTOR is ID foll-ow lhe Instructions onnchcd 10 the ·'Stlllldord lm-oice Form-oflhis Contract ns stat.:d, FAILURE TO COMPLY WILL RESULT IN THE RETURN OF YOUR INVOICE PACKAGE AND A DELAY IN PAYMENT. I)SUBCONTRACTOR hereby represents and warrants lo CONTRACTOR lhll he is licensed by the Slale ofCalifornia to perform the Worlc and is experienced in and competent 10 perform 1he Wo,t, 2)SUBCONTRACTOR acknowledges 1hal he hos visited the site 10d reviewed all construction documents,is familiar with and h:as provided for the conditions that aist thereon. 3)The SUBCONTRACTOR acknowledges C1amining and receiving the approved plans and specificationsfor 1his work and guarani= 10 constrvct the improvements as designed. 4)SUBCONTRACTOR has �cwcd the plans, and all governing codes having jurisdiction over such work.SUBCONTRACTOR undcrstend5 Ute governing agencies slandards end specifications and has iocluded allilems necessary for a comple1e and acccp11ble job. No extns or premiums shall be p3id 10 SUBCONTRACTOR due to SUBCONTRACTORS failure lo know codes or agency specificationsgoverning such work. S)All 1na1crial will be free from defects occurring in manufacturing and/or delivery process.SUBCONTRACTOR shall replace m11lc1iols irthey don't meel approved specification. 6)SUBCONTRACTOR shell provide all labor, mare-rial, tools and cquipmcnl necessary IQ 1=ompfe,; the joba,nd all the work reasonably Inferable from the construction documents. 7)SUBCONTRACTOR shall complete all work per approved plans, cu�t 11andards, specifica1ions 1ndM!"'"""m"-,.,,, """'"'" ,r m,ori, ... ,,.;,.;., ""' ••m ... ,, .... , .. by CO � OR pnor to commencement. Page 12 lnitial: � / S11bcoutrael0t' Bald . ltdldwin & Sc;,,. Ifie. ('11111mc1 111R7 Vilb�cl Sou1h-Rccl•bncd Wo1cr C'osi C'oJ< 27-19 Job No. 0l.00l0-Sl618AC"KDONFJ27-5' • S639,212.0D & 02-ooza.,16/tNTRACTS/27-SS-S27,S60 00 8)SUBCONTRACTOR shall 1alt0 every pn:caution and provide suitable means 10 protect finished work/work in progress from dAniage (including weather and stonn cvcnls), TI1e c:ost of proteccion and/or rq,alrof the SUBCONTRACTOR'S work as nffected by storm waters during, inclement weathc!r,.shall be lheSUBCONTRACTOR'S responsibility untfl the CONTRACTOR has accepted the she. The SUBCONTRACTOR shftll be further resporuible for cwn11ge lo adjacent propcnics or improvements es arcsul1 of his nol pro1cc1ing ,uch areas from stonn waters flowing 0111 of his work aren. Progres.sive payn1entsby CONTRACTOR shnll nol bt cons\rued as indicating lhe CONTRACTOR'S occcptan� of1he work 9)SUBCONTRACTOR shall, at his own expense, correct any work that is no1 acceptable to 1heCONTRACTOR. I 0) Any e.�pcnse incurred lhrougll CtTOr, incompetence, or negligence on lhe part or the SUBCONTRACTORwill be home by lhe SUBCONTRACTOR. 11)SUBCONTRACTOR shall be l'C$ponsible for verifying with lhc: CONTRACTOR's n:prcscntacive thatSUBCONTRACTOR has all the l111est sets of plans and specifications P"P•red and approved for con�trucllon. CONTRACTOR will notify SUBCONTRACTOR of plan changes. 12)SUBCONTRACTOR agrees to correct any end all pick up work that is not complelcd during constructionor that is found unsatisfaclory due to SUBCONTRACTOR'S workmanship or f■ully mlllerials in e timely manner. 13) Notwilhstanding the exercise by CONTRACTOR of aoy remedies provided in the CONTRACTAGREEMENT, including but not limltcd 10 lennfna.llon of SUBCONTRACTOR'S righr to proceed with the work, SUBCONTRACTOR shall not be ilischarged from any guarantee or responsibilities for workperfonncd or materials supplied and shall remain liable therefore I◄) Should 1l1is AGREEMENT be termin11ed for any reason. CONTRACTOR shall requireSUBCONTRACTOR to provide I Letler of Cl'l'dil or I Pcrform11ncc Bond equal 10 ten pen:cnt ( I 0%) ofcompleted contnlct work for a periou of one year 10 cover the warranty obligation of 1hcSUBCONTRACTOR. CONTRACTOR to pay for lhc cost of the Perfonn11nce Bond. 15) All of the SUBCONTRACTOR·s equipment and/or rented equipment used lo complclc lhe Work ofimprovement defined in this Agrccmenc shall be maintained in a aood stale of rqiair. Eicpenscs incurredby the CONTRACTOR due co break.downs of d1e SUBCONTRACToR·s equipment causing excessivedelay of the schedule· shall be back cb111cd 10 the SUBCONTRACTOR. 16) 'If SUBCONTRACTOR causes damage to materials, site or workmanship furnished by ocher trades, SUBCONTRACTOR wiU be held responsible for the cost of repair. If SUBCONTRACTOR fails to repair damages Immediately and causes CONTRACTOR delay in scheduling and/or causes CONTRACTOR rornalte repairs, the costs incum:d by CONTRACTOR will be back-charged to SUBCONTRACTOR. 17)SUBCONTRACTOR shall be responsible for the damage sust1ined by CONTRACTOR. including I.herepair/ replacement of SUBCONTRACTOR'S work as necessary, if said work is placed over known faultyworkmanship by SUBCONTRACTOR or others in re!acioo to the lnsmllarlon of his wor1<. 18) SUBCONTRACTOR shall cooperate and coordinate with the CONTRACTOR'S schedulin, of oiliertrades. 19)SUBCONTRACTOR. shall, upon receipt of signed contract, order all necessary materials so as 10 preventany loss of lime on CONTRACTOR·s production schedule. 20)SUBCONTRACTOR. shall follow progress cf job tnd rnainlain sufficient stock to keep up with metprogress. 21)All or nny portion of the work oulhorizcd by this CONTRACT maybe canceled due to marke1 conditions Page 13 or other factor, el 1he sole di.scretion of the CONTRACTOR and Ille SUBCONTRACTOR s I be p11idfor 1he ponion of the work completed and other actual costs incurred at the 1ime of such cane l■rio . Initial: \Ml Subconl11ctar Ba lllldlVln & Stw. Inc, rnntmet #587 Vllla,c 2 Sooth-Rccl1hncJ Wtltt C'OII C"odc: 27-19 Job No. 0:.()021l,J16/8AC'KBONE/27-JJ • S6J9.212 00 & 02.()02�510/INTRAC'TS/27-SJ • S27,.5CIO.DO 22) All work lo be completed In accordance with CONTII.ACTOR'S mutually •greeablc schctlulc. 23)SUBCONTRACTOR is hereby aler1ed that he must be prepared lo lntem.tpl his consrruction schedule 10 provide for the work of othc,s and thcn:by prevent a connicr or damage lo his own or other underground facilities. 24} SUBCONTRACTOR agrees that the amount of the CONTRACT represents a l�/4 complete job 11nd includcJ completion of all pick up work within ten ( 10) working days of notification. 25)SUBCONTRACTOR shell furnish the CONTRACTOR'S rcpr?Smtotive with the name. _____ ..,... _____ ,--and tc·lcphone number __________ _ of II person to contact for emergency work. 26) SUBCONTRACTOR shall at all limes provide knowledgeable/ responsible on-site supavision for this q>ention. 27) :SUBCONTRACTOR shall endeavor at all times to keep his WOt'k area IICIII, safe & clean. 28}The cost of cleanup of all dirt on public streets {including 1rack-ou1) generated by SUBCONTRACTOR ·swork is included as a part of this AGREEMENT. This does not mean wubina the dirt from the s1rce1 intolhc Catch 8ll$il\S and the Stonn Drain system. This meon, �sweeping·· either by hand or m�hinc. 29) The cost of cleanup of all Wdste materials, generated by SUBCONTRACTOR. 30)SUBCONTRACTOR will begin work in tbe area designaled by CONTRACTOR and cooperate with the CONTRACTOR in regard ro, CONTRACTOR'S scheduling ofconstruc1io11 and subsequent trades 31) SUBCONTRACTOR is responsible for unloading of all their material. 32) Price of contracts or change order items shall include manufact\Jrc and installation, applicable 14:ccs and e11nagc. 33} SUBCONTRACTOR shall be responsible for any subsequent lot blue top staking or otha-constructionstakine ond gr11dlng resulting from SUBCONTRACTOR ·s ca�lessncss. 34)The SUBCONTRACTOR sball obtain and pay for all licenses requiml to c�ccutc the worlc and the costd1cm:if shall be included in the unit prices �iarcd bmin. 35) II is the SUBCONTRACTOR'S responsibility lo hove on lhcjob site a set of approved plans and cul sheets at all times. If al'iy worit is done conlraty to the approved cut sheets, it shall be done at SUBCONTRACTOR'S own risk. 36}SUBCONTRACTOR shall compare the cut sheets with the approved plans and notify the CONTRACTOR of any discrepancies. 37)SUBCONTRACTOR shall install his items of work al those elevations (clcp<hs) shown on the approvedplRns. 38) SUBCONTRACTOR is responsible for notifying '·DIG ALERT' (mark-out service) I 800 227-2600 48 hours prior to any eiicavutions. 39} SUBCONTRACTOR is responsible 10 call for, schedule, and pass all required t�ts and inspections for all ,v-ork u it n:l11te$ to lhc:SUBCONTRACTOR"S seopeofwork. 40) SUBCONTRACTOR is required 10 "Pol Hole" ALL e:dsting underground u1ili1ics whether plans or not within the scope of his work limils. Page 14 11114,,i n & S9fl!. Inc, ("oqlfi�I �,uVlllo�c-2 South-Ra:l1hnal W14.cr Coot Code 27°19 Job No. 02•0020,516/llACKDONl:/27•'1 • $639,l llJID� 02·00JO-,i6/INTRACTS/l7•'' • S21_,60 00 41} 42) 43) 44) 45) 46) 47) 48) 49) SO) 51) 52) Page IS It is undmtood and agreed hciwn that alcoholic hcveragcs, chihllCll ,nd pets an: .!!£! pennined on tl1e conslruction site at nny time. It is the �nslbility of SUBCOl'ITRACTOR lo enforce !his policy with his work=. Failu� to comply will constitulc grounds for n:voe11tion of this CONTRACT AGREEMENT. SUBCONiRACTOR shall, upon award of a Conlr.lct, provide all MSDS infonnation to the CONTRACTOR's rcp11:$t:IIL111ivc ot time of the preconstruclion meeting or prior lo any deli�·cry of ony MSDS sensitive materials to the project she. SUBCONTRACTOR. his employees, and his sub-SUBCONTRACTORs shall be knowledgeable and comply wilh the requirement! or(CAL) OSHA. SUBCONTRACTOR shall immedialely correct any unsafe condition crea1cd by the SUBCONTRACTOR as • result of their woric, to the s11isfacrlon of lite CONTRACTOR"s n:p�nt.nlives. SUBCONTRACTOR shall furnish the CONTRACTOR"s rcptit$Cnlodve with Werner $her end telephone number lplq ·S'W ·O'l'l.."1compclcnt pctSOl1 as ttquircd by OSHA. the nome of their SUBCONTRACTOR shall fi1mish tJ1c CON'"mACTOR's re!rcs.:nlntive \\hh the name _.,\":lc.=? ......... n,=;..er.__0 ...... ·<;, .... b .... , .... r....._ __ and number 1, )'\ . '5"'\ 0 . D 'l 2fl oflhcir Safely supavisor. SUBCONTRACTOR shall provide drinking watu for its employees per OSHA requirements. Materials and constniction methods shall conform ltO the lelesl edition of the design and construction standards of the Local Authority ,nd any other agencies h1vin1jurildic1ion within the service area of the project SUBCONTRACTOR shall also comply with oll safety requirements set forth by CAL OSHA CONTRACTOR shall provide Conwuction water. SUBCONTRACTOR shell supply all equipment and labor to distribure water for �ding, compactioo and dust control in accordance with A.Q.M.O. fugitive dust conlrol regulation #403. Soils li:stine to be completed by CONTRACTOR"S soils engineer. Re-tests due lo failures caused by SUBCONTRACTOR. will be back charged 10 SUBCONTRACTOR. All compoclion shall be tested by CONTRACTOR'S soils engineers for compliance. CONTRACTOR sh:JII provide one s(t of CJ1iµn¢er0S slllk�'1. Rl!Stokin& due lo the negligence or emir of SUBCONTRACTOR'S workmen wlll be bockchnrged to SUBCONTRACTOR. SUBCONTRACTOR. is required 10 know, undentand and comply with the requirements of The Sr ate Water Quality Control Board as it directly �hues to SUBCONTRACTOR'S ,cope of work. a)All consuuction activities shall be CMicd out in Ml ct>mpliance with the General CoastructlonPermit issued by the Stare Water Quality Control Board fur the purpose of preventing pollulantsfrom leaving the construction she and enraing the municipal stt>rm wacer system, pursuant to Section 401 (p) ofrhc Fedc:nil Clean Water AcL b)As required by the Gcnml Construction Pcnnit.. a Stonnwom Pollu1ion Prevention Plan(SWPPP) shall be provided by CONTRACTOR and shall be mainrainc:d onsitc and available forlnspccrion. It is the responsibility of each SUBCONTRACTOR co CI\S\Jrc that the measures contained in the SWPPP plan aod NPDES General and Regional Pam its, to prevent unaurhorized discharges into municipal stonn water systems, ore carried out for all work paformcd on this site. Any person or group who violated any conditions of the SWPPP and/or General Pc:nnit may besubject 10 substllntial penalties in accordance with Section 3()1) of the Clean W,1er Act and the Porter-Cologne Water Quality Control Act. You are encouraged 10 advise each of your employees working on this projCCI of the pollu1ion prevention plan end permit reaulalions governing thisprojectc)Payment of any fines or penahies levied by local, s1111c, ur federal agencies for failure 10 complywith the General ConstnJction Permil shall be the responsibility orrhc SUBCONTRACTOR, andthe SUBCONTRACTOR shall hold CONTRACTOR hannlcss against all claims, ands and lnilial: # SU�lrllGlllr Bolch•�• & Sons. ,� ron1me1 _,&1 Vilbce 2 Sou1h-R<:clafm<d Wlf OT C-011 !"ode: 27-1� Job No. 02,0020..! 1619ACKBONE/Z7•.!S • S6J9,212.00 & 0l-0020., 16/INTRACTSllMS-S17..500.00 linbili1y for damages for pcr3ons or properly arising from or connected to compliance with rhc General Constroction Penni I and the SW PPP. d)Erosion &nd sediment control BMPs slulll he pro1cc1ed in place. Any BMPs, which an: rcqui�dto be removed, shall be c:arc(ully stockpiled. BMPs shall be rcinslallcd by SUBCONTRACTORprior to any fon."CIISted 111instonn ond upon ccm!)lction of SUl3CONTRACTOR'S work. Allstockpiled material generated by SUBCONTRACTOR shall be pro<eelt<l by requl� BMPs. S3) SUBCONTRACTOR is required to know, understand and comply with The Environmental Hcal1h and Safely requirements. a)The safe Drinking Water and To�ic Enforccmmt ect of 1986 (Proposition 65) prohibits emplo�sfrom knowingly dbcharging or releasing a. themlc:al known to the state of California lo causecancer, birth defects or other reproductive hann into Willer or onto land when: such chemicalpasses or probably will pass into any source of drinking water notwithstanding any other provisionor 1uthorize1ion of law except as provided in scclion 25249.9 of tl1e Toxic Enforcement Act of 1986. SUBCONTRACTOR hmby egrecs to comply with all provisions of lhis Act relating to the discharge orhazurdoUJ chem!cnls on the job site. b)SUBCONTRACTOR further agrees that SUBCONTRACTOR, SUBCONTRACTOR'SEmployees and SUBCONTRACTOR·s sub-SUBCOl'rrRACTORs shall not discharge suchchemicals on the job site, shill n(){ engage in clean-up or discharge of such chemicals, and shallupon compfction of perfonnance of all duties under the 1gn:emen t, remove all supplies, ma1m1lsand waste remaining on the job sire which, if ctposed could result i11 the discha11e of suchi:hcmii:als, SUBCONTRACTOR shall bear full fin1ncl1l responsibility, H bc1w1:cn the p1111ics ofthis conn-act, for the compliance of all persons menlioncd In lhe previous sentence. c)Should SUBCONlRACTOR. SUBCONTRACTOR"S Employees or SUBCON1RACTOR'Ssub-SUBCONTRACTO!u or their employees fail within 24 hours from the rime CONTRACTORissues SUBCONTRACTOR a wrilten notice of non-compliance or within the time of enabatement period specified by any go vemment agency, whichever �riod l.s shoro:rCONTRACTOR may give notice of default ID SUBCONTRACTOR. failure of SUBCONTRACTOR to cure such defaull wi1hin 24 hours afler such notice shall give CONTRACTOR the option to elect any and all rights for rcmcdie3 set forth in the AOREEMENT. S4) SUBCONTRACTOR understands tha1 any previous agreement (verbal or written) made by nny past or CUIT'Cnt CONTRACTOR employee not specified within lhis CONTRACT will not be honored. Any eittrl work Rquircd beyond this scope must be authorized by the CONTRACTOR'S on-site representative. 55) This is a UNIT PRICE CONTRACT. All quantities shall be field verified by the CONTRACTOR Field Manager prior to Invoicing. S6) Prices shall rcm8ln in effect for lhe duration of flny and all work under lhls Contract. 57)Request for payment of Retention shell be accompanied by a completed �Certification of SubslanlialCompletion� form (E:d!ibit "P' of this conlr&Ct where appllc:able). Reuntlon will only bc rcleDSed when oil.. AS BUILT'" drawing ha\·e been provided to CONTRACTOR or a letter (on SUBCONlRACTOR'S�'Letterhead'") Slatin& ''AI.L work was performed In occonlance 111th the npproved plans�. Ldler musl idcnrify tl1e plan name and includll type of work perft>rmc:d, loca1lon of work. time period of when workwas performed, Tract# and CONTRACTOR for which the work was pcrfonncd. S8) If required, SUBCONTRACTOR agrees to oblain a Bu�incss License, a copy of which shall be submincdto CONTRACTOR prior lo co111mcncemcnt of work. 59)SUBCONTRACTOR agrees 10 submit a copy of his cu1TC11t C1lifomia State SUBCOJIITRACTOR"sLicense to CONTRACTOR prior to commenccmenl of work. Page 16 Initial: � Subcontmdor I� lltklwln & Soos, Inc C"ootnlC! 11,&1 Vlll11clSoulh-Rrclalmcd\Vt1u C"ot!C"odc: l?-19 Job !"lo 02-0010-J 16/lll\C"KBONE/27•" • $639,212.00 & 02-00?�Sl6/INTRACTSll7•SS -$27,$60 00 Exhibit B-1 Reclaimed Water System -Seope of Work 1)CONTRACTOR shall inspect ALL EXISTING IMPROVEMENTS with the OWNER'S authorizedrcprcscnlativc to idaitify any damege prior lo his srarting work. Damage sh�ll be noted, ony additionaldamage shall be repaired al CONTRACTOR'S expense. 2)CONTRACT includes all labor, materials, tools and equipment necessary lo iruloll improvcmcn1s, per the INTRACT & IMPROVEMENT plans, prepared by HUNSAKER & ASSOCIATES dated 7/10/15 sheets I thru 26, and BACKBONE IMPROVEMENT plans, prepared by HUNSAKER & AS SOCIA TES dated 9/02/ I 5, Sheets 1-30 and the soils report dated June 6'' 2014 prepared by GEOCON INC. 3)Cono-act includes but is not limited to the following: 4) S) 6) 7) 8) 9) I 0) II) Page 17 a) All reclaimed watcdines (main & services) including locator wire (if required) per plans enc.I details. b)Valves (gate/ buucrny) and valve cans per plans and details. c)Finings (Tees, crosses, reducers, bends) per plans and dclails. d)Air vacs, air valves and blowoffs per plans and details. c)fire hyc.lRnts &:. Thrust Blocks, if required per plans, per plans &nd details. f)Waler services, mc1cr boxes wilh lids and eppuncnanccs per plans and dclBils g)All nece$Sat}' materials tnd markings as required by OTAV WATER DISTRICT, the City orCHULA VISTA and the Stnte of Colifomio requirements to dcsign�lc th� sys1em as a "Rccycl�Weter'' system. All w11cr system lrerlchcs shell be compacted to am inimum or90% compaction (Greater If RC1Juircd) and tt.1itt:d by soils engineers for c:ompliancc prior 10 equipment being Rmovcd from job site. E�cClS spoils from CONTRACTOR ·s trenches lo be evenly spn:ad along trenching line. All work to be completed in accordance wilh lhc plans prcp11red by HUNSAKER & ASSOCIATES and approV1:d by the City of CHULA VISTA and OTAY W11c:r DistricL CONTRACT inclucJcs testing as required by 1he Ciry of CHULA VISTA and OTAY Water District. SUBCONTRACTOR is to CI\Sllre proper backfill and achieve proper compae1ion including slun-y if required. SUBCONTRACTOR shall be responsible for final ■djustm011 of all valve cans and 1ppunenances upon cotnple1ion of srreet improvements as required by the City of CHULA VISTA •nd OTA Y W11e1 District SUBCONTRACTOR shall lnscall final paint as approved by the: City or CHULA VISTA uid OTA Y WATER DISTRICT on all fin: hydmt uscmblics and appurtenances irtcludin8 valve lids. SUBCONTRACTOR shall make adjusuncncs on fin; hyc.lran1s and air vacs upon completion of curb and gutter. Initial: \V\, Subcon�ctor I� O.ld' .. ln & SON. In<. C-omr1c1 Ull VOla,c: 2 Souoh-Rcolahcd W01a C"OOI C"nJc: 17-19 Job No. 0�-0020•5161DACKDONE/27•U • $6)9,212.00 � 02--0020•516/INTRAC"TS/27•.Sl • S27,.S60.00 12)Water M:rViccs, ih,:,quircd, 1holl be inslellcd and sccun:d with 2 X 4 pain1cd PURPLE and prolnlding ou1oflhc ground a minimum ofl'. 13)CONTRACT includes the pun:hase and lnsl■llotion of the water meter boxc�, the lowering of the service Into the mclcr box, and the final adjusunent of bo:ites upon c01npletion of the finish grade. Ir mcn:r boxesare located within Im: sidewalk, CONTRACTOR shall adjust boxes to finished grade prior tu d1e sidewalltbeing poured. 14)CONTRACT lachldcs all thrust blocks, mcchnnical joint adapton, rcsrralnina per dislrict s11ndards Mdnanged fillings, bends and valves needed for inst1llalion of water ,ysrem per plans. I 5) Includes all 1ie-ins lo existing water system per plans. 16)CONTRACT inch,des all end cap/plugs and temporary blow-offs as nttdcd. 17)SUBCONTRACTOR shall be responsible to maintain adequate measures to provide for Public Safety during process or trenching. while the �nch is opcA, during back-fill and compaction and for spoil piles inprocess. 18)SUBCONTRACTOR shall be B\llilable durln1 street sub gnide mce to raise valves end repair any tll!nchfailures. •• £ND OF SCOPEtt Page 18 Initial: W4AI Sullconcnctor ,Ji "' ll:lldmn a Sonr.. Inc. C-ani,xU•ll7 Vllll.ae lSouell-Rccloimcd Wal<f C'otl C'odc: 27-M Job NI>. Ol-OO?B-,iG/9AC'K80NE/27-Jl • S6.19.212.00 A 0l,00211'•516/INTitJ\C"TS/27•'$. SlUG0.00 PRICE: Reclaimed Water Backbone 02-0020-S l 6/BACKBONE/27-S5 SG39,212.00 lntncls 02-0020-516nNTRACTS/27-SS S 27,560.00 Subcontract amount S 666,772.00 Payment Schedule (I) Monthly proaress billina (2) JO% retention released 3 months after work completion. Accepted by: Cass Con.rtruct/011, l11c. Bn/rmir, & Sons, t,ic. By:� = By: u4ttL A-es,;/e,/1.t_ Tille; Title: Oca11:1I :i11RGd111eall1iDI D11e: ¢y1, Date: .5-l'=J-I� .. Page 19 Initial: 1"' SubcODltlclar ,-.k- 8.lldwfn 6 SOIII, Inc c-.. ,1111� �J:K7 Vnlaic l Sou1h-Ra:llimcd Wirer C'ost ('ode: 17-19 Job No 02 0020,516/lli\CKBONF-'27-H • $63'.211.00 & 02-0020-S 16/lN'TIVICT!;/27-SS • S27.SGO.OO Exhibit C INSURANCE APPENDIX (A)Insurance Requirements Pegc20 (I) I. Subcootncror, and or any of its subcontractors, suppliers, vendors, employees or personswhom is performing 11ny work under this agreement shall, at ils own expense, maintain ineffect 111 all rimes during the pcrfonn■nce of the work under the subconU'tlct, not Je5s than the following covcra1cs and limits or insurance which shall be maintained witll insurers,policy fonns and deductibles satisfactory 10 Baldwin & Sons, Inc. and the Owner. If Subcont111ctor, or any of its subcontractors, supplicrs, vendors, employees or persons uses existing coverage to comply with thc:sc req111ircmenls and tlu1t coverage does not meet therequirements sci forth herein, Subcontractor, or eny or its subcontractors, suppliers, vendors,employees or persons agrees to amend, supplement or endorse the e,tisting covcruge to do so, 01 no 1dditlonal cost 10 Baldwin & Sons, Inc .. (a)Workers' Compensation end Employer's Liability Insurance State Workers Compensation -coverage· as required by law. Employers LiebiliLy \Yithlimits not less than each of the following: •Sl,000,000 each accident for bodily injury; •Sl,000,000 policy limh for bodily injUT)' by disem: •SJ,000,000 each employee for bodily injury by disease. In eddition, coverage must Include II H'oh'f!r of S11brogatio11 Et1dorrffllelll in favor of Baldwin & Sons, Inc .. Owner and all other parties required of the Contn1ctor. (b)Commercial General Liability (COL) The primary limi1s of liability shall not be less than: Each Occurrence LimitPersonal Advertising Injury LimitProducts/Completed Openitions Aggregate Limit(Other than Products/Completed Opentions) St,000,000 Sl,000,000 S2,000,000 (I) CGL coverage shall include a "Pu l'roject Aggr,egnte Endorsen,en.lH andattached to the Certificate. (2)CGL coverage shall be written on ISO Occurrence fonn CG 00 OJ 1093 or anequivalent form providing cquiv■lonr coverage and shall cover liability arulng from premises, operations, independent con1111c1or., products-completetl opcnrioos, andpersonal and advertising injury. (3)Baldwi:n & Sons, Inc., its parent end affiliated companies, Owner and other parties required by Owner shall be ir,cfud•d as fnsurtds on the CGL, using ISOAdditional ln11urcd Endorsement CG 20 10 11 BS or an endo!'lement pmvidingequivalent completed operations coverage to the oddi1ion11I insureds. Thisinsurance for 1he additional insureds ,shall be as broad as lhe coverage provided forthe named Insured subcontnictor. (4)CGL covcraac shall include an El]dorscment stating: "Sucf, co,Y!rnge as is ajforded by11,/s policy for the b1mcjlr of the addllfonal inmn,d(s) is primary and any other co1f!ro1e mnlnlained by sudi nddi/101111/ lns11rtd(s) shall be non-contrlbuffng ll'ltl, the 1-ernge pro,·idcd under tltls policy." Initial: �� SubconllllClor O�ldwin & Sou. !ne. Cot1ll'ICI 11587 Vlllll;c 2 Scllrh-k.cclahnc� W>lct C'o11 ('I'd<; 27-IQ Job No, 02-0020-516/DACKOONEf.!7•55 • S639.2 ll.OO .� 02-0020-.ldMNTRAC'TS/27•5' • Sl7.560 00 Page 21 (5)COL Covenise should include a General Liability Wai11er of Subroga1iou in favorof B1'ldwin & Sons. Inc., its pnrcnc and ofliliatcd comp;inics, Owner end all otherparties required by Owner. (6)Subc:ontrac:tor 1hnll maintain CGL coverage for itself and all additional insureds forthe duration of the projeer and maintain Complete Operations coverage for illclfand e1c:h additional insured for at lean (S) years after completion of the WorkCommen:ial General Liabllily coveruac shall provide limit� es required fOf your!TIide in accordance with subsection i or ii below. Baldwin &: Sons, Inc. n:scrvesthe riglu to amend the required limits of insurance commcns1111tc with theSubc:ontnct0t1 risk. If the policy is In CJ1c:ess of • Subcontnctor SIR (self-insuredretention), the amount of such SIR must be clearly identified on the Cenificate of Insurance. Baldwin & Sons, Inc:. l"C!ervcs the right to n:jcc:t the application of such SIR, or require the Subcontrac:tor 10 provide a bond on the SIR at no additional cC1.1t 10 Bftldwin & Sons, Inc. (i)Specified Trodes: (Defined as Excavation, Shoring. Demolition, Crane rclnledwor:tc, Exterior Skin, Stci:1 Erection. .Metal Deckina over three (3) stories, Roofing.Waterproofing. Fire Protcc1ion, Mechanical and Electrical. Arc:hilects, Engine�. Coruulrants and Design/Install Subconll'Bclors must provide this :level ofcoverage: in addition to the Professional Liability lnurancc described In Item ebelow.) The Limits of Liability for Bodily lnjury and Property DamRge underchis section shall not be less than: $4.000,000 SS,000,000 $5,000,000 Each Occurrence; Products/Comple1ed Operations Aggr;egate; Oencnl Aggregate (ii)All Other Trades: The Limil5 of Liability for Bodily Injury and PropertyDam•gc nnder tl1i1 section sh■IJ not be less than; 52,000,000 S2,000,000 $2,000,000 Each Occurrence; Products/Completed Operations Aggregate; General Agarcaale. (c) Automobile Insurance Sl,000,000 Each Accident (I)Business Auto Coverage must include coV1:rage for Bodily lnjwy and PropertyDamage Liability lnsurencc includi1111, but not limited to owned autos, hired ornon-owned autos. (2)Baldwin & Sons, Inc., 115 parent and affiliated companies, Owner and other partiesrequired by Owner shall be included as Insureds on the auto policy. (3)Covc111gc sho11ld incl11<lc an Aulo Liability Waiver of Subrogation Endorsement infavor o! Baldwin & Sons, Inc., its parent and affiliated companic.s, Owner and otherparties required by Owner.(Note: Requinments a, b and c may be sotisfied 11.si11g a11y combi11atfo11 of primary and excess/umbrella liability fnsura,ice) (d)Utnbrclla/Exccss Insurance (1)Umbrella/Excess coven1gt must include as insureds all entities that arc additionalinsurcus on the COL (2) Umbrella/Excess coverage for such additlonal insureds shall apply as primary before any other insurance, including any deductible, 1Mint1incd by, or provided to theadditional insured other than the COL Auto Liability and Employers Oal1h1,1n & Soos. Inc. C-111,ncc U&7 Vlllasc l Sovd1-Rccbhncd Wocct ("NJ C"ode! l7•1� Job No. 0Z.0010.S 16/BAC"KBONE/l7•5l • sG,9,212.00 ,t 02-0oio..51611NTRAC7'Sll7-SS • s;nsao.oo Page 22 Liabi lily coverage.,; maintained by the Subcontractor. (J) Subcontractor, and or any of Its s-ubcontractons, suppllers, llcndon, employees or persons whom b performing any work under this Acreement shall adhere to ell insurance requiremcnlS outlined obovc. (c) Property/ln�nd Marine In surance Coveraee: To be paid for by Contractor If required. Subcontractor, and or any of its subconll'llclors, rupplicn. vendors, employees, or person whom is performing ony work under this •11rcement shall purchase and maint.ein insurance to the full conrract and insurable value thereof, commonly referred to a.s aCourse of Construction, Builders Risk or an Inland Marin policy thot offers Installation coverage for all equipment, and propcny obtained by, or for Subcontractor, which is to become a part of the work while such equipment and property is stored at thejobsite, at temporary locations, or while in lnlnsit to the project from such temporary locations. Subcontractor, and or any of Its subconlnclon, auppllen, nndon, employeu, or penon whom Is performln& any work under lhls agreementsh11II also be responsible for Insuring their owned, lcascd//rcnted, or borrowed equipment. (2)The General Liability and Umbrella/Excess and must contain tl1e following: (a) Project Spcc;ific Additional Insured Listing: •Baldwin & Sons, Inc., iu pa=it and affiliated componies; • Owncc; •Other panics as required by Oivner. (b) An Additional Insured Eudor.semtml adding as en additional insured each paity noted in Section 21 of this attachment, or otherwise identified in the Prime Contract, asn::spccts liabilir.ic:s aming out of Subcon�tors work und'c:r this contncl (inc::luding Products/Comple1cd Operations) on tlte ISO COL Endor:sement CG 10 JO I 1 85 Owners, Lessees or Contractors (Form 8) or iu equivalenL The parties intend that the insurance coverage requln:d hereunder and/or provided by the Subconlrlccor apply on a primary basis with any other insurance pollcy(s) of Baldwin & Sons, Inc., the Owner end those additional insured entities as identified in the Prime Contnsct being excessand not contnbuting. Such Primary Wording shall be Included on theAdditional Insured Endorsement. (c) Cross Liability coverage as would be achieved under the standard ISO separation of Insureds cl:auac. (d)Provision or endorsement stating that such Insurance, subject to terms and con ditions usual to Standard General Liability and Aulomobile Policies, applies to the liebiliry assumed by Subeon1rac1or under this con1rac1. (c) Modified Occurrence Liability Policies arc 11ot acceptable. Claims Mode General Li• ability Policies are not 1cccpt1ble. Subcontractors providing such insurance will beconsidered in default of the requirements of this Subcontract Agreement. (3) Waivers of Su brogation are requi� by the Prime Contrac1, Subcontractor will have the appropriate policiC$ endorsed accordingly. (4) On exec ution of the Subconrnic1 and prior lo commencement of work, Subconrractor shall file on fonns eccepllbh: lo Baldwin & Sons. Inc. a eertificetc of insurance properly e.J1ecutcd and signed by an authorized representative on behalf of the insurer(s) evidencingthe above c:overases and conditions 10 Boldwln & Sons, Inc. Subconrractor shall maintain the rcquin::d Insurance and Additional Insureds for the period of time for which the Subcontractor rmy be held leg■lly liable for its work Also, the required Ccrtific:arcs of Insurance and Additional Insured Endorsements shell be provided and meinlaincd during warranty period of the Subcontractors work. Subcontractor further agrees, upon ritten request by Baldwin & Sons, Inc. or Owner, lo furnish copies of such policie.s, cc · red by nn authorized ri:prcscntativc of the insurer(s). Initial: v-1 S11bcontmdor llaldwi1t & S....s. lno. C-0111� 11,11 Vnl11,1c l S0111h -Rccllrno,J W.11er C' .. 1 C'nole: l7•fq Job No. 02-00lO.J f6111AC'K80NE/27-5$ • S6J9,11l,00 f< 0?,0020.Sl�IO'MC'TS/fMS • Sll.560.00 P11e23 (5)All Insurance cowngo provided by tho Subconlraclor shall be 1Jvough ,cccptable insu1111eccorriers licensed in 1bc statc(s) whmi work is bcln1 pc:rf'ClffllCd with I minimum A.M. Bue Cornp1ny standard or A:VII or grcarcr. (6) All Subcontractors policies shall hive the Cancell11ion Provision typed on the IN11111nceCertificate and It must be co1uistcn1 with the Cancellation rrovision In the pol icy or, aJO-day notice or cancdll1ion e11ccp1 (10) Days for non-paymel\l of premium endorscmmt&hall be ■uached to lhe insurance certificate. (7) A Written notice sh•II be &ivcn to Baldwin & Sons, Inc. ,nd Owner et last dtirty (30) days prior to termination. non-renewal, cancellation or reduction or coverage in the policy. Inili1I: W Subcolllnclor I� Dald"1n a SGN. 111�. C'onnc, �,ft1 Updated: Exhibit D Ow,ur-Ofrslte BIUing Form •nd Payment Schedule Job Name: Cumulative Totals ITo Date) Current Billing (This Invoice OnM Item Description Quantity Unit Total AmoWII QuauUty Total I. 2. 3. 6. 7. 8. 9. 10. Price to Date to Date Page 1 Total Total Tota.I: Less 10% LC$$ 10�o RelentJon Rctendon I Percent Compldfli TotaJ Amount ToDatc: ¾ To D11te Due Page24 Jnilial: I leklwbl & S0111. bit. C-0111111e1 U17 Vi� l Soulh-�laimod \Ylla C'111l ("ode; 17-19 Job !'lo. 02.00l0-Sl618AC-KOONEl21•U. SOJ9.Ul.OO & Ol.OO?O-l 1611NTRAC'TSf.!1•5S • S21�.00 Exhibit E SUBCONTRACTOR TERMS THE INFORMATION PACKAGE CONTAINED HEREIN WILL PROVIDE YOU WITH KEY DETAILS CONCERNING: I.EXPLANATION OF OUR CONTRACT BILLINO PROCEDURE 2.A LIST OF CONTACTS rN OUR OFFICES 3. PRELIMINARY INFOR.MATION 4. EXPLANATION OF INSURANCE REQUIREMENTS 5.COPIES OF ALL RELEASES, TO BE USED EVERY TIME YOU INVOICE 8.W-9TAX FORM TO BE FILLED OUT AND RETURNED WITH VOUR CONTRACT. •NOPAYMENT WILL BE MADE UNTIL THIS FORM IS COMPLETED ANDR.ETURNEO.• IF YOU HAVE ANY FUR.THER QUESTIONS, PLEASE EMAJL DAWN MENDOZA AT dmendon@ba)dwjnsons.c:om OR CALL AT 949-640-8300 Ext. 316 NOTE: PLEASE BE SURE TO SIGN THE SUJJCONTRA.CT. INITIAL EVERY PAGE AND ALL EXHIBITS, AND SIGN THE UST PAGE OF THE GENERAL CONDITIONS A.1Til.CHED TO THE BACK OF YOUR CONTRACT. WE CANNOT PROCESS THE CONTRACT UNTIL IT IS SIGNED. ALSO INCLUDE COPIES OF YOUR CONTRACTORS STATE UCENSE .4.ND CITY UCENSE. WITHOUT THIS INFORMATION THE CONTRA.CT WILL BE RETURNED TO YOU.• Pl.EASE RETURN BOTH CONTRACT OIUOJNALS TO THE ABOVE ADDRESS. ONCE WE HAVE. RECEIVED ALL THE REQUIRED rNFORMAT!ON AN EXECUTED COPY OF THE CONTRACT WILL BE SENT TO YOU. THANK YOU FOR YOUR PROMPT ATTENTION IN THIS MATTER. Pase25 All Invoices 1h■II be �ivc:d on or before the 27th of the month to be paid within 30 days. Example: For July 2013 all invoices received July 1st, will be p■id Ausuat 1st. Any lnvoiC41s received after the 1st of the month will be· paid in 60 days from date rtcelved NOTE: All invoices and payments arc still subject to Baldwin & Sons, Inc. receiving proper releases and billing documents. Initial: WI Suticonll1el.Or I� Oaktilln a SOIII. In<, C-onl!'KI 11317 VUla�lSo.rh-�bimal WnlOI' C'OII C'o<le: 27-19 Job No. oi-0020.jl6/BAC'KDONE/l7,H • $6)9,2 ll 00 t,. 02-00�0-s IOIINTlt,\n'S/27•5S • Sl7.S60.00 SUBCONTRACTOR'S RETURN LIST BAidwin & Sons, Inc. ("Co11tractor") EXPLANATION OF CONTRACT BILLING Processing of all invoices and preliminory notices is done through our Newport Beach office. Please direct all Invoices and preliminary notices lo: Bnldwin & Sons, Inc. 20 CORPORATE PLAZA NEWPORT BEACH, CA 92660 PAY POINT BILLINO The contracts an: ,er up with specific "Poy Points", representing percentages of the contract to be released by the project superintendent per their review of the woric completed. Please bill according 10 the completed and approved work only. RELEASES PLEASE ATTACH ONLY Baldwin & Sons, lnc.'s ISSUED RELEASES TO ALL SUBMITTED INVOJCES. You will be responsible for submitting your supplier release with each invoice. Any invoke s'llbmiued without a supplier release will be sent back to you for corrcctlon (if supp tier pre limed the job). In the e\'ertt invoices are returned the invoice date will be entered os the date the invoice is CORRECTLY REC.EIVED. If billing for retention, you must submit the Unconditional Waiver and RcleiJse Upon Final Payment. ACCOUNTS PAYABLE WILL NOT PROCESS ANY INVOICES WITHOUT THE PROPER RELEASES!f! CONSULTJNG CONTRACTS; These contracts are set up with a "Lump Sum� amount and work for these contracts arc approved by the superintendent on a "Per Invoice• basis as submitted by the subcontractor. Your invoices shnuld be fonnattcd lo match your proposal/contract breakdown. Please send 1111 invoices to the above address accompanied with lhe proper n:l1:1ses. WHEN SUBMITTINO INVOICE Before submitting an Invoice for payment, please ensure you have attached all of the necessary docu1111en1S. Any invoice chat is nol submined according to these requirements will be retumcdl 10 you. 1. Progress Payment Billing Fonn AIA-O703 (Contract Specific, provided after we receive signed ,contnlcl) 2.fahibit B Request for Payment (Only required for consultant contracts) 3. !Release and release for any suppliers that prclimcd d1e job. ONLY Baldwin & Sotu, Inc. FORMS ARE ACCEPTABLE 4. Signed PO for any additional work over SS00.00 (Only required for subcontractors) S.Signed Change Order RcquC!St for additions to the contract � Page 26 Jnitial: YA// "'s,'"'1bcM--1r:i_e1_o_r__ Baldwin S Dalch,in I Soris, Ir,,;. l"aniraci JIJU vnia,e 2 SOUi� -Ra:letnlCd w.,.. ('OSI C'odlr: 27. Ill Joi, Ho. 01.anm.,wpACKBOHl:l.!7•.SS • $639.212.00 & OJ.OOl0..516/INTlll\C"TS/27•'5 • S27,S60,IIO SOME ISSUES TRAT MAY RESULT IN A RETURNED INVOICE l.Expired insurance2.Failure 10 provide Additional Insured wnn (Sample At11chcd)3. Lacie or releases or submhtal or a release on a "Baldwin & Sons, Inc." form4. Billing for work not completed These Special Provisions are a part of the Subcontractors' Agreement. OWNER: Village II ofOtay HB Sub 20 Corporate Plaza Drive Newport Beach. CA 92660 Sunranch Capilal Partners, LLC 20 Corporate Plaza Drive Newport Beach, CA 92660 CONTRACTOR: Baldwin & Sons, loc. 20 Corporate Plaza Drive Newport Beach, CA 92660 LENDER: Cathay Bank 4128 Temple City Boulevard Rosemead, CA 91770 ADDWQNAL TERi'\1S: Civil Enafneer: Geotechnlc:al/Solls Enaf neer: Dry Utility Con$11lt&nt: Hun.saker & Assoeialcs Yolanda Calvo/Jessica Nishiura Geocon,Inc .. Shawn Weedon Eneineering Partners, fnc. Tom Perez The "Scope or Work" shall include, but not limited to, providing all labor, equipment, material, tools, and incidentals necessary to complete V1.llage 2 South Reclaimed Water. All work shall be perfonned per plans, specifications and,'or soils �ports as applicable for completion of work. Specific:: soils report reference for this project was completed by Geocon, Inc. This Contract and provisions herein shall be considered additional requirements for work to complete. Poge27 Initial: � Sllbcontractor I� NOTICE THIS DOCtJMENT WAIVI:.S THE CLAIMANTS UEN, STOP PAYMENT N01'1C'F� ANO PAYMENT BOND RIOHTS EFFECTIVE ON RECEJPT OF PAYMCNT. A PERSON SHOULD NOT RELY ON THIS DOCUMENT UNLESS SATISFIED TtlAT TltE CLAIMANT HJ\S R£CEIVEO PAYMENT. Owner: &NI by pc1or Amount of Check: Check Payable To: (l) which 1co111p111y N1111e) Initial: � s� Dold,�• & sone. IM-(oninld 1111 Unconditional Waiver and Release on Progress Payment (CalJfornia) AND PAYMENT (ComJ)lllly Name) Pa&c29 Dold,..ln I Son.. Inc. Vllllcc 2 S0\1111-�IIIIIICd Wonr C-1>11 C-odc: 27-19 Job No. 0l.00?0-Jl6/IIACltDON1,127-,S, S6J9,ll J.00& 0!-002D-Jl611NTR/\C"TSl:27•JS-Sll,5611,00 Conditional Waiver and Release upon on Final Payment (California) Type 3 Fnnn Pursuant to Civil Code 8136 (Effective 7/1/2012) NOTICE THIS DOCUMENT WAIVES THE CLAIMANTS LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIOHTS EFFECTIVE ON RECEIPT OF PAYMENT. A PERSON SHOULD NOT RELY ON THIS DOCUMENT UNLESS SATISFIED THAT THECLAIMANT HAS RECEIVED PAYMENT. Claimant: -------------------------------- Customer. B■ld»io A Sons, Jnc, Job Locnlion: 2 Sovtb flee)ajmcd Wllq-ConJmct #587 ymagc II or Ogy HB $w Sunranch C,ej14I PeelMl LLC Tl110111h Dale: This document waives and rdcHes lien, stop pc,y,ncnt notice. and peymcnl bond rlpts the claimanl hns for lobor and ,crvicc provided. and cquipmenc and 11111erilll �livered, lo che cul\oml:1' on 1hi, jab tluo111h Che Tbrou1li Dase or this documcmL Ri,tits btlsed upon labor or 1ervico provided, or cqulpm1111 or mllerlnl delivcml. punuanl to a wrlnen change 0tder th1c his been f11Uy uecUled by lhe plftic1 prior to Ille d11e IINlt 1h11 clocutnanl Is 1l1ned by lhe debnenl. arc IY&ivcd and rtlcued by this document, unl11111 llllffld as an Exccplion below. Thi.s document is e�tivc only on the:: cl■imants receipt or paymcm rrom the financial lnflltulion on which the check Is drawn: MakcrorCheck: \8oldwin & Sons. LLC Amount or Check: Clleclt Payable To: Exceptions: This document does not affect any of lhe rollo.wlnc: Disputed claims for n1ras in the amount of: Date sl1ncd:. _________ _ (Coinpany N■me) (Si1nah1tc) Clalmant's Ph0<1e No. P11e30 Initial: S11bco1unctar I� Baldwin & 5Clfts. IRe. C°OUIDCl#Sl7 vm,ac 5alltb-kcd•�IICII l<lb No. 0?-0020-S1618ACKDONE1'27-SS • $6)9.212,00& 02-00?0.S116/l,rflt,\C'TS/17-SS • U:7.560.00 Type 4 Form Pursuant to Civil Code 8136 (Effective 7/1/2012) NOTICE TO CLAIMANT: THIS DOCUMENT WAIVES THE CLAIMANTS LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING :UP THOSE RIGHTS. THIS DOCUMENT IS ENFORCEABLE AGAINST YOU IF YOU SIGN IT, EVEN IF YOU liA VE NOT BEEN PA(D. IF YOU HAVE NOT BEEN PA(O, USE A CONDITIONAL WAIVER AND RELEASE FORM. This doc\lment walvo, and rdeuc, lien. 11op payment notice, and peyment boad riahts tl1c clalraant 1to1 for labor and service provided, and equipment and material dclive,ed, 10 lhe c1111amcr on !his job. Ri1hu bued IIJ)On lmlor or setvi<:e provided, or cqlllpmcnc or material dclivem!, punuent IQ I writlCn ctuan,c ardor lhlt hu been fully cucutcd by the pinios prior lo 1he dare thM thlt document Is •i&ned by lhc clalnw11, are waived end rclcalCd by this document, unless listed a, an E:tccptioo below. The claimant has been paid in full. Customer: BnJdwln &. Job L-oc:ali011: vmgge 2 Sosnb Rccl•lrncd Concca,1 #SU Owner: E.ueplfons: This clocumen1 doea not affect any of the rollov.•in1: Disputed cl■lms c.,1111S in Ille amount of: Oatesiancd: ________ _ Page 31 $. _______ _ (Compony Name) (S IJIIIIIUre) (Title) Cl■iman1'1 Phone Na. Initial: W Slllleoclllllclor Baldwift 4 Seftl, IM. C'OCllta<I 11,a7 vni.,c 2 Sot11b-R«lahllcd w .. 1.,. C'Ml Co.Jc, 27.19 Job No. o:-OOl0-516/OACKIIOh'E'Jl7-5$ • $639,212.00 � 01·0020-jl6Jltn"MCTSIH·J3 • D?.560.00 Exhlbit F SUBCONTRACTOR'S am PROPOSAL (See Att1clled dated 11125/15) Pqe32 Initial: ya/ subcou1nc1.or '-� ---------- " ,., Exhibit F -Bid Schedule CASS CONSTRUCTION, INC. OTAY RANCH Vll.LAGE-2 SOUTH RECLAIM!D WATER SCHEDULE F Item DNCrlptlon BACKBONE Reclaimed Water 1 e· PVC (Clasa 305) 2 20" P'JC (Clan 165) a 8" Gate Valve AIHmbly 4 20· Buhar:fty Valve AsSlmbly 5 e• Cap with Thruat Block & Blowoll 8 e· Cap with Thrust Block 7 6" DI TN wllh Thru11I Bk>ck 8 6" K 24" Lo119 01 Spool 9 20" DI TN with Thrust Block 10 20" x 24" CMU.C Spool 11 20" x 8" CML&C Crou wHh Thivat Bl'1'k 12 2· Irrigation Sel\'lee AIHITlbly 13 Alr-Vac AN1mbly 2• 14 Alr-Vac Asaombly 4' 15 BloW olf Assembly 2• 18 Blow off Assembly 6' 17 Deflection Coupling 20" 18 Deflection Coupling 6" 19 Connect to, Exlatlng 6" 20 Connect lo 20· Reclaimed Wat■r Subtotal IN TRACT Reclalmed Water 1 8" PVC (Clau 305) 2 6" cap wtlfl. Thrust Block 3 2· lrrtgallon Service 4 etow off Assembly 2· 5 Delleclk>n CoupUng 6" 8 Connect to cxllll!!EI 6" Project Total Summery Phase 1a. Phase 1blc VIiiage 2 South Wet Utilities Qty Units 3984 LF 1,971 LF 8 EA 4 EA 3 EA 1 EA 1 EA 5 EA 1 EA 2 EA 1 eA 24 !!A 6EA 2 EA 2 EA 2 EA 17 EA 41 EA 2 EA 2EA 234 LF 1 EA J EA 1 EA 4 EA 1 EA SD Sewer #REA •REFI #REF! #REFI lof2 Add1ndum#2 5(16/20115 Unit Price Total 55.00 $219, 120.00 79.00 S155,709.00 1,885.00 $11,910.00 9,800.00 S35.200.00 5,070.00 $15,210.00 385.00 $385.00 545,00 $545.00 695.00 $3,476.00 2,858.00 $2,858.00 3,185.00 $6,330.00 e.4�.oo S8,455.00 3,235.00 $17,840.00 4,510.00 s21.oeo.oo 7,500.00 $15,000.00 2,800.00 SM00.00 5,325.00 $10,650.00 1,850.00 $31,460.00 175.00 $7,175.00 1,100.00 $2,200.00 2.�20.00 le.240.00 $839.212.00 55.00 $12,870.00 385.00 $386.00 3,235.00 $9,705.00 2,800.00 $2,800.00 175.00 $700.00 1,100.00 !11100.00 S27,580.00 $688,T72.00 PW RW Total #REFI $838,212.00 #REFJ #Rt:FI $27.580.00 #REFI 11/13/15 -' llem DescrlptlDfl Total Exhibit F -Bid Schedule VIilage 2 South Wet Utilities Units #REF! 2of 2 Uni( Price IIREFI Total SS68,772.00--•#RiioiiiEFI., VUlo1c? Sou1l1-Rcclll11cd W11cr C'oal C'oclc: 17-19 lob t'o. 02-00ZO.J16/DACKBONE/27-S, • S6)�,21i.oo .t. 16/lNTRACTS/27-'5 • 00 SUBCONTRACTOR'S BID NOTES (See Attnched Cass Construction Bid Notes for vm:11,e 2 South RecJalmed Water dated 11/25115) I� � u Exhib it � '' CASS CONSTRUCTION, INC. BIO NOTES OTA Y RANCH VILLAGE 2 SOIJTH: 11-25-15, 1. 2. 3. "· 5. 6. T. B. 9. 10. II. 12. 13. I.C. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26 .. 27. 28. 29. JO. 31. 32. No roes l0t permits. boncts. spedol lnspeclfon, compoclion tests. concrele lesling. surveying. slating. conn.-cuons. 01 engineering. Any blosllng. dtlUlng. handling, Of' redlggll,g ol ,oct wil be done on o limo ond moleriol plus 15!\ bosls. My motcrlol, rock OI cemenlcct conglomefales not 1)10duc:Rvefy diggable wllh a Col 3◄S •�cavato, la be exc0Y0lect on time and molerfol plus 151' Eic�s QSP & QSO Monll011ng ond re,:)0!11ng '°' SWPP. Excludes swrP Plan. lneludes SWPP IOI OlK work only. Proposal lncludos select motcriol obove pipe zone. ?ropo,ot based on using Olay Gfay for select DG bacltllft. Bid lnclUdes one I II move In onlv. Grounctwotar requtlng deW0t&1fng meosures to be done by olhers. P10pasal oasect on unll prices. Ftnal payment subject lo 11eld meosuremenl. Proposol bosad on qvonHtlas provlctod al bid Hme ond quonHly dlllerences belwee-n plo,u ond propo$01 lo be reconcWed In o change order. Consfruc:llon waler lo be luni5hed and paid 101 by owner. A�lmenlS 1o g,ode one I II time Ollly. Proposal based on Cau CorulrucUon. Inc. Slondard ln.iuronce one! eiu:.ructe1 any Wrop lruUfOIICe, Builders ltlJk. PrOQOsol vokl lor lhltly (301 days. Proposol eacludos cxcovolion. liner. �• Pipe, s• Riser. 8iomed'10. ond londscoplng of Blotalenllon lloilns and lnleflm 5edimenl 8oslns. The wort Is lo be perlotrned non-union and will not be subject lo stole p,evollng woge requirements. All onllle anct olfslle e&cess spolls lo be spreact evenly over ltenc.h OI onlo Pods. l'roposol olldoudes ony t>lologlcol ·monll01i11g, noise monllorlng, ond nobe bonlers. ProPOS()I based on completing proJecl In one conllnuous operollon. fheso notes ore lo be inclvdect in ony con11ocluof agreement. Proposal boseO on negotiated ond Ogteed upon schedule by bolh potlles. l'topolol excludes Jn!ot Nilan. "" Ullllles lo be overexcovoti,d I' below deepesl Ul■ly ond recompoclect. PrOpOSOI ucludos Nyaplosl oroln Basins. Elldudes bOllards on Are Hydlonls. ExclUdes Marllole coolings and Unlngs. t:xcludes any l!onds. PVC ptpo to bo orderod prior 12-25-ISond shipped by 1-25-1501 PVC pipe prices 1ubjecl lo change. EJccludes Tamper Switch ror Fite Systom. Excludes PrCJfflJf• 1!90Ulolors. &eludes Striping. Proposot assumes Chol'lg(tS lo Conl,ocl and lho Conl1oc1 wiU be negolialed. Prop010l e�hms Cteanovls on Sewer Lol1110b. Proposol axeludes any Colhodie resting ood Reporting. &ldwi• & son,. Inc. C'on1111e1 #387 Ville�• 2 Solid, -Rcclohn<d Wota C'o>1 C'odc-17-iq Job No. 02-01120-516/l!A.C'KBONF.127-H • $6�0,l 12.00 & Dl-0020-J 16nNTRA<TS/l7-JS • S27,SliO 00 PRELIMARY NOTICE INFORMATION SHEET FOR VILLAGE 2 SOUTH -RECLAIMED WATER **PLEASE LIST JOB NUMBER/CONTRACT NUMBER ON ALL PRELIMARY NOTICES.** Owner: Village II of Otay HB Sub, Sunranch Capital Partners, LLC and affiliated and adjacent owners. 20 Corporate Plaza Drive Newport Beach, CA 92660 Lender: Cathay Bank 4128 Temple City Boulevard Rosemead, CA 91770 General Contractor: Baldwin & Son's, Inc. 20 Corporate Plaza Drive Newport Beach, CA 92660 Jobsite Location: Village 2 South Chula Vista, CA Job/Contract Number: 02-0020-516/BACKBONE/27-55 & Page 34 02-0020-516/INTRACTS/27-55 &Contract#587 Initial: ,C.V Subcootl'lldnr I� C/0#: Wn-(Jl.f 11, 2011) By: Title: Title: Date: CASS CONSTRUCTION, INC. P.O. BOX 309, 1100 WAGNE� t>R. EL CAJON, CALIFORNIA 92022-0309 BALDWIN & SONS, INC. 610 West Aah Street. Suite 1500 San Diego, CA 92101 PHONE: 590-0929 FAX: 590-1202 Project: Otay Ranch VrUage 2-SOU\h CCI Job#: 2442 Attention: Steve Moffatt RFC# DATE: PAGE ws/jun 6 612412016 1 OF 1 r�":WC:>Ri<'ooei'e,G0Hesjoo LESS____Mgj_M WHILE ptGGING �o·-RE<:;1461 MED ,WATERfc>N SANJA VICTORIA J � 530•�-oT,e""'"''�lluetoNon�-M .. ,O• @ S 6.00 LF S 3.180.00 iU-oOOE1 153 Tons 1-1/2 • Rock Material 1' below Aipe Zone @ $ 32.05 Tons s 4,903.65 280 LF NC Filter Fa bric @ S 3.00 LF S 840.00 r000 1 1 955 Tons AddltlonalDGMaterlalaroundplpe @ $ 18.13 Tons$ 17,314.15 W-000 530 LF Additional compaction due lo unsuttable material .._,.._...., ___ � @ S 15.00 LF S 7,950.00 9fIJ9Nf2 Ove r Excavate Trench due to Due to Non-Cohesive Matenal 44-0001 153 Tons 0G Material 1' below 44-0001 280 LF 44-0001 955 Noles: LF Addillonal compaction due to Ulll!Ullable material •Excludes Redigging Trench. •RFC #6 does not Include any coMectlons or closure coopllngs. •Exdudes Backfllllng and Redlgglng Trench for Safety Reasons. TOTAL OPTION #1: @ $ 6, @ $ 18.13 @ s 21.18 @ $ TOTAL OPTION #2: $ Tons $ LF $ Tons S 34,1117.80 2,TT3.89 5.930.40 17,314.15 7,950.00 •May not obtain necessary compaction if we use DG Material 1' below Pipe Zone Option #2. Cass Construction, Inc. ly: >rinl: We.s Wise itle: President >ate: Baldwin & sons, Inc. By: ______________ _ Print: ______________ _ TIiie: --------------- Date: ______________ _ $ By: By: CASS CONSTRUCTION, INC. P.O. BOX309, 1100WAGNERDR. EL CAJON, CALIFORNIA 92022-0309 PHONE: 590-0929 FAA: 690-1202 BALDWIN & SONS, INC. 610 West Aah street, Suite 1500 San Diego, CA 92101 Project: Ot,y RaQCih VIiiage 2-Soulh CCI Job#: 2442 AttenUon: Stave Moffatt � 44-9910 44-9910 44-9910 44-991Cil 44-9910 449910 Mls01Haneous extra WOl1s � 1 LS l Removed 12" waleolna and redlg ditch from Sia 11+50 lo 12+30 and dug up 3 each Rao W.tar Servlcel 1I ala 17♦00, 17+28, 17+70 tD establish proper Elevallons and ■8f)8raUone. 1 LS I Remove 6" Rec Waler, cut oul 3 each Rec Waler Servlcea, and n,fayed 12" Potable Water to maintain proper 1IBV1Uons and separaUon. LS Sanded and Relayed Potable 12" water and two 12x8 toea on Uza g 111111+60 due to plan change. 1 LS Reaandad Ind Relayed 6" Rea Waler tie In point llnd compaclad and baclcfllled 3 ea 2" R110 Weter ■ervloe110 m11lntan proper lllvelloo and eeperatlon. 1 LS I Redig from Sia 21+87 lo 22+48 on CM1llne, Redig from Sta 21+86 to 2H44 end ramoved 20 LF or 8" Re-a Water lo match el11v1tlont. LS Relayed 20' of 6' Rec Water nor1h and south out of ct011 on Christina and added 4 eech 8" High Oetledlon Coupllnga lo malch elellatlona GI 0 @ G @ RFC# 10 DATE: .912.12016 PAGE 1 OF 1 WS)un $ 2,239.0fi LS $ 2,239.05 - S 2,547.16 LS s 2,5-47.16-L- S 5,013.03 LS s 5,01a.oo 4 $ 2,187.86 LS $ 2,187.86 .,__ $ 2,568.80 LS $ 2,586.80- $ 1.296.-44 LS $ 1,295.� Ji IO,gJ6.� TOTAL R.F,C. #10: s 16,849.34 C11111 Conettuctlon, Inc. By: Print: Wea Wlae Title: Prealdtnt Dale: Baldw!n & acme, Inc. By: ____________ _ Print: ____________ _ rr1111: ____________ __., Date: ____________ _ /DAILY !XTRA WORK REPORT CASS CONSTRUCTION, INC, P.O. 80)( 91» • l!L c,.JON, 04 � (11t)IIO-Ot2' N� 46758 &TATE LIO. 121113311A 4 / _/ f CASS CONSTR. INC. CUSTOMER:_..JR�C:.:..�L.-..C.&v:;..•.;.;Pw>_..__.;::S:;.,O,-,.),:.;;;...:>;.._ _______________ FOAEMA�-@,____ ____ _ ADDRESS:----------------------------04TE PERFORMED":)½� 9-/' LO CATI ON OF WORK: _V.;:;_• ·...,1.;..1 _.,"$(.;__..a:«::-.s=�'---\-._l.. ______________ CHARGE TO joe, c2Y:f:l, 0£80AIPTIONOFWORJ<: f?e.r"'QJ:e/ (7-" LJ<;kr ,,�I fro,... sfs I/ +sa1'Qn.fjp W�v-3 � �-l. vJ/s tn :;.·h t2tou, ,1:tvt at?Q o..> kis q ,./ ,� l:JJ � D ,.Jli, (Jt)j/2 f l CASS CONSTRUCTION, INC. le lo pllfform the lollowlng work. Reuonfo,Oh111gt: f'C° Wf.-\fl l1.:.t. u)�� e,._�"' 1-<f a.,·� .Di:> /4-4}0ntoo 1 {7�,, 17f��-�,� l>� .. � i.,,i" � .. � �:OHkiE � REOUEST£0 BY: (Prlnl) °S-n.w CWffi';' OROEAI ----------PHONE: l/'i f f/0 /"_ - • • /.I. 7&.J.,. • , IAI, �lO wiµ. t,p\,c,- f)t \� . 1-l.,.bif LABOR & EQUIPMENT EQUIP HOURS No. s/T orr ·:u-w fl- f'II#_ L� I.½3 R�TE TOTAL 9h.<.O l9Q.QO (10lY' IJOS.00 1<o.CO •'-At+OO 5d,oC> '"'"'·dJ 1947.00 MATERIALS -I Cer11fy work performed on thll Wotlc Of!ler has been recelvod fn good condition •�""-"'"'"'°'Oodo�OOnkO. 1,w. agr pay or 11 gn nol l■ler then the time Ille WOfk le �mpleted. STOME HOAIZ;;;:�ESENT'ATIVE: b b-10 ,.I -r� .. tlh Dele WIIIII, Oltlce ea,,..,.,, eio- /�/4 �GJS.O!S I . 1-r�\ ��:R.05; '/ i QTY, UNITS RATE TS,TAL I ' . If no price la stated, It ht understood that the price 1h1ll be cost ol L1bor. Equipment end Materlaf plue Hi". 4 houre minimum. for labor & equipment. Labor over 4 houre to i,. charged 11 a houra. ... DAILY EXTRA WORK REPORT CASS CONSTRUCTION, INC, P.O. BOX 309 • EL CAJON, CA 92022� (111) H0,0929 ITATELIC,12"33M ,.,",t N2 46762 � I J • " C CASSCONS� CUSTOMER:_ .... Qi.::i'i..:.=.:llf;.::,W�'.;.."".-c.....:SO=-"�'------------------FOREMAN;-�.-�:....:. __ _ ADDRESS:---------------------------DATE PERFORMED:l1w<.t'144 LOCATION oF woRK: _..Jv�;;...:1.:..1 .;.!q...15?�....cc!lz..:.so ..... ..::. .... :....;t_i.. _______________ CHAAQE ro Joe, i2v"li. DE8CRIPTI0N0FW0RK: Be.t>\') O'°'\\ •· R-'· f,� 4-,r 5.\-.. 17-loo CHc--r :t:h<c ·or.tJ:· ot� /()W-"" 011J ,-;,or� � ehtt'.'>:k� 3 f,C, w/4 ou L.1-z'I Y:':"": v,,.Jv n.' wc.'k'-1"\'l';,i ,...,}..,te./o/+''1,.I p.r CASS CONSTRUCTION, INC, Is to perform lhe following worlc. fofll.� w,ll-.,.� 320 'v.,,µ. �\'kl:" n,l..u � '->•�'"Tl'Zu� I-PL/-Lc;W GJ&l) wi'� ()(lit/"'" nG 1 'D�l .:J l c.-a.cr LA8OA & EQUIPMENT I r.: · �e.."Oi!.) tJor� ��1u\ 3�-�.c. v/J. oiJ J.h4, MATERIALS EQUIP No, JOSI/ -,,r, �' v� QTY, �s,t/J. IS'' HOURS SIT 0/T RATE TOTAL I 9",CO q�,C() a� l1Q.O'J lf.;il5,0b °'� 7/o.cD 190.00 J� 9� !>¼OOs� s-�.oD ,�.oe1½ �.co 1�.00 11:l IY:,.ro ;/'f'f,00 UNITS RAtE TOTAL I,,/� �a.� 1-1s a'!>'l."4-l �>4.� }<gf. �=t�4 I Certify WOik perfOtnl8d on lhl I Work Order has bel!ln rtetlVlld ln good c:ondlllon And the lebor ind equipment hour, and ma111rltl1 reported are c:orreol. 11w1 1gree to pay IOI' 111 ch1,giu not later than the time the work 19 completed. �TO,;Mj-R'S �THOB!ZED REPRESENTATIVE: ?V�"?-� .....,,itute" , ,,.. Wt,llt, Ollllco 6-ttf-�f.bDale -,;;+at ol?':¥7Jv i If no price 1111!11llld, It /11 und11ratood lhat the price ehall be ! 00,1 of L.ebor, Equipment and Materlal plua 15'1L ; -4 houra minimum for labor & equipment. '' Labor over ◄ hourw to be cti.rged • a houra. / CUSTOMER: ftp.L/wr;,,.1 . t: !j.q"S DAILY !XTRA WORK REPORT CASS CONSTRUCTION, INC, P.O. BOIC • • l!l CAJON, CA t20224'0II (11t) IIIIO-oa2t aTl,TE LIC, 1218331A N� 47330 CASS CONST�O. FOREMAN:---'�=;__ ___ _ ADDRESS: ____________________________ DATE PEAFORMEO.'°J"� 11{../I LOCATION OF WORK: _ _.:::V.:..;0 .:..l l::..;1\:,,1!1....J _ _,_,g_=.S.i.Q:'-=�::..L.. _______________ CHARGE TO JOB ,,_I __ Y.._n., __ _ oESOfllPTIOt,/ oF woRK: wss,.¼°l""' l-� • w/s o,:, R, C //Af. Q" L,< g,? 8<Ur9"'1 'frl..J.. �� s�� �� R.c.\o.yff 6' &c a,.)CN-rt'""\ /lf" ,rr...,� CASS CONSTRUCTION, INC. 11 to perform the lollowlng work, , D ,.a...r .. �•·-/J .. ,.A,/' ,1;,,::1::u ✓,11/C�1•·,1.,,:,.' ''•"-"-·'"' I R,uontorChange: f¥•�"t ' /\IGw/, o,·el IJd) � ..,..,..,-_, PY -�k;a:!_:1_ .. !.:_"'l-'/ll'4,,,-'ff9, -\ /' PUR°'"1ASE �oa !7).S REQUESTED BY: (Prtnl) _..:'S:...:..(...;;l)..;;(.....:.f"\..;0,<;;'-'--�...:'1£.;.;;._ ______ OROERI ________ PHONE: 7 _, -7?',?· $ LABOR & EQUIPMENT EQUIP HOURS AATE TOTAL 1..•A, If. C, �-»-l1'1\it 04J �+•;..,'i No. SIT 0/T -For�,.:,� -,t¼\r' J-Pl. A1 3� €0.t:? t;'S'O w:<¼l � 'S -;1' �.c. v,/s �re,,Q.., 1...>rl.l. �� I -J.�w �so w,� ofW LJ�if MATERIALS t)G, ,�\... , • .4 ,l,,. 1. hi ►l.!(.,t'()I. �,� . I c.,1Uy work performed on Ihle Work Order hu be■n rec;tllfld In good condlllon -nd lh• l1bor and equipment hours 11\d m1lerlel119ported art e011ec1. "�' '"'"''" '" ""' "" , ... "-.. ·"" ,. _, ... ,.7 OM. ., .......---,�;.ESENTATIVE. / It ·16 �.,..,.... .Tlh D•t• Canny, CU010flMr JtS, I '2 �co l'f'+.CX) ,, �.00 �ro "'S7 lh /ldw::,,to c;>4¥i,a) o..oWZ� 30St I ACo.r:x:J 9b.00 ..3 �.co 1S<coc) t'4e I Yz. lldc,CO �y:q,O'.) {L>Cf. L-/S )10,tj) QTY, UNIT'S RATe TOTAL .J� t-I c, '-f,Lf,Of,t( .3 '-I<; q4,o't. l��.'11:f'fftt, I-ORS.� To� �,�n.So/ • If no price 11 s11ted. It Is understoPd that the price shall be reoS1 of Labor. Equipment and Material plua 15'!1,. 4 houre minimum for labor & ,equipment. Labor over 4 houra 10 be<:hllrged aa 8 houra . DAILY EXTRA WORK A!PORT CASS CONSTRUCTION, INC, P,0, BOX 3119 • EL QA.ION, 0A t2()22.030I (911J51CM929 8TATE LIO, l208S38A N2 47334 P. t! ID W,N' C SOI.I., OASS CONS�HC, , CUSTOMER:_. _ _._._,._.:,:_;.. _ _.,_a...a-... _'-------------------------FOREMAN:.,. _______ _ :"10 w-1 A� s��-., �:J.1s-co �--.!1&.JJ ADDRESS: ___ _.�......., _____ '<"<>_.._.___,_'-'--"'�'-'--II'"----�---------------OATE PERFORMED >J'1-o·,., LOCATION OF WORK: LJ,Tf 1 $:C c9 .So,,,.#,, CHARGE TO JOB, J\'VZ Oe&CRIPTION OF WORK: Re I o.v.1.v d2t/ o£ C 'fi'lf' e0 w o/ fJDf� W so.mo t).e e""ss QV �J.1, ){:,;,f W &tf/ 'l-t 1 #'4A Dt�.icfi,. (!p..f/,,,. CASS CONSTRUCTION, INC. le to perform the lonowlng work. R11eon tor Ching« ...-'\ _ • _ tr_ ,r. PURCHASE ( J ,/ ' REQUESTED BV: (Print) -'"".;;nw""""'""-'--'l"l'--O�r_r-_''V....._ _____ OflOERI --------PHON (0£ ]'.72 -�.:, (/' 1.ASOR & EQUIPMENT �� , ., ,r¼J. , ,AJ..,-.!L PL. AT -9 Hrs Q..t.,. 91 qrt) � .: ..,.., . � MATERIALS Rf�'\. bl C ,�J.u-> c.o...?l1� D<' .. , +1t>-e.� EQUIP No. � � QTY, 'I :}(1 ,-.,. J HOURS RATE TOTAL srr orr I f7'LCC 9<o,<O g--$"�.Cl(") ldl� ( l(.:lc,,C() tk,00 UNITS RATE TOTAL t-1s. I�.� &.-IS ¾r3,.o5 \'Q<p,41 15"2 fbiR7 -r61t'l I I��'¼+-. / ' I Certify work perfOlmed on lhls Worll Order hall been rK1ived In QOod conct�lon If no price l1 slaled, It Is underslood that the price 11h1U be �net the l1bo• and equipment hours and me1erlel1 reported an, correct. cost ol Labor, Equipment and Materfal plu1 151'. 1,wa ■grH 10 pay for ,11 ch■rges not l■ler than th• time lh• wo,k II compl11■d. ◄houra minimum for labor IL equipment. ��8f'll?;;::;tESENTATIVE: Ii ,Zf1ffe Llbor OVl'r ◄ hourw to b• chargtd •• 8 hourt. : --,,,,://r7 �-TIii• Dale -: P2084 BALDWIN & SONS, LLC REIMBURSEMENTSUBMITTALS PACKET Executed RelmburaemantAgraernent, dated June 6, 2018 First Amendment to Agraernent, dated Februay Januay 20, 2022 Board Approval to enter Into RelmblnementAgreernent, dated May4,2018 Engineering Committee Report for RelmlnnamentAgl88ment. datedAprl 19, 2018 REQUEST FOR ACTION BY THE GENERAL MANAGER FROM: Dan Martin CIP NO.: R2084 DATE: May 25, 2016 SUBJECT: CIP 2084 RecPL -20-lnch 680 Zone, Village 2 Heritage/La Media Reimbursement Agreement CONTRACT AMOUNT, IF APPLICABLE: $265,994.40 The following action by the General Manager is requested on the attached form: □Review, comment, and return to Department. □Sign and return to Department for further processing. x Sign and return to _Mary Lee Carrillo_ to process. This document has been reviewed and approved by the following persons: ASSISTANT GENL.,V\11')'\L. MANAGER:��/.u����7---- GENERAL COUNSEL:_--1.c-,f--+-,,�,'l!--l,,<-'"""'--�--"'-- CHIEF, ENGINEERING��� ? DATE: DATE: DATE: DATE: DATE: �/2/4, �II I (6 S \ u.\\b s/�l1c. �/2�h" COMMENTS: Mark, attached for your signature are two (2) copies of the reimbursement agreement for the construction of approximately 2,000 linear feet of 20- inch recycled water main located in Santa Victoria Road between Santa Carolina Road and Santa Alexia Avenue (CIP R2084 ). Also attached for reference is a copy of the May 4, 2016 Board report where the Board provided authorization for the agreement. P:\WORKINGICIP R2084 Santa Victoria Reimbursement\Agreements-Contracts-RFPs\Reimbursement Agreement\Agreement\R2084 General Manager Signature Request REIMBURSEMENT AGREEMENT For CAPITAL IMPROVEMENT PROGRAM WATER FACILITIES Associated With BALDWIN & SONS, LLC AT OTA Y RANCH VILLAGE 2 SOUTH BBIPR2084 1 This Reimbursement Agreement ("Agreement") is entered into as of this 6,-C-day of _ju ne , 2016, by and between the Otay Water District, a Municipal Water District formed under the Municipal Water District Act of 1911 ("District") and Baldwin & Sons, LLC a California Limited Liability Company, with an address at 610 West Ash St., Suite 1500, San Diego, CA 92101 ("Developer"), in view of the following facts and for the following purposes: RECITALS A.District's Board of Directors has adopted a Master Plan and approved a Capital Improvement Program ("CIP") for all regional water facilities ("Planned CIP Facilities") throughout the District. There are a number of Planned CIP Facilities within and adjacent to Otay Ranch Village 2 South BBIP (the "Development"), which Developer will construct within District's service area in the City of Chula Vista, California (the "Required CIP Facilities"). B.In connection with the Development and the Required CIP Facilities, Developer was required to complete a Sub-Area Master Plan (the "SAMP") upon which the Required CIP Facilities are identified. If required, the SAMP has been completed, is entitled "Subarea Water Master Plan of Potable and Recycled Water for Otay Ranch Village 2," dated June I, 2006, and is incorporated herein by reference. Developer will complete the Required CIP Facilities as identified in the SAMP, if any, or/and as depicted or described in Exhibit A attached hereto. C.Developer intends to develop its property, which will include substantial public improvements, including the construction of certain Required CIP Facilities, as more fully depicted or described in Exhibit B. D.Developer recognizes that District will need to construct regional facilities to support this Development, typically in advance of the Developer paying all capacity fees. E.Developer shall conform to, and comply with, all of the conditions set forth in District's current Policy 26, attached hereto as Exhibit C. F.Developer shall comply with all terms and conditions in the current District's Code of Ordinances and in the District's Standard Specifications. G.Developer agrees to encourage participation by Emerging Business Enterprises on construction contracts related to this Agreement. H.In coordination with this Agreement, Developer and District have entered into that certain Agreement Otay Ranch Village 2 South BBIP for Construction of a Water System dated March 16, 20 I 6 ("Construction Agreement"), wherein Developer's obligations regarding the construction and completion of the Required CIP Facilities are more fully set forth. The Parties Page 1 of 6 acknowledge that, where the terms and conditions of this Agreement conflict with the Construction Agreement on matters pertaining to construction and completion of the Required ClP Facilities, the Construction Agreement will control. Similarly, where the terms and conditions of the Construction Agreement conflict with this Agreement on matters pertaining to the reimbursement of Developer by District, this Agreement will control. OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the above Recitals and of the promises and agreements contained herein, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, District and the Developer do hereby promise and agree as follows: I.Project Cost and Construction Developer shall design, construct, install, and complete the Required CIP Facilities in the manner more fully set forth in the Construction Agreement, and shall provide all funds needed for the design, construction, installation, and completion of the Required CIP Facilities. In order to remain eligible for reimbursement as provided under this Agreement, the Required CrP Facilities must be constructed and completed within the time provided in the Construction Agreement. Furthermore, to remain eligible for reimbursement, Developer must construct the Required CIP Facilities in compliance with all applicable laws, rules and regulations. The estimated cost of the Required ClP Facilities, as set forth in the Construction Agreement, is Two Hundred Sixty-Five Thousand Nine Hundred Ninety-Four Dollars and forty cents ($265,994.40). 2.Reimbursement Developer shall be entitled to reimbursement for the cost and expense of constructing and completing the Required CIP Facilities consistent with District's Policy No. 26 and consistent with the Construction Agreement. Except as provided in Policy 26, the District will pay 100% of the reimbursement cost after the General Manager accepts the project and the Board approves the request for reimbursement. Developer shall submit a request for reimbursement in writing to District and shall attach all documents necessary to demonstrate, to the satisfaction of District, that the Required CIP Facilities have been completed and accepted and the costs and expenses have been actually and reasonably incurred. The necessary documents shall include (i) copies of bid documents, (ii) invoices, (iii) unconditional lien releases, and (iv) any other documentation as requested by the District. 3.Termination Ifnot otherwise earlier terminated, this Agreement shall terminate on the earlier of (i)the date on which the reimbursements contemplated herein have been paid, or (ii) five (S)calendar years from the date first set forth above, whiclh shall be the date of Board approval;however, all of Developer's warranties and indemnification obligations shall remain in effect untilterminated in accordance with their respective terms. District may terminate this Agreement andits obligations upon thirty (30) days written notice to Developer, if the General Manager Page 2 of 6 determines that Developer has failed to comply with its obligations under this Agreement or under the Construction Agreement. 4.Plan Submittal Developer shall be required to adhere to District's process for submittal of improvement plans, which includes securing bonding for all facilities to be constructed, construction agreements, deposits for District staff time and project acceptance. 5.Record Keeping Developer sh al I keep an accurate record of the actual costs to construct the Required CIP Facilities for which reimbursement is requested, in accordance with generally accepted accounting procedures. Developer shall allow an authorized District representative, during Developer's regular business hours and upon reasonable notice, to examine and duplicate any records relevant to verifying the actual cost to construct the Required CIP Facilities, including, without limitation, all contract bids and invoices. Any changes occurring during construction shall be properly documented. Back-up documentation shall be kept by Developer for four (4) years after the completion of the Required CIP Facilities and be provided to District for its review upon its request. 6.Change Orders No change orders will be permitted unless the change order results from a change in the work, design or specifications initiated by District during the construction of the Required CIP Facilities. 7.General Provisions a.Incorporation of Recitals and Exhibits. The recitals set forth above and allexhibits referenced in this Agreement are hereby incorporated by reference into this Agreement to be given the same force and effect as if fully set forth herein. b.Amendments. No amendment, modification, supplement, termination orwaiver of any provision of this Agreement shall be effective unless executed in writing by both parties and then only in the specified instance and for the specific purpose given. c.Notices. Any demand upon or notice required or permitted to be given byone party to the other party shall be in writing. Except as otherwise provided by law, any demand upon or notice required or permitted to be given by one party to the other party in connection with this Agreement shall be effective (i) on the date a personal delivery is accepted; (ii) on the date a facsimile of the notice is sent, or on the next business day if the fax is sent after 5:00 p.m. or on a Saturday, Sunday or holiday, provided that receipt and confirmation of the facsimile transmission is attached to a copy of the faxed notice; (iii) on the second business day after mailing by certified or registered United States mail, return receipt requested; or (iv) on the succeeding business day after mailing by Express Mail or after deposit with a private delivery service of general use (e.g., Federal Express), postage or fee prepaid as appropriate, addressed to the party at the address shown below: Page 3 of 6 If to District: 1f to Developer: Otay Water District 2554 Sweetwater Springs Boulevard Spring Valley, California 91978-2004 Attn: General Manager Nick Lee Baldwin & Sons, LLC A California Limited Partnership 610 West Ash St San Diego, California 92101 Telephone: (619) 234-4050 Facsimile: (619) 234-4088 Notice of change of address shall be given by written notice in the manner set forth in this paragraph. d.Indemnity. Developer agrees to defend (with attorneys approved by District), indemnify, protect, and hold harmless District, its elective and appointive boards, officials, officers, agents, and employees from and against any and all claims asserted or liability established after actual trial which arise from or are connected with or are caused or claimed to be caused by Developer or its agents, officers or employees, in the construction of the Required CIP Facilities, or any part thereof, and all expenses of investigation and defending against same; provided, however, that Developer's duty to defend, indemnify and hold harmless shall not include any claims or liability determined to be due to the sole or active negligence of the District, its elective and appointive boards, officials, officers, agents, and employees. e.Applicable Law and Venue. This Agreement and each provision herein shall be interpreted in accordance with the laws of the State of California without regard to its conflict of laws principles. The Parties agree that the proper venue for the resolution of any disputes under this Agreement shall be with the Superior Court of the County of San Diego. f.Successors and Assigns. This Agreement and alJ of the terms, conditions,and provisions hereof shall inure to the benefit of and be binding upon the parties hereto, and their respective successors and assigns; provided, however, that no assignment of this Agreement shall be made without written consent of the parties to this Agreement. Any attempt by the Developer to assign or otherwise transfer any interest in this Agreement without the pr:ior written consent of the District shall be void. g.Counterparts. This Agreement may be executed in multiple counterparts, each of which counterpart, if fully executed, shaJJ be deemed an original. No counterpai1 shall be deemed to be an original or presumed delivered unless and until the counterpart executed by the other party to this Agreement is in the physical possession of the party seeking enforcement thereof Page 4 of 6 h.Effective Date. This Agreement shall not bind the parties and become effective until such time as the authorized representative of Developer has executed the Agreement, and District has approved and the authorized representative of District has executed this Agreement. i.Corporate Authority. The persons executing this Agreement on behalf of the parties hereto represent and warrant that: (i) such party is duly organized and existing; (ii)they are duly authorized to execute and deliver this Agreement on behalf of said party;(iii)by so executing this Agreement, such party is formally bound to the provisions of anyother Agreement to which said is bound. j.Waiver. The waiver of any term, condition or provision of this Agreementis valid only as to that specific waiver and does not constitute a waiver of, and shall not be construed to waive, any other term, condition or provision of this Agreement. k.Compliance with Applicable Laws. Developer agrees to comply with all federal, state and local laws, rules, regulations and ordinances that are now or may in the future become applicable to Developer, Developer's business, equipment and personnel engaged in activities covered by this Agreement or arising out of the performance of such activities, including the California Labor Code. Where approval by the District or a District official is required, it shall be deemed general approval only and does not relieve Developer of responsibility for compliance under this Section. [Remainder of page intentionally left blank] Page 5 of 6 rN WITNESS WHEREOF, this Agreement is executed by District and by Developer as of the date first above written. OT A Y WATER DISTRICT A California By: BALDWIN & SONS, LLC A CAL � TED LIABILITY COMPANY By: .;, Its Vice President Date: 5,b, o Ji & Page 6 of 6 PROJECT SITE VICINITY MAP OTAY WATER DISTRICT 20-INCH RECYCLED WATER MAINLOCATION MAP EXHIBIT A CIP R2084 OTAY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM PROJECT TITLE: RecPL - 2,0-lnch, 680 Zone, Village 2 -Heritage/La Media EXHIBIT B CIP Number:R2084 DIRECTOR DIVISION: 1 PROJECT MANAGER: Stephen Beppler ORIGINAL APPROVED DATE: 6/2/2004 RELATED CIP PROJECTS: R2083, R2085 DESCRIPTION OF PROJECT: 1.D. LOCATION: PRIORITY: BUDGET AMOUNT: 22 2 $365,000 Construction of approximately 2,000 feet of 20-inch pipeline within the 680 Pressure Zone in Village 2 in Santa Victoria Road from Santa Carolina Road to Santa Alexia Avenue. JUSTIFICATION OF PROJECT: This project will provide transmission capacity for tihe recycled water supply pumped from the 680-1 Pump Station to the 680 and higher pressure zones. Significant energy savings will occur due to lower total dynamic head requirements for the 680-1 Pump Station. Funding opportunity is the United States Bureau of Reclamation Water Reclamation and Reuse Program, Title XVI of P.L. 102-575. COMMENTS: This is a developer driven project. A reimbursement agreement is expected to be considered by the Board in FY 2017. Developer budget is 2,000 LF at a cost of $150 per foot for a total of $300,000 Inspection and staff budget is $65,000 This CIP budget was reduced from $970,000 to $365,000 for the FY 2017 CIP budget. FUND DETAILS: FUNDING SOURCE: Expansion Betterment Replacement New Water Supply Total Expansion 100 % 0% 0% 0% 100% TOTAL: 100 % 0% 0% 0% 100% EXPENDITURE SCHEDULE (X $1,000): PRIOR YEARS: FY FY FY FY FY FY FY TOTAL 2017 2018 2019 2020 2021 2022 Total $0 $10 $40 $315 $0 $0 $0 $365 EXHIBIT C OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adooted Revised DISTRICT ADMINISTRATION OF REIMBURSEMENT 26 2/10/93 7/05/06 AGREEMENTS PURPOSE This policy establishes guidelines for how the District will administer reimbursement agreements for facilities, both Master Plan and Non-Master Plan. It also describes when and how the District will participate in the cost of such facilities. BACKGROUND Policy 26 requires that development which creates the need for new facilities must bear all costs to construct and finance the on-site, in-tract and off-site water, wastewater, and recycled water systems. "On-site" facilities are defined as those pipelines, pump stations and reservoirs required within a developer's project boundaries. "Offsite" facilities are those facilities located outside a project's boundary that are required to serve the project. "In-tract" facilities are defined as those non-regional facilities that serve only the project being constructed. These facilities are typically 6 inch through 12 inch pipelines. In-tract facilities are the sole responsibility of the developer/property owner until the facilities and all required property easements are dedicated to, and accepted by, the District pursuant to authority granted by the Board to the General Manager. The District's Master Plan includes all regional on-site and off-site facilities anticipated to be necessary to provide service throughout the District. The District's capacity fees have been calculated to pay for the cost of all the regional facilities identified in the Master Plan including the developer/property owner portion of such facilities. The District does not subsidize development but it does undertake responsibility to insure that those regional facilities necessary to serve a particular development are constructed and that the costs associated with the construction of said facilities is fairly distributed among all users. POLICY A.Master Plan Facilities-Reimbursement by the District: Forfacilities identified in the Master Plan, both on-site and off-site,the District may reimburse the developer for construction and designcosts if the project meets the following guidelines: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adooted Revised DISTRICT ADMINISTRATION OF REIMBURSEMENT 26 2/10/93 7/05/06 AGREEMENTS 1.The project must be in the District's approved five-year CapitalImprovement Program (CIP) at the time of the request, and shallnot exceed the CIP budget amount without prior Board approval. 2.The District has approved a Sub-Area Master Plan (SAMP) and anyrequired maps, upon which the facilities are clearly described. 3.The developer makes an irrevocable offer to dedicate thefacilities and any easements required for the operation andmaintenance of the facilities to the District, which offer isaccepted by the General Manager and all applicable language anddocumentation of the dedication(s) is prepared and recorded, allin the manner authorized by the Board. 4.The developer enters into an Agreement for Construction of aWater System with the District. 5.The developer/property owner obtains bids from qualifiedcontractors and provides copies of the bids to the District. Thedeveloper/property owner is responsible for selecting the lowestresponsive responsible bidder. The developer/property owner willbe reimbursed for the CIP portions of the project based on theunit prices submitted with the lowest responsive responsible bid. 6.The cost of addressing environmental issues, such as burying areservoir, shall not be reimbursable unless they are currentlyaddressed in the District's Master Environmental Impact Reportand CIP. 7.All soft costs, such as engineering, inspection, bonds, etc.,will be included in the reimbursement cost at five percent of theconstruction costs. 8.Except as provided below, the District will pay 100 percent ofthe reimbursement cost after the General Manager accepts theproject. 9.The District may elect to finance the facilities by borrowing if,after analysis by the Finance Department, it is determined thatthe borrowing fits into the District's financial plan as outlinedin Policy 25. 10.If for any reason reimbursement funds are not vailable at thetime the project is operationally complete, the District mayelect to defer or a portion of the reimbursement the Districtdetermines is due the developer until the General Manager accepts Page 2 of 7 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adooted Revised DISTRICT ADMINISTRATION OF REIMBURSEMENT 26 2/10/93 7/05/06 AGREEMENTS the dedication of the project and until all liens, claims and/or bonds, as applicable, have been released in the manner provided under the Agreement for Construction of a Water System. 11.Funds for reimbursement shall be carried as a CIP until thereimbursement is made. 12.Each reimbursement agreement requires approval by the Board. AStaff Report will be prepared and reviewed with the FinanceDepartment prior to presentation to the Board for approval. 13.This type of reimbursement agreement ends five (5) years afterBoard's original approval. The reimbursement agreement may beterminated prior to said (5) year term by the General Managerupon a determination that the developer has failed to comply withits obligations under the Reimbursement Agreement or theAgreement for Construction of a Water System. 14.If the reimbursement agreement expires prior to the facilities bythe District or prior to payment of reimbursement, the Developershall no longer be entitled to reimbursement. The Developer maysubmit new documentation andrequest that the District enter intoa new reimbursement agreement. If the District agrees to enterinto a new reimbursement agreement for the facilities, however,the District may revise the terms and amounts of reimbursement atits discretion based on information available at the time of therequest. 15.All reimbursement requests shall be submitted to the Board forconsideration and shall not be processed without prior Boardapproval. B.Non-Master Plan Facilities-Reimbursement to Developer by FutureUsers: Occasionally, a developer/property owner requests the Districtto administer a reimbursement agreement to collect money from futurecustomers who connect to the facility built by the developer/propertyowner. If the District agrees, the District collects thereimbursement amount from each customer connecting to the facility,together with any other District connection fees. The reimbursementportion of the customer's payment is forwarded by the District to thedeveloper/property owner as reimbursement. The District may administer this type of reimbursement agreement if the developer/property owner's project meets the following criteria and guidelines: Page 3 of 7 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adooted Revised DISTRICT ADMINISTRATION OF REIMBURSEMENT 26 2/10/93 7/05/06 AGREEMENTS 1.The developer/property owner demonstrates the facilities to beconstructed have adequate capacity to serve future customers. 2.The developer/property owner requests and executes areimbursement agreement, which is presented to the Board forapproval in conjunction with the presentation of an agreement toconstruct. 3.The property owner deposits with the District the estimated costfor District staff to prepare a nexus study and obtain Boardapproval for the reimbursement agreement. District staff willprovide a written estimate of the required deposit to theproperty owner within 15 days of the property owner's request. 4.The property owner provides three (3) bids from qualifiedcontractors for the purpose of establishing the cost of thefacilities and the portion of the reimbursement amount which isto be allocated to future connections. 5.A nexus study shall be performed by District staff to identifythose who may benefit from the construction of the proposedfacility and the amount they shall reimburse thedeveloper/property owner who constructed the facility. 6.Prior to the public notice being sent to those property ownersaffected by the reimbursement agreement, an informational staffreport will be presented to the Board. 7.The District shall notice all those property owners that will besubject to the reimbursement charge. These property owners willthen be responsible to pay their fair share of the cost of thefaciljties at such time as they connect to the system. The fairshare will be based on their Assigned Service Unit/EquivalentDwelling Unit (ASU/EDU) contribution to the total projectedASU/EDU to use the system. The reimbursement charge will be inaddition to any other fees a property owner would pay to theDistrict to obtain service. 8.Each reimbursement agreement requires approval by the Board.Prior to presenting a reimbursement agreement to the Board, staffmust obtain two originals signed by an authorized representativeof the developer/property owner. A Staff Report must then beprepared and reviewed with the Finance Department prior topresentation to the Board for approval. Page 4 of 7 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adooted Revised DISTRICT ADMINISTRATION OF REIMBURSEMENT 26 2/10/93 7/05/06 AGREEMENTS 9.This type of reimbursement agreement shall be valid for 10 yearsfrom the date of Board approval. After the 10 year period haslapsed the collection of the reimbursement amount by the Districtshall cease. 10.Concurrently with submission of a signed reimbursement agreement,the developer/property owner must pay an administrative fee tothe District to defray costs related to the review of the requestand the negotiation and execution of the reimbursement agreement.The amount of the administrative fee will be calculated at thestaff rate existing at the time of said submission. 11.In addition, concurrently with payment of the fee describedabove, developer must pay a fee to defray costs estimated to beincurred per each connection to be established during the term ofthe reimbursement agreement. The amount of this fee will becalculated based on an estimated 6 man hours per connection. Thestaff rate in existence at the time the reimbursement agreementis executed will be used as a base and it will be projected tochange each year to account for changes in the COLA, asdetermined by the District's finance department. 12.The District will not distribute any reimbursement funds to thedeveloper/property owner until the project has been accepted bythe Board. The distribution of reimbursement funds will occur asthe District collects the funds from new customers who connect tothe facility, but not more frequently than once per year. 13.District staff shall collect the reimbursement amount due at thesame time the standard District capacity fees for the new serviceare collected. 14.If the reimbursement agreement expires prior to the facilities bythe District or prior to payment of reimbursement, the Developershall no longer be entitled to reimbursement. The Developer maysubmit new documentation andrequest that the District enter intoa new reimbursement agreement. If the District agrees to enterinto a new reimbursement agreement for the facilities, however,the District may revise the terms and amounts of reimbursement atits discretion based on information available at the time of therequest. 15.All reimbursement requests shall be submitted to the Board forconsideration and shall not be processed without prior Boardapproval. Page 5 of 7 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adooted Revised DISTRICT ADMINISTRATION OF REIMBURSEMENT 26 2/10/93 7/05/06 AGREEMENTS C.Non-Master Plan Facilities-Reimbursement to Developer by theDistrict: Normally the District would not participate in the cost of facilities which are not identified in the Master Plan. These facilities are of benefit only to the adjoining property and should ordinarily be financed solely by the developer/property owner proposing the new facility. Nonetheless, there may be circumstances where the General Manager determines that it is appropriate for the District to participate in the cost of a non-Master Plan facility. Typical reasons would be in order to accommodate future growth or betterment of the system. In these instances, the District may establish special fees to recover the reimbursement costs from benefiting property owners as they connect to the system. The District may reimburse the developer/property owner for construction costs if the project meets the following criteria and guidelines: 1.The General Manager has determined that it is appropriate for theDistrict's customers to participate in the construction of theproject. 2.The developer/property owner shall obtain three (3) bids fromqualified contractors and provide copies of the initial bids tothe District. The developer/property owner is responsible forselecting the lowest responsive bidder. The developer/propertyowner will be reimbursed for the CIP portions of the projectbased on the unit prices submitted with the lowest responsivebid. 3.A nexus study will be performed by the District to identify thoseproperty owners who may benefit from the construction of theproposed facility. 4.Prior to the public notice being sent to those property ownersaffected by the reimbursement agreement, an informational StaffReport shall be presented to the Board. 5.The District shall notice all those property owners which will besubject to the reimbursement charge. These properties will thenbe responsible to pay their fair share of the cost of thefacilities, plus interest, at such time as they connect to thesystem. 6.The developer/property owner shall request and execute thereimbursement agreement with the District prior to awarding anycontracts for construction. Page 6 of 7 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adooted Revised DISTRICT ADMINISTRATION OF REIMBURSEMENT 26 2/10/93 7/05/06 AGREEMENTS 7.Each reimbursement agreement requires approval by the Board.A Staff Report shall be prepared and reviewed with the FinanceDepartment prior to presentation to the Board for approval. 8.Except as provided below, the District will pay 100 percent ofthe reimbursement cost after the General Manager accepts theproject. 9.The District may elect to finance the facilities by borrowing, ifit is determined that borrowing is in the best interest of theDistrict's customers. 10.If for any reason reimbursement funds are not available at thetime the project is operationally complete, the District mayelect to defer the reimbursement until the General Managerdetermines that it is appropriate to make payments. 11.Funds for reimbursement shall be carried as a CIP until thereimbursement has been made. 12.This type of reimbursement agreement contains no end date for thecollection by the District of its contributed share of the cost,and shall be the responsibility of all current and subsequentproperty owners. 13.District staff shall collect the reimbursement amount due at thesame time the standard District capacity fees for the new serviceare collected. 14.If the reimbursement agreement expires prior to the facilities bythe District or prior to payment of reimbursement, the Developershall no longer be entitled to reimbursement. The Developer maysubmit new documentation andrequest that the District enter intoa new reimbursement agreement. If the District agrees to enterinto a new reimbursement agreement for the facilities, however,the District may revise the terms and amounts of reimbursement atits discretion based on information available at the time of therequest. 15.All reimbursement requests shall be submitted to the Board forconsideration and shall not be processed without prior Boardapproval. Page 7 of 7 DocuSign Envelope ID: 606DOCB8-D433-40EF-6C4C-CFOEOB7CA82F FIRST AMENDMENT TO REIMBURSEMENT AGREEMENT FOR CAPITAL IMPROVEMENT PROGRAM WATER FACILITIES ASSOCIATED WITH BALDWIN & SONS, LLC AT OTAY RANCH VILLAGE 2 SOUTH BBIP R2084 This First Amendment ("Amendment'') to the Reimbursement Agreement For Capital Improvement Program Water Facilities Associated With Baldwin & Sons, LLC At Otay Ranch Village 2 South BBIP R2084 Is made and entered into and effective on the date specified on the signature page (the MEffective Oaten). by and between the Otay Water District, a municipal water district organized and operated pursuant to the Water Code Section 71000, et seq. ("Otay"), and Baldwin & Sons, LLC a California Limited Liability Company, with an address at 610 West Ash St., Suite 1500, San Diego, CA 92101 ("Developer") Bs.Q!I&!:§ A.Developer and District entered into that certain Agreement Otay RanchVillage 2 South BBIP for Construction of a Water System dated March 16, 2016 ("Construction Agreement"), wherein Developer's agreed to construct and complete CIP Facilities as described in the Construction Agreement. B.In coordination with the Construction Agreement, Otay and Developerentered into that certain Reimbursement Agreement For CapitalImprovement Program Water Facilities Associated With Baldwin & Sons,LLC at Otay Ranch Village 2 South BBIP R2084 wherein Otay will reimburse Developer for 100% of the cost and expense of constructing and completing the Required CIP Facilities consistent with Otay's PolicyNo. 26 and consistent with the Construction Agreement, after the GeneralManager accepts the project and the Board approves the request forreimbursement. C.Agreement shall terminate on the earlier of (i) the date on which thereimbursements contemplated herein have been paid, or (ii) five (5)calendar years from the date first set forth above D.Under the Agreement, Developer agreed to complete construction of theFacilities within two years from the date of the Agreement. E.District and Developer desire to amend the terms and provisions of theAgreement to extend the date for completion of such work for a period of two years from the date of this Amendment and to extend the term of the Agreement. NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants hereinafter contained, the parties agree as follows: AS7 Law San Diego/004344/000002/K/S0501605.DOC{ DocuSign Envelope ID: 606DOCB8-D433-40EF-8C4C-CFOEOB7CA82F I I 1.Pursuant to the Agreement, Section 3, the parties agreed that theconstruction would be completed on or prior to two years from the date of the Agreement. The parties hereby agree that the time for completion is hereby extended to require that all work covered by the Agreement be completed within two (2) years of the date of this Amendment. 2.Pursuant to the Agreement, Section 19, the parties agreed that the termof the Agreement would be thirty (30) months and is anticipated to expire on or about October 22, 2023. The parties hereby agree that the term of the Agreement is hereby extended 30 months from the date of this Amendment. 3.Developer represents and warrants that the security required by Section 7of the Agreement remains In effect and shall remain In effect until released by the District under the terms of the Agreement. Developer shall provide evidence concerning such security satisfactory to the District, including providing contact information for the provider of the security, prior to execution of this Amendment. 4.The parties agree that all terms and conditions of the Agreement notmodified or amended by this Amendment, including without limitation all indemnity and insurance requirements, are and shall remain in full force and effect. [Remainder of page intentionally left blank] AS7 Law San Diego/004344/000002/K/S0501605.DOC{ DocuSign Envelope ID: 606DOC88-0433--40EF-8C4C-CFOE087CA82F IN WITNESS WHEREOF, the parties have caused this agreement for first amendment to the basic agreement to be executed as of the day and year first above written. OTAY WATER DISTRICT By: �:7':.'i,w:, ""16s'e Martinez General Manager Approved as to form: By: .:.-...... (iJ,,,,u,fuJ. �� e•iieral Counsel DEVELOPER: BALDWIN & SONS, LLC January 20, 2022 Date A CALIFORNIA LIMI ED LIABILITY COMPANY Signature DatJ Its: CH1€F ()pe.eFtnPG-0FP'<-e i:.. Title Af,u<:.. La Please Print Name of Person Signing AS7 Law San Diego/004344/000002/K/S0501605.DOC{ DocuSign Envelope 1:D: 606D0CB8-D433-40EF-8C4C-CF0E0B7CA82F ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of l {°'-fl DI ogo On\T(J...()v� I g, zoz2 before me, --'\...._[v_.,a, ....... � _Tri_ltn-'-__ N_o_,_�_.,�_rv_b_/ I(,"-----(insert name and title ot'the officer) personally appeared �J ivk UJLJ who proved to me on the basis of satisfactory evidence to be the personOO whose name('�(�!er-e�bscribed to the within instrument and acknowle5!aed to me that@tsl=leAAey executed the same in �sfher/thei-r authorized capacity(�). and that by�i�fherftflsir signature(� on the instrument the person(�. or the entity upon behalf of which the person(}() acted, executed the instrument. I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature --+-1-�-+-) f: ____ _ (Seal) ,,l � .. . AGENDA ITEM 6b TYPE MEETING: Regular Board SUBMITTED BY: Dan Martin Engineering Manager STAFF REPORT MEETING DATE: PROJECT: R2084-001103 APPROVEDBY: 1:8] Rod Posada, Chief, Engineering May 4, 2016 DIV.NO.1 � German Alvarez, Assistant General Manager � Mark Watton, General Manager SUBJECT: Reimbursement Agreement with Baldwin & Sons, LLC, a California Limited Liability Company, for a Portion of the Capital Improvement Program Project R@cPL -20-Inch, 680 zone, Village 2 -Heritage/La Media, Project Location Santa Victoria Road GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approve the request for the General Manager to execute a Reimbursement Agreement with Baldwin & Sons, LLC, a California Limited Liability Company (Baldwin & Sons) for the construction of a 20-inch recycled water pipeline on Santa Victoria Road between SantaCarolina Road and Santa Alexia Avenue, for a portion of the CapitalImprovement Program Project RecPL -20-Inch, 680 Zone, Village 2 -Heritage/La Media, in an amount of $265,994.40 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a Reimbursement Agreement (see Attachment C) with Baldwin & Sons, for reimbursement of construction costs for a 20-inch recycled water pipeline on Santa Victoria Road between Santa Carolina Road and Santa Alexia Avenue, for a portion of the Capital Improvement Program Project RecPL -20-Inch, 680 Zone, Village 2 -Heritage/La Media, in an amount of $265,994.40. ANALYSIS: Baldwin & Sons is developing Otay Ranch Village 2. As part of this development, the District required the developer to prepare a SubArea Master Plan (SAMP) to document the potable and recycled water demands, existing facilities, and recommended facilities associated with servicing the development. The Otay Ranch Village 2 SAMP was approved by the District in June 2006. The approved SAMP also identified the District's Capital Improvement Program (CIP) facilities, as defined by the District's approved Water Resources Master Plan, that are to be constructed concurrent with the Otay Ranch Village 2 improvements. The Otay Ranch Village 2 CIP facilities eligible for reimbursement includes the construction of a 20-inch recycled water pipeline in Santa Victoria Road). Since the Developer is currently required to improve Santa Victoria Road, the Developer has agreed to install approximately 2,000 linearfeet of the 20-inch recycled water pipeline and enter into a Reimbursement Agreement (see Attachment C) per Policy No. 26 with the District. In compliance with Policy No. 26, the Developer has received three responsive bids for the pipeline construction and submitted copies to the District. Staff evaluated and certified that the bids are in compliance with Policy No. 26 requirements. The total reimbursable bid items and soft costs for each of the responsive bidders is as follows: CONTRACTOR BID AMOUNT SOFT COSTS TOTAL (5% PER POLICY 26} Cass Construction Inc. $253,328.00 $12,666.40 $265,994.40 LB3 Enterprises Inc. $276,972.00 $13,848.60 $290,820.60 Shilling -Paradise $296,774.00 $14,838.70 $311,612.70 In accordance with Policy No. 26, Baldwin & Sons is responsible for selecting the lowest responsive and responsible bidder and will be reimbursed for the CIP portions of the Project based on the unit prices submitted with the lowest responsive responsible bid. The District will inspect the contractors work for compliance with the District's approved plans and facilitate coordination with the contractor and developer. 2 3 SUBJECT/PROJECT: R2084-001.l03 ATTACHMENT A Reimbursement Agreement with Baldwin & Sons, LLC, a California Limited Liability Company, for a Portion of the Capital Improvement Program Project RecPL -20-Inch, 680 Zone, Village 2 -Heritage/La Media, Project Location Santa Victoria Road COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on April 19, 2016, and the following comments were made: •Staff reviewed the staff report with the Committee and statedthat the purpose of this item is to obtain Board authorizationfor the General Manager to enter into a Reimbursement Agreement(See attachment C) with Baldwin & Sons, for reimbursement ofconstruction costs for a 20-inch recycled water pipeline onSanta Victoria Road between Santa Carolina Road and Santa AlexiaAvenue. •In response to several questions from the Committee, staffstated that the reimbursement agreement for the construction ofregional Capital Improvement Program (CIP) facilities asincluded in this Developer project is routine and very standard.The District had processed similar reimbursement agreements backin 2006 and 2007 when there were many active developer projects.Staff indicated that more new developments are beginningconstruction in the City of Chula Vista, and that some developerprojects will require these type of reimbursement agreements. •In response to a question that was asked from the Committeeabout prevailing wage requirements associated with thereimbursement of the CIP project, Legal Counse1 respondedaffirmatively that the Developer is responsible for complyingwith all federal, state, and local laws, including theCalifornia Labor Code. The agreement (Attachment C to the staff report) includes language regarding compliance with applicable laws. Following the discussion, the Committee supported staffs' recommendation and presentation to the full board as a consent item. SUBJECT/PROJECT: R2084-001.103 ATTACHMENT B -Budget Detail Reimbursement Agreement with Baldwin & Sons, LLC, a California Limited Liability Company, for a Portion of the Capital Improvement Program Project RecPL -20-Inch, 680 Zone, Village 2 -Heritage/La Media, Project Location SantaVictoria Road Olay Water District Date: April 5, 2016 R2084-RecPL -20-lnch, 680 Zone, VIiiage 2-Heritage/La Media Outstanding Proj11ct11d Flnsl Budgst Committed Expenditures Commitment & VtJndor/Comments 365,000 Cost For8C8SI Plannlng ------- Total Plannlng ---- Design -------- Total Design ---- Construction Conversion Cost Type --- Labor 65,000 599 64.401 65,000 Reimbursement Agreement 265,994 -265,994 265,994 Baldwin & Sons, LLC Total Construction 330,994 599 330,395 330,994 Grand Total 330,994 599 330,395 330,994 5 REIMBURSEMENT AGREEMENT For CAPITAL IMPROVEMENT PROGRAM WATER FACILITIESAssociated With ATTACHMENT C BALDWIN & SONS, LLC AT OTAY RANCH VILLAGE 2 SOUTH BBIP R2084 This Reimbursement Agreement ("Agreement") is entered into as of this __ day of ____ __, 2016, by and between the Otay Water District, a Municipal Water District formed under the Municipal Water District Act of 1911 ("District") and Baldwin & Sons, LLC a California Limited Liability Company, with an address at 610 West Ash St., Suite 1500, San Diego, CA 92101 ("Developer"), in view of the following facts and for the following purposes: RECITALS A.District's Board of Directors has adopted a Master Plan and approved a CapitalImprovement Program ("CIP") for all regional water facilities ("Planned CIP Facilities") throughout the District. There are a number of Planned CIP Facilities within and adjacent to Otay Ranch Village 2 South BBIP (the "Development"), which Developer will construct within District's service area in the City of Chula Vista, California (the "Required CIP Facilities"). B.In connection with the Development and the Required CIP Facilities, Developerwas required to complete a Sub-Area Master Plan (the "SAMP") upon which the Required CIP Facilitiies are identified. If required, the SA.MP has been completed, is entitled "Subarea Water Master Plan of Potable and Recycled Water for Otay Ranch Village 2," dated June 1, 2006, and is incorporated herein by reference. Developer will complete the Required CIP Facilities as identified in the SAMP, if any, or/and as depicted or described in Exhibit A attached hereto. C.Developer intends to develop its property, which will include substantial publicimprovements, including the construction of certain Required CIP Facilities, as more fully depicted or described in Exhibit B. D.Developer recognizes that District will need to construct regional facilities tosupport this Development, typically in advance of the Developer paying all capacity fees. E.Developer shall conform to, and comply with, all of the conditions set forth inDistrict's current Policy 26, attached hereto as Exhibit C. F.Developer shall comply with all terms and conditions in the current District's Codeof Ordinances and in the District's Standard Specifications. G.Developer agrees to encourage participation by Emerging Business Enterprises onconstruction contracts related to this Agreement. H.In coordination with this Agreement, Developer and District have entered into thatcertain Agreement Otay Ranch Village 2 South BBIP for Construction of a Water System dated March 16, 2016 ("Construction Agreement"), wherein Developer's obligations regarding the construction and completion of the Required CIP Facilities are more fully set forth. The Parties Page 1 of 6 acknowledge that, where the terms and conditions of this Agreement conflict with the Construction Agreement on matters pertaining to construction and completion of the Required CIP Facilities, the Construction Agreement will control. Similarly, where the terms and conditions of the Construction Agreement conflict with this Agreement on matters pertaining to the reimbursement of Developer by District, this Agreement will control. OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the above Recitals and of the promises and agreements contained herein, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, District and the Developer do hereby promise and agree as follows: 1.Project Cost and ConstructionDeveloper shall design, construct, install, and complete the Required CIP Facilitiesin the manner more fully set forth in the Construction Agreement, and shall provide all funds needed for the design, construction, installation, and completion of the Required CIP Facilities. In order to remain eligible for reimbursement as provided under this Agreement, the Required CIP Facilities must be constructed and completed within the time provided in the Construction Agreement. Furthermore, to remain eligible for reimbursement, Developer must construct the Required CIP Facilities in compliance with all applicable laws, rules and regulations. The estimated cost of the Required CIP Facilities, as set forth in the Construction Agreement, is Two Hundred Sixty-Five Thousand Nine Hundred Ninety-Four Dollars and forty cents ($265,994.40). 2.ReimbursementDeveloper shall be entitled to reimbursement for the cost and expense ofconstructing and completing the Required CIP Facilities consistent with District's Policy No. 26 and consistent with the Construction Agreement. Except as provided in Policy 26, the District will pay 100% of the reimbursement cost after the General Manager accepts the project and the Board approves the request for reimbursement. Developer shall submit a request for reimbursement in writing to District and shall attach all documents necessary to demonstrate, to the satisfaction of District, that the Required CIP Facilities have been completed and accepted and the costs and expenses have been actually and reasonably incurred. The necessary documents shall include (i) copies of bid documents, (ii) invoices, (iii) unconditional lien releases, and (iv) any other documentation as requested by the District. 3.TerminationIf not otherwise earlier terminated, this Agreement shall terminate on the earlier of(i) the date on which the reimbursements contemplated herein have been paid, or (ii) five (5)calendar years from the date first set forth above, which shall be the date of Board approval;however, all of Developer's warranties and indemnification obligations shall remain in effect untilterminated in accordance with their respective terms. District may terminate this Agreement andits obligations upon thirty (30) days written notice to Developer, if the General ManagerPage 2 of 6 determines that Developer has failed to comply with its obligations under this Agreement or under the Construction Agreement. 4.Plan SubmittalDeveloper shall be required to adhere to District's process for submittal ofimprovement plans, which includes securing bonding for all facilities to be constructed, construction agreements, deposits for District staff time and project acceptance. 5.Record KeepingDeveloper shall keep an accurate record of the actual costs to construct the RequiredCIP Facilities for which reimbursement is requested, in accordance with generally accepted accounting procedures. Developer shall allow an authorized District representative, during Developer's regular business hours and upon reasonable notice, to examine and duplicate any records relevant to verifying the actual cost to construct the Required CIP Facilities, including, without limitation, all contract bids and invoices. Any changes occurring during construction shall be properly documented. Back-up documentation shall be kept by Developer for four (4) years after the completion of the Required CIP Facilities and be provided to District for its review upon its request. 6.Change OrdersNo change orders will be permitted unless the change order results from a changein the work, design or specifications initiated by District during the construction of the Required CIP Facilities. 7.General Provisionsa.Incorporation of Recitals and Exhibits. The recitals set forth above and allexhibits referenced in this Agreement are hereby incorporated by reference into this Agreement to be given the same force and effect as if fully set forth herein. b.Amendments. No amendment, modification, supplement, termination orwaiver of any provision of this Agreement shall be effective unless executed in writing by both parties and then only in the specified instance and for the specific purpose given. c.Notices. Any demand upon or notice required or permitted to be given byone party to the other party shall be in writing. Except as otherwise provided by law, any demand upon or notice required or permitted to be given by one party to the other party in connection with this Agreement shall be effective (i) on the date a personal delivery is accepted; (ii) on the date a facsimile of the notice is sent, or on the next business day if the fax is sent after 5:00 p.m. or on a Saturday, Sunday or holiday, provided that receipt and confirmation of the facsimile transmission is attached to a copy of the faxed notice; (iii) on the second business day after mailing by certified or registered United States mail, return receipt requested; or (iv) on the succeeding business day after mailing by Express Mail or after deposit with a private delivery service of general use (e.g., Federal Express), postage or fee prepaid as appropriate, addressed to the party at the address shown below: Page 3 of 6 H to District: If to Developer: Otay Water District 2554 Sweetwater Springs Boulevard Spring Valley, California 91978-2004 Attn: General Manager Nick Lee Baldwin & Sons, LLC A California Limited Partnership 610 West Ash St San Diego, California 92101 Telephone: (619) 234-4050 Facsimile: (619) 234-4088 Notice of change of address shall be given by written notice in the manner set forth in this paragraph. d.Indemnity. Developer agrees to defend (with attorney's approved byDistrict), indemnify, protect, and hold hannless District, its elective and appointive boards, officials, officers, agents, and employees from and against any and all claims asserted or liability established after actual trial which arise from or are connected with or are caused or claimed to be caused by Developer or its agents, officers or employees, in the construction of the Required CIP Facilities, or any part thereof, and all expenses of investigation and defending against same; provided, however, that Developer's duty to defend, indemnify and hold harmless shall not include any claims or liability determined to be due to the sole or active negligence of the District, its elective and appointive boards, officials, officers, agents, and employees. e.Aru,licable Law and Venue. This Agreement and each provision hereinshall be interpreted in accordance with the laws of the State of California without regard to its conflict of laws principles. The Parties agree that the proper venue for the resolution of any disputes under this Agreement shall be with the Superior Court of the County of San Diego. f.Successors and Assigns. This Agreement and all of the terms, conditions,and provisions hereof shall inure to the benefit of and be binding upon the parties hereto, and their respective successors and assigns; provided, however, that no assignment of this Agreement shall be made without written consent of the parties to this Agreement. Any attempt by the Developer to assign or otherwise transfer any interest in this Agreement without the prior written consent of the District shall be void. g.Counterparts. This Agreement may be executed in multiple counterparts,each of which counterpart, if fully executed, shall lbe deemed an original. No counterpart shall be deemed to be an original or presumed delivered unless and until the counterpart executed by the other party to this Agreement is in the physical possession of the party seeking enforcement thereof. Page 4 of 6 ' , h.Effective Date. This Agreement shall not bind the parties and becomeeffective until such time as the authorized representative of Developer has executed the Agreement, and District has approved and the authorized representative of District has executed this Agreement. i.Corporate Authority. The persons executing this Agreement on behalf ofthe parties hereto represent and warrant that: (i) such party is duly organized and existing; (ii)they are duly authorized to execute and deliver this Agreement on behalf of said party;(iii)by so executing this Agreement, such party is formally bound to the provisions of anyother Agreement to which said is bound.j.Waiver. The waiver of any term, condition or provision of this Agreementis valid only as to that specific waiver and does not constitute a waiver of, and shall not be construed to waive, any other term, condition or provision of this Agreement. k.Compliance with Applicable Laws. Developer agrees to comply with allfederal, state and local laws, rules, regulations and ordinances that are now or may in the future become applicable to Developer, Developer's business, equipment and personnel engaged in activities covered by this Agreement or arising out of the performance of such activities, including the California Labor Code. Where approval by the District or a District official is required, it shall he deemed general approval only and does not relieve Developer of responsibility for compliance under this Section. [Remainder of page intentionally left blank] Page 5 of 6 • < IN WITNESS WHEREOF, this Agreement is executed by District and by Developer as of the date first above written. OTAY WATER DISTRICT A California Municipal Water District By: General Manager Approved as to Form::General Counsel BALDWIN & SONS, LLC A CALIFORNIA LIMITED LIABILITY COMP ANY By: Its Vice President Date: Page 6 of 6 P2084 BALDWIN & SONS, LLC REIMBURSEMENTSUBMITTALS PACKET CIPSheets OTAY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM PROJECT TITLE: RecPL -20-lnch, 680 Zone, Village 2 -Santa Victoria Road from Santa Christina Ave. to Santa Alexia CIP Number: R2084 DIRECTOR DIVISION: 1 PROJECT MANAGER: Stephen Beppl,er ORIGINAL APPROVED DATE: 6/2/2004 RELATED CIP PROJECTS: R2083, R2085 DESCRIPTION OF PROJECT: This project will be built in two phases. Phase I I.D. LOCATION: PRIORITY: BUDGET AMOUNT: 22 2 $350,000 Construction of approximately 2,000 feet of 20-inch pipeline within the 680 Pressure Zone in Village 2 in Santa Victoria Road from Santa Christina Avenue to Santa Alexia Avenue. phase II Construction of approximately 1,200 feet of 20-inch pipeline from This project will be construicted by developers and is subject to reimbursement per Board policy. JUSTIFICATION OF PROJECT: This project will provide transmission capacity for the recycled water supply pumped from the 680-1 Pump Station to the 680 and higher pressure zones. Significant energy savings will occur due to lower total dynamic head requirements for the 680-1 Pump Station. Funding opportunity is the United States Bureau of Reclamation Water Reclamation and Reuse Program, Title XVI of P.L. 102-575. COMMENTS: This is a developer driven project. A reimbursement agreement is expected to be considered by the Board in FY 2017. Developer budget is 2,000 LF at a cost of $150 per foot for a total of $300,000 Inspection and staff budget is $50,000 This CIP budget was reduced from $970,000 to $350,000 for the FY 2017 CIP budget. FUND DETAILS: FUNDING SOURCE: Expansion TOTAL: Expansion 100 % 100 % EXPENDITURE SCHEDULE (X $1,000): PRIOR YEARS: TOTAL $1 FY 2017 $10 FY 2018 $330 Betterment Replacement 0% 0% 0% 0% FY 2019 $9 FY 2020 $0 FY 2021 $0 New Water Supply 0% 0% FY 2022 $0 FY Total $350 Total 100 % 100 % CIP Number: R2084 PROJECT SCHEDULE: ESTIMATED ESTIMATED ESTIMATED PROJECT PHASE: START DATE FINISHED DATE COST (X $1,000): PLANNING: 7/1/2004 6/30/2017 $2 DESIGN: 7/1/2017 12/31/2017 $3 CONSTRUCTION: 1/1/2018 6/30/2019 $966 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE($): 2017 2018 2019 2020 2021 2022 Total MAINT: $0 $0 $1,900 $1,900 $1,900 $0 $5,700 ENERGY: $0 $0 $0 $0 $0 $0 $0 CHEMICAL: $0 $0 $0 $0 $0 $0 $0 PROJECT LOCATION: OWD Map Book: 82 Submitted By: Bernardo Separa Date: 1/29/2016 P2087 BALDWIN & SONS, LLC REIMBURSEMENTSUBMITTALS PACKET Jul 07, 2021 03:09 PM OFFICIAL RECORDS Ernest J Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES $0 00 (SB2 Atkins: $0.00) PAGES 3 RECORDING REQUESTED BY AND AFTER RECORDING MAIL TO Jolene Fielding Otay Water District 2554 Sweetwater Springs Boulevard Spring Valley, CA 91978 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN THAT: 1.The following work of improvement, which is anintegral part of the water distribution system and/or sewer system of the Otay Water District, was accepted as completed by the District on May 11, 2021. 2.The name of the project is "Otay Ranch Village 2South BBIP (Tract No. 12-05) (Project No. 00740-090205) ." 3.The nature and location of the work of improvementis the construction of water and/or sewer improvements which are located on portions of lots 30&31 in the City of Chula Vista, in the County of San Diego, State of California, according to map thereof No. 15350 filed in the office of the County Recorder of said County May 26, 2006 (APNs: 644-313-02 & 644-313-03). 4.The name and address of the Developer is: Baldwin & Sons, LLCA California Limited Liability Company 610 West Ash Street, Suite 1500 San Diego, CA 92101 5.The property on which said work of improvement wascompleted is in the Otay Water District located in the County of San Diego, State of California. 6.The undersigned Otay Water District (whose officeand mailing address: 2554 Sweetwater Springs Boulevard, Spring Valley, CA 91978) is Owner in fee of the said Work and Improvement all of which is in areas dedicated to a public use of the type engaged in by said District. OTAY WATER DISTRICT T�� District Secretary A notary public or other officer completing this certificate verifies only the identity of the individual who sigrued document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. - ---DATE: 05-03-2021 ■ Project No.: D0740-090205 INSPECTOR: Dennis Truesdale DEVELOPER SUBDIVISIO,N PROJECT ACCEPTANCEFORM ACCEPTANCE OF: OTAY RANCH VILLAGE 2 SOUTH BBIP DEVELOPER: BALDWIN & SONS, LLC, A CALIFORNIA LIMITED LIABIL TY COMPANY PROJECT LOCATION: CITY OF CHULA VISTA, COUNTY OF SAN DIEGO DIRECTOR DIVISION: 1 WATER ID: 22 BONID AMOUNT: $2,460.064.82 To: To: To: ENGlNEERING Michael Long The subject project has been completed in accordance with the District standards and specifications, including all items on the Final Inspection/Operations Punch List. The Record Drawings and the Soils Test Results have been received from the Developer. This project can now be presented to the General Manager for acceptance. The'Project contains� feet of pipe with a value of$2,460,064.82 PUBLIC SERVJCES Public Services Project Account Bal.: $23,893.64 Please take the following action on this Project: ( X)Transfer from this Project account for the warranty inspection to R 11-4137, $11,210.44( X ) Transfer from this Project account for mapping to R 11-4134, $ (mapping applied duringconstruction)( X)Review and process project account for closure, transfer, and/or refund after GM signature GENERAL MANAGER Tita Ramos-Krogman Permit No.: DEV-I 5-013 Please take the following action on this Project: ( X)Generate Correspondence to Developer & Bond Company ( X ) Process Notice of Completion to County of San Diego( X ) Process Capitalize Asset to Finance ✓Sign and return to TITA RAMOS-KROGMAN for acceptance process.✓Originals return to PUBLIC SERVICES for processing. GENERAL MANAGER:��;:::.����....::::::�...§�� CHIEF, ENGINEERING: __ .;;;;;.;;.lo<J&,.-��..,..,......,.:.....----= ENGINEERING MANAGER:_L-�{L!A��====��-- DATE: �/11 /wi I i DATE: � laJ �-?..) DATE: ? /4 /4-o 2-/ I I DATE: [, t • LoZ-1 DA TE: __ S/:_6....;./_z_oz._,__:_;;::::_: cc: Mid 1aeH:-GA9 �ndori EJiPi�o Miike O'Donnell Jonathan Chambers Alex Shultz (w/record Mylars to be delivered later Pedro Porras (w/black lines to be delivered later) P2087 BALDWIN & SONS, LLC REIMBURSEMENTSUBMITTALS PACKET OWD Polley No. 28 OTAYWATER DISTRICT BOARD OF DIRECTORS POLICY Policy OTAYWATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adopted Revised DISTRICT ADMINISTRATION OF 26 02/10/93 06/01/16 REIMBURSEMENT AGREEMENTS POLICY A.Master Plan Regional Facilities-Reimbursement by the District: The District may reimburse the developer/property owner for construction and design costs on both on-site and offsite Regional Facilities identified in the Master Plan, if the project meets the following guidelines: 1.The project must be in the District's approved five-yearCapital Improvement Program (CIP) at the time of therequest, and the construction and design costs shall notexceed the CIP budget amount without prior Board approval. 2.The District has approved a Sub-Area Master Plan (SAMP)that defines all In-tract, Off-Site, and On-Site facilitiesrequired to serve the Development and includes any requiredfire flow calculations, maps, and modeling upon which thenon-regional facilities are clearly described. As part of the SAMP approval, the District will determine whether the non-Regional Facilities need to be upsized to meet a regional need. If needed, the District will require the developer/property owner to upsize the non-Regional Facilities to meet the regional need. These Regional Facilities will be included in the approved SAMP. The incremental increase between the non-Regional to Regional Facilities will be the basis for the reimbursement agreement. The District will amend the Water Facilities Master Plan based upon the facilities included in the Development's SAMP. 3.The developer/property owner makes an irrevocable offer todedicate to the District the facilities and any easementsrequired for the operation and maintenance of thefacilities, which offer is accepted by the General Manager,and all applicable language and documentation for the dedication (s) is prepared and recorded, all in the manner authorized by the Board. 4.The developer/property owner entersConstruction of a Water System orDistrict. into Sewer an Agreement System with for the Page 2 of 9 OTAYWATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adopted Revised DISTRICT ADMINISTRATION OF 26 02/10/93 06/01/16 REIMBURSEMENT AGREEMENTS 5.The developer/property owner obtains three (3) bids from qualified contractors and provides copies of the bids tothe District. The developer /property owner is responsible for selecting the lowest responsive responsible bidder. The developer/property owner will be reimbursed only for the Regional Facility CIP portions of the project based on the unit prices submitted with the lowest responsive responsible bid. 6.The cost of addressing environmental issues, such as burying a reservoir, shall not be reimbursable unless theyare addressed in the District's Master Environmental ImpactReport and CIP. 7.All soft costs, such as etc., will be included in engineering, inspection, the reimbursement cost percent of the construction costs. bonds, at five 8.Except as provided below, the District will pay 100 percentof the reimbursement cost after the General Manager acceptsthe project. 9.The District may elect to finance theborrowing if, after analysis by the Financeis determined that the borrowing fits intofinancial plan as outlined in Policy 25. facilities by Department, it the District's 10.If, for any reason, reimbursement funds are not availableat the time the project is operationally complete, the District may elect to defer or a portion of the reimbursement the District determines is due to the developer/property owner until the General Manager accepts the dedication of the project and until all liens, claims and/or bonds, as applicable, have been released in the manner provided under the Agreement for Construction of a Water System. 11.Funds for reimbursement shall be carried as a CIP until thereimbursement is made. 12.Each Reimbursement Agreement requires approval by the Board.A Staff Report will be prepared and reviewed with Page 3 of 9 OTAYWATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adopted Revised DISTRICT ADMINISTRATION OF 26 02/10/93 06/01/16 REIMBURSEMENT AGREEMENTS the Finance Department prior to presentation to the Board for approval. 13.This type of Reimbursement Agreement ends five (5) yearsafter Board's original approval. The reimbursementagreement may be terminated prior to said (5) year term bythe General Manager upon a determination that thedeveloper/property owner has failed to comply with its obligations under the Reimbursement Agreement or the Agreement for Construction of a Water System or Sewer System. 14.If the Reimbursement Agreementacceptance of the facilities bypayment of reimbursement, the shall no longer be entitled expires prior to the the District or prior to developer/property owner to reimbursement. The Developer may submit new documentation and request that the District enter into a new Reimbursement Agreement. If the District agrees to enter into a new Reimbursement Agreement for the facilities, however, the District may revise the terms and amounts of reimbursement at its discretion based on information available at the time of the request. 15.All reimbursement requests shall be submitted to the Boardfor consideration and shall not be processed without priorBoard approval. B.Non-Master Plan Facilities-Reimbursement to Developer byFuture Users: Occasionally, a developer/property owner requeststhat the District administer a reimbursement agreement tocollect money from future customers who connect to the facilitybuilt by the developer/property owner. If the District agrees,the District collects the reimbursement amount from eachcustomer connecting to the facility, together with any otherDistrict connection fees. The reimbursement portion of thecustomer's payment is forwarded by the District to thedeveloper/property owner as reimbursement. The District may administer this type of reimbursement agreement if the developer/property owner's project meets the following criteria and guidelines: Page 4 of 9 OTAYWATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adopted Revised DISTRICT ADMINISTRATION OF 26 02/10/93 06/01/16 REIMBURSEMENT AGREEMENTS 1.The developer/property owner demonstrates that thefacilities to be constructed have adequate capacity toserve future customers. 2.The developer/property owner requests and executes aReimbursement Agreement, which is presented to the Boardfor approval in conjunction with the presentation of anAgreement To Construct. 3.The developer/property owner deposits with the District theestimated cost for District staff to prepare a nexus studyand obtain Board approval for the Reimbursement Agreement.District staff will provide a written estimate of therequired deposit to the developer/property owner within 15days of the developer/property owner's request. 4.The developer /property owner provides three ( 3) bids fromqualified contractors for the purpose of establishing thecost of the facilities and the portion of the reimbursementamount which is to be allocated to future connections. 5.A nexus study shall be performed by District staff toidentify which property owners may benefit from theconstruction of the proposed facility and the amount theDistrict will reimburse the developer/property owner. 6.An informational staff report will be presented to theBoard before the public notice is sent to those propertyowners affected by the Reimbursement Agreement,. 7.The District shall give notice to all property owners whowill be subject to the reimbursement charge. Theseproperty owners will then be responsible to pay their fairshare of the cost of the facilities from the time they connect to the system. The fair share will be based on their Assigned Service Unit/Equivalent Dwelling Unit (ASU/EDU) contribution to the total projected ASU/EDU to use the system. The reimbursement charge will be in addition to any other fees a property owner would pay to the District to obtain service. Page 5 of 9 OTAYWATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adopted Revised DISTRICT ADMINISTRATION OF 26 02/10/93 06/01/16 REIMBURSEMENT AGREEMENTS 8.Each Reimbursement Agreement requires approval by the Board.Prior to presenting a Reimbursement Agreement to the Board, staff must obtain two original Reimbursement Agreements signed by an authorized representative of the developer/property owner. In addition, a Staff Report must be prepared and reviewed with the Finance Department prior to presentation to the Board for approval. 9.This type of Reimbursement Agreement shall be valid for 10years from the date of Board approval. After the 10 yearperiod has lapsed the collection of the reimbursementamount by the District shall cease. 10.Concurrently with submission of a signed ReimbursementAgreement, the developer/property owner shall pay anadministrative fee to the District, to defray costs relatedto the review of the request and the negotiation andexecution of the Reimbursement Agreement. The amount ofthe administrative fee will be calculated at the staff rateexisting at the time of said submission. 11.In addition, concurrently with payment of the fee describedabove, developer must pay a fee to defray costs estimatedto be incurred for each connection to be established duringthe term of the Reimbursement Agreement. The amount ofthis fee will be calculated based on an estimated 5 manhours of District Permit Technician work per connection.The staff rate in existence at the time the ReimbursementAgreement is executed will be used as a base and it will beprojected to change each year to account for changes in theCOLA, as determined by the District's Finance Department. 12.The District will not distribute any reimbursement funds tothe developer/property owner until the project has beenaccepted by the Board. The distribution of reimbursementfunds will occur as the District collects the funds fromnew customers who connect to the facility, but not morefrequently than once per year. 13.District at the staff shallsame time the collect the reimbursement amount due standard District capacity fees for the new service are collected. Page 6 of 9 OTAYWATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adopted Revised DISTRICT ADMINISTRATION OF 26 02/10/93 06/01/16 REIMBURSEMENT AGREEMENTS 14.If the Reimbursement Agreement expires prior to acceptanceof the facilities by the District or prior to payment ofreimbursement, the developer/property owner shall no longerbe entitled to reimbursement. The developer/property ownermay submit new documentation and request that the Districtenter into a new Reimbursement Agreement. If the Districtagrees to enter into a new Reimbursement Agreement for thefacilities, however, the District may revise the terms andamounts of reimbursement at its discretion based oninformation available at the time of the request. 15.All reimbursement requests shall be submitted to the Boardfor consideration and shall not be processed without priorBoard approval. C.Non-Master Plan Facilities-Reimbursement to Developer/Property Owner by the District: Normally the District would not participate in the cost of facilities which are not identified in the Master Plan. These facilities are of benefit only to the adjoining property and should ordinarily be financed solely by the developer/property owner proposing the new facility. Nonetheless, there may be circumstances where the General Manager determines that it is appropriate for the District to participate in the cost of a non-Master Plan facility. Typical reasons would be in order to accommodate future growth or betterment of the system. In these instances, the District may establish special fees to recover the reimbursement costs from benefiting property owners as they connect to the system. The District may construction costs and guidelines: reimburse the developer/property owner for if the project meets the following criteria 1.The General Manager has determined that it is appropriatefor the District's customers to participate in theconstruction of the project. 2 . The developer/property owner from qualified contractors initial bids to the District. is responsible for selecting shall obtain three ( 3) bidsand provide copies of the The developer/property owner the lowest responsive bidder. Page 7 of 9 OTAYWATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adopted Revised DISTRICT ADMINISTRATION OF 26 02/10/93 06/01/16 REIMBURSEMENT AGREEMENTS The developer/property owner will be reimbursed for the CIP portions of the project based on the unit prices submitted with the lowest responsive bid. 3.A nexus study will be performed by the District to identifyproperty owners who may benefit from the construction ofthe proposed facility. 4.Prior to the public notice being sent to the propertyowners affected by the Reimbursement Agreement, aninformational Staff Report shall be presented to the Board. 5.The District shall provide notice to all property ownerswhich will be subject to the reimbursement charge. These properties will then be responsible to pay their fair shareof the cost of the facilities, plus interest, at such timeas they connect to the system. 6.The developer/property owner shall request and execute theReimbursement Agreement with the District prior to awardingany contracts for construction. 7.Each Reimbursement Agreement requires approval by theBoard. A Staff Report shall be prepared and reviewed withthe Finance Department prior to presentation to the Boardfor approval. 8.Except as provided below, the District will pay 100 percentof the reimbursement cost after the General Manager acceptsthe project. 9.The District may elect to finance the facilities borrowing, if it is determined that borrowing is in best interest of the District's customers. by the 10.If for any reason reimbursement funds are not available atthe time the project is operationally complete, theDistrict may elect to defer the reimbursement until theGeneral Manager determines that it is appropriate to makepayments. Page 8 of 9 OTAYWATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Date Date Number Adopted Revised DISTRICT ADMINISTRATION OF 26 02/10/93 06/01/16 REIMBURSEMENT AGREEMENTS 11.Funds for reimbursement shall be carried as a CIP until thereimbursement has been made. 12.This type of Reimbursement Agreement contains no end datefor the collection by the District of its contributed shareof the cost, and shall be the responsibility of all currentand subsequent property owners. 13.District staff shall collect the reimbursement amount dueat the same time the standard District capacity fees forthe new service are collected. 14.If the Reimbursement Agreement expires prior to acceptanceof the facilities by the District or prior to payment ofreimbursement, the developer/property owner shall no longerbe entitled to reimbursement. The developer/property ownermay submit new documentation and request that the Districtenter into a new reimbursement agreement. If the Districtagrees to enter into a new reimbursement agreement for thefacilities, however, the District may revise the terms andamounts of reimbursement at its discretion based oninformation available at the time of the request. 15.All reimbursement requests shall be submitted to the Boardfor consideration and shall not be processed without priorBoard approval. Page 9 of 9 P2084 BALDWIN & SONS, LLC REIMBURSEMENTSUBMITTALS PACKET Accoll'ltlng Depa bt.e,ltAppruval of Reimbursement Binder Brandon DiPietro From: Sent: To: Cc: Brandon DiPietro Tuesday, February 22, 2022 2:58 PM Marissa Dychitan Kevin Koeppen Subject: RE: CIP 2084, permit number DEV-15-013, developer project nLlmber D740-090205 Baldwin & Sons, LLC. Reimbursement Binder Marissa, Thank you. I will take you last reply as approval of the binder and reimbursement of Baldwin & Sons, LLC in the amount of $265,911.45. Respectfu I ly, Brandon DiPietro Field Services Manager Otay Water District 0 619-987-6374 or 619-670-2203 From: Marissa Dychitan <MarissaD@otaywater.gov> Sent: Tuesday, February 22, 2022 2:27 PM To: Brandon Di Pietro <BrandonD@otaywater.gov> Cc: Kevin Koeppen <Kevin.Koeppen@otaywater.gov> Subject: RE: CIP 2084, permit number DEV-15-013, developer project number D740-090205 Baldwin & Sons, LLC. Reimbursement Binder Hi Brandon, I see the check copy for check# 16614 now. I am done reviewing the reimbursement agreement binder for R2084. Thanks. Marissa From: Brandon DiPietro <BrandonD@otaywater.gov> Sent: Tuesday, February 22, 2022 1:32 PM To: Marissa Dychitan <MarissaD@otaywater.gov> Cc: Kevin Koeppen <Kevin.Koeppen@otaywater.gov> Subject: RE: CIP 2084, permit number DEV-15-013, developer project number D740-090205 Baldwin & Sons, LLC. Reimbursement Binder Marisa, Thanks for the quick response. I have added check #16614 for $8000.00 to page 75 of the attached PDF. Please review the attached document and let me know if there is anything else needed. Thank you. Baldwin Reimbursement Request(l).pdf (47.5 MB) Shared using SecuriSync Respectfully, Brandon DiPietro 1 Field Services Manager Otay Water District 0 619-987-6374 or 619-670-2203 From: Marissa Dychitan <MarissaD@otaywater.gov> Sent: Tuesday, February 22, 2022 12:12 PM To: Brandon DiPietro <BrandonD@otaywater.gov> Cc: Kevin Koeppen <Kevin.Koeppen@otaywater.gov> Subject: RE: CIP 2084, permit number DEV-15-013, developer project number D740-090205 Baldwin & Sons, LLC. Reimbursement Binder Hi Brandon, I have reviewed the reimbursement agreement binder for R2084. Everything looks good except for a few minor things. 1.I don't see a copy of check 16614 for $8,000. 2.I put some comments on Baldwin and Son's spreadsheet. They are minor and do not affect the total amount. Thanks. Marissa From: Brandon DiPietro <BrandonD@otaywater.gov> Sent: Thursday, February 17, 2022 2:32 PM To: Marissa Dychitan <MarissaD@otaywater.gov> Cc: Kevin Koeppen <Kevin.Koeppen@otaywater.gov> Subject: CIP 2084, permit number DEV-15-013, developer project number D740-090205 Baldwin & Sons, LLC. Reimbursement Binder Marissa, Please see the linked document. This is for reimbursement of If all appears correct please reply to this email that Finance approves of the reimbursement and the reimbursement binder. This approval will be included under tab 10 and submitted to the Engineering committee for approval. If you have any questions please feel free to contact me. Thank you. Baldwin Reimbursement Reguest.pdf (47.2 MB) Shared using SecuriSync Respectfully, Brandon DiPietro Field Services Manager Otay Water District 0 619-987-6374 or 619-670-2203 2 ATTACHMENT C – Budget Detail SUBJECT/PROJECT: R2084-001103 Reimbursement Request from Baldwin & Sons, LLC, a California Limited Liability Company, for a Portion of the Capital Improvement Program Project RecPL - 20-Inch, 680 Zone, Village 2 – Heritage/La Media (CIP R2084), Project Location Santa Victoria Road Level Title1 Committed Expenditures Outstanding Commitment Projected Final Cost Vendor Project Phase Budget Salary $599.44 $599.44 $0.00 $599.44 Budget Total $599.44 $599.44 $0.00 $599.44 Reimbursement Agreements $265,994.40 $0.00 $265,911.45 $265,911.45 BALDWIN & SONS LLC Construction Standard Salaries $3,704.37 $3,704.37 $0.00 $3,704.37 Construction Total $269,698.77 $3,704.37 $265,911.45 $269,615.82 Budget $365,000.00 Total $270,298.21 $4,303.81 $265,911.45 $270,215.26 Project Budget Detail R2084-RecPL - 20", 680 Zone, Village2 Heritage 1/1/2004 - 3/4/2022 Construction 1 STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: April 6, 2022 SUBMITTED BY: Tenille M. Otero PROJECT: Various DIV. NO. All APPROVED BY: Jose Martinez, General Manager SUBJECT: 2022 Legislative Program Policy Guidelines and Top 10 Legislative Priorities GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors adopt the 2022 Otay Water District Legislative Program Policy Guidelines and 2022 Top 10 Legislative Priorities. COMMITTEE ACTION: See Attachment A. PURPOSE: To provide direction to staff and the Otay Water District’s legislative advocates in the formulation of the District’s response to legislative initiatives on prominent issues that could impact the District and/or other local water agencies. To present to the Board of Directors the 2022 Legislative Program Priorities, which staff and legislative advocates will proactively monitor and/or act on during the 2022 legislative session and throughout the year. ANALYSIS: The Otay Water District maintains a set of legislative policy guidelines to direct staff and its legislative advocates on issues important to the District. Staff updates the legislative guidelines annually and/or as needed with the proposed updates presented to the District’s Board of Directors for review, comment, and adoption. The 2022 Legislative Program represents policy guidelines on legislation for the Board’s consideration. Normally, representatives to the California Legislature introduce 2,000 or more bills or significant resolutions. While many bills fail to make it out of their house of origin, many others move on to be signed by the governor and become law. These new laws can AGENDA ITEM 8e 2 fundamentally affect special districts. The same is true with each session of the House of Representatives and the U.S. Senate. The 2022 Legislative Program establishes guidelines and policy direction that staff and the District’s legislative advocates can use when monitoring legislative activity to facilitate actions quickly in response to proposed bills or issues. The guidelines provide a useful framework for staff and legislative advocates when evaluating the potential impact of state or federal legislation on the District. This is particularly helpful when a timely response is necessary to address last-minute amendments to legislation, District participation in coalitions on issues, and should calls or letters of support or opposition be needed. Legislation that does not meet the guidelines as set forth or that has potentially complicated or varied implications, will not be acted upon by staff or the District’s legislative advocates, and will instead be presented to the Board directly for guidance in advance of any position being taken. The San Diego County Water Authority has its own set of legislative policy guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated policies and issues from the Water Authority’s guidelines that may have a direct or indirect impact on the District. Staff has incorporated these policies and issues into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, if there are issues or polices incorporated in the Water Authority’s Legislative Policy Guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively. The 2022 Legislative Program Policy Guidelines presents staff’s recommendations for the Board’s review and seeks the Board’s feedback for any additional modifications. Staff will then incorporate the Board’s recommendations into the final document. In general, the guidelines look to protect the District’s interest in a reliable, diverse, safe, and affordable water supply. Moreover, they seek to maintain local control over special district actions to protect the Board’s discretion and ratepayers’ interests and maintain the ability to manage District operations effectively and efficiently. In addition, they express the District’s ongoing support for financial assistance to water agencies and customers regarding nonpayment due to financial hardships related to the pandemic, water-use efficiency, recycled water, seawater desalination, capital improvement project development, organization-wide safety and security, binational cooperation, climate change, and funding, including the equitable distribution of water bond proceeds. These guidelines also demonstrate the District’s strong and collaborative 3 support and efforts to advocate against a “one-size-fits-all” approach and any unfunded mandates by legislation or regulation. The proposed redlined 2022 Legislative Program Policy Guidelines are included in Attachment C. Revisions, updates, and recommended additions are underlined, while deletions are reflected by strikethroughs. A clean copy of the proposed changes is included in Attachment D. When the Board adopts the updated guidelines, staff will incorporate recommended changes by the Board into the final document. In the proposed redlined 2022 guidelines, staff made slight modifications to various sections. Also, staff added “Affordability” to the Financial Issues section as this has been a key issue for the public and water agencies in the last few years. Water rate affordability is imperative to equitable water access. The consequences of a lack of water could result in lost economic opportunity, health issues, homelessness, and lost revenue for water agencies. In addition, staff is presenting the District’s anticipated Top 10 Legislative Priorities for the year (Attachment D). This list highlights, in no order, specific legislation or issues that District staff and/or the Water Authority is currently monitoring and/or may take or has already taken a position on. The deadline for bill introduction was Feb. 18, 2022. Typically, lobbyists and legislative staff wait until the last couple of days leading up to the deadline, and then hundreds of bills will be introduced. Based on the bills/issues that legislators introduced by this year’s deadline, staff worked with the District’s legislative consultant to develop a list of priority issues for 2022. Staff and the District’s consultant will continue to monitor those bills and issues that may affect the District. Staff will update the Board as necessary throughout the year to provide updates on legislative issues impacting the District. District staff continues to proactively work with the Water Authority’s government relations staff, the District’s legislative consultant, the Association of California Water Agencies, California Special Districts Association, California Water Efficiency Partnership, California Municipality Utilities Association, and other related coalitions, associations, and organizations to monitor legislative issues that affect the District and its ratepayers. It is critical that District and its staff remain engaged in these issues as they could have an impact on how the District conducts day-to-day operations and operates and maintains its facilities, thus affecting its ratepayers. FISCAL IMPACT: Joe Beachem, Chief Financial Officer 4 None. STRATEGIC GOAL: Execute and deliver services that meet or exceed customer expectations, and increase customer engagement in order to improve District Services. Enhance and build awareness and engagement among the District’s customers and stakeholders and within the San Diego Region about the District’s strategies, policies, projects, programs, and legislative/regulatory issues. LEGAL IMPACT: None. Attachments: A) Committee Action B) Presentation – Brownstein, Hyatt, Farber and Schreck C) Proposed 2022 Otay Water District Legislative Program Policy Guidelines (Redlined) D) Proposed 2022 Otay Water District Legislative Program Policy Guidelines (Clean Copy) E) Top 10 Legislative Priorities for 2022 5 ATTACHMENT A SUBJECT/PROJECT: 2022 Legislative Program Policy Guidelines and Top 10 Legislative Priorities COMMITTEE ACTION: The Conservation, Public Relations, Legal and Legislative Committee reviewed these items on March 17, 2022, and the following comments were made: • Staff recommended that the Board of Directors adopt the 2022 Otay Water District Legislative Program Policy Guidelines and 2022 Top 10 Legislative Priorities. • In response to a question from the Committee, staff indicated that they attend a legislative meeting with the San Diego County Water Authority every 2-3 weeks to receive updates on legislative matters. Otay staff has met with new Water Authority staff members and consultants who attend these legislative liaison meetings. Following the discussion, the committee supported staffs’ recommendation and presentation to the full board as a consent item. Otay Water District Anticipated Top 10 Legislative Priorities for 2022 Presented by: Gianna Setoudeh Policy Advisor March 17, 2022 Attachment B Top 10 Legislative Priorities 2022 2 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Legislative Update •Legislature reconvened on January 3, 2022 •In 2022, as of March 9, 2153 bills, resolutions and constitutional amendments have been introduced •Key Legislative Deadlines: —January 10 –Governor’s Budget Proposal —January 31 –House of Origin deadline —February 18 –Bill Introduction deadline —May 14 –May Revision of the January Budget (“May Revise”) —June 7 –Primary Election —June 15 –Budget must be passed by midnight —August 31 –Final Recess upon Adjournment of Session —September 30 –Last day for Governor to sign or veto bills passed on or before September 1 —November 8 –General Election •Remote testimony option continues in most committees, with option for in-person testimony available –some committees with transition to in-person testimony only •In-person meetings allowed but space limited; members meet on a case-by-case basis •No lobby days for foreseeable future •Mask mandate in Legislature lifted on March 7, however approximately 70% still masking 3 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 1. Drought Response •Governor’s Executive Order N-10-21 which calls on Californians to voluntarily reduce water use by 15% compared to 2020 levels. —Further modified to accelerate water conservation efforts —Provided State Water Board authority to adopt regulations to prohibit specific wasteful water uses •Governor’s Statewide Drought Emergency Proclamation —All counties in California are under the drought emergency proclamation effective October 2021 •State Water Board regulations prohibiting wasteful water use practices statewide —Effective January 18, 2022 —Will remain in effect for 1 year from effective state, unless ended, modified or readopted •DWR continues to advocate for water conservation in communities not reaching 15% voluntary conservation goals —DWR reported second driest water year on record, for water year ending September 30 —Storage below 2019 levels —Dry January 2022 —Very little precipitation on horizon 4 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 2. Affordability •California Water and Wastewater Arrearage Payment Program —SB 129 (Skinner) and AB 148 (Committee on Budget) –allocated nearly $1 billion in federal funding and established the California Water and Wastewater Arrearage Payment Program (Program) within the State Water Board to provide relief to community water and wastewater systems for unpaid bills related to the pandemic. —Funding covers water debt from residential and commercial customers accrued between March 4, 2020 and June 15, 2021. —The Program initially prioritized drinking water residential and commercial arrearages. Funding to community water systems was disbursed through January 31, 2022. —If the Program still had funding available, it would then be extended to wastewater residential and commercial arrearages by February 2022. —Approximately $600 million is available for wastewater debt accrued March 4, 2020, through June 15, 2021. The program will likely be able to cover 100% of the debt that wastewater agencies request in their applications. —Applications are open for the Wastewater Arrearage Program now through April 1, 2022. •Low Income Household Water Assistance Program (LIHWAP) —New federally funded program to provide financial assistance to low-income Californians with residential water utility costs and debt repayment —California has been allocated $116 million in one-time funding to provide LIHWAP assistance —Administering Agency –Department of Community Services and Development (CSD) —Draft Program Guidelines released in February —Funds must be expended by September 2023 5 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 3. Water Use and Efficiency •February 2021 –AB 1434 (Friedman) was introduced in 2021 which would have established, beginning January 1, 2023 until January 1, 2025, a standard for indoor residential water use goal of 48 gallons per capita daily (GPCD); beginning January 1, 2025, a standard of 44 GPCD; and, beginning January 1, 2030, a GPCD of 40. •November 2021 –DWR and the State Water Board submitted its final report to the Legislature recommending an indoor water use efficiency standard of 55 GPCD by 2023, declining to 47 GCPD by 2025, and 42 GCPD by 2030 and beyond. •January 2022 –AB 1434 (Friedman) was amended to mirror the recommendations in this report. However, the bill failed to move forward. •February 2022 –SB 1157 (Hertzberg) was introduced which also mirrors the recommendations in the report and the language that was in AB 1434 (Friedman). 6 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 4. Water Quality •MCL Compliance Periods –State Water Board/ACWA determined that legislation was not needed to establish compliance periods for MCLs; State Water Board to use its existing authority; expect to see a compliance framework from the State Water Board in Spring 2022. •SB 230 (Portantino) –would require the State Water board to establish, maintain, and direct a dedicated CEC Program to assess the state of information and recommend areas for further study on the occurrence of CECs in drinking water, and establish the CEC Action Fund. •AB 1001 (C. Garcia) –would require all public agencies to “act consistently with the principles of environmental justice” when implementing CEQA and requires projects that impact a disadvantaged community’s air or water quality to mitigate those effects directly in that impacted community. •AB 2016 (Bauer-Kahan) –would require the State Water Board to undertake a comprehensive feasibility study of the potential impact of desalination plants within the state. The bill would require the board to prepare and present to the Legislature, on or before January 1, 2025, a prescribed report about the feasibility study. 7 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 5. Water Industry Workforce Advocacy •Water Industry Workforce Advocacy —Continue to enhance efforts to increase the talented pool of the skilled water workforce through education and advocacy. —Seek options that provide an adequate supply of clean water, as well as reduce the demand on water resources. —Continue to monitor the work of the State Water Board’s Drinking Water Operator Certificate Program Advisory Committee. •Legislative Efforts to Address California’s Workforce Challenges —AB 2088 (Cooper) Career technical education: California Pilot Paid Internship Program —AB 2342 (Cervantes) Community Economic Resilience Fund Program —SB 1197 (Caballero) Water Innovation and Drought Resiliency Act of 2022 •State Budget Funding to Address California’s Workforce Challenges —$500 million over 2 years for college students to explore career pathways through learning-aligned employment opportunities. —$472.5 million one-time federal funds and $27.5 million in the 2021 budget for grants to displaced workers for education and training programs to facilitate their ability to reskill or upskill into new careers. —$30 million to expand the English Language Learner pilots in the Integrated Education and Training programs to combine contextualized English language instruction with vocational skills training for in-demand occupations. —$20 million to expand workplace literacy training to enable employers to build skilled workforces, increase employee retention, and provide pathways to higher wages and better jobs for immigrants. 8 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 6. State Budget/Infrastructure Funding •The Governor’s 2022-23 proposed budget allocates $750M to address immediate drought support needs including: $500M for water conservation, water efficiency, groundwater recharge, and assistance for small farmers and $250M drought contingency support. •Specifically: —Water Conservation Programs—$180 million —Urban and Small Community Drought Relief—$145 million —On-Farm Water Conservation—$20 million —Fish and Wildlife Protection—$75 million —Multibenefit Land Repurposing—$40 million —Groundwater Recharge—$30 million —Technical Assistance and Drought Relief for Small Farmers—$10 million —Drought Contingency—$250 million as a drought contingency set aside to be allocated as part of the spring budget process •AB 2387 (E. Garcia) –If passed and approved by the voters, the measure would authorize a $7.43 billion bond to finance projects for safe drinking water, wildfire prevention, drought preparation, flood protection, extreme heat mitigation, and workforce development programs. 9 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 7. Advanced Clean Fleets Rulemaking •Executive Order N-79-20 accelerates the state’s transition to carbon neutrality by setting a course to end sales of internal combustion passenger vehicles by 2035. •CARB is tasked with transitioning fleets to zero-emission vehicles (ZEVs) to meet the state’s goals. •The Advanced Clean Fleets proposed rulemaking for Public Fleets would require —100 percent zero-emission drayage trucks by 2035 —100 percent zero-emission off-road vehicles and equipment by 2035, where feasible —100 percent zero-emission medium and heavy-duty vehicles by 2045, where feasible •Otay Water District submitted comments to CARB and met with CARB staff, seeking an exemption for emergency response vehicles. •CARB may release a new draft regulation for public comment prior to board adoption in mid to late 2022. •The Governor’s proposed 2022-23 budget includes: —$1.1B for zero-emission trucks, buses, and off-road equipment and fueling infrastructure —$900M to expand affordable and convenient ZEV infrastructure access in low-income neighborhoods with Level 2 and DC fast chargers —$256M for low-income consumer purchases of ZEVs 10 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 8. Recycled Water •AB 2387 (E. Garcia) –The proposed $7.43 billion bond would provide $300 million for water recycling projects including: —1) Treatment, storage, conveyance, and distribution facilities for potable and nonpotable recycling projects; —2) Dedicated distribution infrastructure to serve residential, commercial, agricultural, and industrial end-user retrofit projects to allow use of recycled water; and —3) Multiple-benefit recycled water projects that improve water quality. •Additionally, ACWA is advocating for $450 million in the 2022-23 state budget to be provided for water recycling. —$300 million for water recycling and reuse projects —$150 million for brackish and sea water desalination projects 11 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 9. Climate Resiliency •Climate resiliency will remain a top priority for the Governor, his Administration and the Legislature in 2022. •Governor’s proposed January budget, the 2022-23 budget proposal includes an additional $22.5 billion in one-time investment from various fund sources over 5 years to provide equitable climate solutions to prepare and protect communities from intensifying climate emergencies such as drought, extreme heat, wildfires, flooding and sea level rise. —Builds on the $15 billion climate resilience investments in the 2021 budget 12 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 10. State Water Project/Delta Conveyance •State Water Project —January 2022 SWP allocation of 15%, reflecting California’s drought conditions; final allocation to be determined in May or June. •Delta Conveyance —Draft Environmental Impact Report (EIR), evaluating the proposed Delta Conveyance Project under the California Environmental Quality Act, for public review and comment in mid-2022. 13 Questions? CONTACT Gianna Setoudeh gsetoudeh@bhfs.com (916) 594-9719 Teresa Cooke tcooke@bhfs.com (916) 594-9715 Otay Water District Legislative Program 20212022 1 | P a g e Effective Date: 04/067/20221 Legislative Program Policy Guidelines Purpose The Otay Water District’s legislative policy guidelines reflect policy positions adopted by the Board of Directors through 20221. The guidelines provide direction to staff and the legislative advocates when they evaluate proposed legislation that may affect the District, other local water agencies, or regional water management and use. Legislation that meets or fails to meet, the principles set forth in the guidelines may be supported or opposed accordingly. The guidelines permit the General Manager, District staff, and the District’s legislative advocates to act in a timely fashion between Board meetings on issues that are clearly within the guidelines. While the title of this document suggests these policy guidelines are applicable solely to state and federal legislative issues reviewed by the San Diego County Water Authority (Water Authority), the District and other state and other local water agencies, increasingly state and federal regulatory and administrative bodies are developing rules, guidelines, white papers, and regulations that can significantly affect the District, its wholesale supplier, and other local agencies. District staff, including the District’s legislative teamconsultant, often utilize these Legislative Policy Guidelines to provide guidance on emerging and active regulatory and administrative issues. Legislation that does not meet the principles set forth in the guidelines or that has potentially complicated or varied implications will not be acted upon by staff or the legislative advocates in between Board meetings and will instead be presented to the Board directly for guidance in advance of any position being taken. The Water Authority has its own set of legislative guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated and selected policies and issues from the Water Authority’s guidelines that may have a direct impact on the District. These policies and issues have been incorporated into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, if there are issues or polices contained in the Water Authority’s Legislative Policy Guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively. Attachment C Otay Water District Legislative Program 20212022 2 | P a g e Table of Contents The Otay Water Legislative Policy Program Guidelines for 2021 includes the following categories: I. Binational Issues…………………………………………....……………... Page 3 II. Biological and Habitat Preservation…………………………………….. Page 3 III. Desalination……………………………………………………………….. Page 4 IV. Drought Response………………………………………………………… Page 4 V. Energy……………………………………………………………………… Page 5 VI. Financial Issues…………………………………………………………… Page 6 A. Fees, Taxes, and Charges………………………….......................... Page 6 B. Funding…………………………………………………………….. Page 8 C. Rates………………………………………………………………... Page 10 D. Water Bonds……………………………………………………….. Page 10 D.E. Affordability……………………………………………………. Page 11 VII. Governance and Local Autonomy……………………………………….. Page 112 VIII. Imported Water Issues……………………………………………………. Page 13 A. Bay-Delta……………………………………………………………… Page 13 i. Co-equal Goals……………………………………………………. Page 13 ii. Bay-Delta Conveyance Project…………………………………… Page 134 B. Metropolitan Water District…………………………………………… Page 145 C. Colorado River………………………………………………………… Page 154 D. State Water Project…………………………………………………….. Page 156 IX. Optimize District Effectiveness……………………...…………....………. Page 16 X. Safety, Security, and Information Technology……………....................... Page 167 XI. Water Quality Issues………………………………………………………. Page 178 XII. Water Recycling and Potable Reuse……………………………………… Page 189 XIII. Water Service and Facilities……………………………………………… Page 1920 XIV. Water-Use Efficiency……………………………………………………… Page 243 XV. Workforce Development………………………………………………….. Page 256 Otay Water District Legislative Program 20212022 3 | P a g e I. Binational Issues Support initiatives that: 1. Promote and provide funding for cross-border water supply and infrastructure development projects such as water pipelines, desalination plants or water treatment facilities to serve the San Diego/Baja California border region while protecting local interests. 2. Encourage enhanced cooperation between entities in San Diego and Baja California in development of supply and infrastructure projects that will benefit the entire border region. 3. Encourage state and federal funding to support collaborative binational projects to improve water quality and protect human health and the environment within the broader San Diego region. 4. Develop and enhance communications and understanding of the interdependence of communities on both sides of the border with the goal of improved cross-border cooperation. Oppose initiatives that: 1. Would usurp local control over the financing and construction of water supply and infrastructure projects in the San Diego/Baja California region. II. Biological and Habitat Preservation Support initiatives that: 1. Support development of comprehensive multispecies habitat conservation plants that anticipate and mitigate project development impacts while preserving representative ecosystem, rather than individual species. 2. Exempt operation, maintenance, ad repair of water system facilities from endangered species and other habitat conservation regulations because they provide beneficial cyclical habitat values to declining species and foster biological diversity in California. 3. Provide environmental regulatory certainty for implementation of existing and proposed long- term water supply programs. 4. Streamline filing of CEQA notices of determination for multicounty water projects by making those notices available on the CEQAnet website through the Governor’s office of Planning and Research. 5. Incorporate an emergency exemption for “take” of a listed species listed under the state or federal Endangered Species Acts when necessary to mitigate or prevent loss of or damage to life, health, property, or essential public services. 6. Encourage species listings, critical habitat designation, and recovery plans developed pursuant to the state or federal Endangered Species Acts to be consistent with existing interstate compacts, tribal treaties, and other state and federal agreements. Oppose initiatives that: 1. Reduce or limit the use of existing water rights or supplies, 2. Restrict the development of future water supplies. 3. Impose endangered species or habitat conservation requirements that restrict the operation, maintenance, or repair of public water supply, conveyance, treatment, or storage facilities. Otay Water District Legislative Program 20212022 4 | P a g e III. Desalination Support initiatives that: 1. Provide funding for seawater desalination studies and facilities. 2. Recognize and support the development of seawater desalination as critical new water supply for the state, including San Diego County. 3. Streamline permitting of desalination facilities. 4. Preserve and protects potential seawater desalination sites and existing coastal facilities including intake and discharge infrastructure that could be used or reused by a seawater desalination facility. 5. Ensure that desalination intake and discharge regulations are science-based, considering site- specific conditions, and recognizing that not all technologies or mitigation strategies are feasible or cost-effective at every site. IV. Drought Response Support initiatives that: 1. Ensure the District and other local agencies including the Water Authority and San Diego County water agencies receive the water supply benefits of its investments in local water supply sources. 2. Allow local agencies to achieve compliance with emergency or non-emergency drought regulations or objectives through a combination of water conservation measures and development and implementation of local water supply sources that are not derived from the Delta. 3. Allow for local agencies to account for all water supplies available during droughts and other events when calculating the water supply shortage level. 4. Create a process for development and implementation of emergency drought declarations and regulations that recognizes variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of drought. 5. Recognize variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of droughts and ensure that any temporary or permanent statutory or regulatory direction for improving water-use efficiency to meet statutory or regulatory goals or standards is focused on regional achievement of objectives rather than a one-size-fits-all approach. Oppose initiatives that: 1. Disincentivize or impede water agencies from making investments to maximize the potential for recycled water, potable reuse, desalination, and other drought-resilient local water supplies. 2. Create a “one-size-fits-all” approach to emergency drought declarations and regulations that ignores variations among communities, regions, and counties with respect to their ability to withstand the impacts and effects of drought. Otay Water District Legislative Program 20212022 5 | P a g e V. Energy Support initiatives that: 1. Provide opportunities for reduced energy rates under tariff schedules for the District. 2. Provide protection to the District from energy rate increases and provides rate relief for the District. 3. Provide funding, including state and federal grants, for in-line hydro-electric, solar, wind, battery storage, biogas, cogeneration, nanogrids, microgrids, closed-loop pumped storage facilities and other renewable energy generation or storage technology as means of reducing greenhouse gas emissions and energy cost. 4. Promote funding for use of renewable energy in the operation of District facilities. 5. Prohibit investor-owned utilities from implementing rate changes that undercut the financial viability of renewable energy facilities obligated under long-term Power Purchase Agreements. 6. Provide greater flexibility in the utilization of the District’s facilities for generation and acquisition of electrical and natural gas power. 7. Provide the District with greater flexibility in the licensing, permitting, interconnection, construction, and the operation of its existing and potential in-line hydroelectric, solar, wind, battery, nanogrid, microgrid, closed-loop pumped-energy storage projects, and other renewable generation or storage technology. 8. Make SWP power available for all water projects. 9. Promote the classification of electricity generated by in-line hydroelectric and closed-loop pumped-energy storage facilities as environmentally sound. 10. Promote the expansion of closed-loop pumped-energy storage facilities to provide clean and environmentally sound energy resource that provides electric and reliability and resiliency, especially during times of potential blackouts. 11. Promote the expansion of in-line hydroelectric energy recovery systems at treatment facility discharge systems. 12. Promote the production, purchase, delivery, and use of alternative sources of energy on a wholesale basis. 13. Provide clear statutory, regulatory, or administrative authority for the San Diego County Water Authority to wheel acquired or produced power to itself, the District, or entities with which the Water Authority is under contract for the purchase, treatment, transport, or production of water. 14. Recognize and monetize all grid ancillary services that pumped hydro-energy storage provides and supports fair compensation in the wholesale energy market for such services. 15. Provides timely, efficient, and cost-effective interconnection of new energy resources such as solar, inline hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. Otay Water District Legislative Program 20212022 6 | P a g e 16. Recognize the value of large-scale hydropower and pumped-energy storage facilities in assisting the state to meet its renewable and zero-carbon emission goals of 100 percent by 2045. Oppose initiatives that: 1. Adversely affect the cost of energy needed to operate MWD’s facilities, SWP facilities, or the facilities of the Water Authority and the District. 2. Impose greenhouse gas reduction obligations on a public water agency for electricity purchased or produced for the sole purpose of operating its system. 3. Adversely affect the ability of the District or other water agencies in the county to own, operate, and/or construct work for supplying its own facilities with natural gas and electricity. 4. Impede the District or other water agencies in the county, the ability to contract for, deliver, and use the purchase of natural gas and electricity from the United States, the State of California, and any other public agency or private entity and sell the gas and electricity to any public agency or private entity engaged in retail sales of electricity and gas. 5. Reduce the District’s ability to always maintain high operational efficiency. 6. Restrict the District’s ability to expand or improve infrastructure or facilities. 7. Restrict or caps future energy demands needed for possible expansion of recycled water, potable reuse, and desalination projects. 8. Adversely affect the District’s ability to expand cogeneration or polygeneration at planned or existing facilities. 9. Inhibit the scientific advancement of energy and water efficient/conserving technologies that may be implemented at the District or other agency facilities. 10. Prevent the District from enhancing energy reliability and independence for its facilities. 11. Do not count or credit qualified renewable energy projects toward accomplishment and satisfaction of the California Renewables Portfolio Standard objectives. 12. Prohibit the Water Authority from wheeling - or securing statutory, regulatory, or administrative authority necessary to wheel - acquired or produced power to itself, the District, or other entities with which the Water Authority is under contract of the purchase, treatment, transport, or production of water. 13. Result in a lengthy, more complicated, or more costly interconnection of new energy resources, such as solar, inline-hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. VI. Financial Issues A. Fees, Taxes, and Charges Support initiatives that: 1. Require the federal government and State of California to reimburse special districts for all mandated costs or regulatory actions. 2. Give special districts the discretion to cease performance of unfunded mandates. Otay Water District Legislative Program 20212022 7 | P a g e 3. Provide for fiscal reform to enhance the equity, reliability, and certainty of special district funding. 4. Provide incentives for local agencies to work cooperatively, share costs or resources. 5. Provide for the stable, equitable and reliable allocation of property taxes. 6. Continue to reform workers compensation. 7. Promote competition in insurance underwriting for public agencies. 8. Produce tangible results, such as water supply reliability or water quality improvement. 9. Require the Metropolitan Water District of Southern California (MWD) to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. Oppose initiatives that: 1. Impose mandated costs or regulatory constraints on local agencies and their customers without providing subventions to reimburse local agencies for such costs. 2. Pre-empt the Water Authority’s or its member agencies’ ability to impose or change rates, charges, fees, or assessments. 3. Weaken the protections afforded the Water Authority or its member agencies under California’s Proposition 1A (November 2, 2004). 4. Reallocate special districts reserves in an effort to balance the state budget. 5. Reallocate special district revenues or reserves to fund infrastructure improvements or other activities in cities or counties. 6. Establish funding mechanisms that put undue burdens on local agencies or make local agencies de facto tax collectors for the state. 7. Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to take advantage of low peak cost periods. 8. Add new reporting criteria, burdensome, unnecessary, or costly reporting mandates to Urban Water Management Plans. 9. Add new mandates to the Department of Water Resources (DWR) to review and approve Urban Water Management Plans beyond those already addressed in DWR guidelines. 10. Mandate that water agencies include an embedded energy calculation for their water supply sources in Urban Water Management Plans or any other water resources planning or master-planning document. 11. Weaken existing project retention and withholding provisions that limit the ability of public agencies to drive contractor performance. 12. Establish change order requirements that place an unreasonable burden on local agencies, or raise financial risk associated with public works contracts. 13. Impair the San Diego County Water Authority or its member agencies’ ability to provide reasonable service at reasonable costs to member agencies or to charge all member agencies the same rate for each class of service consistent with cost-of-service requirements of the law. 14. Impair the local water agencies’ ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 15. Mandate a specific rate structure for retail water agencies. 16. Impose a water user fee on water agencies or water users that does not provide a commensurate and directly linked benefit in the local area or region from which the water user fee is collected. Otay Water District Legislative Program 20212022 8 | P a g e 17. Impose a water user fee for statewide projects or programs, for which the projects or programs are not clearly defined, the beneficiaries identified, and reasonable costs identified. 18. Impose a water user fee in order toto create a state fund that can be used to finance undefined future projects and programs. 19. Allow the state to retain more than five percent of water user fees for administrative costs. 20. Do not restrict the use of water user fees to only the specific purposes for which they are imposed, without any possibility of diversion to meet other fiscal needs of the state. 21. Impose a “public goods charge” or “water tax” on public water agencies or their ratepayers. 22. Impose a fee on water users to repay the principal and interest on a statewide general obligation bond. 23. Establish regulatory or permit fees that lack a nexus to the costs of oversight. 24. Establish a broad-based user fee that does not support a specific program activity; any fee must provide a clear nexus to the benefit the fee would provide. B. Funding Support initiatives that: 1. Require the federal and state governments to provide subvention to reimburse local governments for all mandated costs or regulatory actions. 2. Provide the Water Authority and its member agencies with additional forms of cost- effective financing for public facilities. 3. Revitalize the Title XVI federal funding program by converting new authorizations to a competitive grant program with congressional oversight while protecting existing Title XVI authorizations for the San Diego region. 4. Provide the Water Authority and its member agencies with grant funding for public facilities, including developing local water resources and rehabilitation and repair of aging infrastructure, such as pipelines. 4.5.Provide the District, other local water agencies, and water ratepayers with post-COVID-19 financial relief through a variety of means, including but not limited to, direct financial assistance and flexibility in debt management to assist water ratepayers and water suppliers. 5.6.Authorize financing of water quality, water security, and water supply infrastructure improvement programs. 6.7.Establish spending caps on State of California overhead when administering voter approved grant and disbursement programs. 7.8.Require disbursement decisions in a manner appropriate to the service in question. 8.9.Encourage funding infrastructure programs that are currently in place and that have been proven effective. 9.10. Provide financial incentives for energy projects that increase reliability, diversity, and reduce greenhouse gasses. Otay Water District Legislative Program 20212022 9 | P a g e 10.11. Continue energy rate incentives for the utilization of electricity during low-peak periods. 11.12. Provide loan or grant programs that encourage water conservation for water users who are least able to pay for capital projects. 12.13. Provide for population-based distribution of IRWM funds to ensure adequate distribution of grant funding throughout the state. 13.14. Provide for the use of state grant funds for binational projects where the projects benefit water supply or water quality in the San Diego region. 14.15. Improve and streamline the state’s reimbursement process to ensure timely remittance of IRWM funds. 15.16. Promote the ability of the Regional Water Management Group to more directly administer state grant funds specifically identified more directly for IRWM Programs. 16.17. Require the state to rely on the local process for selection and ranking of projects included in an approved IRWM plan. 17.18. Provide funding or other incentives for conservation, peak management programs, water recycling, potable reuse, groundwater recovery and recharge, surface water development and management projects, including reservoir management, source water protection and watershed planning studies and facilities that sustain long-term reliable water resources. 18.19. Provide financial incentives to assist in the disposal of concentrate, sludge, and other byproducts created in the water treatment process. 19.20. Authorize, promote, and provide incentives or credits for development of local drought-resilient water supply projects such as desalination, non-potable recycling, and potable reuse projects. 20.21. Provide funding for potable reuse demonstration projects and studies. 21.22. Authorize federal and state funding to develop and implement regional or subregional conservation programs, including but not limited to property acquisition, revegetation programs, and watershed plans. 22.23. Provide state and/or federal funding for the restoration of the Salton Sea. 23.24. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Lower Colorado River from Lee's Ferry to the southerly international border with Mexico. 24.25. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Sacramento-San Joaquin River Delta. 25.26. Permit the use of grant funding for projects implemented under public-private partnerships where the grant provides funding for a public benefit. 26.27. Require the state agencies responsible for preparing the IRWM grant program guidelines to conduct a comprehensive public outreach process that ensures stakeholders have an opportunity to provide adequate input on preparation of the guidelines and that the state agencies consider and respond to comments received through the outreach process. Oppose initiatives that: 1. Impose additional administrative requirements and/or restrict the Water Authority’s or its member agencies’ ability to finance public facilities through the issuance of long-term debt. Otay Water District Legislative Program 20212022 10 | P a g e 2. Interfere with the responsibility of a region, operating under an Integrated Regional Water Management Plan, for setting priorities and generating projects to be paid from any IRWM accounts and grants. 3. Interfere with the control exercised by the San Diego funding subregion over the use and expenditure of any water-user fee revenues that may be dedicated to the region. 4. Establish IRWM funding criteria that limits local discretion in project selection. 5. Provide for after-the-fact reduction in quantity or quality of a public water supply due to new restrictions on the operation or use of water supply facilities unless funding for alternate sources of water is provided. 6. Impose a "utility user fee" or "surcharge" on water for the purposes of financing open space/habitat preservation, restoration, or creation. C. Rates Support initiatives that: 1. Maintain the authority of water agencies to establish water rates locally, consistent with cost-of-service requirements of the law. 2. Maximize the ability of water agencies to design rate structures to meet local water supply goals and that conform to cost-of-service requirements of the law. Oppose initiatives that: 1. Impair the Water Authority’s or its member agencies’ ability to provide reliable service at reasonable costs to member agencies or to charge all member agencies the same or similar rate for each class of service consistent with cost-of-service requirements of the law. 2. Undermine or weaken cost-of-service rate-making requirements in existing law. 3. Impair the District’s ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 4. Mandate a specific rate structure for retail water agencies. 5. Prescribe mandatory conservation-based rate structures that override the authority of the boards of directors of local water agencies to set rate structures according to the specific needs of the water agencies. 6. Usurp special district funds, reserves, or other state actions that force special districts to raise rates, fees, or charges. D. Water Bonds Support initiatives that: 1. Provide an equitable share of funding to San Diego County, with major funding categories being divided by county and funded on a per-capita basis to ensure bond proceeds are distributed throughout the state in proportion to taxpayers’ payments on the bonds. 2. Focus on statewide priorities, including restoration of fish and wildlife habitat, construction of an improved method of conveyance of water through or around the Delta that provides water supply reliability to Delta water users, promotion of greater regional and local self-sufficiency, surface storage, and promotion of water-use efficiency. 3. Ensures funding from various propositions for local and regional water-related projects. Otay Water District Legislative Program 20212022 11 | P a g e 4. Include within IRWM funding money that a region may use over time to develop and refine its plan and to develop institutional structures necessary to establish and implement the plan. 5. Give primary consideration to funding priorities established by local and regional entities through their IRWM planning process. 6. Ensure the application process for funding is not unnecessarily burdensome and costly, with an emphasis on streamlining the process. 7. Limit state overhead to no more than five percent of bond funding amounts. 8. Place as much emphasis and provides at least as much funding for surface storage as for groundwater storage. 9. Define the “San Diego sub-region” and “San Diego county watersheds” as “those portions of the westward-flowing watershed of the South Coast hydrologic region situated within the boundaries of San Diego County.” 10. Fund emergency and carryover storage projects including those in San Diego County. 11. Consolidate administration of all voter-approved water-related bond funding in one place, preserves existing expertise within the state bureaucracy to manage bond-funding processes, and provide consistent application and evaluation of bond funding applications. 12. Provide the state’s share of funding for projects that advance the achievement of the co- equal goals of water supply reliability and Delta ecosystem restoration. 13. Provide funding for water infrastructure that resolve conflicts in the state’s water system and provide long-term benefits to statewide issues including water supply, reliability, water quality, and ecosystem restoration. Oppose initiatives that: 1. Do not provide an equitable share of funding to San Diego County based on the San Diego County taxpayers’ proportional contribution to repayment of the bonds. 2. Do not provide funding for infrastructure that resolves statewide or regional conflicts of water supplies. 3. Do not provide funding that result in net increases in real water supply and water supply reliability. 4. Commit a significant portion of bond funding to projects that do not result in net increases in real water supply or water supply reliability. E. Affordability Support initiatives that: 1. Abides by the Human Right to Water (AB 685, 2012) as set forth in Section 106.3 of the California Water Code which reads that, “every human being has the right to safe, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.” The State Water Resources Control Board also has a resolution supporting this program. 2. Meets the required standards under Proposition 218 in the California Constitution regarding proportionality of water rates and the cost-of-service provisions. 3. Relies on data-driven analysis of water affordability, including considerations such as census data and economically disadvantaged communities. As such, the District supports the continued implementation of AB 2334 (2012) that requires the Department of Water Resources to provide this analysis and place it in California’s Water Plan. Otay Water District Legislative Program 20212022 12 | P a g e 4. Supports the creation of a low-income water rate assistance program that targets providing financial assistance to low-income ratepayers using existing resources within either the state General Fund or cap-and-trade dollars. 2.5.Does not burden water districts with excessive or overly prescriptive state mandates including the collection of water taxes or water rate and boundary data. Oppose initiatives that: 1. Is not targeted appropriately: Any low-income water rate assistance program must be limited in scope to those individuals. By seeking to do too much, effectiveness could be limited. Examples of this could include extending program resources to domestic wells or water-use efficiency programs. 2. Does not have a funding source: Any low-income water rate assistance program needs to identify specific sources of sustainable funding and does not include a water tax or water surcharge. 3. Does not reinvent the wheel: Any low-income water rate assistance program should be built upon and use the resources of an existing benefit distribution organization or system, such as CalFresh, rather than requiring water agencies to add the operating expense of creating and administering a new method. VII. Governance and /Local Autonomy Support initiatives that: 1. Expand local autonomy in governing special district affairs. 2. Promote comprehensive long-range planning. 3. Assist local agencies in the logical and efficient extension of services and facilities to promote efficiency and avoid duplication of services. 4. Streamline the Municipal Service Review Process or set limits on how long services reviews can take or cost. 5. Reaffirm the existing “all-in” financial structure or protect the Water Authority voting structure based on population. 6. Promote measures that increase broader community and water industry representation/appointments on State decision making bodies. 7. Ensure an open and transparent process for adoption of regulations, policies, and guidelines. 8. Preserve the District and other local water agencies’ ability to establish local priorities for water resources planning decisions. Oppose initiatives that: 1. Assume the state legislature is better able to make local decisions that affect special district governance. 2. Create one-size-fits-all approaches to special district reform. 3. Unfairly target one group of local elected officials. 4. Usurp local control from special districts regarding decisions involving local special district finance, operations, or governance. 5. Diminish the power or rights of the District’s governing body to govern the District’s affairs. 6. Diminish the power or rights of the District to govern relations with its employees. Otay Water District Legislative Program 20212022 13 | P a g e 7. Modify the committee or board voting structure or District and member agency board representation on the Water Authority Board of Directors unless such changes have been expressly authorized by the District’s Board. 8. Create unfunded local government mandates. 9. Create costly, unnecessary, or duplicative oversight roles for the state government of special district affairs. 10. Create new oversight roles or responsibility for monitoring special district affairs. 11. Change the San Diego County Water Authority Act regarding voting structure unless it is based on population. 12. Shift the liability to the public entity and relieve private entities of reasonable due diligence in their review of plans and specifications for errors, omissions, and other issues. 13. Place a significant and unreasonable burden on public agencies, resulting in increased cost for public works construction or their operation. 14. Impair the ability of water districts to acquire property or property interests required for essential capital improvement projects. 15. Increase the cost of property and right-of-way acquisition or restricts the use of right-of- ways. 16. Work to silence the voices of special districts and other local government associations on statewide ballot measures impacting local government policies and practices, including actions that could prohibit special districts and associations from advocating for positions on ballot measures by severely restricting the private resources used to fund those activities. 17. Prescribe mandatory conservation-based or other rate structures that override the authority of the board of directors to set its rate structure. 18. Circumvent the legislative committee process, such as the use of budget trailer bills, to advance policy issues including impacting special districts without full disclosure, transparency, or public involvement. 19. Restrict the District’s ability to utilize a demand forecasting methodology that is best suited locally and for the region. 20. Impose mandates requiring specific water resources be developed by water agencies that fail to consider local factors such as water reliability, hydrologic and geographic characteristics, and the economic, political, public acceptance, social environment, which can influence selection of resources and/or fails to consider or conflicts with existing local and regional planning policies and implementation priorities. 21. Limit the District’s ability to establish local priorities for water resources planning decisions. VIII. IX.VIII. Imported Water Issues A. Bay-Delta i. Co-Equal Goals Support initiatives that: 1. Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of the proposed Delta improvements to the Legislature and the public. Otay Water District Legislative Program 20212022 14 | P a g e 2. Provides conveyance and storage facilities that are cost-effective for the San Diego region’s ratepayers, improve the reliability and quality of the San Diego region’s water supplies, and protect the Bay-Delta’s ecosystem. 3. Continue to support the co-equal goals of water supply reliability and environmental restoration embodied in the 2009 Delta bill package. 4. Improve the ability of water-users to divert water from the Delta during wet periods, when impacts on fish and the ecosystem are lower and water quality is higher. 5. Encourage the development of a statewide water transfer market that will improve water management and allow more efficient use of available resources. 6. Support improved coordination of Central Valley Project and State Water Project (SWP) operations and implementation of voluntary agreement that are fair to the users of both projects and do not unfairly shift costs to SWP contractors. 7. Support continued state ownership and operation of the SWP, including project facilities, as a public resource. 8. Ensure that any reorganization of the State Water Project, including operations and management, preserves the ability for non-State Water Project contractors to access the facility for transportation of water to a non-State Water Project contractor. 9. Authorize and appropriate the federal share of funding for the long-term Bay-Delta solution, including for the EcoRestore Program. 10. Provide the ongoing state share of funding for the EcoRestore Program. 11. Provide state funding for aquatic toxicity monitoring in the Bay-Delta. Such legislation should not place a surcharge on water supply exports, nor should it substantively reduce funding for other measures that protect the environment and public health. Oppose efforts that: 1. Impose water user fees to fund ecosystem restoration and other public purpose, nonwater- supply improvements in the Delta that benefit the public at large. 2. Transfer operational control of the State Water Project or any of its facilities to the Metropolitan Water District of Southern California (MWD), the State Water Contractors, the Central Valley Project Contractors, the State and Federal Contractors Water Agency, or any entity comprised of MWD or other water project contractors, or any other special interest group. ii. Bay-Delta Conveyance Project Support initiatives that: 1. Are consistent with the Water Authority’s Board of Directors’ July 25, 2019 adopted Bay- Delta project policy principles, including the following: a. On April 29, 2019, Governor Newsom signed Executive Order N-10-19, directing the preparation of a water resilience portfolio approach that meets the needs of California’s communities, economy, and environment through the 21st century, including consideration of multi-benefit approaches that meet multiple needs at once, and a single-user tunnel Bay-Delta project. b. The Water Authority’s Board supports Governor Newsome’s Executive Order N-10- 19 and directs staff to inform the Newsome Administration that its support for a single-tunnel Bay-Delta project is expressly conditioned upon the project costs being Otay Water District Legislative Program 20212022 15 | P a g e characterized by the Department of Water Resources (DWR) as conservation, or supply charges, as similar facilities historically have been defined in the Metropolitan Water District’s (MWD) SWP contract with DWR. c. As reflected in Table 2 of DWR’s Appendix B to Bulletin 132-17, Data and Computation Used to Determine Water Charges, and for which costs are recovered in Article 22(a) of Delta Water Charge of MWD’s SWP Contract; allow for the exemption of north-of-Delta SWP contractors. 2. Support the establishment of an independent and transparent oversight function to monitor and provide regular updates on project implementation progress, including expenditure tracking, construction progress, project participants’ contributions, and all other relevant activities and developments. 3. Allow access to all SWP facilities, including project facilities, to facilitate water transfers. B. Metropolitan Water District Support initiatives that: 1. Provide an appropriate level of accountability and cost control over MWD spending. 2. Protect and safeguard the Water Authority’s Preferential Rights in the Metropolitan Water District Act. 3. Require MWD to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. 4. Require MWD to implement actions that advance and support its long-term financial stability, fiscal sustainability, and that moderate fluctuations in rates and charges for its member agencies from year to year, in a publicly transparent manner. 5. Amend the Metropolitan Water District Act to change voting allocation on its Board of Directors based on a member agency’s total financial contribution to MWD, and in a manner similar to the voting allocation method of the County Water Authority Act. C. Colorado River Support initiatives that: 1. Supports implementation and funding of the California Colorado River Water Use Plan, including the Lower Colorado River Multi-Species Conservation Program 2. Provide funding for Colorado River salinity control projects and other water quality management efforts. 3. Provide for state and federal authorizations and appropriations of non-fee-based funds to implement Salton Sea mitigation and the State’s phased approach to restoration in the form of the Salton Sea Management Program consistent with its obligations under Chapters 611, 612, and 613 of the Statutes of 2003. 4. Limit the Quantification Settlement Agreement mitigation costs imposed on funding parties to the amount committed in accordance with the original QSA legislation. 5. Provide a governing structure and/or specified managing office over the state's Salton Sea Management Program to provide guidance and oversight of restoration activities. 6. Support the sustainability of the Colorado River and provide operational flexibility through the development of storage, including Lake Mead and additional storage opportunities Otay Water District Legislative Program 20212022 16 | P a g e regionally, and through the renegotiation of the new interim shortage guidelines for continued operation of the River. 7. Allow for the option to create an alternate conveyance route, when technically and financially feasible, for reliable delivery of the Water Authority’s Independent Colorado River water supplies and integration of compatible partnership projects along the proposed conveyance routes as a model of the Governor’s Water Resilience Portfolio approach to water management. 8. Support the State’s Salton Sea Management Program under the guidelines of the revised Water Order (Stipulated Order) adopted by the State Water Resources Control Board in November 2017. 9. Preserve the California Colorado River Board 10. Ensure the interests of the members of the California Colorado River Board continue to be addressed in any state government reorganization. 11. Allow for storage of the Water Authority’s Colorado River water supplies to provide enhanced flexibility with annual transfer volumes, support drought contingency planning, and align with the Governor’s Water Resilience Portfolio approach to water management. Oppose initiatives that: 1. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement. 2. Eliminate the California Colorado River Board without providing a comparable structure or forum that ensures the Water Authority's interests in the Colorado River are preserved. D. State Water Project Support initiatives that: 1. Provide for development of a comprehensive state water plan that balances California's competing water needs and results in a reliable and affordable supply of high-quality water for the San Diego region. Oppose initiatives that: 1. Make urban water supplies less reliable or substantially increases the cost of imported water without also improving the reliability and/or quality of the water. 2. Revise the Central Valley Project Improvement Act to Jeopardize the Act's environmental integrity, compromise State Water Project supply reliability a n d/or limit the ability of urban agencies to transfer and/or bank CVP water for use both within and outside the CVP service area. 3. Transfer operational control of the State Water Project or any of its facilities to MWD, the State Water Project contractors, Central Valley Project contractors, the State and Federal Contractors Water Agency, any entity comprised of MWD or other water project contractors, or any other special interest group. IX. Optimize District Effectiveness Support initiatives that: 1. Manage District resources in a transparent and fiscally responsible manner. Otay Water District Legislative Program 20212022 17 | P a g e 2. Give utilities the ability to avoid critical peak energy pricing or negotiate energy contracts that save ratepayers money. 3. Develop reasonable Air Pollution Control District engine permitting requirements. 4. Reimburse or reduce local government mandates. 5. Allow public agencies to continue offering defined benefit plans. 6. Result in predictable costs and benefits for employees and taxpayers. 7. Eliminate abuses. 8. Retain local control of pension systems. 9. Are constitutional, federally legal, and technically possible. Oppose initiatives that: 1. Restrict the use of, or reallocate, district property tax revenues to the detriment of special districts. 2. Create unrealistic ergonomic protocol. 3. Micromanage special district operations. 4. Balance the state budget by allowing regulatory agencies to increase permitting fees. 5. Tax dependent benefits. 6. Require new reporting criteria on energy intensity involved in water supply. X. Safety, Security, and Information Technology Support initiatives that: 1. Provide funding for information security upgrades to include integrated alarms, access/egress, and surveillance technology. 2. Provide incentives for utilities and other local agencies to work cooperatively, share costs or resources. 3. Provide funding for communication enhancements, wireless communications, GIS, or other technological enhancements. 4. Encourage or promote compatible software systems. 5. Fund infrastructure and facility security improvements that include facility roadway access, remote gate access, and physical security upgrades. 6. Protect state, local, and regional drinking water systems from terrorist attack or deliberate acts of destruction, contamination, or degradation. 7. Provide funds to support training or joint training exercises to include contingency funding for emergencies and emergency preparedness. 8. Equitably allocate security funding based on need, threats and/or population. 9. Encourage or promote compatible communication systems. 10. Encourage and promote funding of Department of Homeland Security Risk Mitigation programs. 11. Recognizes water agencies as emergency responders in the event of a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate loss or impairment of life, health, property, or essential public services due to natural disasters (e.g., wildfires, earthquakes), power outages as well as terrorist and other criminal activities. 12. Provide state grant or other funding opportunities to support seismic risk assessment and mitigation plans, or to mitigate vulnerabilities. Otay Water District Legislative Program 20212022 18 | P a g e 13. Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 14. Provide funding for projects that improve the security of the District facilities and operations. 15. Provide funding to support technologies that support remote working, when necessary to prevent loss of or damage to life, health, property, or essential public services. Oppose initiatives that: 1. Create unnecessary, costly, or duplicative security or safety mandates. 2. Require expanded water system descriptions or additional public disclosure of public water systems details for large water suppliers in Urban Water Management Planning documents, potentially compromising public water systems, and creating a conflict with the Department of Homeland Security’s recommendation to avoid reference to water system details in plans available to the general publicpublic. XI. Water Quality Issues Support initiatives that: 1. Assure cost-effective remediation and cleanup of contaminates of concern that have impacted groundwater and surface water. 2. Incorporate sound scientific principals in adopting drinking water standards for drinking water concerns. 3. Revise NPDES standards and procedures to facilitate inland discharge and use of recycled water. 4. Establish appropriate quality standards, testing procedures, and treatment processes for emerging contaminants. 5. Alter the definition of “lead free” to reduce the permissible amount of lead in fixtures, plumbing, and pipe fittings to be installed for the delivery of drinking water. 6. Exempt purified wastewater from regulation as a discharge under the Clean Water Act. 7. Protect child public health by requiring schools to undertake lead testing in school drinking water systems. 8. Implement source control for management prevention of contamination by constituents of emerging concern. 9. Provide the necessary funding for research on the occurrence, treatment, health effects, and environmental cleanup related to contamination drinking water sources. 10. Implement and fund the San Diego Regional Water Quality Control Board’s triennial review of water quality standards. 11. Provide funding and support for Colorado River salinity control projects and other water quality management efforts. 12. Direct the state’s participation or assistance in water quality issues related to or threatening the Colorado River water source. 13. Streamline permitting of facilities constructed for the purpose of improving water quality. 14. Ensure consistent application of the law by the State Water Resources Control Board and the nine regional water quality control boards. Oppose initiatives that: Otay Water District Legislative Program 20212022 19 | P a g e 1. Eliminate the State Water Resources Control Board and/or the nine regional water quality control boards without ensuring the functions and expertise of the boards is maintained in any reorganized entity. XII. Water Recycling and Potable Reuse Support initiatives that: 1. Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water. 2. Reduce restrictions on injecting recycled water into basins where there is no direct potable use. 3. Advocate for direct potable reuse. 4. Advocate for recycled water use upstream of lakes and reservoirs if protected by urban water runoff protection systems. 5. Provide financial incentives for recharge of groundwater aquifers using recycled water. 6. Make recycled water regulations clear, consolidated, and understandable to expedite related project permitting. 7. Promote recycled water as a sustainable supplemental source of water. 8. Allow the safe use of recycled water. 9. Facilitate development of technology aimed at improving water recycling. 10. Increasing funding for water recycling projects. 11. Support continued funding of the Title XVI Water Reclamation and Reuse Program including Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and Water Purification Research Program. 12. Increase awareness of the ways recycled water can help address the region’s water supply challenges. 13. Create federal and state incentives to promote recycled water use and production. 14. Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower productions costs, address by products such as concentrates, and enhance public acceptance of recycled water. 15. Establish a comprehensive national research and development, and technology demonstration, program to advance the public and scientific understanding of water recycling technologies to encourage reuse as an alternative source of water supply. 16. Provide incentives for local agencies to work cooperatively, share costs or resources to promote or expand the use of recycled water. 17. Further refine emergency regulations to reward local suppliers that have invested in using recycled water for landscape irrigation to maintain an incentive to continue expanding areas served by recycled water. 18. Encourage the use of recycled water in commercial, industrial, institutional, and residential settings. 19. Recognize and support the development of potable reuse as a critical new water supply. 20. Define purified recycled water as a source of water supply and not as waste. 21. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 22. Authorize local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. Otay Water District Legislative Program 20212022 20 | P a g e 23. Authorize and facilitate expanded use of local water resources including water recycling, potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and brackish groundwater. 24. Streamline regulatory processes and requirements to encourage and support the development of potable reuse and non-potable reuse as a municipal water supply. 25. Recognize the entire interconnected urban water cycle, as well as public health and safety, must be taken into consideration in long-term water use efficiency policies, particularly including the unintended consequences of declining flows on water, wastewater, potable reuse, and recycled water systems. 26. Encourage dual plumbing in new development where non-potable recycled water is likely to available to enable utilization of recycled water. 27. Promote uniform regulatory interpretation of state recycled water system standards. 28. Support beneficial revisions to the California Plumbing Code that facilitate recycled water systems. Oppose initiatives that: 1. Restrict use of recycled water for groundwater recharge. 2. Establish new water or recycled water fees solely to recover State costs without also providing some benefit. 3. Limit the ability of local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 4. Establish unreasonable regulatory requirements or fees to the safe use of recycled water, which may unreasonably impede or create a disincentive to its further development. 5. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 5.6.Water use efficiency standards (AB 1668), which do not reflect the impact that higher TDS recycled water has on the usage rates to reduce salt loading in areas of use. XIII. Water Services and Facilities Support initiatives that: 1. Provide funding to implement actions identified in the California Water Action Plan to lay a solid fiscal foundation for implementing near-term actions, including funding for water efficiency projects, wetland and watershed restoration, groundwater programs, conservation, flood control, and integrated water management and result in a reliable supply of high-quality water for the San Diego region. 2. Provide financial support to projects designed to mitigate the potential negative impacts of Global Climate Change on water supply reliability. 3. Promote the coordination and integration of local, state, and federal climate change policies and practices to the greatest extent feasible. 4. Fund or otherwise facilitate ongoing implementation of the Quantification Settlement Agreement. 5. Provide reliable water supplies to meet California’s short and long-term needs. 6. Promote desalination pilot studies and projects. 7. Encourage feasibility studies of water resource initiatives. Otay Water District Legislative Program 20212022 21 | P a g e 8. Increase funding for infrastructure and grant programs for construction, modernization or expansion of water, wastewater treatment, reclamation facilities and sewer systems including water recycling, groundwater recovery and recharge, surface water development projects and seawater desalination. 9. Fund enhancements to water treatment, recycling, and other facilities to meet increased regulations. 10. Mandate uniform or similar regulations and procedures by state agencies in the processing and administering of grants and programs. 11. Streamline grant application procedures. 12. Reduce regulations and other impediments for willing sellers and buyers to engage in water transfer agreements. 13. Promote or assist voluntary water transfers between willing buyers and willing sellers and move those transactions through without delay. 14. Streamline the permitting and approval process for desalination and other water-related facilities and implementing water transfers that will improve water management. 15. Establish reasonable statewide approaches to sewer reporting standards. 16. Generate greater efficiencies, better coordinate program delivery, and eliminate duplication in programs for source water protection without lessening the focus on public health of the state’s Drinking Water Program. 17. Target efforts to fix specific issues with water supplies within the state’s Drinking Water Program. 18. Establish federal tax incentives to support U.S. companies in the development of new desalination technologies that can lower productions costs, eliminate or reduce impingement or entrainment, reduce energy use, and enhance public acceptance of desalinated water. 19. Establish a comprehensive national research and development, and technology demonstration program to advance the scientific understanding of desalination to expand its use as an alternative source of water supply. 20. Require the State Water Resources Control Board to exercise its authority, ensure robust funding, and implement the Salton Sea mitigation and restoration plan, meet state obligations, and work with QSA stakeholders to find workable solutions to ensure the continuation of IID water transfers. 21. Support solutions to water supply issues that address common challenges, provide a comprehensive approach that is fair to all users, balance the needs of urban and rural communities, and take into consideration the interests of all stakeholders as well as the impact to the environment. 22. Further refine emergency drought regulations to eliminate a cap on credits and adjustments so as not to impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. 23. Provide funding for water infrastructure development, infrastructure security, and rehabilitation and replacement projects that benefit ratepayers. 24. Provide funding for habitat preservation programs that address impacts resulting from construction or operation of water system facilities. 25. Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. Otay Water District Legislative Program 20212022 22 | P a g e 26. Provide incentives that encourage contractors to recycle or reduce waste associated with construction of water facilities. 27. Improve the local agencies’ efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes liability to local agencies and the District. 28. Protect the local agencies’ properties from restrictions when surrounding properties are incorporated into preservation areas. 29. Encourage the use of current and emerging technologies for monitoring and assessing the condition of large diameter pipelines. 30. Encourage water supplier to develop and execute asset management programs that include visual inspections, internal/external inspections, asset condition assessments, corrosion mitigation, and reis analysis in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 31. Improve the District’s efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes liability to the District. 32. Protect the District, other agencies and the Water Authority properties from restrictions when surrounding properties are incorporated into preservation areas. 33. Provide funding to water agencies for the voluntary retrofit of facilities for on-site generation of chlorine. 34. Provide funding for water supplier asset management programs that involve the active monitoring, repair, or replacement of physical assets and infrastructure, which includes pipes, valves, facilities, equipment, and other infrastructure. 35. Provide for restrictions on price gouging during public safety power shutoff events and for at least 72 hours following restoration of power. 36. Provide that de-energization or public safety power shutoff events may be included as a condition constituting a state of emergency or local emergency. 37. Provide a tax emption for the sale of, or storage, use, or consumption of, a backup electrical resources, that is purchased for exclusive use by a city, county, special district, or other entity of local government during a de-energization or public safety power shutoff event. 38. State that the use of alternative power sources (such as generators) by essential public services during de-energization or public safety power shutoff events shall not be limited by any state or local regulations or rules. 38.39. Recognize the critical role the District, local agencies, and the Water Authority play as Public Safety Partners in Public Safety Power Shutoff events and other natural or man-made disasters. Further recognizes the importance of the agency’s ability to provide immediate and sustained response for extended periods of time. 39.40. Provide financial support to local projects designed to mitigate or adapt to potential negative impacts of climate change on water supply reliability. 40.41. Investigate and provide financial support to projects designed to mitigate potential negative impacts of climate change on water supply reliability. Oppose initiatives that: 1. Restrict local control and discretions over water facilities, asset management, and facility operations. 2. Make urban water supplies less reliable or substantially increase the cost of imported water without also improving the reliability and/or quality of the water. Otay Water District Legislative Program 20212022 23 | P a g e 3. Create unrealistic or costly water testing or reporting protocol. 4. Disproportionately apportion the cost of water. 5. Create undo hurtles for seawater desalination projects. 6. Create unreasonable or confusing sewer reporting standards. 7. Create administrative or other barriers to sales between willing buyers and willing sellers that delay water transfers. 8. Create a broad-based user fee that does not support a specific local program activity or benefit; any fee must provide a clear nexus to the benefit local ratepayers or local water supplies from the establishment that charge or fee would provide. 9. Create unrealistic or costly to obtain water quality standards for potable water, recycled water, or storm water runoff. 10. Change the focus of the state’s Drinking Water Program or weaken the parts of the program that work well. 11. Lessen the focus on public health of the state’s Drinking Water Program. 12. Impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. 13. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement. 14. Impair the District and other local water agencies’ ability to provide and operate the necessary facilities for a safe, reliable, and operational flexible water system. 15. Limit local agencies’ sole jurisdiction over planning, design, routing, approval, construction, operation, or maintenance of water facilities. 16. Restrict local agencies’ ability to respond swiftly and decisively to an emergency that threatens to disrupt water deliveries or restricts the draining of pipelines or other facilities in emergencies for repairs or preventive maintenance. 17. Authorize state and federal wildlife agencies to control, prevent, or eradicate invasive species in a way that excessively interferes with the operations of water supplies. 18. Prohibit or in any way limit the ability of local agencies from making full beneficial use of any water, wastewater, or recycling facility and resource investments. 19. Prohibit the use of alternative contract procurement methods that can be utilized in the construction of water facilities. 20. Shift the risks of indemnity for damages and defense of claims from contractors to the District. 21. Impair local agencies’ efforts to acquire property or property interests required for essential capital improvement projects or acquisition of property to meet pipeline water drain-down needs for existing facilities. 22. Increase the cost of property and right of way acquisition. 23. Restrict the District’s use of public rights of way or increase the cost of using public rights of way. 24. Restrict the transfer of property acquired for purposes of environmental mitigation or environmental mitigation credits to other public or private entities for long-term management. 25. Establish prescriptive leak loss control requirements for the operation, maintenance, and asset management of water conveyance and distribution systems, that fail to consider full life-cycle costing. 26. Establish meter testing requirements for source water meters that fail to consider industry standards and cost-effectiveness. Otay Water District Legislative Program 20212022 24 | P a g e 27. Limit the discretion of the District from protecting security and privacy of comprehensive inventories of all assets, which includes infrastructure location, condition, performance, and useful life. 28. Impair local agencies’ ability to execute the planning, design, and construction of projects using its own employees. 29. Limit the autonomy of discretion of water supplier to develop and execute asset management inspection programs that include visual inspections, internal/external inspections, asset condition assessments, and corrosion mitigation in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 30. Authorize air quality management districts or other regulatory bodies to adopt or maintain rules that would limit or prohibit a local government entity’s use of a state and/or federally complaint natural gas-powered generator during a de-energization or public safety power shutoff event. 31. Through the CARB Advanced Clean Fleet regulation, would inhibit the District from fulfilling its critical role as a Public Safety Partner and making immediate and sustained response in a Public Safety Power Shutoff event or and other natural or man-made disasters. 30.32. Through the CARB Advanced Clean Fleet regulation, would inhibit the District from fulfilling its critical role as an essential service provider from procuring and operating fleets which meet the needs to perform routine and emergency maintenance of water and wastewater systems. 31.33. Require incorporation of climate change considerations into regional and local water management planning that does not provide flexibility to the local and regional water agencies in determining the climate change impact and identification of adaptation and mitigation measures. 32.34. Impose top-down “one-size-fits-all” climate change mandates that fail to account for hydrological, meteorological, economic, and social variation across the state and/or that fail to incorporate local and regional planning and implementation priorities and protocols. XIV. Water-Use Efficiency Support initiatives that: 1. Provide funding for incentives for water-use efficiency and water conservation programs including water-efficient devices, practices and demonstration projects and studies. 2. Encourage the installation of water-efficient fixtures in new and existing buildings. 3. Promote the environmental benefits of water-use efficiency and water conservation. 4. Enhance efforts to promote water-use efficiency awareness. 5. Offer incentives for landscape water-efficient devices including, but not limited to ET controllers and soil moisture sensors. 6. Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs. 7. Permit or require local agencies to adopt ordinances that require or promote water-efficient landscapes for commercial and residential developments. 8. Create tax incentives for citizens or developers who install water-efficient landscapes. 9. Create tax incentives for citizens who purchase high-efficiency clothes washers, dual-flush and high-efficiency toilets, and irrigation controllers above the state standards. 10. Expand community-based water-use efficiency and education programs. Otay Water District Legislative Program 20212022 25 | P a g e 11. Facilitate and encourage the use of rainwater-capture systems, i.e., rain barrels, cisterns, etc. and alternative water sources, i.e., air conditioner condensate for use in irrigation. 12. Develop incentives for developers and existing customers to install water-efficient landscape in existing developments or new construction. 13. Encourage large state users to save water by implementing water-efficient technologies in all facilities both new and retrofit. 14. Encourage large state water users to save water outdoors. 15. Educate all Californians on the importance of water, and the need to conserve, manage, and plan for the future needs. 16. Encourage technological research targeted to more efficient water use. 17. Give local agencies maximum discretion in selecting water-use efficiency and conservation programs that work for their customers and the communities they serve. 18. Require the Department of Water Resources to implement a uniform statewide turf rebate subsidy or incentive program. 19. Restrict Property Owner Associations from forbidding the use of California native plants, other low water use plants, mulch, artificial turf, or semi-permeable materials in well- maintained landscapes. 20. Restrict Property Owner Associations from forbidding retrofits of multiple unit facilities for the purpose of submetering, if feasible. 21. Ensure plumbing codes and standards that facilitate the installation and/or retrofit of water efficient devices. 22. Establish standards for the utilization of high-efficiency commercial coin-operated and residential clothes washers. 23. Provides for federal tax-exempt status for water-use efficiency rebates, consistent with income tax treatment at the state level. 24. Encourage the use of graywater where it complies with local guidelines and regulations and is cost-effective. 25. Provide incentives, funding, and assistance to water agencies so that they can meet the water demand management measure requirements in the Urban Water Management Planning Act. 26. Provide incentives, funding, and other assistance to facilitate water-use efficiency partnerships with the energy efficiency sector. 27. Provide incentives, funding, and other assistance where needed to facilitate market transformation and gain wider implementation of water efficient indoor and outdoor technologies and practices. 28. Recognize local control in determining water use efficiency criteria, such as impact of recycled water salinity on irrigation use and efficiency for the application of non-potable recycled water. 29. Encourage reasonable tracking of water use and improved efficiency in the Commercial, Industrial, and Institutional (CII) sector. 30. Recognize local control in determining how to meet an overall efficient water use goal, based on the combined efficient indoor use, outdoor use, and leak loss, as established under the criteria provided for in statute. 31. Further the statewide goal of a 20 percent reduction in per capita water use by 2020 as set forth in SBX7-7, enacted in November 2009, and preserves water agency discretion and options for achieving this objective. Otay Water District Legislative Program 20212022 26 | P a g e 32. Ensure accurate and meaningful reporting of implementation of water-use efficiency and conservation measures. 33. Promote statewide implementation of water-use efficiency best management practices and demand management measures as defined in the Urban Water Management Planning Act. Oppose efforts that: 1. Weaken federal or state water-efficiency standards. 2. Introduce additional analytical and reporting requirements that are time-consuming for local agencies to perform and result in additional costs to consumers yet yield no water savings. 3. Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or semi-permeable materials in landscaping. 4. Repeal cost-effective efficiency standards for water-using devices. 5. Repeal cost-effective efficiency standards for water-using devices. 6. Create stranded assets by establishing long-term demand management water-use efficiency and water supply requirements that are inconsistent with the Urban Water Management Planning Act. 7. Prescribe statewide mandatory urban and agricultural water-use efficiency practices, including, but not limited to, methods, measures, programs, budget allocation, and designation of staff dedicated to water conservation programs, that override the authority of the boards of directors of local water agencies to adopt management practices that are most appropriate for the specific needs of their water agencies. 8. Mandate regulation of the CII Sector in a manner that is discriminatory, or sets unachievable Best Management Practices or compliance targets, or would otherwise impair economic activity or the viability of the CII sector. 9. Mandate that water agencies include an embedded energy calculation for their water supply sources in the Urban Water Management Plan or any other water resource planning or master planning document. XV. Workforce Development Support initiatives that: 1. Advocate for local, regional, and state programs that support a high-performing workforce and increase the talent pool for water agencies. 2. Advocate for military veterans in the water industry workforce to ensure that veterans receive appropriate and satisfactory credit towards water and wastewater treatment system certifications in California for work experience, education, and knowledge gained in military service. 3. Lower employment barriers for military veterans and transitioning military and that sustain vital water and wastewater services for the next generation. 4. Recruit and support veterans and transitioning military through internships, cooperative work experiences, and other resources. 5. Recruit and support underserved communities in the water industry through internships, cooperative work experiences, and other resources. Otay Water District Legislative Program 20212022 27 | P a g e 6. Advocate and encourage candidate outreach and recruitment in relation to mission-critical job categories in water and wastewater. 7. Ensure advanced water treatment operators and distribution system operators of potable reuse and recycled water facilities have a career advancement path as certified water and/or wastewater treatment plant operators. 8. Increase the number of educational institutions that provide water-industry related training and related program criteria including but not limited to trades, certifications, and degrees. 9. Increase the talent pool of future water industry workers through educational programs, internships, and other resources. 10. Provide funding to educational institutions, water agencies, and workforce students regarding careers in the water industry. 11. Develop qualified candidates for positions in the water industry. 12. Build awareness of water industry-related jobs through student outreach including but not limited to K-12, community colleges, universities, and other educational institutions as well as outreach to the general publicpublic. Oppose initiatives that: 1. Hinder military veterans from using previous experience, education, and knowledge toward a career in water. 2. Regulate agencies from hiring an experienced, educated, and talented water-industry workforce. Otay Water District Legislative Program 2022 1 | Page Effective Date: 04/06/2022 Legislative Program Policy Guidelines Purpose The Otay Water District’s legislative policy guidelines reflect policy positions adopted by the Board of Directors through 2022. The guidelines provide direction to staff and the legislative advocates when they evaluate proposed legislation that may affect the District, other local water agencies, or regional water management and use. Legislation that meets or fails to meet, the principles set forth in the guidelines may be supported or opposed accordingly. The guidelines permit the General Manager, District staff, and the District’s legislative advocates to act in a timely fashion between Board meetings on issues that are clearly within the guidelines. While the title of this document suggests these policy guidelines are applicable solely to state and federal legislative issues reviewed by the San Diego County Water Authority (Water Authority), the District, increasingly state and federal regulatory and administrative bodies are developing rules, guidelines, white papers, and regulations that can significantly affect the District, its wholesale supplier, and other local agencies. District staff, including the District’s legislative consultant, often utilize these Legislative Policy Guidelines to provide guidance on emerging and active regulatory and administrative issues. Legislation that does not meet the principles set forth in the guidelines or that has potentially complicated or varied implications will not be acted upon by staff or the legislative advocates in between Board meetings and will instead be presented to the Board directly for guidance in advance of any position being taken. The Water Authority has its own set of legislative guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated and selected policies and issues from the Water Authority’s guidelines that may have a direct impact on the District. These policies and issues have been incorporated into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, if there are issues or polices contained in the Water Authority’s Legislative Policy Guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively. Attachment D Otay Water District Legislative Program 2022 2 | Page Table of Contents The Otay Water Legislative Policy Program Guidelines for 2021 includes the following categories: I. Binational Issues…………………………………………....……………... Page 3 II. Biological and Habitat Preservation…………………………………….. Page 3 III. Desalination……………………………………………………………….. Page 4 IV. Drought Response………………………………………………………… Page 4 V. Energy……………………………………………………………………… Page 5 VI. Financial Issues…………………………………………………………… Page 6 A. Fees, Taxes, and Charges………………………….......................... Page 6 B. Funding…………………………………………………………….. Page 8 C. Rates………………………………………………………………... Page 10 D. Water Bonds……………………………………………………….. Page 10 E. Affordability……………………………………………………. Page 11 VII. Governance and Local Autonomy……………………………………….. Page 12 VIII. Imported Water Issues……………………………………………………. Page 13 A. Bay-Delta……………………………………………………………… Page 13 i. Co-equal Goals……………………………………………………. Page 13 ii. Bay-Delta Conveyance Project…………………………………… Page 14 B. Metropolitan Water District…………………………………………… Page 15 C. Colorado River………………………………………………………… Page 15 D. State Water Project…………………………………………………….. Page 16 IX. Optimize District Effectiveness……………………...…………....………. Page 16 X. Safety, Security, and Information Technology……………....................... Page 17 XI. Water Quality Issues………………………………………………………. Page 18 XII. Water Recycling and Potable Reuse……………………………………… Page 19 XIII. Water Service and Facilities……………………………………………… Page 20 XIV. Water-Use Efficiency……………………………………………………… Page 24 XV. Workforce Development………………………………………………….. Page 26 Otay Water District Legislative Program 2022 3 | Page I. Binational Issues Support initiatives that: 1. Promote and provide funding for cross-border water supply and infrastructure development projects such as water pipelines, desalination plants or water treatment facilities to serve the San Diego/Baja California border region while protecting local interests. 2. Encourage enhanced cooperation between entities in San Diego and Baja California in development of supply and infrastructure projects that will benefit the entire border region. 3. Encourage state and federal funding to support collaborative binational projects to improve water quality and protect human health and the environment within the broader San Diego region. 4. Develop and enhance communications and understanding of the interdependence of communities on both sides of the border with the goal of improved cross-border cooperation. Oppose initiatives that: 1. Would usurp local control over the financing and construction of water supply and infrastructure projects in the San Diego/Baja California region. II. Biological and Habitat Preservation Support initiatives that: 1. Support development of comprehensive multispecies habitat conservation plants that anticipate and mitigate project development impacts while preserving representative ecosystem, rather than individual species. 2. Exempt operation, maintenance, ad repair of water system facilities from endangered species and other habitat conservation regulations because they provide beneficial cyclical habitat values to declining species and foster biological diversity in California. 3. Provide environmental regulatory certainty for implementation of existing and proposed long-term water supply programs. 4. Streamline filing of CEQA notices of determination for multicounty water projects by making those notices available on the CEQAnet website through the Governor’s office of Planning and Research. 5. Incorporate an emergency exemption for “take” of a listed species listed under the state or federal Endangered Species Acts when necessary to mitigate or prevent loss of or damage to life, health, property, or essential public services. 6. Encourage species listings, critical habitat designation, and recovery plans developed pursuant to the state or federal Endangered Species Acts to be consistent with existing interstate compacts, tribal treaties, and other state and federal agreements. Oppose initiatives that: 1. Reduce or limit the use of existing water rights or supplies, 2. Restrict the development of future water supplies. 3. Impose endangered species or habitat conservation requirements that restrict the operation, maintenance, or repair of public water supply, conveyance, treatment, or storage facilities. Otay Water District Legislative Program 2022 4 | Page III. Desalination Support initiatives that: 1. Provide funding for seawater desalination studies and facilities. 2. Recognize and support the development of seawater desalination as critical new water supply for the state, including San Diego County. 3. Streamline permitting of desalination facilities. 4. Preserve and protects potential seawater desalination sites and existing coastal facilities including intake and discharge infrastructure that could be used or reused by a seawater desalination facility. 5. Ensure that desalination intake and discharge regulations are science-based, considering site-specific conditions, and recognizing that not all technologies or mitigation strategies are feasible or cost-effective at every site. IV. Drought Response Support initiatives that: 1. Ensure the District and other local agencies including the Water Authority and San Diego County water agencies receive the water supply benefits of investments in local water supply sources. 2. Allow local agencies to achieve compliance with emergency or non-emergency drought regulations or objectives through a combination of water conservation measures and development and implementation of local water supply sources that are not derived from the Delta. 3. Allow for local agencies to account for all water supplies available during droughts and other events when calculating the water supply shortage level. 4. Create a process for development and implementation of emergency drought declarations and regulations that recognizes variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of drought. 5. Recognize variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of droughts and ensure that any temporary or permanent statutory or regulatory direction for improving water-use efficiency to meet statutory or regulatory goals or standards is focused on regional achievement of objectives rather than a one-size-fits-all approach. Oppose initiatives that: 1. Disincentivize or impede water agencies from making investments to maximize the potential for recycled water, potable reuse, desalination, and other drought-resilient local water supplies. 2. Create a “one-size-fits-all” approach to emergency drought declarations and regulations that ignores variations among communities, regions, and counties with respect to their ability to withstand the impacts and effects of drought. Otay Water District Legislative Program 2022 5 | Page V. Energy Support initiatives that: 1. Provide opportunities for reduced energy rates under tariff schedules for the District. 2. Provide protection to the District from energy rate increases and provides rate relief for the District. 3. Provide funding, including state and federal grants, for in-line hydro-electric, solar, wind, battery storage, biogas, cogeneration, nanogrids, microgrids, closed-loop pumped storage facilities and other renewable energy generation or storage technology as means of reducing greenhouse gas emissions and energy cost. 4. Promote funding for use of renewable energy in the operation of District facilities. 5. Prohibit investor-owned utilities from implementing rate changes that undercut the financial viability of renewable energy facilities obligated under long-term Power Purchase Agreements. 6. Provide greater flexibility in the utilization of the District’s facilities for generation and acquisition of electrical and natural gas power. 7. Provide the District with greater flexibility in the licensing, permitting, interconnection, construction, and the operation of its existing and potential in-line hydroelectric, solar, wind, battery, nanogrid, microgrid, closed-loop pumped-energy storage projects, and other renewable generation or storage technology. 8. Make SWP power available for all water projects. 9. Promote the classification of electricity generated by in-line hydroelectric and closed-loop pumped-energy storage facilities as environmentally sound. 10. Promote the expansion of closed-loop pumped-energy storage facilities to provide clean and environmentally sound energy resource that provides electric and reliability and resiliency, especially during times of potential blackouts. 11. Promote the expansion of in-line hydroelectric energy recovery systems at treatment facility discharge systems. 12. Promote the production, purchase, delivery, and use of alternative sources of energy on a wholesale basis. 13. Provide clear statutory, regulatory, or administrative authority for the Water Authority to wheel acquired or produced power to itself, the District, or entities with which the Water Authority is under contract for the purchase, treatment, transport, or production of water. 14. Recognize and monetize all grid ancillary services that pumped hydro-energy storage provides and supports fair compensation in the wholesale energy market for such services. 15. Provides timely, efficient, and cost-effective interconnection of new energy resources such as solar, inline hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. Otay Water District Legislative Program 2022 6 | Page 16. Recognize the value of large-scale hydropower and pumped-energy storage facilities in assisting the state to meet its renewable and zero-carbon emission goals of 100 percent by 2045. Oppose initiatives that: 1. Adversely affect the cost of energy needed to operate MWD’s facilities, SWP facilities, or the facilities of the Water Authority and the District. 2. Impose greenhouse gas reduction obligations on a public water agency for electricity purchased or produced for the sole purpose of operating its system. 3. Adversely affect the ability of the District or other water agencies in the county to own, operate, and/or construct work for supplying its own facilities with natural gas and electricity. 4. Impede the District or other water agencies in the county, the ability to contract for, deliver, and use the purchase of natural gas and electricity from the United States, the State of California, and any other public agency or private entity and sell the gas and electricity to any public agency or private entity engaged in retail sales of electricity and gas. 5. Reduce the District’s ability to always maintain high operational efficiency. 6. Restrict the District’s ability to expand or improve infrastructure or facilities. 7. Restrict or caps future energy demands needed for possible expansion of recycled water, potable reuse, and desalination projects. 8. Adversely affect the District’s ability to expand cogeneration or polygeneration at planned or existing facilities. 9. Inhibit the scientific advancement of energy and water efficient/conserving technologies that may be implemented at the District or other agency facilities. 10. Prevent the District from enhancing energy reliability and independence for its facilities. 11. Do not count or credit qualified renewable energy projects toward accomplishment and satisfaction of the California Renewables Portfolio Standard objectives. 12. Prohibit the Water Authority from wheeling - or securing statutory, regulatory, or administrative authority necessary to wheel - acquired or produced power to itself, the District, or other entities with which the Water Authority is under contract of the purchase, treatment, transport, or production of water. 13. Result in a lengthy, more complicated, or more costly interconnection of new energy resources, such as solar, inline-hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. VI. Financial Issues A. Fees, Taxes, and Charges Support initiatives that: 1. Require the federal government and State of California to reimburse special districts for all mandated costs or regulatory actions. 2. Give special districts the discretion to cease performance of unfunded mandates. Otay Water District Legislative Program 2022 7 | Page 3. Provide for fiscal reform to enhance the equity, reliability, and certainty of special district funding. 4. Provide incentives for local agencies to work cooperatively, share costs or resources. 5. Provide for the stable, equitable and reliable allocation of property taxes. 6. Continue to reform workers compensation. 7. Promote competition in insurance underwriting for public agencies. 8. Produce tangible results, such as water supply reliability or water quality improvement. 9. Require the Metropolitan Water District of Southern California (MWD) to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. Oppose initiatives that: 1. Impose mandated costs or regulatory constraints on local agencies and their customers without providing subventions to reimburse local agencies for such costs. 2. Pre-empt the Water Authority’s or its member agencies’ ability to impose or change rates, charges, fees, or assessments. 3. Weaken the protections afforded the Water Authority or its member agencies under California’s Proposition 1A (November 2, 2004). 4. Reallocate special districts reserves in an effort to balance the state budget. 5. Reallocate special district revenues or reserves to fund infrastructure improvements or other activities in cities or counties. 6. Establish funding mechanisms that put undue burdens on local agencies or make local agencies de facto tax collectors for the state. 7. Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to take advantage of low peak cost periods. 8. Add new reporting criteria, burdensome, unnecessary, or costly reporting mandates to Urban Water Management Plans. 9. Add new mandates to the Department of Water Resources (DWR) to review and approve Urban Water Management Plans beyond those already addressed in DWR guidelines. 10. Mandate that water agencies include an embedded energy calculation for their water supply sources in Urban Water Management Plans or any other water resources planning or master-planning document. 11. Weaken existing project retention and withholding provisions that limit the ability of public agencies to drive contractor performance. 12. Establish change order requirements that place an unreasonable burden on local agencies, or raise financial risk associated with public works contracts. 13. Impair the Water Authority or its member agencies’ ability to provide reasonable service at reasonable costs to member agencies or to charge all member agencies the same rate for each class of service consistent with cost-of-service requirements of the law. 14. Impair the local water agencies’ ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 15. Mandate a specific rate structure for retail water agencies. 16. Impose a water user fee on water agencies or water users that does not provide a commensurate and directly linked benefit in the local area or region from which the water user fee is collected. Otay Water District Legislative Program 2022 8 | Page 17. Impose a water user fee for statewide projects or programs, for which the projects or programs are not clearly defined, the beneficiaries identified, and reasonable costs identified. 18. Impose a water user fee to create a state fund that can be used to finance undefined future projects and programs. 19. Allow the state to retain more than five percent of water user fees for administrative costs. 20. Do not restrict the use of water user fees to only the specific purposes for which they are imposed, without any possibility of diversion to meet other fiscal needs of the state. 21. Impose a “public goods charge” or “water tax” on public water agencies or their ratepayers. 22. Impose a fee on water users to repay the principal and interest on a statewide general obligation bond. 23. Establish regulatory or permit fees that lack a nexus to the costs of oversight. 24. Establish a broad-based user fee that does not support a specific program activity; any fee must provide a clear nexus to the benefit the fee would provide. B. Funding Support initiatives that: 1. Require the federal and state governments to provide subvention to reimburse local governments for all mandated costs or regulatory actions. 2. Provide the Water Authority and its member agencies with additional forms of cost- effective financing for public facilities. 3. Revitalize the Title XVI federal funding program by converting new authorizations to a competitive grant program with congressional oversight while protecting existing Title XVI authorizations for the San Diego region. 4. Provide the Water Authority and its member agencies with grant funding for public facilities, including developing local water resources and rehabilitation and repair of aging infrastructure, such as pipelines. 5. Provide the District, other local water agencies, and water ratepayers with post-COVID-19 financial relief through a variety of means, including but not limited to, direct financial assistance and flexibility in debt management to assist water ratepayers and water suppliers. 6. Authorize financing of water quality, water security, and water supply infrastructure improvement programs. 7. Establish spending caps on State of California overhead when administering voter approved grant and disbursement programs. 8. Require disbursement decisions in a manner appropriate to the service in question. 9. Encourage funding infrastructure programs that are currently in place and that have been proven effective. 10. Provide financial incentives for energy projects that increase reliability, diversity, and reduce greenhouse gasses. 11. Continue energy rate incentives for the utilization of electricity during low-peak periods. Otay Water District Legislative Program 2022 9 | Page 12. Provide loan or grant programs that encourage water conservation for water users who are least able to pay for capital projects. 13. Provide for population-based distribution of IRWM funds to ensure adequate distribution of grant funding throughout the state. 14. Provide for the use of state grant funds for binational projects where the projects benefit water supply or water quality in the San Diego region. 15. Improve and streamline the state’s reimbursement process to ensure timely remittance of IRWM funds. 16. Promote the ability of the Regional Water Management Group to administer state grant funds specifically identified more directly for IRWM Programs. 17. Require the state to rely on the local process for selection and ranking of projects included in an approved IRWM plan. 18. Provide funding or other incentives for conservation, peak management programs, water recycling, potable reuse, groundwater recovery and recharge, surface water development and management projects, including reservoir management, source water protection and watershed planning studies and facilities that sustain long-term reliable water resources. 19. Provide financial incentives to assist in the disposal of concentrate, sludge, and other byproducts created in the water treatment process. 20. Authorize, promote, and provide incentives or credits for development of local drought-resilient water supply projects such as desalination, non-potable recycling, and potable reuse projects. 21. Provide funding for potable reuse demonstration projects and studies. 22. Authorize federal and state funding to develop and implement regional or subregional conservation programs, including but not limited to property acquisition, revegetation programs, and watershed plans. 23. Provide state and/or federal funding for the restoration of the Salton Sea. 24. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Lower Colorado River from Lee's Ferry to the southerly international border with Mexico. 25. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Sacramento-San Joaquin River Delta. 26. Permit the use of grant funding for projects implemented under public-private partnerships where the grant provides funding for a public benefit. 27. Require the state agencies responsible for preparing the IRWM grant program guidelines to conduct a comprehensive public outreach process that ensures stakeholders have an opportunity to provide adequate input on preparation of the guidelines and that the state agencies consider and respond to comments received through the outreach process. Oppose initiatives that: 1. Impose additional administrative requirements and/or restrict the Water Authority’s or its member agencies’ ability to finance public facilities through the issuance of long-term debt. 2. Interfere with the responsibility of a region, operating under an Integrated Regional Water Management Plan, for setting priorities and generating projects to be paid from any IRWM accounts and grants. Otay Water District Legislative Program 2022 10 | Page 3. Interfere with the control exercised by the San Diego funding subregion over the use and expenditure of any water-user fee revenues that may be dedicated to the region. 4. Establish IRWM funding criteria that limits local discretion in project selection. 5. Provide for after-the-fact reduction in quantity or quality of a public water supply due to new restrictions on the operation or use of water supply facilities unless funding for alternate sources of water is provided. 6. Impose a "utility user fee" or "surcharge" on water for the purposes of financing open space/habitat preservation, restoration, or creation. C. Rates Support initiatives that: 1. Maintain the authority of water agencies to establish water rates locally, consistent with cost-of-service requirements of the law. 2. Maximize the ability of water agencies to design rate structures to meet local water supply goals and that conform to cost-of-service requirements of the law. Oppose initiatives that: 1. Impair the Water Authority’s or its member agencies’ ability to provide reliable service at reasonable costs to member agencies or to charge all member agencies the same or similar rate for each class of service consistent with cost-of-service requirements of the law. 2. Undermine or weaken cost-of-service rate-making requirements in existing law. 3. Impair the District’s ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 4. Mandate a specific rate structure for retail water agencies. 5. Prescribe mandatory conservation-based rate structures that override the authority of the boards of directors of local water agencies to set rate structures according to the specific needs of the water agencies. 6. Usurp special district funds, reserves, or other state actions that force special districts to raise rates, fees, or charges. D. Water Bonds Support initiatives that: 1. Provide an equitable share of funding to San Diego County, with major funding categories being divided by county and funded on a per-capita basis to ensure bond proceeds are distributed throughout the state in proportion to taxpayers’ payments on the bonds. 2. Focus on statewide priorities, including restoration of fish and wildlife habitat, construction of an improved method of conveyance of water through or around the Delta that provides water supply reliability to Delta water users, promotion of greater regional and local self-sufficiency, surface storage, and promotion of water-use efficiency. 3. Ensures funding from various propositions for local and regional water-related projects. 4. Include within IRWM funding money that a region may use over time to develop and refine its plan and to develop institutional structures necessary to establish and implement the plan. Otay Water District Legislative Program 2022 11 | Page 5. Give primary consideration to funding priorities established by local and regional entities through their IRWM planning process. 6. Ensure the application process for funding is not unnecessarily burdensome and costly, with an emphasis on streamlining the process. 7. Limit state overhead to no more than five percent of bond funding amounts. 8. Place as much emphasis and provides at least as much funding for surface storage as for groundwater storage. 9. Define the “San Diego sub-region” and “San Diego county watersheds” as “those portions of the westward-flowing watershed of the South Coast hydrologic region situated within the boundaries of San Diego County.” 10. Fund emergency and carryover storage projects including those in San Diego County. 11. Consolidate administration of all voter-approved water-related bond funding in one place, preserves existing expertise within the state bureaucracy to manage bond-funding processes, and provide consistent application and evaluation of bond funding applications. 12. Provide the state’s share of funding for projects that advance the achievement of the co-equal goals of water supply reliability and Delta ecosystem restoration. 13. Provide funding for water infrastructure that resolve conflicts in the state’s water system and provide long-term benefits to statewide issues including water supply, reliability, water quality, and ecosystem restoration. Oppose initiatives that: 1. Do not provide an equitable share of funding to San Diego County based on the San Diego County taxpayers’ proportional contribution to repayment of the bonds. 2. Do not provide funding for infrastructure that resolves statewide or regional conflicts of water supplies. 3. Do not provide funding that result in net increases in real water supply and water supply reliability. 4. Commit a significant portion of bond funding to projects that do not result in net increases in real water supply or water supply reliability. E. Affordability Support initiatives that: 1. Abides by the Human Right to Water (AB 685, 2012) as set forth in Section 106.3 of the California Water Code which reads that, “every human being has the right to safe, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.” The State Water Resources Control Board also has a resolution supporting this program. 2. Meets the required standards under Proposition 218 in the California Constitution regarding proportionality of water rates and the cost-of-service provisions. 3. Relies on data-driven analysis of water affordability, including considerations such as census data and economically disadvantaged communities. As such, the District supports the continued implementation of AB 2334 (2012) that requires the Department of Water Resources to provide this analysis and place it in California’s Water Plan. 4. Supports the creation of a low-income water rate assistance program that targets providing financial assistance to low-income ratepayers using existing resources within either the state General Fund or cap-and-trade dollars. Otay Water District Legislative Program 2022 12 | Page 5. Does not burden water districts with excessive or overly prescriptive state mandates including the collection of water taxes or water rate and boundary data. Oppose initiatives that: 1. Is not targeted appropriately: Any low-income water rate assistance program must be limited in scope to those individuals. By seeking to do too much, effectiveness could be limited. Examples of this could include extending program resources to domestic wells or water-use efficiency programs. 2. Does not have a funding source: Any low-income water rate assistance program needs to identify specific sources of sustainable funding and does not include a water tax or water surcharge. 3. Does not reinvent the wheel: Any low-income water rate assistance program should be built upon and use the resources of an existing benefit distribution organization or system, such as CalFresh, rather than requiring water agencies to add the operating expense of creating and administering a new method. VII. Governance and Local Autonomy Support initiatives that: 1. Expand local autonomy in governing special district affairs. 2. Promote comprehensive long-range planning. 3. Assist local agencies in the logical and efficient extension of services and facilities to promote efficiency and avoid duplication of services. 4. Streamline the Municipal Service Review Process or set limits on how long services reviews can take or cost. 5. Reaffirm the existing “all-in” financial structure or protect the Water Authority voting structure based on population. 6. Promote measures that increase broader community and water industry representation/appointments on State decision making bodies. 7. Ensure an open and transparent process for adoption of regulations, policies, and guidelines. 8. Preserve the District and other local water agencies’ ability to establish local priorities for water resources planning decisions. Oppose initiatives that: 1. Assume the state legislature is better able to make local decisions that affect special district governance. 2. Create one-size-fits-all approaches to special district reform. 3. Unfairly target one group of local elected officials. 4. Usurp local control from special districts regarding decisions involving local special district finance, operations, or governance. 5. Diminish the power or rights of the District’s governing body to govern the District’s affairs. 6. Diminish the power or rights of the District to govern relations with its employees. 7. Modify the committee or board voting structure or District and member agency board representation on the Water Authority Board of Directors unless such changes have been expressly authorized by the District’s Board. Otay Water District Legislative Program 2022 13 | Page 8. Create unfunded local government mandates. 9. Create costly, unnecessary, or duplicative oversight roles for the state government of special district affairs. 10. Create new oversight roles or responsibility for monitoring special district affairs. 11. Change the San Diego County Water Authority Act regarding voting structure unless it is based on population. 12. Shift the liability to the public entity and relieve private entities of reasonable due diligence in their review of plans and specifications for errors, omissions, and other issues. 13. Place a significant and unreasonable burden on public agencies, resulting in increased cost for public works construction or their operation. 14. Impair the ability of water districts to acquire property or property interests required for essential capital improvement projects. 15. Increase the cost of property and right-of-way acquisition or restricts the use of right-of- ways. 16. Work to silence the voices of special districts and other local government associations on statewide ballot measures impacting local government policies and practices, including actions that could prohibit special districts and associations from advocating for positions on ballot measures by severely restricting the private resources used to fund those activities. 17. Prescribe mandatory conservation-based or other rate structures that override the authority of the board of directors to set its rate structure. 18. Circumvent the legislative committee process, such as the use of budget trailer bills, to advance policy issues including impacting special districts without full disclosure, transparency, or public involvement. 19. Restrict the District’s ability to utilize a demand forecasting methodology that is best suited locally and for the region. 20. Impose mandates requiring specific water resources be developed by water agencies that fail to consider local factors such as water reliability, hydrologic and geographic characteristics, and the economic, political, public acceptance, social environment, which can influence selection of resources and/or fails to consider or conflicts with existing local and regional planning policies and implementation priorities. 21. Limit the District’s ability to establish local priorities for water resources planning decisions. VIII. Imported Water Issues A. Bay-Delta i. Co-Equal Goals Support initiatives that: 1. Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of the proposed Delta improvements to the Legislature and the public. 2. Provides conveyance and storage facilities that are cost-effective for the San Diego region’s ratepayers, improve the reliability and quality of the San Diego region’s water supplies, and protect the Bay-Delta’s ecosystem. 3. Continue to support the co-equal goals of water supply reliability and environmental restoration embodied in the 2009 Delta bill package. Otay Water District Legislative Program 2022 14 | Page 4. Improve the ability of water-users to divert water from the Delta during wet periods, when impacts on fish and the ecosystem are lower and water quality is higher. 5. Encourage the development of a statewide water transfer market that will improve water management and allow more efficient use of available resources. 6. Support improved coordination of Central Valley Project and State Water Project (SWP) operations and implementation of voluntary agreement that are fair to the users of both projects and do not unfairly shift costs to SWP contractors. 7. Support continued state ownership and operation of the SWP, including project facilities, as a public resource. 8. Ensure that any reorganization of the State Water Project, including operations and management, preserves the ability for non-State Water Project contractors to access the facility for transportation of water to a non-State Water Project contractor. 9. Authorize and appropriate the federal share of funding for the long-term Bay-Delta solution, including for the EcoRestore Program. 10. Provide the ongoing state share of funding for the EcoRestore Program. 11. Provide state funding for aquatic toxicity monitoring in the Bay-Delta. Such legislation should not place a surcharge on water supply exports, nor should it substantively reduce funding for other measures that protect the environment and public health. Oppose efforts that: 1. Impose water user fees to fund ecosystem restoration and other public purpose, nonwater-supply improvements in the Delta that benefit the public at large. 2. Transfer operational control of the State Water Project or any of its facilities to the Metropolitan Water District of Southern California (MWD), the State Water Contractors, the Central Valley Project Contractors, the State and Federal Contractors Water Agency, or any entity comprised of MWD or other water project contractors, or any other special interest group. ii. Bay-Delta Conveyance Project Support initiatives that: 1. Are consistent with the Water Authority’s Board of Directors’ July 25, 2019 adopted Bay- Delta project policy principles, including the following: a. On April 29, 2019, Governor Newsom signed Executive Order N-10-19, directing the preparation of a water resilience portfolio approach that meets the needs of California’s communities, economy, and environment through the 21st century, including consideration of multi-benefit approaches that meet multiple needs at once, and a single-user tunnel Bay-Delta project. b. The Water Authority’s Board supports Governor Newsome’s Executive Order N-10-19 and directs staff to inform the Newsome Administration that its support for a single-tunnel Bay-Delta project is expressly conditioned upon the project costs being characterized by the Department of Water Resources (DWR) as conservation, or supply charges, as similar facilities historically have been defined in the Metropolitan Water District’s (MWD) SWP contract with DWR. c. As reflected in Table 2 of DWR’s Appendix B to Bulletin 132-17, Data and Computation Used to Determine Water Charges, and for which costs are recovered in Otay Water District Legislative Program 2022 15 | Page Article 22(a) of Delta Water Charge of MWD’s SWP Contract; allow for the exemption of north-of-Delta SWP contractors. 2. Support the establishment of an independent and transparent oversight function to monitor and provide regular updates on project implementation progress, including expenditure tracking, construction progress, project participants’ contributions, and all other relevant activities and developments. 3. Allow access to all SWP facilities, including project facilities, to facilitate water transfers. B. Metropolitan Water District Support initiatives that: 1. Provide an appropriate level of accountability and cost control over MWD spending. 2. Protect and safeguard the Water Authority’s Preferential Rights in the Metropolitan Water District Act. 3. Require MWD to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. 4. Require MWD to implement actions that advance and support its long-term financial stability, fiscal sustainability, and that moderate fluctuations in rates and charges for its member agencies from year to year, in a publicly transparent manner. 5. Amend the Metropolitan Water District Act to change voting allocation on its Board of Directors based on a member agency’s total financial contribution to MWD, and in a manner similar to the voting allocation method of the County Water Authority Act. C. Colorado River Support initiatives that: 1. Supports implementation and funding of the California Colorado River Water Use Plan, including the Lower Colorado River Multi-Species Conservation Program 2. Provide funding for Colorado River salinity control projects and other water quality management efforts. 3. Provide for state and federal authorizations and appropriations of non-fee-based funds to implement Salton Sea mitigation and the State’s phased approach to restoration in the form of the Salton Sea Management Program consistent with its obligations under Chapters 611, 612, and 613 of the Statutes of 2003. 4. Limit the Quantification Settlement Agreement mitigation costs imposed on funding parties to the amount committed in accordance with the original QSA legislation. 5. Provide a governing structure and/or specified managing office over the state's Salton Sea Management Program to provide guidance and oversight of restoration activities. 6. Support the sustainability of the Colorado River and provide operational flexibility through the development of storage, including Lake Mead and additional storage opportunities regionally, and through the renegotiation of the new interim shortage guidelines for continued operation of the River. 7. Allow for the option to create an alternate conveyance route, when technically and financially feasible, for reliable delivery of the Water Authority’s Independent Colorado River water supplies and integration of compatible partnership projects along the proposed conveyance Otay Water District Legislative Program 2022 16 | Page routes as a model of the Governor’s Water Resilience Portfolio approach to water management. 8. Support the State’s Salton Sea Management Program under the guidelines of the revised Water Order (Stipulated Order) adopted by the State Water Resources Control Board in November 2017. 9. Preserve the California Colorado River Board 10. Ensure the interests of the members of the California Colorado River Board continue to be addressed in any state government reorganization. 11. Allow for storage of the Water Authority’s Colorado River water supplies to provide enhanced flexibility with annual transfer volumes, support drought contingency planning, and align with the Governor’s Water Resilience Portfolio approach to water management. Oppose initiatives that: 1. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement. 2. Eliminate the California Colorado River Board without providing a comparable structure or forum that ensures the Water Authority's interests in the Colorado River are preserved. D. State Water Project Support initiatives that: 1. Provide for development of a comprehensive state water plan that balances California's competing water needs and results in a reliable and affordable supply of high-quality water for the San Diego region. Oppose initiatives that: 1. Make urban water supplies less reliable or substantially increases the cost of imported water without also improving the reliability and/or quality of the water. 2. Revise the Central Valley Project Improvement Act to Jeopardize the Act's environmental integrity, compromise State Water Project supply reliability a n d/or limit the ability of urban agencies to transfer and/or bank CVP water for use both within and outside the CVP service area. 3. Transfer operational control of the State Water Project or any of its facilities to MWD, the State Water Project contractors, Central Valley Project contractors, the State and Federal Contractors Water Agency, any entity comprised of MWD or other water project contractors, or any other special interest group. IX. Optimize District Effectiveness Support initiatives that: 1. Manage District resources in a transparent and fiscally responsible manner. 2. Give utilities the ability to avoid critical peak energy pricing or negotiate energy contracts that save ratepayers money. 3. Develop reasonable Air Pollution Control District engine permitting requirements. 4. Reimburse or reduce local government mandates. 5. Allow public agencies to continue offering defined benefit plans. Otay Water District Legislative Program 2022 17 | Page 6. Result in predictable costs and benefits for employees and taxpayers. 7. Eliminate abuses. 8. Retain local control of pension systems. 9. Are constitutional, federally legal, and technically possible. Oppose initiatives that: 1. Restrict the use of, or reallocate, district property tax revenues to the detriment of special districts. 2. Create unrealistic ergonomic protocol. 3. Micromanage special district operations. 4. Balance the state budget by allowing regulatory agencies to increase permitting fees. 5. Tax dependent benefits. 6. Require new reporting criteria on energy intensity involved in water supply. X. Safety, Security, and Information Technology Support initiatives that: 1. Provide funding for information security upgrades to include integrated alarms, access/egress, and surveillance technology. 2. Provide incentives for utilities and other local agencies to work cooperatively, share costs or resources. 3. Provide funding for communication enhancements, wireless communications, GIS, or other technological enhancements. 4. Encourage or promote compatible software systems. 5. Fund infrastructure and facility security improvements that include facility roadway access, remote gate access, and physical security upgrades. 6. Protect state, local, and regional drinking water systems from terrorist attack or deliberate acts of destruction, contamination, or degradation. 7. Provide funds to support training or joint training exercises to include contingency funding for emergencies and emergency preparedness. 8. Equitably allocate security funding based on need, threats and/or population. 9. Encourage or promote compatible communication systems. 10. Encourage and promote funding of Department of Homeland Security Risk Mitigation programs. 11. Recognizes water agencies as emergency responders in the event of a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate loss or impairment of life, health, property, or essential public services due to natural disasters (e.g., wildfires, earthquakes), power outages as well as terrorist and other criminal activities. 12. Provide state grant or other funding opportunities to support seismic risk assessment and mitigation plans, or to mitigate vulnerabilities. 13. Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 14. Provide funding for projects that improve the security of the District facilities and operations. 15. Provide funding to support technologies that support remote working, when necessary to prevent loss of or damage to life, health, property, or essential public services. Otay Water District Legislative Program 2022 18 | Page Oppose initiatives that: 1. Create unnecessary, costly, or duplicative security or safety mandates. 2. Require expanded water system descriptions or additional public disclosure of public water systems details for large water suppliers in Urban Water Management Planning documents, potentially compromising public water systems, and creating a conflict with the Department of Homeland Security’s recommendation to avoid reference to water system details in plans available to the public. XI. Water Quality Issues Support initiatives that: 1. Assure cost-effective remediation and cleanup of contaminates of concern that have impacted groundwater and surface water. 2. Incorporate sound scientific principals in adopting drinking water standards for drinking water concerns. 3. Revise NPDES standards and procedures to facilitate inland discharge and use of recycled water. 4. Establish appropriate quality standards, testing procedures, and treatment processes for emerging contaminants. 5. Alter the definition of “lead free” to reduce the permissible amount of lead in fixtures, plumbing, and pipe fittings to be installed for the delivery of drinking water. 6. Exempt purified wastewater from regulation as a discharge under the Clean Water Act. 7. Protect child public health by requiring schools to undertake lead testing in school drinking water systems. 8. Implement source control for management prevention of contamination by constituents of emerging concern. 9. Provide the necessary funding for research on the occurrence, treatment, health effects, and environmental cleanup related to contamination drinking water sources. 10. Implement and fund the San Diego Regional Water Quality Control Board’s triennial review of water quality standards. 11. Provide funding and support for Colorado River salinity control projects and other water quality management efforts. 12. Direct the state’s participation or assistance in water quality issues related to or threatening the Colorado River water source. 13. Streamline permitting of facilities constructed for the purpose of improving water quality. 14. Ensure consistent application of the law by the State Water Resources Control Board and the nine regional water quality control boards. Oppose initiatives that: 1. Eliminate the State Water Resources Control Board and/or the nine regional water quality control boards without ensuring the functions and expertise of the boards is maintained in any reorganized entity. Otay Water District Legislative Program 2022 19 | Page XII. Water Recycling and Potable Reuse Support initiatives that: 1. Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water. 2. Reduce restrictions on injecting recycled water into basins where there is no direct potable use. 3. Advocate for direct potable reuse. 4. Advocate for recycled water use upstream of lakes and reservoirs if protected by urban water runoff protection systems. 5. Provide financial incentives for recharge of groundwater aquifers using recycled water. 6. Make recycled water regulations clear, consolidated, and understandable to expedite related project permitting. 7. Promote recycled water as a sustainable supplemental source of water. 8. Allow the safe use of recycled water. 9. Facilitate development of technology aimed at improving water recycling. 10. Increasing funding for water recycling projects. 11. Support continued funding of the Title XVI Water Reclamation and Reuse Program including Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and Water Purification Research Program. 12. Increase awareness of the ways recycled water can help address the region’s water supply challenges. 13. Create federal and state incentives to promote recycled water use and production. 14. Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower productions costs, address by products such as concentrates, and enhance public acceptance of recycled water. 15. Establish a comprehensive national research and development, and technology demonstration, program to advance the public and scientific understanding of water recycling technologies to encourage reuse as an alternative source of water supply. 16. Provide incentives for local agencies to work cooperatively, share costs or resources to promote or expand the use of recycled water. 17. Further refine emergency regulations to reward local suppliers that have invested in using recycled water for landscape irrigation to maintain an incentive to continue expanding areas served by recycled water. 18. Encourage the use of recycled water in commercial, industrial, institutional, and residential settings. 19. Recognize and support the development of potable reuse as a critical new water supply. 20. Define purified recycled water as a source of water supply and not as waste. 21. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 22. Authorize local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 23. Authorize and facilitate expanded use of local water resources including water recycling, potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and brackish groundwater. Otay Water District Legislative Program 2022 20 | Page 24. Streamline regulatory processes and requirements to encourage and support the development of potable reuse and non-potable reuse as a municipal water supply. 25. Recognize the entire interconnected urban water cycle, as well as public health and safety, must be taken into consideration in long-term water use efficiency policies, particularly including the unintended consequences of declining flows on water, wastewater, potable reuse, and recycled water systems. 26. Encourage dual plumbing in new development where non-potable recycled water is likely to available to enable utilization of recycled water. 27. Promote uniform regulatory interpretation of state recycled water system standards. 28. Support beneficial revisions to the California Plumbing Code that facilitate recycled water systems. Oppose initiatives that: 1. Restrict use of recycled water for groundwater recharge. 2. Establish new water or recycled water fees solely to recover State costs without also providing some benefit. 3. Limit the ability of local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 4. Establish unreasonable regulatory requirements or fees to the safe use of recycled water, which may unreasonably impede or create a disincentive to its further development. 5. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 6. Water use efficiency standards (AB 1668), which do not reflect the impact that higher TDS recycled water has on the usage rates to reduce salt loading in areas of use. XIII. Water Services and Facilities Support initiatives that: 1. Provide funding to implement actions identified in the California Water Action Plan to lay a solid fiscal foundation for implementing near-term actions, including funding for water efficiency projects, wetland and watershed restoration, groundwater programs, conservation, flood control, and integrated water management and result in a reliable supply of high-quality water for the San Diego region. 2. Provide financial support to projects designed to mitigate the potential negative impacts of Global Climate Change on water supply reliability. 3. Promote the coordination and integration of local, state, and federal climate change policies and practices to the greatest extent feasible. 4. Fund or otherwise facilitate ongoing implementation of the Quantification Settlement Agreement. 5. Provide reliable water supplies to meet California’s short and long-term needs. 6. Promote desalination pilot studies and projects. 7. Encourage feasibility studies of water resource initiatives. 8. Increase funding for infrastructure and grant programs for construction, modernization or expansion of water, wastewater treatment, reclamation facilities and sewer systems including water recycling, groundwater recovery and recharge, surface water development projects and seawater desalination. Otay Water District Legislative Program 2022 21 | Page 9. Fund enhancements to water treatment, recycling, and other facilities to meet increased regulations. 10. Mandate uniform or similar regulations and procedures by state agencies in the processing and administering of grants and programs. 11. Streamline grant application procedures. 12. Reduce regulations and other impediments for willing sellers and buyers to engage in water transfer agreements. 13. Promote or assist voluntary water transfers between willing buyers and willing sellers and move those transactions through without delay. 14. Streamline the permitting and approval process for desalination and other water-related facilities and implementing water transfers that will improve water management. 15. Establish reasonable statewide approaches to sewer reporting standards. 16. Generate greater efficiencies, better coordinate program delivery, and eliminate duplication in programs for source water protection without lessening the focus on public health of the state’s Drinking Water Program. 17. Target efforts to fix specific issues with water supplies within the state’s Drinking Water Program. 18. Establish federal tax incentives to support U.S. companies in the development of new desalination technologies that can lower productions costs, eliminate or reduce impingement or entrainment, reduce energy use, and enhance public acceptance of desalinated water. 19. Establish a comprehensive national research and development, and technology demonstration program to advance the scientific understanding of desalination to expand its use as an alternative source of water supply. 20. Require the State Water Resources Control Board to exercise its authority, ensure robust funding, and implement the Salton Sea mitigation and restoration plan, meet state obligations, and work with QSA stakeholders to find workable solutions to ensure the continuation of IID water transfers. 21. Support solutions to water supply issues that address common challenges, provide a comprehensive approach that is fair to all users, balance the needs of urban and rural communities, and take into consideration the interests of all stakeholders as well as the impact to the environment. 22. Further refine emergency drought regulations to eliminate a cap on credits and adjustments so as not to impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. 23. Provide funding for water infrastructure development, infrastructure security, and rehabilitation and replacement projects that benefit ratepayers. 24. Provide funding for habitat preservation programs that address impacts resulting from construction or operation of water system facilities. 25. Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 26. Provide incentives that encourage contractors to recycle or reduce waste associated with construction of water facilities. 27. Improve the local agencies’ efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes liability to local agencies and the District. Otay Water District Legislative Program 2022 22 | Page 28. Protect the local agencies’ properties from restrictions when surrounding properties are incorporated into preservation areas. 29. Encourage the use of current and emerging technologies for monitoring and assessing the condition of large diameter pipelines. 30. Encourage water supplier to develop and execute asset management programs that include visual inspections, internal/external inspections, asset condition assessments, corrosion mitigation, and reis analysis in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 31. Improve the District’s efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes liability to the District. 32. Protect the District, other agencies and the Water Authority properties from restrictions when surrounding properties are incorporated into preservation areas. 33. Provide funding to water agencies for the voluntary retrofit of facilities for on-site generation of chlorine. 34. Provide funding for water supplier asset management programs that involve the active monitoring, repair, or replacement of physical assets and infrastructure, which includes pipes, valves, facilities, equipment, and other infrastructure. 35. Provide for restrictions on price gouging during public safety power shutoff events and for at least 72 hours following restoration of power. 36. Provide that de-energization or public safety power shutoff events may be included as a condition constituting a state of emergency or local emergency. 37. Provide a tax emption for the sale of, or storage, use, or consumption of, a backup electrical resources, that is purchased for exclusive use by a city, county, special district, or other entity of local government during a de-energization or public safety power shutoff event. 38. State that the use of alternative power sources (such as generators) by essential public services during de-energization or public safety power shutoff events shall not be limited by any state or local regulations or rules. 39. Recognize the critical role the District, local agencies, and the Water Authority play as Public Safety Partners in Public Safety Power Shutoff events and other natural or man-made disasters. Further recognizes the importance of the agency’s ability to provide immediate and sustained response for extended periods of time. 40. Provide financial support to local projects designed to mitigate or adapt to potential negative impacts of climate change on water supply reliability. 41. Investigate and provide financial support to projects designed to mitigate potential negative impacts of climate change on water supply reliability. Oppose initiatives that: 1. Restrict local control and discretions over water facilities, asset management, and facility operations. 2. Make urban water supplies less reliable or substantially increase the cost of imported water without also improving the reliability and/or quality of the water. 3. Create unrealistic or costly water testing or reporting protocol. 4. Disproportionately apportion the cost of water. 5. Create undo hurtles for seawater desalination projects. 6. Create unreasonable or confusing sewer reporting standards. Otay Water District Legislative Program 2022 23 | Page 7. Create administrative or other barriers to sales between willing buyers and willing sellers that delay water transfers. 8. Create a broad-based user fee that does not support a specific local program activity or benefit; any fee must provide a clear nexus to the benefit local ratepayers or local water supplies from the establishment that charge or fee would provide. 9. Create unrealistic or costly to obtain water quality standards for potable water, recycled water, or storm water runoff. 10. Change the focus of the state’s Drinking Water Program or weaken the parts of the program that work well. 11. Lessen the focus on public health of the state’s Drinking Water Program. 12. Impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. 13. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement. 14. Impair the District and other local water agencies’ ability to provide and operate the necessary facilities for a safe, reliable, and operational flexible water system. 15. Limit local agencies’ sole jurisdiction over planning, design, routing, approval, construction, operation, or maintenance of water facilities. 16. Restrict local agencies’ ability to respond swiftly and decisively to an emergency that threatens to disrupt water deliveries or restricts the draining of pipelines or other facilities in emergencies for repairs or preventive maintenance. 17. Authorize state and federal wildlife agencies to control, prevent, or eradicate invasive species in a way that excessively interferes with the operations of water supplies. 18. Prohibit or in any way limit the ability of local agencies from making full beneficial use of any water, wastewater, or recycling facility and resource investments. 19. Prohibit the use of alternative contract procurement methods that can be utilized in the construction of water facilities. 20. Shift the risks of indemnity for damages and defense of claims from contractors to the District. 21. Impair local agencies’ efforts to acquire property or property interests required for essential capital improvement projects or acquisition of property to meet pipeline water drain-down needs for existing facilities. 22. Increase the cost of property and right of way acquisition. 23. Restrict the District’s use of public rights of way or increase the cost of using public rights of way. 24. Restrict the transfer of property acquired for purposes of environmental mitigation or environmental mitigation credits to other public or private entities for long-term management. 25. Establish prescriptive leak loss control requirements for the operation, maintenance, and asset management of water conveyance and distribution systems, that fail to consider full life-cycle costing. 26. Establish meter testing requirements for source water meters that fail to consider industry standards and cost-effectiveness. 27. Limit the discretion of the District from protecting security and privacy of comprehensive inventories of all assets, which includes infrastructure location, condition, performance, and useful life. Otay Water District Legislative Program 2022 24 | Page 28. Impair local agencies’ ability to execute the planning, design, and construction of projects using its own employees. 29. Limit the autonomy of discretion of water supplier to develop and execute asset management inspection programs that include visual inspections, internal/external inspections, asset condition assessments, and corrosion mitigation in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 30. Authorize air quality management districts or other regulatory bodies to adopt or maintain rules that would limit or prohibit a local government entity’s use of a state and/or federally complaint natural gas-powered generator during a de-energization or public safety power shutoff event. 31. Through the CARB Advanced Clean Fleet regulation, would inhibit the District from fulfilling its critical role as a Public Safety Partner and making immediate and sustained response in a Public Safety Power Shutoff event or and other natural or man-made disasters. 32. Through the CARB Advanced Clean Fleet regulation, would inhibit the District from fulfilling its critical role as an essential service provider from procuring and operating fleets which meet the needs to perform routine and emergency maintenance of water and wastewater systems. 33. Require incorporation of climate change considerations into regional and local water management planning that does not provide flexibility to the local and regional water agencies in determining the climate change impact and identification of adaptation and mitigation measures. 34. Impose top-down “one-size-fits-all” climate change mandates that fail to account for hydrological, meteorological, economic, and social variation across the state and/or that fail to incorporate local and regional planning and implementation priorities and protocols. XIV. Water-Use Efficiency Support initiatives that: 1. Provide funding for incentives for water-use efficiency and water conservation programs including water-efficient devices, practices and demonstration projects and studies. 2. Encourage the installation of water-efficient fixtures in new and existing buildings. 3. Promote the environmental benefits of water-use efficiency and water conservation. 4. Enhance efforts to promote water-use efficiency awareness. 5. Offer incentives for landscape water-efficient devices including, but not limited to ET controllers and soil moisture sensors. 6. Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs. 7. Permit or require local agencies to adopt ordinances that require or promote water-efficient landscapes for commercial and residential developments. 8. Create tax incentives for citizens or developers who install water-efficient landscapes. 9. Create tax incentives for citizens who purchase high-efficiency clothes washers, dual-flush and high-efficiency toilets, and irrigation controllers above the state standards. 10. Expand community-based water-use efficiency and education programs. 11. Facilitate and encourage the use of rainwater-capture systems, i.e., rain barrels, cisterns, etc. and alternative water sources, i.e., air conditioner condensate for use in irrigation. 12. Develop incentives for developers and existing customers to install water-efficient landscape in existing developments or new construction. Otay Water District Legislative Program 2022 25 | Page 13. Encourage large state users to save water by implementing water-efficient technologies in all facilities both new and retrofit. 14. Encourage large state water users to save water outdoors. 15. Educate all Californians on the importance of water, and the need to conserve, manage, and plan for the future needs. 16. Encourage technological research targeted to more efficient water use. 17. Give local agencies maximum discretion in selecting water-use efficiency and conservation programs that work for their customers and the communities they serve. 18. Require the Department of Water Resources to implement a uniform statewide turf rebate subsidy or incentive program. 19. Restrict Property Owner Associations from forbidding the use of California native plants, other low water use plants, mulch, artificial turf, or semi-permeable materials in well-maintained landscapes. 20. Restrict Property Owner Associations from forbidding retrofits of multiple unit facilities for the purpose of submetering, if feasible. 21. Ensure plumbing codes and standards that facilitate the installation and/or retrofit of water efficient devices. 22. Establish standards for the utilization of high-efficiency commercial coin-operated and residential clothes washers. 23. Provides for federal tax-exempt status for water-use efficiency rebates, consistent with income tax treatment at the state level. 24. Encourage the use of graywater where it complies with local guidelines and regulations and is cost-effective. 25. Provide incentives, funding, and assistance to water agencies so that they can meet the water demand management measure requirements in the Urban Water Management Planning Act. 26. Provide incentives, funding, and other assistance to facilitate water-use efficiency partnerships with the energy efficiency sector. 27. Provide incentives, funding, and other assistance where needed to facilitate market transformation and gain wider implementation of water efficient indoor and outdoor technologies and practices. 28. Recognize local control in determining water use efficiency criteria, such as impact of recycled water salinity on irrigation use and efficiency for the application of non-potable recycled water. 29. Encourage reasonable tracking of water use and improved efficiency in the Commercial, Industrial, and Institutional (CII) sector. 30. Recognize local control in determining how to meet an overall efficient water use goal, based on the combined efficient indoor use, outdoor use, and leak loss, as established under the criteria provided for in statute. 31. Further the statewide goal of a 20 percent reduction in per capita water use by 2020 as set forth in SBX7-7, enacted in November 2009, and preserves water agency discretion and options for achieving this objective. 32. Ensure accurate and meaningful reporting of implementation of water-use efficiency and conservation measures. 33. Promote statewide implementation of water-use efficiency best management practices and demand management measures as defined in the Urban Water Management Planning Act. Otay Water District Legislative Program 2022 26 | Page Oppose efforts that: 1. Weaken federal or state water-efficiency standards. 2. Introduce additional analytical and reporting requirements that are time-consuming for local agencies to perform and result in additional costs to consumers yet yield no water savings. 3. Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or semi-permeable materials in landscaping. 4. Repeal cost-effective efficiency standards for water-using devices. 5. Repeal cost-effective efficiency standards for water-using devices. 6. Create stranded assets by establishing long-term demand management water-use efficiency and water supply requirements that are inconsistent with the Urban Water Management Planning Act. 7. Prescribe statewide mandatory urban and agricultural water-use efficiency practices, including, but not limited to, methods, measures, programs, budget allocation, and designation of staff dedicated to water conservation programs, that override the authority of the boards of directors of local water agencies to adopt management practices that are most appropriate for the specific needs of their water agencies. 8. Mandate regulation of the CII Sector in a manner that is discriminatory, or sets unachievable Best Management Practices or compliance targets, or would otherwise impair economic activity or the viability of the CII sector. 9. Mandate that water agencies include an embedded energy calculation for their water supply sources in the Urban Water Management Plan or any other water resource planning or master planning document. XV. Workforce Development Support initiatives that: 1. Advocate for local, regional, and state programs that support a high-performing workforce and increase the talent pool for water agencies. 2. Advocate for military veterans in the water industry workforce to ensure that veterans receive appropriate and satisfactory credit towards water and wastewater treatment system certifications in California for work experience, education, and knowledge gained in military service. 3. Lower employment barriers for military veterans and transitioning military and that sustain vital water and wastewater services for the next generation. 4. Recruit and support veterans and transitioning military through internships, cooperative work experiences, and other resources. 5. Recruit and support underserved communities in the water industry through internships, cooperative work experiences, and other resources. 6. Advocate and encourage candidate outreach and recruitment in relation to mission-critical job categories in water and wastewater. 7. Ensure advanced water treatment operators and distribution system operators of potable reuse and recycled water facilities have a career advancement path as certified water and/or wastewater treatment plant operators. Otay Water District Legislative Program 2022 27 | Page 8. Increase the number of educational institutions that provide water-industry related training and related program criteria including but not limited to trades, certifications, and degrees. 9. Increase the talent pool of future water industry workers through educational programs, internships, and other resources. 10. Provide funding to educational institutions, water agencies, and workforce students regarding careers in the water industry. 11. Develop qualified candidates for positions in the water industry. 12. Build awareness of water industry-related jobs through student outreach including but not limited to K-12, community colleges, universities, and other educational institutions as well as outreach to the public. Oppose initiatives that: 1. Hinder military veterans from using previous experience, education, and knowledge toward a career in water. 2. Regulate agencies from hiring an experienced, educated, and talented water-industry workforce. March 9, 2022 Anticipated Top 10 Legislative Priorities for 2022 1.Drought Response – In 2021, as drought conditions and record-breaking temperatures persisted throughout the state, Governor Newsom signed Executive Order N-10-21 whichcalls on Californians to voluntarily reduce water use by 15% compared to 2020 levels.Additionally, in October 2021, Governor Newsom issued a proclamation which extended thedrought emergency statewide and has modified Executive Order N-10-21 to accelerate waterconservation efforts and provide additional support where needed across the state. While this executive order did not include a water conservation mandate, it provided authority to theState Water Board to adopt regulations as it deems necessary to prohibit specific wastefulwater uses, as outlined in the order. Additionally, the proclamation required local watersuppliers to implement water shortage contingency plans that are responsive to localconditions and prepare for the possibility of a third dry year, and that Urban and Agricultural Water Management Plans are up to date and in place. Subsequently, on January 4, 2022, the State Water Board considered and adopted anemergency regulation by resolution that prohibits certain wasteful water use practicesstatewide and encourages Californians to monitor their water use more closely while building habits to use water wisely, pursuant to the authority granted in the Governor’s executiveaction. On January 18, 2022, these regulations became effective and will remain in place forone year from the effective date, unless the State Water Board acts to end, modify, or readoptit. As indicated by the Department of Water Resources (DWR), the water year that endedSeptember 30 was the second driest on record. Additionally, after two dry years, reservoirstorage is below 2019 levels, underscoring ongoing pressure for water conservation.Following substantial rain and snowfall in December, January 2022 has been extremely dry, with little precipitation on the horizon. DWR is now running campaigns in areas where communities have yet to reach 15% voluntary conservation. Additionally, some local wateragencies have put in place mandatory conservation orders proactively. While ExecutiveOrder N-10-21 promotes voluntary water conservation – without making considerableprogress towards conservation goals – a statewide mandatory water conservation order is not an impossibility in 2022. Drought response will remain a priority in 2022 and we will continue to monitor the progressof the state’s response and impacts to the Otay Water District. 2.Affordability – In 2021, the Legislature passed, and the Governor signed SB 129 (Skinner) and AB 148 (Committee on Budget), which respectively allocated nearly $1 billion in federalfunding and established the California Water and Wastewater Arrearage Payment Program(Program) within the State Water Board to provide relief to community water and wastewatersystems for unpaid bills related to the pandemic. The funding covers water debt from residential and commercial customers accrued between March 4, 2020 and June 15, 2021. The Program initially prioritized drinking water residential and commercial arrearages.Funding to community water systems was disbursed through January 31, 2022. If theProgram still had funding available, it would then be extended to wastewater residential and Attachment E 2 commercial arrearages by February 2022. According to the State Water Board’s program webpage, approximately $600 million is available for wastewater debt accrued March 4, 2020, through June 15, 2021. The program will likely be able to cover 100% of the debt that wastewater agencies request in their applications. Applications are open for the Wastewater Arrearage Program now through April 1, 2022. We have heard that there may be an effort by the California Water Association to extend the period for which the program covers arrearages – from March 4, 2020 through June 15, 2021 to March 4, 2020 through December 31, 2021. We will continue to monitor the progress of this effort and the continued implementation of the California Water and Wastewater Arrearage Program. Additionally, the new federally funded Low Income Household Water Assistance Program (LIHWAP) was established by Congress in 2020 to provide financial assistance to low-income Californians to help manage their residential water utility costs and pay down their outstanding water bills. California has been allocated $116 million in one-time funding to provide LIHWAP assistance. The Department of Community Services and Development (CSD) has been designated the administering agency for LIHWAP in California. CSD released draft program guidelines for public comment in February 2022. Funds for this program must be used as part of an overall emergency effort to prevent, prepare for, and respond to COVID-19, with the public health focus of ensuring that low-income households have access to safe and clean drinking water and wastewater services or to reduce arrearages and rates charged to households. Benefits of the program are paid directly to the owners and operators of public water systems. All funds in this program must be expended by September 2023. We will continue to monitor the above and other affordability issues as they arise in 2022. 3. Water Use and Efficiency – In February 2021, AB 1434 (Friedman) was introduced, which would have established, beginning January 1, 2023 until January 1, 2025, a standard for indoor residential water use goal of 48 gallons per capita daily (GPCD); beginning January 1, 2025, a standard of 44 GPCD; and, beginning January 1, 2030, a GPCD of 40. As you may recall, in November 2021, as required by AB 1668 and SB 606, DWR and the State Water Board submitted a report to the Legislature recommending that urban water suppliers achieve an indoor water use efficiency standard of 55 gallons per capita per day by 2023, declining to 47 gallons per day by 2025, and 42 gallons by 2030 and beyond. The Legislature must now consider adopting the recommendations in this report. As you will note, AB 1434 proposed standards that differ from the recommendations in the DWR and State Water Board report released in November 2021 and was subsequently amended in January 2022 to reflect the recommendations. However, AB 1434 failed to meet its legislative deadlines and will not move forward in 2022. In early 2021, Assemblymember Friedman’s staff indicated that new legislation would be introduced in 2022 mirroring the recommendations in the final report. On February 17, SB 1157 (Hertzberg) was introduced 3 related to indoor residential water use, which mirrors the language in AB 1434 (Friedman) as amended in January. As we have stated in our previous opposition letter to AB 1434, at this critical juncture in the implementation phase of water-use and efficiency legislation, the Legislature should carefully consider alternative recommendations and allow ample time for stakeholder input before altering indoor water use and efficiency standards. Given that the alternative recommendations now included in SB 1157 are based on the final report by DWR and the State Water Board, the Otay Water District may want to consider how the new standards will impact the District and if an alternative position is warranted. We understand that the Association of California Water Agencies (ACWA) remains concerned with the recommendations and are focused on the 2030 standard of 42 GPCD. We will continue to monitor SB 1157 and related legislation, as well as ongoing discussions related to adoption of the new standards. 4. Water Quality – For the past several years, ACWA has been working diligently on sponsored legislation to establish compliance periods for new Maximum Contaminant Levels (MCL) set by the State Water Board, with the goal of providing water providers a reasonable amount of time to comply with drinking water standards. However, no such proposal has yet to move forward in the Legislature. As discussions have continued, it has been determined by State Water Board staff that legislation may not be needed, and that the State Water Board has the authority in statute to establish compliance periods for new MCLs. ACWA has decided not to pursue legislation and allow the State Water Board to use their authority to establish compliance periods for new MCLs going forward, in good faith. We expect the State Water Board to release a compliance framework in spring 2022. The MCL compliance issue is of particular interest as we anticipate the adoption of a final MCL for Chromium-6 by the first quarter of 2022. Another ongoing issue in 2022 will be Constituents of Emerging Concern (CECs). SB 230 (Portantino) continues to move forward in 2022, sponsored by Metropolitan Water District and California Municipal Utilities Association, which would require the State Water board to establish, maintain, and direct a dedicated CEC Program to assess the state of information and recommend areas for further study on the occurrence of CECs in drinking water, and establish the CEC Action Fund. Additionally, given the Otay Water District’s interest in legislation pertaining to desalination, we would like to flag AB 2016 (Bauer-Kahan), introduced on February 14, which would require the State Water Board to undertake a comprehensive feasibility study of the potential impact of desalination plants within the state. The bill would require the board to prepare and present to the Legislature, on or before January 1, 2025, a prescribed report about the feasibility study. Lastly, a bill that has gained a significant amount of attention across industry sectors, including among water agencies, is AB 1001 (C. Garcia) related to the California Environmental Quality Act (CEQA). This bill would authorize mitigation measures 4 identified in an environmental impact report or mitigated negative declaration to address the adverse effects of a project on air or water quality of a disadvantaged community (DAC) to include measures for avoiding, minimizing, or compensating for the adverse impact on that community. For mitigation measures that include compensation for adverse effects on the air or water quality of a DAC, this bill would require compensating measures to mitigate directly in the affected DAC. Additionally, this bill would require all public agencies in implementing CEQA to consider the statutory principles of environmental justice, by ensuring the fair treatment and meaningful involvement of people of all races, cultures, incomes, and national origins. ACWA, California Special Districts Association, and a growing list of organizations across industries have adopted an oppose position on this bill, We will continue to monitor the above and other water quality issues as they arise in 2022. 5. Water Industry Workforce Advocacy – Water is vital, and with San Diego County residing at the end of the water pipeline, it is critical that we have a water industry workforce to sustain the operations and maintenance of a safe and reliable water supply for the community. Access to clean drinking water is necessary for public health and economic growth. Beyond household use, manufacturing, agriculture, healthcare, and many other industries rely heavily on reliable water supplies. Due to retirements and the great reshuffling, thousands of water and wastewater jobs are expected to open across San Diego County, and even more throughout the state. As a result, the District and local water agencies continue to enhance its efforts to increase the talented pool of the skilled water workforce through education and advocacy. Also, as part of these efforts, the District will continue its work on veteran water industry advocacy and education. It will continue to monitor the work of the State Water Board’s Drinking Water Operator Certificate Program Advisory Committee, which General Manager Jose Martinez was selected to be a member of, to ensure that the intent of 2019 law (AB 1588) is fulfilled by the State Water Board in 2022 and beyond. In a region reliant on imported water, the District will continue to work with policy makers to seek options that provide an adequate supply of clean water, as well as to reduce the demand on water resources. The District and other wastewater agencies are likewise continually treating water for proper release into the environment or for reclamation and recycling. This comprehensive approach to water and wastewater management requires a healthy supply of well-trained workers and may require training programs to meet changing skill requirements for the workforce. The state’s future depends on water, and the District and local agencies depend on the skill and dedication of its employees to provide a safe, reliable water supply now and for years to come. There are several bills in the Legislature that seek to increase California’s skilled and trained workforce. AB 2088 (Cooper) would establish the California Pilot Paid Internship Program to help prepare thousands of California pupils for high-skill jobs of the future in engineering, health care, mathematics, manufacturing, science, teaching, and technology. Additionally, the bill would appropriate $575 million to provide technical assistance and provide grants to school districts, charter schools, and county offices of education that establish or expand 5 existing local public-private internship programs. This would support 40,000 12th grade students per year participating in 8-week internship programs. AB 2342 (Cervantes) would require the Inter-Agency Leadership Team administering the Community Economic Resilience Fund Program to include policies for grant funds to fund business and workforce investments in multiple sectors, state and federal recognized apprenticeship and pre-apprenticeship programs, and other workforce programs that support career pathways to high road jobs, and would also require collaboratives to engage local and regional planning efforts. Lastly, SB 1197 (Caballero) recognizes the water industry’s aging workforce and would establish the Water Innovation and Drought Resiliency Fund aimed at the furtherance of innovation within the water sector. In addition to legislation, the Governor’s January budget highlighted several proposed and recent investments focused on increasing the state’s skilled and trained workforce. These investments include, but are not limited to: $500 million over two years for college students to explore career pathways through learning-aligned employment opportunities; $472.5 million one-time federal funds and $27.5 million one-time General Fund, which was provided in the 2021 budget, to enable displaced workers to receive grants for education and training programs to reskill or upskill into new careers; $30 million to expand the English Language Learner pilots in the Integrated Education and Training programs to 15 sites across the state, combining contextualized English language instruction with vocational skills training for in-demand occupations; and $20 million for the Employment Training Panel to expand workplace literacy training in contextualized English, digital skills, and technical skills training for incumbent workers. Addressing California’s workforce challenges will remain a priority in 2022 and beyond. 6. State Budget/Infrastructure Funding – The Governor’s proposed budget for the 2022-23 fiscal year proposes to allocate $750 million to address immediate drought support needs including $500 million for water conservation, water efficiency, groundwater recharge, and assistance for small farmers and $250 million drought contingency support. The proposed budget additionally provides $3.725 billion over five years in federal infrastructure funds to improve local water infrastructure. The proposed budget builds on the $5.2 billion in drought funding that was approved last year. Specifically, this budget proposes allocations in the following areas: • Water Conservation Programs—$180 million for grants to large urban and small water suppliers to improve water efficiency, address leaks, reduce demand, provide water use efficiency-related mapping and training, support turf replacement, and maintain a drought vulnerability tool. • Urban and Small Community Drought Relief—$145 million for local emergency drought assistance and grants to local water agencies facing loss of water supplies. 6 • On-Farm Water Conservation—$20 million to bolster the State Water Efficiency and Enhancement Program, which provides grants to implement irrigation systems that save water on agricultural operations. • Fish and Wildlife Protection—$75 million to mitigate immediate drought damage to fish and wildlife resources and build resilience of natural systems. • Multi-benefit Land Repurposing—$40 million to increase regional capacity to repurpose irrigated agricultural land to reduce reliance on groundwater while providing community health, economic well-being, water supply, habitat, renewable energy, and climate benefits. • Groundwater Recharge—$30 million to provide grants to water districts to fund planning, engineering, water availability analyses, and construction for groundwater recharge projects. • Technical Assistance and Drought Relief for Small Farmers—$10 million to provide mobile irrigation labs, land use mapping and imagery, irrigation education, and direct assistance to small farmers and ranchers who have experienced water cost increases of more than 50%. • Drought Contingency—$250 million as a drought contingency set aside to be allocated as part of the spring budget process, when additional water data will be available to inform additional drought needs. While there are significant investments in the Governor’s proposed budget, there are numerous opportunities for increased and new funding. ACWA has established a state infrastructure working group to determine the need for increased funding levels and advocacy strategies for new funding in priority areas such as dam safety and PFAS remediation, among others. In addition to the funding proposed in the state budget, there has also been the introduction AB 2387 (E. Garcia), which would enact the Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2022. If approved by the voters, the measure would authorize a $7.43 billion bond to finance projects for safe drinking water, wildfire prevention, drought preparation, flood protection, extreme heat mitigation, and workforce development programs. We will continue to monitor the progress of budget discussions and advocacy efforts as we enter the budget subcommittee process and approach the May Revision. Additionally, we will monitor the progress and feasibility of the proposed bond measure, AB 2387 (E. Garcia). 7. Advanced Clean Fleets Rulemaking – In accordance with Executive Order N-79-20 which recognizes the need for the state to transition to carbon neutrality by setting a course to end sales of internal combustion passenger vehicles by 2035, the California Air Resources Board 7 (CARB) is faced with the task of transitioning high priority private fleets and public fleets to zero emission vehicles to meet the state’s goals set forth by the order, as outlined in the Advanced Clean Fleets Proposed Rulemaking. The Otay Water District is seeking an exemption for emergency response vehicles under the Advanced Clean Fleets Proposed Rulemaking for public fleets to ensure that the District’s first responders in the field responding to water and wastewater utility emergencies in specialized vehicles have the resources available to them to ensure that response is not delayed. In September 2021, the District submitted formal comments to CARB, met with CARB staff to discuss our position and requested exemption, and began collaborating with regional partners including the San Diego County Water Authority and ACWA to coordinate advocacy efforts on this front. We continue to monitor public workshops and participate in conference calls with CARB staff as scheduled, to ensure progress in being made. It remains to be seen if CARB staff will release a new draft of the public fleet requirements, taking into consideration stakeholder feedback and recommendations, prior to presenting to the board for adoption in mid to late 2022. We are hearing that CARB may release another draft this month, followed by an additional public comment period, prior to a final rulemaking. This will remain a priority advocacy issue as the rulemaking develops prior to adoption. 8. Recycled Water - While recycled water remains a critical component of the state’s water supply, it remains to be seen if this will be a priority in the Legislature in 2022. The Otay Water District is committed to increase the use of recycled water in its service area to minimize overall demand for potable water. AB 2387 (E. Garcia), which would authorize a $7.43 billion bond to finance projects for safe drinking water, wildfire prevention, drought preparation, flood protection, extreme heat mitigation, and workforce development programs, includes funding for recycled water projects. Specifically, this measure would provide $300 million for water recycling projects including: 1) treatment, storage, conveyance, and distribution facilities for potable and nonpotable recycling projects, 2) dedicated distribution infrastructure to serve residential, commercial, agricultural, and industrial end-user retrofit projects to allow use of recycled water, and 3) multiple-benefit recycled water projects that improve water quality. Additionally, ACWA is advocating for $450 million in the 2022-23 state budget to be provided for water recycling. Specifically, ACWA is advocating for $300 million for water recycling and reuse projects and $150 million for brackish and sea water desalination projects. Budget negotiations are ongoing and will continue through the release of and following the May Revision. We will continue to advocate for more funding and monitor any issues related to recycled water. 9. Climate Resiliency – Climate resiliency will remain a top priority for the Governor, his Administration, and the Legislature in 2022. For example, in the Governor’s proposed 8 January budget, building on the $15 billion climate resilience investments in the 2021 budget, the 2022-23 budget proposal includes an additional $22.5 billion in one-time investments from various fund sources over five years to advance the state’s Climate and Opportunity Budget and provide equitable climate solutions to prepare and protect communities from intensifying climate emergencies such as drought, extreme heat, wildfires, flooding, and sea level rise. We will continue to monitor climate resiliency efforts by the Legislature and Administration for impacts and opportunities. 10. State Water Project (SWP)/ Delta Conveyance –Each year, DWR makes an initial SWP allocation on December 1. Allocations are updated as snowpack and runoff information are assessed, with a final allocation typically determined in May or June. In December 2021, DWR announced that the initial allocation for public water agencies is zero percent of contracted water supplies from the SWP in 2022. This includes zero water allocation for many of the communities, businesses, and farms that rely on SWP water. The DWR decision reflects California’s severe drought conditions and the State’s objectives to prioritize deliveries for health and safety needs and environmental protection. In January 2022, DWR released a subsequent notice to SWP contractors increasing the allocation slightly to 15%, based on the most recent precipitation, runoff, and current water supply condition data, following December storms which enabled increased conveyance and storage. However, even with this increase in allocation, DWR cautions that severe drought is not over and, as we noted above, dry conditions continue in January – highlighting the need to plan for a third dry year. This is one example of how DWR continues to plan for uncertainty in the wake of climate change, unprecedented heat, and ongoing drought conditions. We will continue to monitor issues pertaining to the SWP in 2022 as conditions evolve. Related to the proposed Delta Conveyance project, the stated purpose is to modernize the aging SWP infrastructure in the Delta to restore and protect the reliability of SWP water deliveries in a cost-effective manner, consistent with the State’s Water Resilience Portfolio. DWR is expected to release a Draft Environmental Impact Report (EIR), evaluating the proposed Delta Conveyance Project under the California Environmental Quality Act, for public review and comment in mid-2022. The Draft EIR will help evaluate how, and how well, the Delta Conveyance project may help address climate change and improve the resiliency of the SWP. In anticipation of the release of the Draft EIR, DWR continues to hold informational webinars providing Delta Conveyance project updates from the perspective of climate change, environmental justice, and other issue areas. We will continue to monitor the progress of the Delta Conveyance project, for the release of the Draft EIR, and for related updates of interest. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 6, 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: DISCUSSION AND DIRECTION REGARDING THE PROPOSED FY2023-FY2026 STRATEGIC PLAN GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: That the Board provide comments, input, and direction on the content of the District’s proposed FY2023-FY2026 Strategic Plan, including strategies, objectives, and performance metrics that were discussed during the January 5, 2022, Board meeting. ANALYSIS: As a follow-up to the January 5, 2022, public Board meeting, and for additional comments and input, staff is presenting the proposed FY2023- FY2026 Strategic Plan strategies, objectives, performance metrics, and associated targets. The plan proposes 11 strategies, 35 objectives, and 34 key performance metrics for the District to accomplish throughout the 4-year plan. AGENDA ITEM 8f BACKGROUND: Alignment of a shared vision and mission is considered essential for the success of the agency. In preparation for the development of the new District Strategic Plan, and noted during the January Board meeting, staff from all departments participated in workshops to identify, evaluate, and prioritize new strategies, objectives, and review of key performance metrics. The next step in building a new strategic plan is the development of performance measures and expected outcomes across the agency, incorporating benchmarks and best practices. Staff has engaged in considerable discussion and effort in this regard with these workshops to develop a robust set of performance measures and outcome targets for every functional area to support the new plan. Additionally, consistent with past strategic plans, performance measures were benchmarked from a combination of local and regional water agencies and AWWA (American Water Works Association) to support the District’s new objectives. On October 19, 2021, at the Board of Directors retreat, senior staff presented preliminary high-level focus areas based on some of the challenges identified through internal SWOT and brainstorming activities. Staff also solicited input during the retreat to further gain Board perspective and feedback was consistent with staff's new list of objectives to include employee and leadership development, infrastructure stability, financial viability, community sustainability, and operational resiliency. DISCUSSION: The efforts described in this staff report will move the District to a new strategic plan for the upcoming fiscal year. This plan is a roadmap for how the District will respond to current challenges and make the best of future opportunities for the benefit of our customers. It reaffirms our mission “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner.” Staff has incorporated the information developed in the strategic planning workshops into the attached “FY2023–FY2026 Strategic Plan Draft” (see “Attachment B”) provided for the Board’s review, discussion, and comments. RECOMMENDATION: That the Board provide comments, input, and direction and approve the District’s FY2023-FY2026 Strategic Plan. 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 – FY2023–FY2026 Strategic Plan Draft Attachment C – PowerPoint Presentation ATTACHMENT A SUBJECT/PROJECT: DISCUSSION AND DIRECTION REGARDING THE PROPOSED FY2023- FY2026 STRATEGIC PLAN COMMITTEE ACTION: The Engineering, Operations, & Water Resources Committee, and the Finance & Administration Committee reviewed this item at a meeting held on March 15 and 17, 2022, respectively, and the following comments were made: • Staff presented and sought input on the draft FY 2023-FY 2026 Strategic Plan. • The Committee commented that staff was responsive to the Board’s request in the January Board Meeting that the following measures were worthwhile in keeping in the plan and these measures were important visibility for staff and for the public: o 100% Location Mark-Out o Training o Safety o Injury Rate o Fulltime Equivalent • The Committee highlighted the importance of cybersecurity in today’s climate. Staff was commended for including two objectives with two new performance measures directed at strengthening the District’s current cybersecurity program. • Staff answered a question from the Committee regarding hitting targets in the 25th, 50th, and 75th percentile and noted that the District will be striving and working towards 75th percentile as noted in the AWWA Benchmark standards. Thirty-eight (38) agencies submitted numbers for benchmarking practices. • The Committee asked how the leaks are broken down in the targets. Staff defined a leak per AWWA’s definition of a leak as an unintended hole or crack. • Staff responded to a question by the Committee that as shown in the PowerPoint presentation on the FY 2019-2021 and FY 2022 targets, staff was capturing and combining leaks and breaks and that is why the number looks higher. Staff is now breaking them out because the District wants to get more granular and assess the condition of the pipes. The numbers, as seen for the FY 2023 targets, are at the 75th percentile. Staff will continue to track and show all the different quartile results over time in order to inform the District on investing for mainline replacements and similar projects. • The Committee inquired if staff has also reviewed benchmarks in the private sector, where applicable, to incorporate into the District’s Strategic Plan. Staff responded that programs such as cybersecurity had been examined and that Asset Management may be another area where staff could look to the private sector for benchmarks in future Strategic Plan iterations. • Staff responded to a question by the Committee about the Reserve levels and noted that the reserves are typically constant. Performance indicators are tracked elsewhere, and they do not need to be detailed out in this current presentation. • The Committee noted the potential impacts of inflation and though it may not be directly measured in the Strategic Plan, it is an indicator that staff should monitor for its potential impacts on the District. • The Committee discussed the importance of continuing to economize, innovate, and incentivize employees to propose ideas to support the objectives. • Staff made a request to the Committee that if there was no further input or direction at this meeting or the March 17th Finance and Admin Committee meeting staff would like to present the proposed FY 2026 Strategic Plan for formal adoption at the April Board Meeting. Staff would then commence with the work of creating the project plans, publication, communication, etc. • The General Manager noted that the Strategic Plan is a living breathing document so while the Board adopts the Plan, and it goes into effect in the next fiscal year, the Plan will be constantly reevaluated. Staff and the Board will discuss and provide updates throughout the year. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item. 1 ATTACHMENT B Customer: Enhance customer and community engagement to increase public awareness of the water industry and the District, while continuing to provide superior customer service. Strategy: Enhance and build public awareness of the District’s priorities, initiatives, programs, and services. Objectives: • Collect and analyze customer feedback on District operations, projects, programs, service experience, and expectations. • Advance the District's web and social media presence. • Enhance internal communications, tools, and technology to disseminate information to District staff effectively. • Enhance education, outreach, and communication tools to the public on the understanding of water supply constraints and rates and how they affect/support a reliable water supply. KPI: ▪ Answer Rate ▪ Technical Quality Complaint ▪ Potable Water Compliance Rate ▪ Implement Customer Opinion Survey (NEW) Financial: Operate the District in a financially sustainable and transparent manner while maintaining a Fair Rate Structure. Strategy: Maintain a long-range financing plan that sets forth the long-term funding needs of the District. Objectives: • Evaluate grant funding opportunities. • Evaluate banking functions for lower cost and process efficiencies. • Evaluate the District’s cash reserve policies to consider optimal uses and levels of reserves to ensure financial resiliency. • Conduct an evaluation of a health savings investment account program for an optional post- employment benefit. • Conduct a compensation study to evaluate labor industry conditions and the District’s competitiveness. Strategy: Invest in technology infrastructure to enhance customer engagement and satisfaction. Objectives: • Evaluate AMI (Advanced Metering Infrastructure) implementation in other service areas to improve the District’s operations. • Evaluate IVR (Interactive Voice Response)/online customer portal for water use management and assistance. 2 KPI: ▪ CIP Project Expenditures vs. Budget ▪ Construction Change Order Incidence ▪ Billing Accuracy ▪ Sewer Rate Ranking ▪ Water Rate Ranking ▪ Water Debt Coverage Ratio ▪ Sewer Debt Coverage Ratio ▪ Reserve Level ▪ Accounts per FTE ▪ Distribution System Loss ▪ Planned Potable Water Maintenance Ratio in $ ▪ Planned Recycled Water Maintenance Ratio in $ ▪ Planned Wastewater Maintenance Ratio in $ ▪ Direct Cost of Treatment per MGD ▪ Injury Incident Rate Internal Business Process: Practice ongoing infrastructure renewal and organizational improvement through planning and increased operational efficiency. Strategy: Leverage the use of renewable and clean energy resources and reduce the use of hazardous chemicals. Objectives: • Evaluate and implement energy-efficient systems. • Evaluate and implement alternative energy opportunities. • Advance Clean Fleet Regulations District Implementation Program of Zero or near Zero Emissions Vehicles. • Evaluate the District’s current chemical footprint and implement safer and more efficient alternatives, where possible. Strategy: Implement technologies to improve response time, security, and operational effectiveness. Objectives: • Conversion of the District’s enterprise GIS (ESRI) Geometric Network to a Utility Network Model. • Conduct needs assessment/replacement of District’s financial management system. • Maintain and regularly evaluate internal financial controls. • Leverage Cityworks to further develop job task process standardization and work order cost modeling. Strategy: Develop appropriate water resource mix to meet the water reliability needs of the community. Objectives: • Use the Water Facilities Water Management Plan/Urban Water Management Plan to analyze future needs and prescribe approaches to meeting future requirements. 3 • Evaluate City of San Diego’s recycled water purchase. • Develop the District’s long-term water supply strategies and planning efforts with regional partnerships. Strategy: Respond to anticipated water shortages through rate structure modification, conservation assistance, and outreach. Objectives: • Monitor and modify the Water Shortage Contingency Plan, as needed. • Identify, evaluate, and implement new opportunities for recycled water, including potential for potable reuse. Strategy: Advancement of District's Asset Management Program. Objectives: • Standardization of Standard Operating Procedures (SOP) and Planned Job Observations (PJO). • Develop long-term strategic operations and maintenance program (Total Asset Management). • Collect and maintain accurate asset records, including criticality, maintenance history, asset condition, and performance for continuous improvement. • Cloud migration of the District’s enterprise GIS System (ESRI) and the associated Asset Management and Field Applications. Strategy: Cyber and Physical Security Objectives: • Advance the use of the District’s Supervisory Control and Data Acquisition (SCADA) system to ensure a secure, reliable, and efficient management controls of the distribution system. • Evaluate new disaster recovery solutions and advance the District’s enterprise business continuity program. KPI: ▪ Business Recovery Exercises (NEW) ▪ Vulnerability Assessment (NEW) ▪ Mark-out Accuracy ▪ Easement Evaluation and Field Inspection ▪ System Valve Exercising Program ▪ Potable Water Distribution System Integrity (Leaks) ▪ Potable Water Distribution System Integrity (Breaks) ▪ Recycled Water System Integrity (Leaks) ▪ Recycled Water System Integrity (Breaks) ▪ Sewer Overflow Rate ▪ Potable Tank Inspection and Cleaning ▪ Hydrant Maintenance Program 4 Learning and Growth: Foster a workforce culture of employee development and innovation. Strategy: Coordinate workforce planning activities to determine future needs, identify gaps, and implement actions to close the gaps. Objectives: • Maximize opportunities to develop employees through training and mentoring. • Evaluate the implementation of learning and development programs in coordination with partner agencies. • Analyze and identify workforce trends to address critical gaps between the current workforce and future needs. Strategy: Improve Organization Effectiveness. Objectives: • Negotiate successor Memorandum of Understanding (MOU) with the employee association and unrepresented employees to focus on employee recruitment and retention. • Implement a cross-functional innovation committee to advance the District’s culture of collaboration and process improvement among departments. KPI: ▪ Employee Turnover Rate ▪ Training Hours per Employee ▪ Safety Training Program OTAY WATER DISTRICT STRATEGIC PLAN WORKSHOP ATTACHMENT C DEC-FEB 2021OCT 19 2021SEPT 2021 OCT 7 2021 MAR –APRIL 2022 Meet with staff to discuss ideas for the new Strategic Plan (SP) DETERMINE POSITION First draft of SP ideas and inputs DEVELOP STRATEGIES Board of Directors Workshop/ Inputs & Direction Develop formal goals, strategies, objectives, and key performance indicators (KPI’s) BUILD PLAN Present draft SP during March committees and April Board adoption ADOPTION Timeline 2 Themes in the Upcoming Plan AGING WORKFORCE/ KNOWLEDGE TRANSFER CULTURE (RETENTION & RECRUITMENT OF TOP TALENT) CUSTOMER SERVICE FINANCIAL (BUSINESS SYSTEMS & LONG-TERM BENEFIT COST ANAYLSIS) CYBERSECURITY RIGHT SIZING STOARGE & DISTRIBUTION SYSTEM ASSET MANAGEMENT 3 CUSTOMER Enhance customer and community engagement to increase public awareness of the water industry and the District, while continuing to provide superior customer service STRATEGIES DESIRED OUTCOMES •Enhance and build public awareness of the District’s priorities, initiatives, programs, systems, and services | 4 Objectives •Increase brand awareness,customer experience,efficiency,enhance social media presence, provide customers information on the understanding of water rates/changes,state regulations, etc. 4 PERFORMANCE MEASURES •Answer Rate •Technical Quality Complaint •Potable Water Compliance Rate •Implement Customer Opinion Survey (NEW) FINANCIAL Operate the District sustainably in a financial manner while maintaining a Fair Rate Structure STRATEGIES DESIRED OUTCOMES •Maintain a long-range financing plan that sets forth the long-term funding needs of the District | 5 Objectives •Invest in technology infrastructure to enhance customer engagement and satisfaction |2 Objectives •Evaluate grant funding opportunities,water shortage contingency plan,evaluate cash reserves, AMI technology,real-time water usage/online portal assistance,low-income assistance,etc. •CIP Project Expenditures vs. Budget •Construction Change Order Incidence •Billing Accuracy •Sewer Rate Ranking •Water Rate Ranking •Water Debt Coverage Ratio •Sewer Debt Coverage Ratio •Reserve Level •Accounts per FTE •Distribution System Loss •Planned Potable Water Maintenance Ratio in $ •Planned Recycled Water Maintenance Ratio in $ •Planned Wastewater Maintenance Ratio in $ •Direct Cost of Treatment per MGD •Injury Incident Rate 5 PERFORMANCE MEASURES INTERNAL BUSINESS PROCESS Practice ongoing infrastructure renewal and organizational improvement through planning and increased operational efficiency STRATEGIES •Leverage the use of renewable and clean energy resources and reduce the use of hazardous chemicals | 4 Objectives •Implement technologies to improve response time, security, and operational effectiveness | 4 Objectives •Develop appropriate water resource mix to meet the water reliability needs of the community | 3 Objectives •Respond to anticipated water shortages through rate structure modification, conservation assistance, and outreach | 2 Objectives •Advancement of District's Asset Management Program | 4 Objectives •Cyber and Physical Security | 2 Objectives DESIRED OUTCOMES •Drought initiatives,contingency plan for water scarcity,long-term maintenance/operational savings,future sales analysis, water supply/demand assessment,wastewater master plan update,etc. •Energy saving opportunities,energy storage projects extend the life of the District's infrastructure;integration with SDG&E for energy trends,peak/non-peak,duration reduction,and space requirements of main breaks PERFORMANCE MEASURES •Business Recovery Exercises (NEW) •Vulnerability Assessment (NEW) •Mark-out Accuracy •Easement Evaluation and Field Inspection •System Valve Exercising Program •Potable Water Distribution System Integrity (Leaks) •Potable Water Distribution System Integrity (Breaks) •Recycled Water System Integrity (Leaks) •Recycled Water System Integrity (Breaks) •Sewer Overflow Rate •Potable Tank Inspection and Cleaning •Hydrant Maintenance Program 6 LEARNING AND GROWTH Foster a workforce culture of employee development and innovation STRATEGIES DESIRED OUTCOMES PERFORMANCE MEASURES •Coordinate workforce planning activities to determine future needs, identify gaps and implement actions to close the gaps | 3 Objectives •Improve organizational effectiveness |2 Objectives •Organizational analysis,FTE/staff management,department leveling (supervisor -FTE ratio), new recruitment strategies,interdepartmental training for District staff,innovation committee/ incentives,building competitive pay and performance retention and hiring structure •Employee Turnover Rate •Training Hours per Employee •Safety Training Program 7 8 KEY PERFORMANCE INDICATOR (KPI)FY19-21 AVERAGE FY22 TARGET FY23 TARGET/ AWWA BENCHMARK Answer Rate 98.45%97%97% *Technical Quality Complaint (AWWA)3.85 < 7.1 < 4.6 | 4.6 *Potable Water Compliance Rate (AWWA)100%100%100% | 100% Implement Customer Opinion Survey (NEW)> 85% 9 KEY PERFORMANCE INDICATOR (KPI)FY19-21 AVERAGE FY22 TARGET FY23 TARGET/ AWWA BENCHMARK CIP Project Expenditures vs. Budget 101%95% but not to exceed 100%≥ 95% Construction Change Order Incidence 4.4%< 5%< 5% Billing Accuracy 99.97%99.80%99.80% Sewer Rate Ranking 4 Below 50th percentile (14)Below 50th percentile (14) Water Rate Ranking 4 Below 50th percentile (11)Below 50th percentile (11) Water Debt Coverage Ratio 208%150%150% Sewer Debt Coverage Ratio 806% (FY20-21 only)150%150% Reserve Level 95%85%85% Accounts per FTE 409 406 Target will be available in FY22 Q4 Distribution System Loss 3.8%< 5%< 5% Planned Potable Water Maintenance Ratio in $72%66%70% Planned Recycled Water Maintenance Ratio in $66%70%70% Planned Wastewater Maintenance Ratio in $90%77%80% Direct Cost of Treatment per MGD $1,147.55 $1,050 $1,315 Injury Incident Rate 3.13 < 4.1 Target will be available in FY22 Q4 10 KEY PERFORMANCE INDICATOR (KPI)FY19-21 AVERAGE FY22 TARGET FY23 TARGET/ AWWA BENCHMARK Business Recovery Exercises (NEW)2 per year Vulnerability Assessment (NEW)2 per year Mark-out Accuracy 99.98%100%100% Easement Evaluation and Field Inspection 143%100%100% System Valve Exercising Program 3663 valves 3080 valves 20% *Potable Water Distribution Integrity (Leaks) (AWWA)10.40 L/B 16 L/B 6 | 6 *Potable Water Distribution Integrity (Breaks) (AWWA)6.2 | 6.2 Recycled Water System Integrity (Leaks) 3.07 L/B 6.6 L/B 6 Recycled Water System Integrity (Breaks)6.2 *Sewer Overflow Rate (AWWA)1.14 0 0 | 0 Potable Tank Inspection and Cleaning 9 8 8 Hydrant Maintenance Program (Previously Main Flushing and Hydrant Maintenance) 20% 11 KEY PERFORMANCE INDICATOR (KPI)FY19-21 AVERAGE FY22 TARGET FY23 TARGET/ AWWA BENCHMARK Employee Voluntary Turnover Rate 2.7%< 5%< 5% *Training Hours per Employee (AWWA)34.41 hours 12 hours 15.6 hours | 15.6 hours Safety Training Program 47.16 hours 24 hours 24 hours STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: April 6, 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 4-06-22.doc AGENDA ITEM 9b Board of Directors, Workshops and Committee Meetings (Via Teleconference) 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 4, 2022 June 1, 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 15, 2022 July 20, 2022 August 17, 2022 September 21, 2022 October 19, 2022 November 16, 2022 December 21, 2022 Special Board Meeting: April 27, 2022, 12:00 p.m. to 2:00 p.m. STAFF REPORT TYPE MEETING:Regular Board MEETING DATE:April 6, 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 COVID-19 pandemic emergency declarations and the social distancing orders have resultedin a portion of the District’s staff telecommuting. The District hashad no impacts to its water supply and has maintained a continuity of operations and services during the challenging and dynamicenvironment. Staff continues to monitor and provide updates relating to responding to this pandemic, as needed, including but not limitedto water and wastewater services, supplies, operations, finances, andcommunication. The District is continuing to hold Board of Directorsmeetings via teleconference services in accordance with AB361, whichprovides public access to the meetings. •The District remains committed to the safety of the public and itsemployees who continue to provide the public with essential services. A Safe Reopening Plan and a Social Distancing and Sanitation Protocolhave been implemented and are updated in accordance with County health guidelines including the recent emergency regulationsdiscussed in this report. Staff will continue to monitor and complywith all Federal, State, and Local orders and guidelines. •As a note, throughout the pandemic, the District has had staff reporting to the office, as needed. This was necessary to maintainthe safe and reliable distribution of water and wastewater servicesto our customers. Given the most recent Cal/OSHA updates effective on January 14, 2022 and the expiration of several health orders, theDistrict completed a phased transition to a normal on-site workforce. If necessary, and on a case-by-case basis, the District will work AGENDA ITEM 10 2 with staff requiring COVID-19 related accommodations. The District continues to practice social distancing when possible and continuing the use of virtual/hybrid meetings. Staff will continue to monitor and provide updates, as necessary. ADMINISTRATIVE SERVICES: GIS: •Improvements of Encroachment Inspection App - GIS staff, along with Engineering and Operations staff, developed an app to streamline the encroachment inspection process. Staff recently developed an add-on function to record easement inspection activities. This feature will reduce multiple steps in the inspection work process. Staff can now record inspection information within one centralized field in the app, which will then synchronize and update the master digital file. Human Resources: •COVID Update – Staff is collaborating with a team of cross-functional employees to explore a partial Telework Policy to ensure the District remains competitive with other agencies. •Recruitments/New Hires – The District is or will be recruiting for the following positions: •Reclamation Plant Operator I/II/III •Electrician I/II •Meter Maintenance Worker I/II •Utility Worker I/II •Chief Engineer •SCADA Instrumentation Technician/Senior SCADA InstrumentationTechnician IT Operations: •Tyler Eden Upgrade - Staff performed a minor update to the District's Financial and Budgeting System, Tyler Eden. The update (5.26.1.1) provides minor enhancements and necessary patches associated with various Eden financial modules, including updates to updated IRS revisions, Accounts Payable (A/P) module, and Utility Billing (UB) functionality. •Network Vulnerability Assessment - Staff is preparing to conduct a vulnerability assessment of the District's network and cybersecurity safeguards with assistance from an outside firm. The objective of the evaluation is to identify potential vulnerabilities, evaluate the District's technology security practices and controls, data 3 protection strategies, and provide updated protection actions. The assessment will commence in early April. • Monthly Cybersecurity Safeguards - The Agency's external cyber environment is monitored and analyzed by the Cybersecurity and Infrastructure Security Agency (CISA). CISA evaluates the Agency's exposure to external threats once a month using external vulnerability scanning, risk assessment, and the architectural design report validation. The Agency continues to satisfy these criteria, according to the February evaluation. Purchasing & Facilities: • SDG&E Electric Utility Removal at Salt Creek – On March 11, 2022, SDG&E crews removed SDG&E equipment and utilities at the 525 Hunte Parkway Cart Garage and Club House sites as well as at the 549 Hunte Parkway Maintenance Building making way for the final removal of the Maintenance Building by Emery Construction, the high bidder from last year’s auction conducted by Cal-Auctions. Included in the SDG&E removal are transformers, cabling, and service panels. The SDG&E gas utilities at each location listed above are scheduled to be removed at the end of March or early April 2022. Safety & Security: • Hazard Mitigation Plan Development - The internal Hazard Mitigation team is currently developing the District’s mitigation plan (Annex), a living document that guides action over the next five years. The District is participating this year to be eligible for pre-disaster funding such as the FEMA Hazard Mitigation Grant Program. Funding can help rebuild to reduce or mitigate future disaster losses throughout our service area. The plan is scheduled to be finalized in June 2022 and afterward be sent to the Board for approval. 4 •Cal/OSHA COVID-19 Prevention Emergency Temporary Standards (ETS) - The current Cal OSHA ETS will expire in April 2022. The Board expected to readopt the ETS for the third time in April 2022, which will expire in December 2022. The updated draft with the proposed changes is expected to be posted by Friday, April 15th. Staff will review the anticipated changes and evaluate how they will impact the District’s business continuity plan. •Emergency Management - WebEOC Monthly Exercise - Staff completed the WebEOC monthly exercise for March. The activity consisted of the EOC members creating a boil water mass notification status and uploading it into the Status Board Menu. To do this, staff will demonstrate the login process, navigate through the County’s WebEOC, and conduct the monthly exercise. The purpose of these monthly exercises is to maintain the District’s emergency readiness state if the District faces a response to an emergency condition. FINANCE •Collections and Bad Debt Exposure – Below is information that shows lockable accounts and differentiates Owner accounts from Tenant accounts. While the District collects a portion of these balances, it is less likely to collect the tenant account balances that have become lockable. This balance is being monitored on a weekly basis to assess the potential bad debt exposure. FY 2020 Remainder FY 2021 Remainder FY 2022 Lockable Total(1) Lockable Accounts Owner 129 471 240 205,805$ 163,557$ -$ 721$ 95,551$ 96,272$ Tenant 147 339 224 158,471$ 247,239$ -$ 4,715$ 106,873$ 111,588$ Total 276 810 464 364,276$ 410,796$ -$ 5,436$ 202,424$ 207,860$ Typical Monthly Values 200 Actual Sales(2)40,861,103$ 101,742,970$ 59,912,743$ Percent of Bad Debt Exposure 0.00%0.01% 0.34% Owner 80 60 -$ -$ -$ Tenant 66 79 Note: Prior to the COVID-19 pandemic the lockable balance was $48,500. Total 146 139 (2)FY 2020 Actual Sales only includes four months of sales, from the beginning of the pandemic in March 2020 tothe end of the fiscal year. Collections and Bad Debt Exposure Lockable $'s From Recycled Accounts # of Accounts March 2020 (31 Days)February 2022 (28 Days) March 2022 (23 Days)FY 2020End of Year Lockable Lockable Balances as of March 23, 2022 FY 2021 End of Year Lockable $'s (1)The District received State funds to credit past due water accounts. These funds have now been applied. The lockable owner balances were reduced by approximately $150,000 and the lockable tenant balances were reduced by approximately $120,000. No. of Lockable Accounts with Payment Arrangements 5 •CSMFO Capital Budget Award – The District received CSMFO’s Capital Budget Excellence Award for its FY 2022 Capital Budget document.This is the 17th consecutive year the District has received the CSMFO award. •COVID-19 FEMA Update – On February 23, 2022, Finance submittedinvoices and expenses related to the eligibility period of September14, 2020 to December 31, 2021 to CalOES for review. Finance expects that CalOES will complete their review in five to eight weeks, atwhich time we may be asked to make changes prior to submittingexpenses to FEMA. This second project scope of COVID-19 eligible expenses under FEMA Policies totals $49,653. •Cyber Liability Insurance – The renewal application for CyberLiability Insurance was completed and submitted on February 24, 2022. •Property Insurance Coverage – On February 24, 2022, Finance completedthe process of renewing the District’s property coverage for facilities, buildings, equipment, and vehicles for FY 2023. Thescheduled values have been increased by the following percentages,real property (Buildings, fixed equipment) by 7.5% and contents (personal property) by 5%. •Excess Crime Insurance for 2022-2023 – The renewal application forExcess Crime Insurance was completed and submitted on February 23,2022. This program covers internally and externally sourced thefts of assets, including cash. •Procurement, Invoicing, and Payment Cycle Risk Assessment – Financeis conducting a Financial Risk Based Internal Audit of the District’sprocurement, invoicing, and payment business cycles. The process may take a few months to complete. Assessing financial risk will begin byinterviewing key staff and managers to obtain an understanding of keycontrols. Subsequently, an internal audit will be conducted on thoseareas to test controls and compliance with District policies. •Olympic Parkway Main Break Incident (October 6, 2020) Update – Therepair and restoration work due to the recycled main break on Olympic Parkway between Heritage and La Media was completed in August 2021.On March 7, 2022, the District received an expense reimbursement of$204,941.94. This amount covers all external costs such as paving, permits, and road repair, and internal costs of staff overtime. Thetotal cost including unreimbursed staff time and vehicle use was$230,784.59. •Olympic Parkway Main Break Incident (April 5, 2021) Update – The repair and restoration work due to the recycled main break on OlympicParkway between Heritage and La Media was completed in August 2021. 6 On March 7, 2022, the District received an expense reimbursement of $142,649.28. This amount covers all external costs such as paving, permits, and road repair, and internal costs of staff overtime. The total cost including unreimbursed staff time and vehicle use was $182,292.02. •Disconnection for Non-payment – We continue to modify the proceduresfor our second month of disconnections. At this time, we have returned to our normal dollar thresholds ($75 for tenant, $120 forowner) but are keeping the over 90 days past due requirement. Weexpect to lower the requirement to the normal 60 days but with ahigher dollar amount threshold next month. Payment arrangements havestabilized with the bulk being set up in February. As of March 23, there are 170 active payment arrangements on file. •Low Income Household Water Assistance Program (LIHWAP) – Staffcontinues to monitor the rollout of the LIWHAP program. Otay hasenrolled through the program’s payment processor, Horne LLC, to receive funds electronically. The state estimates the program willbegin in May or June. •Wastewater Arrearages – Staff applied to the Wastewater Arrearageprogram on behalf of Otay’s customers. The total amount applied for was $21,069.06 with an additional $632.07 for administrative costs.Staff is now working on compiling arrearage data for the City ofChula Vista. The City will apply for wastewater arrearage fundsdirectly and once received, credits will be issued to their Otayaccount. Financial Reporting: •The financial reporting for February 28, 2022 is as follows: o For the eighth month ending February 28, 2022, there are totalrevenues of $75,862,839 and total expenses of $72,401,643. The revenues exceeded expenses by $3,461,196. •The financial reporting for investments for February 28, 2022 is asfollows: o The market value shown in the Portfolio Summary and in theInvestment Portfolio Details as of February 28, 2022 total$99,516,131 with an average yield to maturity of 0.569%. The total earnings year to date are $335,494. 7 ENGINEERING AND WATER SYSTEM OPERATIONS Engineering: •Vista Diego Hydropneumatic Pump Station Replacement and 12-inchPipeline Replacement, 1530 Zone, Vista Diego Road: This projectincludes replacement of the existing Pump Station, which serves thesmall 1530 Pressure Zone, containing approximately thirty-seven (37) potable water meters and four (4) hydrants. The project alsoincludes 1530 Pressure Zone distribution system improvements in support of the Pump Station replacement project. The District’sproject consultant’s (Murraysmith) revised preliminary design reportaddressing Vista Diego Road distribution piping replacements was finalized November 30, 2021. Murraysmith delivered their 30% designsubmittal January 22, 2022. As part of a community outreach effort, a cover letter and project fact sheet were sent to the Vista DiegoProperty Owners Association community via USPS regular mail onJanuary 26, 2022. This project is within budget. (P2639 and P2680) •1090-1 Pump Station Renovation: This project includes renovation of the existing Pump Station, including pump replacement andaddition of a third pump, which serves the small 1090 PressureZone, containing approximately thirty-three (33) potable water meters and seven (7) hydrants. Award of the contract to CoraConstructors was authorized at the November 2020 Board Meeting.Notice to proceed was issued on January 8, 2021. The project issubstantially complete as of January 14, 2022. A budget adjustmentof $50,000 was required under the General Manager’s authority to cover additional construction administration and SDG&Ecoordination. Project closeout is underway. (P2174) •RWCWRF Disinfection System Improvements: The project involves thereplacement of the chlorine gas disinfection system with an ultraviolet (UV) process at the Ralph W. Chapman Water ReclamationFacility. Consultant selection for design and construction supportto Carollo Engineers was approved by the Board at the June 2021Board Meeting. Design work initiated in July 2021. Monitoring ofultraviolet transmittance is in progress for sizing the proposed system. Initial contact with the regulating state agencies hasbeen made. Information on available equipment manufacturers has been received and preferred manufacturers have been identified toinitiate procurement quotes so improvements can be designed aroundthe particular equipment. Preparation of the preliminary design report is in progress and a visit to the City of San Diego’s SouthBay WRP for senior staff occurred in March. (R2117) •Melrose Ave and Oleander Ave PRSs and 980 Reservoirs Altitude ValveVaults: This project involves the replacement of two (2) 1960’s era pressure reducing stations in Chula Vista and the renovations 8 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. Submittal review started in June and a Notice to Proceed was issued on July 1, 2021; the project has been extended for seventy-five (75) additional days due to submittal and material ordering delays and the current project completion date is established as June 11, 2022. Public outreach advising of the project status continues to be made. The project is on schedule and within budget. (P2605, P2627, & P2671) •Olympic Parkway Recycled Water Line Replacement: Several mainbreaks within the past year of the 20-inch recycled water line inOlympic Parkway between Heritage Road and La Media Road resulted in the establishment of this Capital Improvement Program Project atthe May 2021 Board meeting. The engineering firm, NV5, has been selected to design the replacement waterline using the District’sAs-Needed Engineering Design Services contract. The preliminarydesign report has been completed and direction provided to NV5 for the final design. Permitting for potholing of existing utilities atprojected crossings is in progress. Consideration was given to potentially using trenchless installation, but several drawbacksand limitations eliminated it from selection. (R2159) •Paso de Luz and Vista Sierra Waterlines Replacement: The existing1950’s steel water lines in the Hillsdale area have been identified for replacement due to past failures. Under this contract, thewater line between Vista Grande and Vista Sierra will be replaced.Also included in this project is the replacement of a water line between Paso de Luz and Telegraph Canyon Road in Chula Vista thatis located in an easement on an embankment. The water line has been isolated due to a leak, removing the redundancy for thisneighborhood. Bids were opened in February with the constructioncontract being brought to the Board for approval at the April meeting. A limited notice to proceed is expected in May 2022 tobegin material acquisition. The project is currently within budget. (P2612 & P2616) •1200 Pressure Zone Improvements – Phase II: The project consists of the replacement of existing pump station discharge header,pressure relief, suction manifold, and yard piping improvements, and all other work and appurtenances in accordance with thecontract documents. Notice to proceed was issued on November 29,2021 and project completion date is set for July 27, 2022. The project is on schedule and within budget. (P2653) •850-1 & 1200-1 Reservoirs Interior/Exterior Coating and Upgrades:Capital Industrial Coatings, Inc. (Capital) has completed therecoating of both the 850-1 and 1200-1 Reservoirs. The 850-1 was returned to service on December 1, 2021, and the 1200-1 was 9 returned to service on December 3, 2021. Capital completed the punch list items to close out the project. Project closeout is underway. (P2543 & P2533) •1655-1 Reservoir & Rancho Jamul Hydropneumatic Pump Station: Thisproject consists of constructing a new 0.5 MG prestressed concretepotable water tank in Jamul and modifying the existing Rancho JamulHydropneumatic Pump Station (HPS) to become the permanent Pump Station to feed the new 1655-1 Reservoir. The project alsoincludes replacing approximately 1,500 linear feet of existing pipethat will be experiencing pressure over the rated pressure classunder the new configuration. At the May 2021 Board Meeting,Richard Brady and Associates (Brady) was awarded a professional services agreement to be the design engineer on the project. TheBasis of Design Report and 30% design were delivered on March 4, 2022. The RFP for VE/CM/CR Services was advertised, and interviewswere held March 24, 2022. The project is on schedule and withinbudget. (P2040 & P2642) •458-1 Reservoir Interior/Exterior Coating and Upgrades: This project consists of removing and replacing the interior andexterior coatings of the 458-1 (0.8 MG) Reservoir, along withproviding structural upgrades, to ensure the tank complies with both state and federal OSHA standards as well as the American WaterWorks Association and the Health Department standards. Advanced Industrial Services (AIS) was awarded a construction contract atthe November 3, 2021 Board meeting. Project information was sentto the neighboring customers on December 10, 2021. AIS mobilized to the site January 5, 2022 and the structural improvements werecompleted on February 18, 2022. AIS is currently working on recoating the interior of the tank. The project is on schedule andwithin budget. (P2593) •Recycled Water Pipeline Cathodic Protection Improvements: Thisproject includes repairs to existing cathodic protection systems, such as anode replacement and cathodic test station repairs forrecycled water pipelines located in the Central Area. The projectadvertised for bid in March 2022 and project completion is anticipated in January 2023. (R2146) •Latin American Hydraulic Congress – Virtual: District staff made apresentation during the World Water Day on March 22nd. The eventwas organized by the International Association for Hydro- Environment Engineering and Research and there were representativesfrom the United States, Mexico, Israel, Germany, Chile, and Spain.The presentation was well received and earned for the Districtinternational recognition for Operational Efficiency. 10 • Regulatory Site Access Road Extension: In 2011, San Miguel Fire (SMF) approached the District and the San Diego Sheriff (Sheriff) to connect the future Rancho San Diego Sheriff Sub-Station to the District’s existing Regulatory Site road off SR-94. Several meetings were held to work out the logistics of the project and eventually included Skyline Church (Church), the Valley De Oro Planning Group, and San Diego County Water Authority (SDCWA). The road extension would allow a secondary ingress/egress to the new Sub-Station as well as allow both the District and SMF to use the signalized intersection at Jamacha Blvd. and SR-94 to access the Regulatory Site and the new Fire Training Facility. Environmental and Geotechnical reports were completed for the road, but the project hit a snag because the County of San Diego had a limit on the number of vehicle trips into the signalized Church/ Sheriff entrance off SR-94. At the time, the Church had plans for expansion and did not want District and SMF’s added trips to adversely affect their plans. Funding was also an issue because SMF was short on funds for the Training Facility and did not have funding for the road extension. At the time, it was estimated it would cost approximately $1M to complete the design and construct the road. About 7 years ago, San Miguel Fire assigned their interest in the Fire Training Facility to San Diego County Fire. • FY 2022 Sewage Flows to Metro vs Planned Capacity: The Amended and Restated Agreement was signed by the City on July 22, 2021. The effective date of the agreement is August 22, 2021, one month after the agreement was signed. Per the terms of the agreement, tracking for flow, chemical oxygen demand, and suspended solids begin Fiscal Year 2023, the year after the effective date of the agreement. The treatment plant continues to operate normally this fiscal year. At this time, no planned interruptions of operation are expected to cause the District to exceed the planned Metro capacity of 139 MG (0.38 MGD) that goes into effect next fiscal year with the Metro amended agreement. 11 •Summary of Budgeted and Sold Meters and EDUs for Fiscal Year 2022up through February 28, 2022: WATER SYSTEM OPERATIONS (REPORTING FOR FEBRUARY): •On Thursday, February 3rd, SCADA staff successfully replaced the downstream pressure transmitter, used to transmit the water pressurein the pipe to the District’s SCADA system, at the Otay Riosinterconnection with the City of San Diego. It was discovered, via SCADA, that the pressure transmitter was not working properly andneeded to be replaced. This pressure transmitter gives the operator the ability to know real-time system pressure at this site. •On Wednesday, February 9th, staff performed a planned shutdown onCalle Simpson in El Cajon, to replace one fire hydrant valve for thevalve replacement program. While performing routine system maintenance, the Valve Maintenance staff identified that theisolation valve to the fire hydrant was not working properly toisolate water flow to the fire hydrant. The District strategically replaces isolation valves that have reached the end of their usefullife. Water isolation valves are critical components of water distribution systems for separating pipe segments from the network Date Meters (Budgeted) Meters Sold (Actual) EDUs (Budgeted) EDUs Sold (Actual) Total $ Collected (Budgeted) Total $ Collected (Actual) February 2022 15 8 25.3 11.5 $256,458 $134,806 Totals FY 2022 120 111 202 457 $2,051,667 $5,446,877 12 for repair and maintenance purposes. The shutdown lasted three and a half hours and affected twenty-nine (29) meters. The District set up two water trailers on site for those affected by the service outage. • On Thursday, February 10th, staff isolated the recirculation line to the 520 Pressure Zone chlorination system to allow Utility Maintenance staff to replace two (2) 12-inch gate valves, due to excessive leak by, and install a new chemical feed mixer and injector. The old mixer and injector had reached the end of their useful life. • On Friday, February 11th, SDG&E was at the Regulatory site in El Cajon, to survey the area for an upcoming SDG&E project that will provide a more robust electrical source. The new electrical power lines will be installed in a conduit underground. This would prevent SDG&E from proactively cutting power off due to high wind/weather conditions. No details on when SDG&E will complete this project. • The following events occurred on Tuesday, February 15th: o An unplanned power outage affected Pump Stations 850, 1090, 944, 1296, and 1530 possibly caused by high winds and rain. Staff requested reliability letters from SDG&E for proper generator permit documentation for APCD compliance. The power outage lasted an hour and backup generators provided power as designed. During this power outage, Otay Water District customers did not experience service interruption. o Staff performed a planned shutdown on Otay Mesa Road and Alta Road in the Otay Mesa area, to abandon two (2) six-inch valves that were no longer needed. As new developments buy parcels in an area previously developed, they are responsible to eliminate any infrastructure no longer needed. The new development determined that the two valves were not needed. The shutdown lasted eight and a half hours and affected six meters. The District set up two water trailers on site for those affected by the service outage. o Helix Water District requested zero flows on #14 connection from February 15th at 2:00 pm flow change to February 17th at 8:00 am flow change, in order for Helix to shut down their Treatment Plant and perform maintenance. Operations staff requested water flow from San Diego County Water Authority (SDCWA) during Helix Treatment Plant’s maintenance outage which allowed Otay’s operations to function seamlessly. • The following events occurred on Wednesday, February 16th: o Staff performed a planned shutdown on Ledge Avenue in Spring Valley, to replace a 14-inch line valve due to excessive leak 13 by. The valve was identified with excessive leak by during a planned shutdown on Ledgeside Street and had reached the end of its useful life. Water isolation valves are critical components of water distribution systems for separating pipe segments from the network for repair and maintenance purposes. The shutdown lasted 48 hours and no meters were affected during this event. o SDCWA requested that the District keep the flow off on the #14 connection, to perform needed maintenance to the flow connectionvalve. The connection remained out of service for an additional 24 hours to accommodate SDCWA’s maintenance needs. Theconnection was off for a total of two and a half days. Therewere no customer outages or impacts as a result of this maintenance activity. •On Thursday, February 17th, staff assisted with a developer projectto load, flush, and sample a new 12-inch section of main on EnricoFermi Drive and Otay Mesa Road in Otay Mesa, for the Hermanito project. After water samples passed, the new section of the main wasput in service to provide water to the new development. •On Tuesday, February 22nd, staff performed an unplanned shutdown at3115 Sweetwater Springs Boulevard for a beam break on an eight-inch ACP water main. The beam break was too close to a 22-degree elbowwhich also needed to be replaced. Staff needed to order the replacement 22-degree elbow because the part was not in stock and isnot common. The main was placed back in service on Monday, February28th. One meter was affected and was highlined, for a total of 11 days, until the main was repaired. •The following events occurred on Friday, February 25th: o An unplanned power outage affected the 1200 Pump Station, but the backup generator supplied power during this outage. Staffrequested reliability letters from SDG&E for proper generator permit documentation for APCD compliance. The power outagelasted a few minutes. During this power outage, Districtcustomers remained in service. o Staff performed an unplanned shutdown on 3007 Dehesa Road in El Cajon, due to a 12-inch ACP main break. Only one meter feedingthe cemetery was affected, however, the cemetery was closed. Thewater outage lasted 14 hours and no water trailers were needed. •On Saturday, February 26th, there was an unplanned power outage atthe 711 Pump Station. The outage lasted four and a half hours andthe backup generator provided power during the outage. The Districtrequested a reliability letter from SDG&E for APCD compliance and to be informed of the cause of the outage. District customers did not 14 experience service interruptions. The District proactively performs site testing to ensure the District-owned backup power supply equipment performs as needed when required. •On Monday, February 28th, staff sent the Department of EnvironmentalHealth (DEH) a quarterly report for the Olympic Parkway highlinesfeeding the recycled meters in this area. These highlines allowedthe District to isolate a section of 20-inch recycled PVC main that has leaked in the past. A CIP is in place to replace the 20-inch PVCmain. The highlines are estimated to be in service for a duration ofthree years until the new recycled main is in service. PURCHASE AND CHANGE ORDERS •The following table summarizes purchases and change orders issued during the period from February 16, 2022 through March 15, 2022 that were within staff signatory authority: PO Date PO Amount PO Description Vendor Name 02/16/2022 $4,455.00 DOCUMENT CAPTURE SOFTWARE LICENSE RENEWAL ECS IMAGING, INC 02/16/2022 $70,847.70 FY 2022 WORKERS' COMP PROGRAM (QTR 2) ASSOCIATION OF CALIFORNIA WATER AGENCIES 02/18/2022 $55,430.00 SCADA UPGRADES TECHKNOWSION, INC 02/24/2022 $1,549.27 CRADLEPOINT ROUTER & SUBSCRPTION LICENSE GHA TECHNOLOGIES, INC 03/04/2022 $28,410.00 AC-2 RTU REPLACEMENT SOUTHCOAST HEATING & AIR 03/08/2022 $9,800.00 CONSULTING SERVICES SECURANCE, LLC 03/10/2022 $233.20 DENTAL BENEFITS ADMINISTRATION BENEFITS COORDINATORS CORPORATION WATER CONSERVATION AND SALES •Water Conservation – February 2022 usage was 14% higher than February 2013 usage. Since February 2021, customers have saved an average of 6% over 2013 levels. 15 •Conservation 2020 vs Present – On July 8, 2021, Governor Gavin Newsom called on Californians to voluntarily reduce water use by 15%. The chart below shows the difference in usage for July 2020 through February 2021 vs July 2021 through February 2022. Total conservation this period vs last is 3%. The below average rainfall for July 2021 through February 2022 is contributing to a drier year which makes the total conservation percentage lower, despite strong conservation measures. •Potable Water Purchases – The February potable water purchases were1,990 acre-feet which is 14.1% above the budget of 1,744 acre- feet. Year-to-date potable purchases through February were 19,652acre-feet which is 1.0% below the budget of 19,849 acre-feet. 16 •Recycled Water Purchases – The February recycled water purchases from the City of San Diego and production at the District’s treatmentfacility were 187 acre-feet which is 73% above the budget of 108acre-feet. Year-to-date recycled purchases and production throughFebruary were 2,419 acre-feet which is 7.5% below the budget of 2,615acre-feet. 17 Potable, Recycled, and Sewer (Reporting up to the month of February): •Total number of potable water meters: 51,407 •Total number of sewer connections: 4,740 •Recycled water consumption for the month of February: o Total consumption: 206.14 acre-feet or 67,167,408 gallonso Average daily consumption: 2,398,836 gallons per dayo Total cumulative recycled water consumption since February 1, 2021: 2,608 acre-feeto Total number of recycled water meters: 766 •Wastewater flows for the month of February: o Total basin flow: 1,607,679 gallons per day This is an increase of .4 percent from February 2021. o Spring Valley Sanitation District flow to Metro: 535,893 gallonsper day o Total Otay flow: 1,071,929 gallons per dayo Flow processed at the Ralph W. Chapman Water Recycling Facility:958,357 gallons per day o Flow to Metro from Otay Water District: 113,571 gallons per day •By the end of February there were 6,752 wastewater EDUs. Exhibit A Annual YTD REVENUES: Budget Actual Budget Variance Var % Potable Water Sales 55,548,600$ 37,618,820$ 38,594,000$ (975,180)$ (2.5%) Recycled Water Sales 9,681,500 6,598,393 6,891,700 (293,307) (4.3%) Potable Energy Charges 2,574,900 1,830,804 1,808,200 22,604 1.3% Potable System Charges 17,393,000 11,495,593 11,472,000 23,593 0.2% Potable MWD & CWA Fixed Charges 13,505,000 8,935,492 8,918,000 17,492 0.2% Potable Penalties and Other Fees 912,000 573,953 608,000 (34,047) (5.6%) Total Water Sales 99,615,000 67,053,055 68,291,900 (1,238,845) (1.8%) Sewer Charges 3,068,000 2,039,746 2,014,600 25,146 1.2% Meter Fees 74,000 96,330 49,600 46,730 94.2% Capacity Fee Revenues 1,976,000 1,663,325 1,317,600 345,725 26.2% Non-Operating Revenues 2,219,500 1,579,788 1,480,200 99,588 6.7% Tax Revenues 4,969,000 3,332,186 3,001,000 331,186 11.0% Interest 236,000 98,408 157,500 (59,092) (37.5%) Total Revenues 112,157,500$ 75,862,839$ 76,312,400$ (449,561)$ (0.6%) EXPENSES: Potable Water Purchases 40,446,000$ 25,117,629$ 27,881,900$ 2,764,272$ 9.9% Recycled Water Purchases 4,865,000 3,499,452 3,499,452 - 0.0% CWA-Infrastructure Access Charge 3,080,000 2,050,624 2,050,800 176 0.0% CWA-Customer Service Charge 1,817,000 1,194,708 1,194,800 92 0.0% CWA-Reliability Charge 2,867,000 1,884,142 1,884,100 (42) (0.0%) CWA-Emergency Storage Charge 4,595,000 3,025,057 3,025,060 3 0.0% MWD-Capacity Res Charge 765,000 483,756 483,860 104 0.0% MWD-Readiness to Serve Charge 653,000 435,578 435,200 (378) (0.1%) Subtotal Water Purchases 59,088,000 37,690,946 40,455,172 2,764,227 6.8% Power Charges 3,485,000 2,419,191 2,455,000 35,809 1.5% Payroll & Related Costs 22,048,500 13,432,505 14,515,100 1,082,595 7.5% Material & Maintenance 3,987,900 2,305,166 2,658,600 353,434 13.3% General Administrative Expenses 6,890,800 4,500,251 4,600,630 100,379 2.2% Legal Fees 657,000 412,084 438,000 25,916 5.9% Expansion Reserve 2,066,900 1,377,700 1,377,700 - 0.0% Betterment Reserve 735,000 490,000 490,000 - 0.0% Replacement Reserve 11,986,900 7,991,200 7,991,200 - 0.0% Transfer to OPEB/PERS 1,100,000 1,722,500 733,500 (989,000) (134.8%) General Fund Reserve 90,500 60,100 60,100 - 0.0% Rate Stabilization Reserve 21,000 - - - 0.0% Total Expenses 112,157,500$ 72,401,643$ 75,775,002$ 3,373,359$ 4.5% EXCESS REVENUES(EXPENSE)-$ 3,461,196$ 537,398$ 2,923,798$ OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR THE EIGHT MONTHS ENDED FEBRUARY 28, 2022 F:/MORPT/FS2022-P8 3/24/2022 11:57 AM The year-to-date actual net revenues through February show a positive variance of $3,461,196. COMPARATIVE BUDGET SUMMARY NET REVENUE AND EXPENSES FOR THE EIGHT MONTHS ENDED FEBRUARY 28, 2022 ‐$1,400,000 ‐$800,000 ‐$200,000 $400,000 $1,000,000 $1,600,000 $2,200,000 $2,800,000 $3,400,000 $4,000,000 $4,600,000 $5,200,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN YTD Actual Net Revenues YTD Budget Net Revenues YTD Variance in Net Revenues OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW February 28, 2022 INVESTMENT OVERVIEW & MARKET STATUS: At the Federal Reserve Board's regular scheduled meeting on March 16, 2022, the Committee increased the target range for the federal funds rate from 0.0-0.25% to 0.25% -0.50% and anticipates that ongoing increases in the target range will be appropriate in light of the effects of the invasion of Ukraine by Russia and its related events. The Committee's long-term goal is to attain maximum employment and inflation of 2%. At a future meeting, the Committee plans to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities. 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 February 2022 was .57%, which was five basis points higher than the previous month. LAIF's return was five basis points higher than the last month, reaching an average effective yield of .28% for February 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 at this time. In accordance with the District's Investment Policy, all District funds continue to be managed based on the objectives, in priority order, of safety, liquidity, and return on investment. PORTFOLIO COMPLIANCE: February 28, 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 $32.47 Million 8.03: Federal Agency Issues 100% 100% $ 9.74 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% 0.05% 8.08: San Diego County Pool 100% 100% 56.56% 12.0: Maximum Single Financial Institution 100% 50% 1.24% Jul FY21 Aug FY21 Sep FY21 1st Qtr FY21 Oct FY21 Nov FY21 Dec FY21 2nd Qtr FY21 Jan FY21 Feb FY21 Mar FY21 3rd Qtr FY21 Apr FY21 May FY21 June FY21 4th Qtr FY21 July FY22 Aug FY22 Sep FY22 1st Qtr FY22 Oct FY22 Nov FY22 Dec FY22 2nd Qtr FY22 Jan FY22 Feb FY22 LAIF 0.92 0.78 0.69 0.80 0.62 0.58 0.54 0.58 0.46 0.41 0.36 0.41 0.34 0.32 0.26 0.31 0.22 0.22 0.21 0.20 0.20 0.20 0.21 0.20 0.23 0.28 Otay 0.95 0.93 0.82 0.91 0.81 0.87 0.77 0.82 0.72 0.70 0.65 0.70 0.62 0.61 0.61 0.61 0.57 0.59 0.57 0.58 0.54 0.52 0.52 0.53 0.52 0.57 Difference 0.03 0.15 0.13 0.11 0.19 0.29 0.23 0.24 0.26 0.29 0.29 0.29 0.28 0.29 0.35 0.30 0.35 0.37 0.36 0.38 0.34 0.32 0.31 0.33 0.29 0.29 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 Re t u r n o n I n v e s t m e n t s Month Performance Measure FY-22 Return on Investment LAIF Otay Difference Target: Meet or Exceed 100% of LAIF $1,241,056 1.24% $89,101,790 88.99% $9,785,910 9.77% Otay Water District Investment Portfolio: 02/28/2022 Banks (Passbook/Checking/CD)Pools (LAIF & County) Agencies & Money Market Mutual Funds Total Cash and Investments: $100,128,756 (Book Value) Month End Portfolio Management February 28, 2022 Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days to MaturityTerm YTM 360 Equiv. YTM 365 Equiv. Federal Agency Issues- Callable 1,989,073.68 9042.01 1.2948781,975,780.002,000,000.00 1.312 Federal Agency Issues - Bullet 7,750,856.45 1,3657.84 0.8451,2457,519,645.487,796,000.00 0.857 Money Market 45,980.01 10.05 0.014145,980.0145,980.01 0.014 Local Agency Investment Fund (LAIF)32,472,827.39 132.84 0.274132,389,668.3832,472,827.39 0.278 San Diego County Pool 56,628,962.31 157.27 0.661156,344,000.0056,628,962.31 0.670 98,887,699.84 100.00%Investments 98,275,073.8798,943,769.71 126 116 0.561 0.569 Cash (not included in yield calculations)Passbook/Checking 1,241,056.64 1 0.41211,241,056.641,241,056.64 0.418 100,128,756.48Total Cash and Investments 99,516,130.51100,184,826.35 126 116 0.561 0.569 Current Year February 28 44,193.98 Fiscal Year To Date 335,493.75 Average Daily Balance Effective Rate of Return 100,575,465.62 94,775,717.24 0.53%0.57% 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 05, 2021. The market valueinformation provided by Interactive Data Corporation. The investments provide sufficient liquidity to meet the cash flow requirements of the District for the next six months of expenditures. __________________________________________________ ____________________Joseph Beachem, Chief Financial Officer Portfolio OTAY NL! APData Updated: SET_ME8: 03/17/2022 14:30 Reporting period 02/01/2022-02/28/2022 Run Date: 03/17/2022 - 14:30 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.5 03/21/2022 YTM 360 Page 1 Par Value Book Value Maturity Date Stated RateMarket Value February 28, 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 1,989,073.68 07/26/20241.08002/03/2022 1,975,780.00 AA3130AQL68 878 1,989,073.681,975,780.002,000,000.001,846,827.82Subtotal and Average 1.294 878 Federal Agency Issues - Bullet 0.612Federal Home Loan Mortgage2391 1,045,000.00 1,035,973.06 09/23/20250.37509/16/2021 994,975.85 AA3137EAEX3 1,302 0.618Federal Home Loan Mortgage2392 2,751,000.00 2,726,745.73 09/23/20250.37509/22/2021 2,619,309.63 AA3137EAEX3 1,302 0.996Federal National Mortage Assoc2393 2,000,000.00 2,034,424.71 01/07/20251.62512/09/2021 1,997,200.00 AA3135G0X24 1,043 1.129Federal National Mortage Assoc2394 2,000,000.00 1,953,712.95 11/07/20250.50012/15/2021 1,908,160.00 AA3135G06G3 1,347 7,750,856.457,519,645.487,796,000.007,750,435.01Subtotal and Average 0.845 1,245 BOND PROCEEDS (LAIF) 0.203STATE OF CALIFORNIA9015 0.00 0.00 0.2060.00LAIF 2018 1 0.000.000.000.00Subtotal and Average 0.000 0 Money Market 0.030Blackrock T - Fund Inst9010 4,286.21 4,286.21 0.0304,286.21RESERVE-10 COPS 1 0.030Blackrock T - Fund Inst9011 5,642.81 5,642.81 0.0305,642.81RESERVE 10 BABS 1 0.010FIRST AMERICAN US TREASURY9016 36,050.99 36,050.99 0.01010/25/2021 36,050.99OWD TRUST & CUS 1 45,980.0145,980.0145,980.01188,061.44Subtotal and Average 0.014 1 Local Agency Investment Fund (LAIF) 0.274STATE OF CALIFORNIA9001 32,472,827.39 32,472,827.39 0.27832,389,668.38LAIF 1 32,472,827.3932,389,668.3832,472,827.3932,297,827.39Subtotal and Average 0.274 1 San Diego County Pool 0.661San Diego County9007 56,628,962.31 56,628,962.31 0.67056,344,000.00SD COUNTY POOL 1 56,628,962.3156,344,000.0056,628,962.3156,628,962.31Subtotal and Average 0.661 1 100,575,465.62 98,943,769.71 0.561 11698,275,073.87 98,887,699.84Total and Average Portfolio OTAY NL! APData Updated: SET_ME8: 03/17/2022 14:30 Run Date: 03/17/2022 - 14:30 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.5 YTM 360 Page 2 Par Value Book Value Stated RateMarket Value February 28, 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 0.444STATE OF CALIFORNIA9004 1,153,075.91 1,153,075.91 0.4501,153,075.91UNION OPERATING 1 0.000STATE OF CALIFORNIA9005 29,545.36 29,545.3607/01/2021 29,545.36PAYROLL 1 0.000STATE OF CALIFORNIA9014 55,385.35 55,385.3507/01/2021 55,385.35UBNA-FLEX ACCT 1 0.00 100,575,465.62 100,184,826.35 0.561 116 1Average Balance 99,516,130.51 100,128,756.48Total Cash and Investments Portfolio OTAY NL! APData Updated: SET_ME8: 03/17/2022 14:30 Run Date: 03/17/2022 - 14:30 PM (PRF_PM2) 7.3.0 Month End Activity Report Sorted By Issuer February 1, 2022 - February 28, 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 0.020.030 0.00RESERVE-10 COPS 0.009,929.00 9,929.02Subtotal and Balance 0.02 0.02 0.009,929.00 9,929.020.010%Issuer Subtotal Issuer: STATE OF CALIFORNIA BOND PROCEEDS (LAIF) 0.00 0.00Subtotal and Balance Union Bank STATE OF CALIFORNIA9004 752.700.450 1,480,847.83UNION OPERATING STATE OF CALIFORNIA9014 50,000.00 13,110.99UBNA-FLEX ACCT 1,493,958.822,684,262.76 1,241,056.64Subtotal and Balance 50,752.70 Local Agency Investment Fund (LAIF) STATE OF CALIFORNIA9001 3,500,000.000.278 4,800,000.00LAIF 4,800,000.0033,772,827.39 32,472,827.39Subtotal and Balance 3,500,000.00 3,550,752.70 6,293,958.8236,457,090.15 33,713,884.0333.652%Issuer Subtotal Issuer: FIRST AMERICAN US TREASURY Money Market FIRST AMERICAN US TREASURY9016 1,800,001.130.010 1,989,140.00OWD TRUST & CUS 1,989,140.00225,189.86 36,050.99Subtotal and Balance 1,800,001.13 1,800,001.13 1,989,140.00225,189.86 36,050.990.036%Issuer Subtotal Issuer: Federal Home Loan Bank Portfolio OTAY NL! APData Updated: SET_ME8: 03/17/2022 14:23 Run Date: 03/17/2022 - 14:23 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 February 1, 2022 - February 28, 2022 Activity Report Month End CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: Federal Home Loan Bank Federal Agency Issues- Callable Federal Home Loan Bank2395 2,000,000.001.080 02/03/2022 0.003130AQL68 0.000.00 2,000,000.00Subtotal and Balance 2,000,000.00 2,000,000.00 0.000.00 2,000,000.001.996%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 3,796,000.003.789%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 4,000,000.003.993%Issuer Subtotal Issuer: San Diego County San Diego County Pool 56,628,962.31 56,628,962.31Subtotal and Balance 0.00 0.0056,628,962.31 56,628,962.3156.524%Issuer Subtotal 101,117,171.32 100,184,826.35Total 8,283,098.827,350,753.85100.000% Portfolio OTAY NL! APData Updated: SET_ME8: 03/17/2022 14:23 Run Date: 03/17/2022 - 14:23 DA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Month End Duration Report Sorted by Investment Type - Investment Type Through 02/28/2022 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 1,975,780.003130AQL68 1.596 07/26/2024 2.3561,989,073.68 1.294Fair 1.080000 Federal Home Loan Mortgage2391 99 1,045,000.00 994,975.853137EAEX3 1.768 09/23/2025 3.5031,035,973.06 0.612Fair .3750000 Federal Home Loan Mortgage2392 99 2,751,000.00 2,619,309.633137EAEX3 1.768 09/23/2025 3.5032,726,745.73 0.618Fair .3750000 Federal National Mortage Assoc2393 99 2,000,000.00 1,997,200.003135G0X24 1.908 01/07/2025 2.7632,034,424.71 0.996Fair 1.625000 Federal National Mortage Assoc2394 99 2,000,000.00 1,908,160.003135G06G3 10.150 11/07/2025 3.4631,953,712.95 1.129Fair .5000000 STATE OF CALIFORNIA9015 99 0.00 0.00LAIF 2018 0.206 0.0000.00 0.203 †Fair .2060000 Blackrock T - Fund Inst9010 99 4,286.21 4,286.21RESERVE-10 0.030 0.0004,286.21 0.030 †Amort .0300000 Blackrock T - Fund Inst9011 99 5,642.81 5,642.81RESERVE 10 0.030 0.0005,642.81 0.030 †Amort .0300000 FIRST AMERICAN US TREASURY9016 99 36,050.99 36,050.99OWD TRUST & 0.010 0.00036,050.99 0.010 †Amort .0100000 STATE OF CALIFORNIA9001 99 32,472,827.39 32,389,668.38LAIF 0.278 0.00032,472,827.39 0.274Fair .2780000 San Diego County9007 99 56,628,962.31 56,344,000.00SD COUNTY 0.670 0.00056,628,962.31 0.661Fair .6700000 0.809 0.29998,887,699.84 98,943,769.71 98,275,073.87Report Total † † = Duration can not be calculated on these investments due to incomplete Market price data. Portfolio OTAY NL! AP Page 1 Data Updated: SET_ME8: 03/17/2022 14:23 Run Date: 03/17/2022 - 14:23 DU (PRF_DU) 7.1.1 Report Ver. 7.3.5 Month End GASB 31 Compliance Detail Sorted by Fund - Fund February 1, 2022 - February 28, 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 1,002,374.45Fair Value 09/23/2025 -7,398.6099 994,975.853137EAEX3 0.00 0.00 0.00 0.00 2392 2,638,786.71Fair Value 09/23/2025 -19,477.0899 2,619,309.633137EAEX3 0.00 0.00 0.00 0.00 2394 1,924,940.00Fair Value 11/07/2025 -16,780.0099 1,908,160.003135G06G3 0.00 0.00 0.00 0.00 2393 2,011,460.00Fair Value 01/07/2025 -14,260.0099 1,997,200.003135G0X24 0.00 0.00 0.00 0.00 2395 0.00Fair Value 07/26/2024 -12,940.0099 1,975,780.003130AQL68 1,988,720.00 0.00 0.00 0.00 9003 2,950.00Amortized 0.0099 2,950.00PETTY CASH 0.00 0.00 0.00 0.00 9005 29,545.36Amortized 0.0099 29,545.36PAYROLL 0.00 0.00 0.00 0.00 9004 2,633,171.04Amortized 0.0099 1,153,075.91UNION OPERATING 0.00 752.70 1,480,847.83 0.00 9014 18,496.34Amortized 0.0099 55,385.35UBNA-FLEX ACCT 0.00 50,000.00 13,110.99 0.00 9001 33,686,339.23Fair Value 3,329.1499 32,389,668.38LAIF 0.00 3,500,000.00 4,800,000.00 0.00 9015 0.00Fair Value 0.0099 0.00LAIF 2018 0.00 0.00 0.00 0.00 9002 100.02Amortized 0.0099 100.02UNION MONEY 0.00 0.00 0.00 0.00 9007 56,054,000.00Fair Value 290,000.0099 56,344,000.00SD COUNTY POOL 0.00 0.00 0.00 0.00 9016 225,189.86Amortized 0.0099 36,050.99OWD TRUST & CUS 0.00 1,800,001.13 1,989,140.00 0.00 9010 4,286.19Amortized 0.0099 4,286.21RESERVE-10 COPS 0.00 0.02 0.00 0.00 9011 5,642.81Amortized 0.0099 5,642.81RESERVE 10 BABS 0.00 0.00 0.00 0.00 100,237,282.01Subtotal 222,473.46 99,516,130.511,988,720.00 5,350,753.85 8,283,098.82 0.00 100,237,282.01Total 99,516,130.51222,473.461,988,720.00 5,350,753.85 8,283,098.82 0.00 Portfolio OTAY NL! APData Updated: SET_ME8: 03/17/2022 14:23 Run Date: 03/17/2022 - 14:23 GD (PRF_GD) 7.1.1 Report Ver. 7.3.5 Month End Interest Earnings Sorted by Fund - Fund February 1, 2022 - February 28, 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 1,035,973.062391 1,045,000.00 0.375FAC 09/23/2025 326.56 211.24 537.800.67799 1,035,761.823137EAEX3 2,726,745.732392 2,751,000.00 0.375FAC 09/23/2025 859.68 567.58 1,427.260.68299 2,726,178.153137EAEX3 1,953,712.952394 2,000,000.00 0.500FAC 11/07/2025 833.34 1,047.22 1,880.561.25599 1,952,665.733135G06G3 2,034,424.712393 2,000,000.00 1.625FAC 01/07/2025 2,708.33 -1,006.57 1,701.761.09099 2,035,431.283135G0X24 1,989,073.682395 2,000,000.00 1.080MC1 07/26/2024 1,680.00 353.68 2,033.681.43699 0.003130AQL68 1,153,075.919004 1,153,075.91 0.450PA1 617.75 0.00 617.750.30699 2,633,171.04UNION OPERATING 32,472,827.399001 32,472,827.39 0.278LA1 6,887.85 0.00 6,887.850.26699 33,772,827.39LAIF 56,628,962.319007 56,628,962.31 0.670LA3 29,105.73 0.00 29,105.730.67099 56,628,962.31SD COUNTY POOL 36,050.999016 36,050.99 0.010PA2 1.36 0.00 1.360.00899 225,189.86OWD TRUST & CUS 4,286.219010 4,286.21 0.030PA2 0.10 0.00 0.100.03099 4,286.19RESERVE-10 COPS 5,642.819011 5,642.81 0.030PA2 0.13 0.00 0.130.03099 5,642.81RESERVE 10 BABS 100,096,845.62Subtotal 100,040,775.75 0.560 44,193.981,173.1543,020.83101,020,116.58 100,096,845.62Total 100,040,775.75 0.560 44,193.981,173.1543,020.83101,020,116.58 Portfolio OTAY NL! APData Updated: SET_ME8: 03/17/2022 14:23 Run Date: 03/17/2022 - 14:23 IE (PRF_IE) 7.2.0 Report Ver. 7.3.5 SUMMARY FOR PERIOD 2/17/2022 - 3/23/2022 NET DEMANDS $)&$,4 70*%$)&$,4 505"-$)&$,4 8*3&50 #&/&'*54$003%*/"5034%&/5"-#&/&'*54"%.*/*453"5*0/ $*5:0'$)6-"7*45"#*.0/5)-:4&8&3$)"3(&4 +"/'&# $*5:53&"463&3.&53010-*5"/4&8&3"(&4:45&. 26"35&3-: $*5:53&"463&33&$-"*.&%8"5&3163$)"4& '&# $*5:53&"463&33&$-"*.&%8"5&3163$)"4& +"/ 05":8"5&3%*453*$5#*8&&,-:1":30--%&%6$5*0/ 05":8"5&3%*453*$5#*8&&,-:1":30--%&%6$5*0/ 13&'&33&%#&/&'*5*/463"/$&%&/5"-$0#3"$-"*.4 +"/ 13&'&33&%#&/&'*5*/463"/$&%&/5"-#&/&'*54"%.*/*453"5*0/ '&# 16#-*$&.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&.#*8&&,-:1&34$0/53*#65*0/ 4"/%*&(0$06/5:8"5&3"65)8"5&3%&-*7&3*&4$)"3(&4 +"/ 41&$*"-%*453*$53*4,&.1-0:&&.&%*$"-#&/&'*54 ."3 41&$*"-%*453*$53*4,&.1-0:&&.&%*$"-#&/&'*54 "13 64#"/,/"5*0/"-"440$*"5*0/*%4&3*&4#0/%4 4&.*"//6"- 64#"/,/"5*0/"-"440$*"5*0/4&3*&4"#0/%4 4&.*"//6"- 64#"/,/"5*0/"-"440$*"5*0/4&3*&4##0/%4 4&.*"//6"- 64#"/,/"5*0/"-"440$*"5*0/4&3*&4##0/%4 4&.*"//6"- 64#"/,/"5*0/"-"440$*"5*0/4&3*&4#0/%4 4&.*"//6"- 64#"/,/"5*0/"-"440$*"5*0/4&3*&4#0/%4 4&.*"//6"- 64#"/,/"5*0/"-"440$*"5*0/4&3*&4"#0/%4 4&.*"//6"- 64#"/,/"5*0/"-"440$*"5*0/4&3*&4#0/%4 4&.*"//6"- 6/*0/#"/,#*8&&,-:1":30--5"9&4 6/*0/#"/,#*8&&,-:1":30--5"9&4 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 $IJFG'JOBODJBM0GGJDFS +PTF.BSUJOF[ (FOFSBM.BOBHFS "DDPVOUT1BZBCMF%FNBOE-JTU MEETING DATE: W.O./G.F. NO:DIV. NO. "QSJM 6/*0/#"/,#*8&&,-:1":30--5"9&4 64#"/,$"-$"3%&91&/4&4 .0/5)-: 70:"'*/"/$*"-#*8&&,-:"1-"/ 70:"'*/"/$*"-#*8&&,-:"1-"/ 70:"'*/"/$*"-#*8&&,-:"1-"/ TOTAL CASH DISBURSEMENTS $ 14,503,464.71 RECOMMENDED ACTION: 5IBUUIF#PBSESFDFJWFEUIFBUUBDIFEMJTUPGEFNBOET +C"UUBDINFOU Check Total 32,660.00 42,179.12 CHECK REGISTER Otay Water District Date Range: 2/23/2022 - 3/23/2022 Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount 2057525 03/23/22 15416 24 HOUR ELEVATOR INC 117614 03/01/22 ELEVATOR GENERAL MAINTENANCE 569.68 569.68 2057458 03/09/22 18122 ACC BUSINESS 220444843 02/27/22 INTERNET CIRCUIT SERVICES FY20-22 1,003.27 1,003.27 2057459 03/09/22 17989 ADS CORP 22446.22-0222 02/19/22 SEWER FLOW MONITORING FY22 750.00 750.00 2057380 02/23/22 14462 ALYSON CONSULTING CM20221 01/11/22 CMIS (7/1/21-12/31/21)12,375.00 CM20222 01/11/22 CMIS (7/1/21-12/31/21)9,735.00 CM20223 01/11/22 CMIS (7/1/21-12/31/21)6,270.00 CM20224 01/11/22 CMIS (12/1/21-12/31/21)3,300.00 CM20225 01/11/22 CMIS (12/1/21-12/31/21)980.00 2057435 03/02/22 21159 AMERICAN RAMP COMPANY Ref002655700 02/28/22 UB Refund Cst #0000273922 302.63 302.63 2057381 02/23/22 21142 ANA GARZON 5654022222 02/22/22 CUSTOMER REFUND 88.79 88.79 2057425 03/02/22 21151 ANNA BRYNJULSON Ref002655692 02/28/22 UB Refund Cst #0000266939 52.48 52.48 2057436 03/02/22 08967 ANTHEM EAP 448943122251 02/25/22 EMPLOYEE ASSISTANCE PROGRAM (CY2022)640.14 640.14 2057460 03/09/22 08967 ANTHEM EAP 81637 01/03/22 EMPLOYEE ASSISTANCE PROGRAM (CY2022)320.07 320.07 2057437 03/02/22 17264 ARTIANO SHINOFF ABED 305763 02/22/22 PROF SERV (JAN 2022)47,002.22 47,002.22 2057461 03/09/22 07785 AT&T 000017742115 02/12/22 TELEPHONE SERVICES (1/12/22 - 2/11/22)3,439.57 3,439.57 2057526 03/23/22 20125 AZTEC LANDSCAPING INC J1052 02/28/22 JANITORIAL SERVICES (FEB 2022)8,409.90 8,409.90 2057382 02/23/22 20125 AZTEC LANDSCAPING INC J1023 01/31/22 JANITORIAL SERVICES (JAN 2022)8,409.90 8,409.90 2057383 02/23/22 11519 BACKFLOW APPARATUS & VALVE CO 141860 02/07/22 BACKFLOW GAUGE 3,026.23 3,026.23 2057527 03/23/22 12684 BALDWIN & SONS LLC WOD0740-090204 03/07/22 WORK ORDER REFUND D0740-090204 31,600.20 WOD0740-090251 03/07/22 WORK ORDER REFUND D0740-090251 10,578.92 2057528 03/23/22 12684 BALDWIN & SONS LLC WOD0740-090205 03/07/22 WORK ORDER REFUND D0740-090205 21,473.10 21,473.10 2057462 03/09/22 06970 BATTIKHA, SAM SB030222 03/02/22 TUITION REIMBURSEMENT 331.00 331.00 2057438 03/02/22 21157 BFTP DEVELOPMENT CO LLC Ref002655698 02/28/22 UB Refund Cst #0000268693 1,331.82 1,331.82 2057426 03/02/22 21147 BRAD BICKEL Ref002655688 02/28/22 UB Refund Cst #0000147261 74.43 74.43 2057529 03/23/22 21025 BROWN FIELD TECHNOLOGY PARK WOD1079-090446 03/07/22 WORK ORDER REFUND D1079-090446 3,606.77 3,606.77 2057439 03/02/22 08156 BROWNSTEIN HYATT FARBER 878783 02/19/22 LEGISLATIVE ADVOCACY CONSULTING SERV 3,067.83 3,067.83 Page 1 of 10 3,824.00 2,585.00 38,309.46 9,139.37 2057463 03/09/22 18154 BUSINESSOLVER.COM INC 0076491 02/23/22 ACA REPORTING SERVICES (FEB 2022)472.16 472.16 2057464 03/09/22 20374 CALBURTON INC CAL684 02/10/22 UTILITY LOCATING SERVICES (JAN 2022)12,190.00 12,190.00 2057384 02/23/22 00192 CALIFORNIA WATER ENVIRONMENT 59860021722 02/17/22 CWEA MEMBERSHIP 96.00 96.00 2057465 03/09/22 15177 CAROLLO ENGINEERS INC FB20220 02/15/22 DISINFECTION SYS IMPROVE (JAN 2022)8,409.25 8,409.25 2057504 03/16/22 20951 CIRCUIT BREAKER SALES LLC 111-22072 01/31/22 980-2 CIRCUIT BREAKERS 32,090.00 32,090.00 2057530 03/23/22 00234 CITY TREASURER 1000323238 02/15/22 TREATED WATER (APR 2021 - JUNE 2021)1,507.06 1,507.06 2057531 03/23/22 04119 CLARKSON LAB & SUPPLY INC 24990 02/28/22 BACTERIOLOGICAL TESTING (2/16/22-2/19/22)1,036.00 24992 02/28/22 BACTERIOLOGICAL TESTING (2/23/22-2/24/22)556.00 24982 02/28/22 BACTERIOLOGICAL TESTING (2/7/22-2/8/22)504.00 24987 02/28/22 BACTERIOLOGICAL TESTING (2/14/22-2/15/22)456.00 24991 02/28/22 BACTERIOLOGICAL TESTING (2/23/22)324.00 24984 02/28/22 BACTERIOLOGICAL TESTING (2/9/22)282.00 24986 02/28/22 BACTERIOLOGICAL TESTING (2/10/22)216.00 24985 02/28/22 BACTERIOLOGICAL TESTING (2/9/22)162.00 24989 02/28/22 BACTERIOLOGICAL TESTING (2/16/22)126.00 24125 02/28/22 BACTERIOLOGICAL TESTING (2/16/22)126.00 24983 02/28/22 BACTERIOLOGICAL TESTING (2/9/22)36.00 2057385 02/23/22 04119 CLARKSON LAB & SUPPLY INC 24535 01/31/22 BACTERIOLOGICAL TESTING (1/18/22-1/23/22)1,349.00 24534 01/31/22 BACTERIOLOGICAL TESTING (1/19/22)252.00 24533 01/31/22 BACTERIOLOGICAL TESTING (1/25/22)216.00 24536 01/31/22 BACTERIOLOGICAL TESTING (1/18/22)216.00 24539 01/31/22 BACTERIOLOGICAL TESTING (1/12/22)174.00 24537 01/31/22 BACTERIOLOGICAL TESTING (1/13/22)126.00 24538 01/31/22 BACTERIOLOGICAL TESTING (1/13/22)126.00 24540 01/31/22 BACTERIOLOGICAL TESTING (1/12/22)126.00 2057505 03/16/22 21170 CLAYCO CONSTRUCTION Ref002655818 03/14/22 UB Refund Cst #0000268007 1,764.28 1,764.28 2057386 02/23/22 16030 CORA CONSTRUCTORS INC 702042022 01/27/22 1090-1 PS RENOVATION (JAN 2022)177,319.88 177,319.88 2057466 03/09/22 18331 CORE & MAIN LP Q374081 02/18/22 INVENTORY 23,971.15 Q299764 02/10/22 INVENTORY 10,579.98 Q370382 02/18/22 INVENTORY 2,346.80 Q370395 02/18/22 INVENTORY 1,411.53 2057532 03/23/22 18331 CORE & MAIN LP Q411934 02/24/22 INVENTORY 3,680.74 Q437973 03/02/22 INVENTORY 2,761.64 Q437655 03/02/22 INVENTORY 2,696.99 2057387 02/23/22 18331 CORE & MAIN LP Q271305 01/27/22 INVENTORY 11,572.35 Page 2 of 10 25,173.25 4,930.00 2,415.00 6,364.80 1,242.70 824.33 Q198462 01/28/22 INVENTORY 5,570.68 Q097498 01/27/22 INVENTORY 4,436.20 Q281097 01/27/22 INVENTORY 3,594.02 2057388 02/23/22 15049 CORELOGIC SOLUTIONS LLC 82116562 01/31/22 DATA SERVICES 540.75 540.75 2057440 03/02/22 15049 CORELOGIC SOLUTIONS LLC 82117445 01/31/22 DATA SERVICES 623.15 623.15 2057533 03/23/22 15049 CORELOGIC SOLUTIONS LLC 82123481 02/28/22 DATA SERVICES 540.75 540.75 2057389 02/23/22 00099 COUNTY OF SAN DIEGO DWPARMWD122 02/07/22 COUNTY EXCAVATION PERMITS (JAN 2022)166.00 166.00 2057467 03/09/22 00184 COUNTY OF SAN DIEGO 193E636180222 02/14/22 DEVELOPER PLAN CHECK (2/14/22)2,295.00 193E636200222 02/17/22 DEVELOPER PLAN CHECK (2/17/22)2,295.00 193E60250012 02/04/22 SHUT DOWN TEST (12/17/21)340.00 2057506 03/16/22 00184 COUNTY OF SAN DIEGO 2003193E63627 03/08/22 DEVELOPER PLAN CHECK (3/22)2,295.00 2,295.00 2057507 03/16/22 00184 COUNTY OF SAN DIEGO 5731021422 02/14/22 UPFP PERMIT RENEWAL (4/30/21-4/30/22)1,821.00 2818021422 03/14/22 UPFP PERMIT RENEWAL (4/30/22-4/30/23)594.00 2057534 03/23/22 00184 COUNTY OF SAN DIEGO 193E636280322 03/11/22 DEVELOPER PLAN CHECK (3/11/22)2,295.00 193E635920322 03/16/22 DEVELOPER PLAN CHECK (3/16/22)2,295.00 193E636180222 03/04/22 DEVELOPER INSPECTION (2/14/22-2/15/22)348.50 193E602340222 03/04/22 SHUT DOWN TEST (2/15/22)340.00 193E602400222 03/04/22 SHUT DOWN TEST (2/4/22)255.00 193E634510222 03/04/22 SHUT DOWN TEST (2/4/22)255.00 193E625850222 03/04/22 SHUT DOWN TEST (2/9/22)255.00 193E633800222 03/04/22 DEVELOPER INSPECTION (2/3/22;2/18/22)96.90 193E635920222 03/04/22 DEVELOPER INSPECTION (2/14/22)76.50 193E633720222 03/04/22 DEVELOPER INSPECTION (2/9/22-2/10/22)54.40 193E636200222 03/04/22 DEVELOPER INSPECTION (2/16/22)42.50 193E633790222 03/04/22 DEVELOPER INSPECTION (2/10/22)42.50 193E633970222 03/04/22 DEVELOPER INSPECTION (2/3/22)8.50 2057390 02/23/22 00184 COUNTY OF SAN DIEGO 193E602090122 02/04/22 SHUT DOWN TEST (1/5/22)382.50 193E636130122 02/04/22 DEVELOPER INSPECTION (JAN 2022)382.50 193E602140122 02/04/22 SHUT DOWN TEST (1/13/22)170.00 193E602360122 02/17/22 SHUT DOWN TEST (1/13/22)170.00 193E633790122 02/04/22 DEVELOPER INSPECTION (JAN 2022)91.80 193E602350122 02/04/22 SHUT DOWN TEST (1/3/22)45.90 2057391 02/23/22 02122 COUNTY OF SAN DIEGO 12142012RI2022 02/17/22 PERMIT FEES # 01214 (MAR 2022-MAR 2023)547.00 3583277 02/10/22 PERMIT FEES # 003757 (MAR 2021-APR 2022)277.33 2057535 03/23/22 04497 D & R CRANE INC 16302 02/23/22 CRANE MAINTENANCE 420.00 420.00Page 3 of 10 3,285.64 1,322.26 17,346.84 7,519.40 12,576.84 297.59 2057535 03/23/22 04497 D & R CRANE INC 16302 02/23/22 CRANE MAINTENANCE 420.00 420.00 2057468 03/09/22 11797 D&H WATER SYSTEMS INC I2022-0202 02/14/22 CL2 GAS PM 3,781.17 3,781.17 2057508 03/16/22 11797 D&H WATER SYSTEMS INC 2022-0236 02/16/22 CL2 GAS PM 2,876.75 2022-0247 02/17/22 CL2 GAS PM 408.89 2057536 03/23/22 11797 D&H WATER SYSTEMS INC 2022-0321 03/07/22 ACUTEC 35 & FORCE FLOW 2,121.10 2,121.10 2057469 03/09/22 17612 ECS IMAGING INC 16709 02/19/22 DOCUMENT CAPTURE SFTWRE LIC RENEWAL 4,455.00 4,455.00 2057499 03/16/22 21166 ED PANNEK Ref002655813 03/14/22 UB Refund Cst #0000027778 129.33 129.33 2057470 03/09/22 02447 EDCO DISPOSAL CORPORATION 5458022822 02/28/22 RECYCLED WASTE SERVICE FY22 149.69 149.69 2057392 02/23/22 21145 ELITE ATHLETE SERVICES LLC WOD0740 11/23/21 WORK ORDER REFUND D0740-090424 152.22 152.22 2057471 03/09/22 20794 ENTISYS 360 176782 02/14/22 MS SOFTWARE MAINTENANCE RENEWAL 2,842.62 2,842.62 2057393 02/23/22 21141 EUN BONG YU 3824022222 02/22/22 CUSTOMER REFUND 66.26 66.26 2057472 03/09/22 20511 EYEMED (FIDELITY)165160060 02/20/22 VISION BENEFITS ADMINISTRATION (CY2022)1,305.79 165157446 02/20/22 VISION BENEFITS ADMINISTRATION (CY2022)16.47 2057500 03/16/22 21167 FELIX ROJAS Ref002655815 03/14/22 UB Refund Cst #0000188168 16.43 16.43 2057537 03/23/22 03546 FERGUSON WATERWORKS # 1083 0791132 02/24/22 INVENTORY 7,441.00 0790522 03/01/22 INVENTORY 4,699.62 0792128 03/07/22 INVENTORY 2,615.31 0784992-2 02/23/22 INVENTORY 2,590.91 2057473 03/09/22 03546 FERGUSON WATERWORKS # 1083 0790039 02/16/22 INVENTORY 6,462.28 0778238-4 02/16/22 INVENTORY 1,057.12 2057394 02/23/22 03546 FERGUSON WATERWORKS # 1083 0787033-1 01/27/22 INVENTORY 9,096.26 0783733 01/25/22 INVENTORY 1,627.95 0778238-3 01/25/22 INVENTORY 1,136.41 0787033 01/25/22 INVENTORY 505.35 0784992-1 01/27/22 INVENTORY 210.87 2057474 03/09/22 17465 FINANCIAL CREDIT NETWORK INC 010122013122 01/31/22 COLLECTION SERVICES (JAN 2022)6,686.06 6,686.06 2057395 02/23/22 17888 FIRST AMERICAN DATA TREE LLC 9003400122 01/31/22 DOCUMENT SERVICE (MONTHLY)99.00 99.00 2057538 03/23/22 17888 FIRST AMERICAN DATA TREE LLC 9003400222 02/28/22 DOCUMENT SERVICE (MONTHLY)99.00 99.00 2057396 02/23/22 02591 FITNESS TECH 12049 02/01/22 GYM EQUIPMENT MAINTENANCE 135.00 135.00 2057475 03/09/22 11962 FLEETWASH INC 2441309 02/11/22 FLEET WASH SERVICES FY 22 210.06 2445670 02/18/22 FLEET WASH SERVICES FY 22 87.53 Page 4 of 10 4,428.63 4,315.65 4,104.23 2057397 02/23/22 11962 FLEETWASH INC 2425152 01/21/22 FLEET WASH SERVICES FY 22 113.79 113.79 2057441 03/02/22 11962 FLEETWASH INC 2433918 02/04/22 FLEET WASH SERVICES FY 22 268.13 268.13 2057539 03/23/22 11962 FLEETWASH INC 2452973 02/25/22 FLEET WASH SERVICES FY 22 87.53 87.53 2057509 03/16/22 20481 FRANCHISE TAX BOARD Ben2656758 03/17/22 BI-WEEKLY PAYROLL DEDUCTION 25.00 25.00 2057442 03/02/22 20481 FRANCHISE TAX BOARD Ben2655730 03/03/22 BI-WEEKLY PAYROLL DEDUCTION 25.00 25.00 2057510 03/16/22 21053 FRANCHISE TAX BOARD Ben2656756 03/17/22 BI WEEKLY PAYROLL DEDUCTION 250.00 250.00 2057443 03/02/22 21053 FRANCHISE TAX BOARD Ben2655728 03/03/22 BI WEEKLY PAYROLL DEDUCTION 250.00 250.00 2057540 03/23/22 03513 FRANKLINCOVEY CLIENT SALES INC IS10608335 02/26/22 LEADERSHIP/MANAGEMENT TRAINING 15,972.00 15,972.00 2057541 03/23/22 03094 FULLCOURT PRESS 38656 02/16/22 PRINTING QUARTERLY NEWSLETTERS FY22 3,186.71 3,186.71 2057398 02/23/22 21020 GEOGRAPHIC INFO SERVICE INC 9107 01/31/22 GIS SUPPORT BLOCK 662.76 662.76 2057542 03/23/22 03537 GHA TECHNOLOGIES INC 101199046 03/03/22 CRADLEPOINT LICENSE 1,549.27 1,549.27 2057444 03/02/22 21162 GRABLE, PETER PG022822 02/28/22 TUITION REIMBURSEMENT 120.00 120.00 2057543 03/23/22 00174 HACH COMPANY 12907981 02/28/22 HACH 5500AMC MONOCHLORAMINE 792.07 792.07 2057399 02/23/22 19978 HASA INC.797877 02/07/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 2,297.55 797417 02/03/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 619.64 796519 01/27/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 543.10 496123 01/26/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 334.12 797418 02/03/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 269.73 797366 02/02/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 212.62 798231 02/09/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 151.87 2057476 03/09/22 19978 HASA INC.799162 02/17/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 1,421.54 798803 02/14/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 1,014.52 798379 02/10/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 971.99 798378 02/10/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 537.03 799123 02/16/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 200.47 798377 02/10/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 170.10 2057544 03/23/22 19978 HASA INC.800118 02/24/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 1,700.99 800979 03/03/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 814.04 800120 02/24/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 704.69 800980 03/03/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 443.47 800938 03/02/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 324.40 800978 03/02/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 116.64 2057445 03/02/22 21155 HAZARD CONSTRUCTION COMPANY Ref002655696 02/28/22 UB Refund Cst #0000268552 1,537.19 1,537.19 2057446 03/02/22 21156 HAZARD CONSTRUCTION COMPANY Ref002655697 02/28/22 UB Refund Cst #0000268553 1,537.19 1,537.19 Page 5 of 10 107.68 18,502.63 18,656.84 2057446 03/02/22 21156 HAZARD CONSTRUCTION COMPANY Ref002655697 02/28/22 UB Refund Cst #0000268553 1,537.19 1,537.19 2057511 03/16/22 18436 HAZEN AND SAWYER DPC 200940064 02/18/22 2022 FACILITIES MASTER PLAN (JAN 2022)30,705.00 30,705.00 2057477 03/09/22 18436 HAZEN AND SAWYER DPC 200940055 02/17/22 ASSET MANAGEMENT SVCS (JAN 2022)5,835.00 5,835.00 2057400 02/23/22 18436 HAZEN AND SAWYER DPC 200940054 01/24/22 ASSET MANAGEMENT SVCS (DEC 2021)4,818.75 4,818.75 2057401 02/23/22 02008 HELIX ENVIRONMENTAL 111598 01/27/22 ENVIRONMENTAL SVCS (JAN 2022)1,659.50 1,659.50 2057545 03/23/22 02008 HELIX ENVIRONMENTAL 112152 02/25/22 ENVIRONMENTAL SVCS (FEB 2022)2,303.50 2,303.50 2057402 02/23/22 00062 HELIX WATER DISTRICT 542832922 02/09/22 WATER USAGE (12/8/21-2/7/22)53.84 433002922 02/09/22 WATER USAGE (12/8/21-2/4/22)53.84 2057478 03/09/22 20950 HOCH CONSULTING APC 20220023 02/18/22 PROJECT FUNDING SERV (OCT 2021)13,115.00 13,115.00 2057512 03/16/22 13349 HUNSAKER & ASSOCIATES 2022010124 02/21/22 LAND SURVEYING SERV (11/27/21-1/28/22)4,404.66 4,404.66 2057447 03/02/22 21153 INCOME PROPERTY ADVISORS Ref002655694 02/28/22 UB Refund Cst #0000267274 34.15 34.15 2057479 03/09/22 08969 INFOSEND INC 207206 02/08/22 BILL PROCESSING SERVICES FY22 1,497.25 1,497.25 2057403 02/23/22 08969 INFOSEND INC 206574 01/31/22 BILL PROCESSING SERVICES FY22 11,994.66 206573 01/31/22 BILL PROCESSING SERVICES FY22 3,848.19 206959 02/02/22 BILL PROCESSING SERVICES FY22 2,659.78 2057546 03/23/22 08969 INFOSEND INC 208487 02/28/22 BILL PROCESSING SERVICES FY22 12,114.05 208486 02/28/22 BILL PROCESSING SERVICES FY22 3,832.73 208851 03/01/22 BILL PROCESSING SERVICES FY22 2,710.06 2057404 02/23/22 18678 INNOVYZE INC 310-0003670 01/31/22 MODELING SOFTWARE UPGRADE & SUPPORT 22,907.22 22,907.22 2057405 02/23/22 15368 INTEGRITY MUNICIPAL SYSTEMS 10951 02/01/22 SCRUBBER ANNUAL SERVICE 2,640.00 2,640.00 2057480 03/09/22 20752 IWG TOWERS ASSETS II LLC 409214573 03/01/22 ANTENNA SUBLEASE FY22 2,034.00 2,034.00 2057501 03/16/22 21169 JAMES MCGRATH Ref002655817 03/14/22 UB Refund Cst #0000267686 18.12 18.12 2057406 02/23/22 10563 JCI JONES CHEMICALS INC 878289 02/03/22 CHLORINE GAS 4,063.23 4,063.23 2057547 03/23/22 10563 JCI JONES CHEMICALS INC 880442 03/02/22 CHLORINE GAS 4,425.06 4,425.06 2057407 02/23/22 20989 JENNETTE COMPANY INC 101312022 01/31/22 520 RES STATIC MIXER PROJ (JAN 2022)21,912.00 21,912.00 2057548 03/23/22 20989 JENNETTE COMPANY INC 102282022 02/28/22 ZONE IMPROVE PHASE II (FEB 2022)16,145.25 16,145.25 2057448 03/02/22 21152 JENSEN LANDSCAPE &CONSTRUCTION Ref002655693 02/28/22 UB Refund Cst #0000267273 1,670.37 1,670.37 2057502 03/16/22 21168 JEREMY JESTER Ref002655816 03/14/22 UB Refund Cst #0000192648 50.00 50.00 2057427 03/02/22 21160 JOHN MAUK Ref002655701 02/28/22 UB Refund Cst #0000274710 135.38 135.38 2057408 02/23/22 20835 KENNY CONSULTING SERV INC KCS0724311 02/01/22 IN-PLANT INSPECTION SERV (JAN 2022)12,930.92 12,930.92 2057549 03/23/22 20835 KENNY CONSULTING SERV INC KCS0724317 03/02/22 IN-PLANT INSPECTION SERV (FEB 2022)3,906.16 3,906.16 Page 6 of 10 84,812.06 29,228.50 19,378.00 6,956.77 2057481 03/09/22 05840 KIRK PAVING INC 21-115-21 02/01/22 AS-NEEDED PAVING SERVICE FY22 43,833.75 21-115-22 02/02/22 AS-NEEDED PAVING SERVICE FY22 40,978.31 2057550 03/23/22 05840 KIRK PAVING INC 21-115-224 02/24/22 AS-NEEDED PAVING SERVICE FY22 3,510.63 3,510.63 2057503 03/16/22 21171 MAHMOUD ELNAYAL Ref002655819 03/14/22 UB Refund Cst #0000275155 79.15 79.15 2057449 03/02/22 10512 MAIL MANAGEMENT GROUP INC OWD-12711 02/02/22 AS-NEEDED PRINTING & MAILING SERV FY22 807.62 807.62 2057428 03/02/22 21150 MARIA MENDEZ Ref002655691 02/28/22 UB Refund Cst #0000224563 6.06 6.06 2057409 02/23/22 15599 MARTINEZ, JOSE 120721120921 02/18/22 EXPENSE REIMBURSEMENT 795.20 795.20 2057450 03/02/22 15599 MARTINEZ, JOSE 113021120221 02/28/22 MILEAGE REIMBURSEMENT 212.24 212.24 2057482 03/09/22 01824 MERKEL & ASSOCIATES INC 22021001 02/10/22 SMA HABITAT MANAGEMENT (11/1/21-1/31/22)14,364.58 14,364.58 2057451 03/02/22 16613 MISSION RESOURCE CONSERVATION 432 01/31/22 OUTSIDE SERVICES - HWUE 172.50 172.50 2057410 02/23/22 19765 MORAES/PHAM & ASSOCIATES 2010513 01/31/22 ELECTRICAL ENGINEERING SVCS (JUNE 2021)3,600.00 3,600.00 2057411 02/23/22 19824 MURRAYSMITH INC 202947007 01/27/22 HYDROPNEUMATIC PS REPLACE (DEC 2021)21,282.00 21320106 01/26/22 PLAN CHECK SERVICES (DEC 2021)7,946.50 2057551 03/23/22 19824 MURRAYSMITH INC 21320107 03/01/22 PLAN CHECK SERVICES (JAN 2022)8,171.00 8,171.00 2057552 03/23/22 17261 NATURESCAPE SERVICES 5166 01/31/22 LANDSCAPE MAINTENANCE SERV (JAN 2022)9,689.00 5167 02/28/22 LANDSCAPE MAINTENANCE SERV (FEB 2022)9,689.00 2057513 03/16/22 07488 NEWMAN, DAMON DN031622 03/16/22 TUITION REIMBURSEMENT 295.00 295.00 2057452 03/02/22 07488 NEWMAN, DAMON DN021622 02/16/22 TUITION REIMBURSEMENT 141.53 141.53 2057553 03/23/22 07488 NEWMAN, DAMON DN031722 03/17/22 TUITION REIMBURSEMENT 255.00 255.00 2057483 03/09/22 00761 NINYO & MOORE GEOTECHNICAL 257872 02/08/22 GEOTECHNICAL SERVICES (DEC 2021)2,224.50 2,224.50 2057514 03/16/22 03517 NOBEL SYSTEMS 15336 01/31/22 CONSULTING SERVICES 9,480.00 9,480.00 2057412 02/23/22 18332 NV5 INC 234784 09/30/21 ENGINEERING DESIGN (AUG 2021)18,281.25 18,281.25 2057484 03/09/22 18332 NV5 INC 255059 02/04/22 ENGINEERING DESIGN (DEC 2021)23,530.00 23,530.00 2057485 03/09/22 18332 NV5 INC 255029 02/11/22 ENGINEERING DESIGN (NOV 2021)155.00 155.00 2057554 03/23/22 21185 OLTMANS CONSTRUCTION WOD1094-060278 03/07/22 WORK ORDER REFUND D1094-060278 5,771.22 5,771.22 2057486 03/09/22 01002 PACIFIC PIPELINE SUPPLY INC S100436566.001 02/17/22 INVENTORY 5,382.12 S100436608.001 02/17/22 INVENTORY 1,574.65 2057413 02/23/22 01002 PACIFIC PIPELINE SUPPLY INC S100435757.001 01/27/22 INVENTORY 12,593.82 12,593.82 2057453 03/02/22 19310 PALM LAUNDRY INC 122 03/01/22 TOWEL LAUNDRY SERVICE FY22 60.00 60.00 2057515 03/16/22 14444 PATHFINDER RAINTREE 2 Ref002655814 03/14/22 UB Refund Cst #0000186397 14.04 14.04 Page 7 of 10 147,665.10 94,844.57 1,230.60 611.80 2057515 03/16/22 14444 PATHFINDER RAINTREE 2 Ref002655814 03/14/22 UB Refund Cst #0000186397 14.04 14.04 2057487 03/09/22 00137 PETTY CASH CUSTODIAN 030722 03/07/22 PETTY CASH REIMBURSEMENT 1,498.80 1,498.80 2057454 03/02/22 06419 PLANT SOUP INC 1374 01/24/22 OUTSIDE SERVICES 1,183.00 1,183.00 2057555 03/23/22 07602 PLUMBERS DEPOT INC PD-50457 03/02/22 SEWER EASEMENT MACHINE CP#9 FY22 67,685.44 67,685.44 2057556 03/23/22 03613 PSOMAS 181280 02/24/22 LAND SURVEYING SERVICES (JAN 2022)8,870.00 8,870.00 2057516 03/16/22 20861 RAFTELIS 22673 03/10/22 WATER COST OF SERVICE STUDY 9,657.50 9,657.50 2057557 03/23/22 21186 RENE TREVINO 9110032322 03/23/22 CUSTOMER REFUND 781.00 781.00 2057429 03/02/22 21146 RENEE ENGEL Ref002655687 02/28/22 UB Refund Cst #0000021261 85.57 85.57 2057414 02/23/22 15647 RFYEAGER ENGINEERING LLC 22027 02/07/22 CORROSION SERVICES (JAN 2022)9,125.00 9,125.00 2057558 03/23/22 15647 RFYEAGER ENGINEERING LLC 22045 03/07/22 CORROSION SERVICES (FEB 2022)5,255.00 5,255.00 2057415 02/23/22 02923 RICHARD BRADY & ASSOCIATES 2112125 01/28/22 DESIGN JAMUL PS (DEC 2021)11,184.25 11,184.25 2057517 03/16/22 02923 RICHARD BRADY & ASSOCIATES 2201111 02/16/22 DESIGN JAMUL PS (JAN 2022)6,341.25 6,341.25 2057430 03/02/22 21149 RODOLFO BATIZ Ref002655690 02/28/22 UB Refund Cst #0000224005 174.16 174.16 2057559 03/23/22 19377 SAGEVIEW ADVISORY GROUP LLC 202210036 03/17/22 INVEST ADVISOR SVCS - DEFERRED COMP 5,750.00 5,750.00 2057416 02/23/22 21139 SAN DIEGO CARBURATOR 10422 02/15/22 CARBURETOR REBUILD 400.00 400.00 2057488 03/09/22 02586 SAN DIEGO COUNTY ASSESSOR 202200169 03/01/22 ASSESSOR DATA (MONTHLY)125.00 125.00 2057455 03/02/22 00121 SAN DIEGO GAS & ELECTRIC 022222 02/22/22 UTILITY EXPENSES (MONTHLY)42,297.89 42,297.89 2057489 03/09/22 00121 SAN DIEGO GAS & ELECTRIC 030222 03/02/22 UTILITY EXPENSES (MONTHLY)86,986.34 030422 03/04/22 UTILITY EXPENSES (MONTHLY)59,620.45 022822 02/28/22 UTILITY EXPENSES (MONTHLY)898.65 022422 02/24/22 UTILITY EXPENSES (MONTHLY)159.66 2057518 03/16/22 00121 SAN DIEGO GAS & ELECTRIC 030922 03/09/22 UTILITY EXPENSES (MONTHLY)93,957.74 030322 03/03/22 UTILITY EXPENSES (MONTHLY)853.50 030322A 03/03/22 UTILITY EXPENSES (MONTHLY)33.33 2057560 03/23/22 00121 SAN DIEGO GAS & ELECTRIC 031122 03/11/22 UTILITY EXPENSES (MONTHLY)1,217.41 031422 03/14/22 UTILITY EXPENSES (MONTHLY)13.19 2057561 03/23/22 17937 SANDAG WOD0930-090199 03/07/22 WORK ORDER REFUND D0930-090199 4,392.01 4,392.01 2057417 02/23/22 17840 SANGIS / COUNTY OF SAN DIEGO SAN948 01/26/22 IMAGERY CONSORTIUM SUBSCRIPTION SVCS 19,669.69 19,669.69 2057490 03/09/22 19943 SCHWEGEL, DUSTIN DS030922 03/09/22 TUITION REIMBURSEMENT 448.80 DS030822 03/08/22 TUITION REIMBURSEMENT 163.00 2057418 02/23/22 21143 SCOTT SCHAFFER 3016022222 02/22/22 CUSTOMER REFUND 1,860.32 1,860.32 Page 8 of 10 32,358.30 5,494.79 864.02 868.97 754.04 754.04 9,644.00 2057419 02/23/22 05512 SD COUNTY VECTOR CONTROL PROG SD100372022 01/27/22 OTHER AGENCY FEES 688.46 688.46 2057491 03/09/22 19603 SECURITAS SECURITY SVC USA INC W7016809 02/28/22 ON-DEMAND SECURITY RESPONSE 215.00 215.00 2057456 03/02/22 21115 SONIA RIVAS Ben2655726 03/03/22 BI-WEEKLY PAYROLL DEDUCTION 553.85 553.85 2057519 03/16/22 21115 SONIA RIVAS Ben2656754 03/17/22 BI-WEEKLY PAYROLL DEDUCTION 553.85 553.85 2057492 03/09/22 01460 STATE WATER RESOURCES LW1035467 12/22/21 WATER SYSTEM FEES (7/1/2021-6/30/2022)121,619.28 121,619.28 2057431 03/02/22 21161 STEPHAN HOFFMANN Ref002655702 02/28/22 UB Refund Cst #0000275209 100.00 100.00 2057493 03/09/22 15974 SUN LIFE FINANCIAL 38166020122 02/01/22 LIFE INSURANCE AND STD/LTD (FEB 2022)10,783.27 10,783.27 2057562 03/23/22 10339 SUPREME OIL COMPANY 411771 02/24/22 UNLEADED & DIESEL FUEL 12,988.59 411782 02/22/22 RED DYED DIESEL FUEL 11,177.82 411857 02/24/22 UNLEADED & DIESEL FUEL 8,191.89 2057520 03/16/22 18376 SVPR COMMUNICATIONS LLC 1490 02/28/22 COMMUNICATIONS CONSULTING SERV 2,500.00 2,500.00 2057432 03/02/22 21148 TAKEENYA DANIELS Ref002655689 02/28/22 UB Refund Cst #0000188437 352.18 352.18 2057494 03/09/22 03236 THE CENTRE FOR ORGANIZATION TCFOE3760 02/08/22 MANAGEMENT TRAINING (SPRING 2022)3,100.00 3,100.00 2057433 03/02/22 21154 TINE HOWARD Ref002655695 02/28/22 UB Refund Cst #0000268017 68.03 68.03 2057563 03/23/22 20837 UGSI CHEMICAL FEED INC 0022002 03/04/22 ENCORE700 PUMP PARTS 369.43 369.43 2057495 03/09/22 20837 UGSI CHEMICAL FEED INC 0021679 02/10/22 ENCORE700 PUMP PARTS 4,592.14 0021831 02/21/22 ENCORE700 PUMP PARTS 902.65 2057420 02/23/22 00427 UNDERGROUND SERVICE ALERT 120220499 02/01/22 UNDERGROUND ALERTS (MONTHLY)622.15 dsb20210230 02/01/22 DIG SAFE BOARD FEES (MONTHLY)241.87 2057564 03/23/22 00427 UNDERGROUND SERVICE ALERT 220220502 03/01/22 UNDERGROUND ALERTS (MONTHLY)627.10 dsb20210532 03/01/22 DIG SAFE BOARD FEES (MONTHLY)241.87 2057565 03/23/22 15675 UNITED SITE SERVICES INC 114-12919095 03/09/22 PORT. TOILET RENTAL 617.40 114-12919060 03/09/22 PORT. TOILET RENTAL 136.64 2057421 02/23/22 15675 UNITED SITE SERVICES INC 114-12844202 02/10/22 PORT. TOILET RENTAL 617.40 114-12844188 02/10/22 PORT. TOILET RENTAL 136.64 2057521 03/16/22 18517 UTILITY SERVICES ASSOC LLC 126461 02/28/22 LEAK DETECTION SERVICES 2022 24,631.55 24,631.55 2057422 02/23/22 08028 VALLEY CONSTRUCTION MANAGEMENT SD032202 02/06/22 CMIS (JAN 2022)7,260.00 SD222107 02/06/22 CMIS (JAN 2022)2,384.00 2057566 03/23/22 18900 VILLAGE II TOWN CENTER LLC WOD0933-060242 03/07/22 WORK ORDER REFUND D0933-060242 6,130.60 Page 9 of 10 7,062.08 11,053.49 9,864.00 5,480.00 WOD0933-090211 03/07/22 WORK ORDER REFUND D0933-090211 931.48 2057522 03/16/22 20909 VOLT WORKFORCE SOLUTIONS 45040424 03/06/22 WATER INTERNS 1,183.26 1,183.26 2057567 03/23/22 20909 VOLT WORKFORCE SOLUTIONS 45056283 03/13/22 WATER INTERNS 426.40 426.40 2057568 03/23/22 15807 WATCHLIGHT CORPORATION 754112 03/15/22 SECURITY ALARM MONITORING FY22 2,576.92 2,576.92 2057457 03/02/22 15807 WATCHLIGHT CORPORATION 750245 02/15/22 SECURITY ALARM MONITORING FY22 2,576.92 2,576.92 2057523 03/16/22 15807 WATCHLIGHT CORPORATION 748914 02/02/22 REPLACE ALARM SYSTEM - 1200-1 RES 9,308.33 748932 02/03/22 REPLACE ALARM SYSTEM - 1200-1 RES 1,745.16 2057423 02/23/22 15726 WATER SYSTEMS CONSULTING INC 6410 01/31/22 HYDRAULIC MODELING (JAN 2022)2,216.25 2,216.25 2057569 03/23/22 15726 WATER SYSTEMS CONSULTING INC 6471 02/28/22 HYDRAULIC MODELING (FEB 2022)4,805.00 4,805.00 2057496 03/09/22 20739 WATERTALENT LLC 3070 02/08/22 TEMPORARY EMPLOYEE SERVICES FY22 3,288.00 3073 02/14/22 TEMPORARY EMPLOYEE SERVICES FY22 3,288.00 3087 02/22/22 TEMPORARY EMPLOYEE SERVICES FY22 3,288.00 2057570 03/23/22 20739 WATERTALENT LLC 3103 02/28/22 TEMPORARY EMPLOYEE SERVICES FY22 3,288.00 3119 03/07/22 TEMPORARY EMPLOYEE SERVICES FY22 2,192.00 2057497 03/09/22 01343 WE GOT YA PEST CONTROL INC 50167 01/07/22 AS-NEEDED BEE REMOVAL 125.00 125.00 2057498 03/09/22 03637 WEST COAST SAFETY 3670879 02/16/22 SAFETY EQUIPMENT 8,895.84 8,895.84 2057424 02/23/22 19866 WOOD RODGERS INC 154832 01/31/22 HYDRAULIC MODELING (JAN 2022)342.50 2057524 03/16/22 08023 WORKTERRA 012275 02/28/22 03/02/22 21158 YASER ASDEFO Ref002655699 02/28/22 342.50 EMPLOYEE BENEFITS 847.50 847.50 191 Checks UB Refund Cst #0000272742 29.52 29.52 Amount Pd Total:1,768,106.77 Check Grand Total:1,768,106.77 2057434 Page 10 of 10