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HomeMy WebLinkAbout05-05-21 Board Packet OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY BOARD OF DIRECTORS MEETING BY TELECONFERENCE 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY May 5, 2021 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. APPROVE THE MINUTES OF THE REGULAR MEETING OF APRIL 7, 2021 5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURIS- DICTION BUT NOT AN ITEM ON TODAY'S AGENDA This meeting is being held via teleconference. Members of the public may submit their comments on agendized and non-agendized items by either of the following two meth- ods: a) No later than a half hour before the start of the meeting, complete and submit a Request to Speak Form. Your request to speak will be acknowledged during the “Public Participation” portion of the meeting when the board will hear your public comment. When called to speak, please state your Name and the City in which you reside. You will be provided three minutes to speak. OR b) No later than a half hour before the start of the meeting, email your comment to BoardSecretary@otaywater.gov and it will be read aloud during the “Public Partici- pation” 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 District’s meeting is live streamed. Information on how to watch and listen to the Dis- trict’s meeting can be found at this link: https://otaywater.gov/board-of-directors/agenda- and-minutes/board-agenda/ ACTION ITEM 6. BOARD a) APPOINTMENT OF DISTRICT SECRETARY (CALIFORNIA WATER CODE § 71340; OTAY WATER DISTRICT CODE OF ORDINANCES, CHAPTER 2, § 1.02 and § 1.07) (MARTINEZ) CONSENT CALENDAR 7. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICU- LAR ITEM: a) APPROVE TO INCREASE THE CIP P2671 BUDGET IN AN AMOUNT OF $200,000 (FROM $450,000 TO $650,000) AND AWARD A CONSTRUCTION CONTRACT TO CCL CONTRACTING, INC. FOR THE MELROSE AVENUE (CIP P2605) AND OLEANDER AVENUE (CIP P2627) 458/340 PRESSURE REDUCING STATIONS REPLACEMENT AND 980 RESERVOIRS ALTITUDE VALVE VAULTS RENOVATION (CIP P2671) PROJECT IN AN AMOUNT NOT- TO-EXCEED $1,331,523 b) AUTHORIZE THE CREATION OF A CAPITAL IMPROVEMENT PROGRAM PROJECT FOR THE RECPL – 20-INCH, 680 ZONE, OLYMPIC PARKWAY RECYCLED PIPELINE REHABILITATION PROJECT IN THE AMOUNT OF $100,000 FOR THE CURRENT FISCAL YEAR c) AWARD A PROFESSIONAL ENGINEERING SERVICES AGREEMENT TO RICHARD BRADY & ASSOCIATES, INC. FOR THE DESIGN AND CONSTRUCTION SUPPORT OF THE 1655-1 RESERVOIR AND RANCHO JAMUL HYDROPNEUMATIC PUMP STATION MODIFICATIONS PROJECT IN AN AMOUNT NOT-TO-EXCEED $622,575 d) APPROVE CHANGE ORDER NO. 9 TO THE EXISTING CONSTRUCTION CONTRACT WITH PACIFIC HYDROTECH CORPORATION IN THE AMOUNT OF $117,045.51 FOR THE 870-2 PUMP STATION REPLACEMENT PROJECT e) AWARD A PROFESSIONAL ENVIRONMENTAL SERVICES CONTRACT TO MERKEL & ASSOCIATES, INC. FOR THE MAINTENANCE AND MONITORING OF THE SAN MIGUEL HABITAT MANAGEMENT AREA AND CIP-ASSOCIATED MITIGATION PROJECTS FOR A THREE-YEAR PERIOD (JUNE 2021 – JUNE 2024) IN AN AMOUNT NOT-TO-EXCEED $382,881.30 ACTION ITEMS 8. FINANCE a) ADOPT RESOLUTION NO. 4394 AMENDING POLICY NO. 27, THE INVEST- MENT POLICY, OF THE DISTRICT’S CODE OF ORDINANCES AND RE-DELEGATE AUTHORITY FOR ALL INVESTMENT RELATED ACTIVITIES TO THE CHIEF FINANCIAL OFFICER, IN ACCORDANCE WITH GOVERNMENT CODE SECTION 53607 (FAKHOURI) 9. BOARD a) DISCUSS THE 2021 BOARD MEETING CALENDAR (RAMOS-KROGMAN) REPORTS 10. GENERAL MANAGER’S REPORT a) UPDATE ON DISTRICT’S RESPONSE TO COVID-19 PANDEMIC 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 SER- VICES [GOVERNMENT CODE §54957] b) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERN- MENT CODE §54956.9] MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, CASE NO. 37-2015-00400000-CU-MC-CTL c) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERN- MENT CODE §54956.9] OTAY WATER DISTRICT vs. CITY OF SAN DIEGO; CASE NO. 37-2017- 00019348-CU-WM-CTL RETURN TO OPEN SESSION 15. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. OTAY WATER DISTRICT FINANCING AUTHORITY 16. NO MATTERS TO DISCUSS 17. ADJOURNMENT All items appearing on this agenda, whether or not expressly listed for action, may be deliber- ated 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 Acting District Secretary at (619) 670- 2253. If you have any disability which would require accommodation in order to enable you to partici- pate in this meeting, please call the Acting District Secretary at (619) 670-2253 at least 24 hours prior to the meeting. Certification of Posting I certify that on April 30, 2021 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 30, 2021. /s/ Tita Ramos-Krogman, Acting District Secretary 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY April 7, 2021 1.The meeting was called to order by President Smith at 3:31 p.m. 2.ROLL CALL Directors Present:Croucher (Arrived at 3:58 p.m.), Keyes, Lopez, Robak and Smith 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 Pedro Porras, Asst. Chief of Finance Kevin Koeppen, Acting District Secretary Tita Ramos-Krogman and others per attached list. 3.PLEDGE OF ALLEGIANCE 4.APPROVAL OF AGENDA A motion was made by Director Robak, seconded by Director Keyes, and carried with the following vote: Ayes: Directors Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: Director Croucher to approve the agenda. 5.LEGISLATIVE OVERVIEW Mr. Glenn Farrel, Director of the Water Authority’s Government Relations Department, gave an overview of the department located in Sacramento and noted that he works with Ms. Ivy Brittain. He provided a PowerPoint Presentation that included the following information: Role of the Government Relations Department, Federal: COVID Relief, Federal: American Jobs Plan, Federal: Community Project Funding, State: 2021 Legislative Session, State: Water Affordability, State: Drought Response/Preparation, State: Resources Bonds, and Sponsored Legislation – Pumped Hydropower Storage. Following his presentation, Mr. Farrel responded to comments and questions from the board. AGENDA ITEM 4 2 6. APPROVE THE MINUTES OF THE REGULAR MEETING OF MARCH 3, 2021 AND SPECIAL BOARD MEETING OF MARCH 19, 2021 A motion was made by Director Robak, 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 minutes of the regular board meeting of March 3, 2021 and special board meeting of March 19, 2021. 7. 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. 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 motion was made by Director Robak, 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 following consent calendar items: a) AWARD A PROFESSIONAL SERVICES CONTRACT FOR AS-NEEDED PLAN CHECK FOR DEVELOPER POTABLE AND RECYCLED WATER PROJECTS TO MURRAYSMITH, INCORPORATED IN AN AMOUNT NOT- TO-EXCEED $350,000, FOR A PERIOD OF THREE (3) FISCAL YEARS (FY 2021, FY 2022, AND FY 2023). THE CONTRACTUAL END DATE WILL BE JUNE 30, 2023 b) AWARD A CONTRACT TO A. PREMAN ROOFING, INC. FOR THE RALPH W. CHAPMAN WATER RECLAMATION FACILITY ROOF AND SKYLIGHT REPLACEMENT AND REPAIR PROJECT IN AN AMOUNT NOT-TO- EXCEED $168,355.00 3 ACTION ITEMS 9. GENERAL MANAGER a) ADOPT THE 2021 OTAY WATER DISTRICT LEGISLATIVE PROGRAM POLICY GUIDELINES AND PRIORITIES Communications Officer Tenille Otero provided a presentation to the Board and recommended that the Board adopt the 2021 Otay Water District Legislative Program Policy Guidelines and Priorities. Please reference Attachment C of the staff report for details of Ms. Otero’s presentation. She introduced Ms. Teresa Cooke and Ms. Gianna Setoudeh from Brownstein, Hyatt, Farber, and Schreck (BHFS) to present the Anticipated Top 10 Legislative Priorities for 2021. See Attachment D of the staff report for further details of the priorities. Ms. Teresa Cook provided an update on AB 836 (Gabriel), California Building Standards Commission: Recycled Water: Nonpotable Water Systems. She indicated that the bill requires the SWRCB to allow builders to install dual plumbing that would allow the use of nonpotable water sources in residential buildings and in nonresidential buildings over 100,000 square feet. Ms. Cooke shared information on the limitation of bills that would be considered by legislature as it will impact the movement on a number of 2-year bills. Ms. Setoudeh provided an update on AB 1588 (Gloria), Veteran Water Industry Advocacy, and congratulated General Manager Jose Martinez for being selected to sit on the Drinking Water Operator Certificate Program Advisory Committee that advocates on issues such as veteran water industry workforce. President Smith commented on AB 1434 (Friedman), Water Use and Efficiency, and shared that the bill’s current standards are based on data from 2017-2019. He suggested that BHFS closely monitor the bill as new data may impact its standards. Ms. Cooke, Ms. Setoudeh, and District staff responded to additional comments and questions from the board. President Smith directed staff to revise Attachment B (Otay Water District Legislative Program), Page 16, Section C (Colorado River), No. 6 to reflect the following: “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.” A motion was made by Director Robak, seconded by Director Lopez and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None 4 Abstain: None Absent: None to approve staff’s recommendation. 10. BOARD a) DISCUSS THE 2021 BOARD MEETING CALENDAR Acting District Secretary Tita Ramos-Krogman indicated that the Engineering, Operations, and Water Resources Committee meeting is confirmed for April 20th and the Finance and Administration Committee meeting is confirmed for April 21st. She also confirmed that the Special Board Meeting to discuss the FY 2022 Budget Key Figures and Assumptions will be held on April 28th. Chief Financial Officer Joe Beachem indicated that there will be a Budget Workshop in June 2021. INFORMATIONAL ITEM 11. THE FOLLOWING ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) 2021 ECONOMIC OUTLOOK UPDATE FOR SAN DIEGO COUNTY PREPARED BY THE XPERA GROUP Finance Manager Kevin Koeppen provided the staff report to the board. He introduced Mr. Alan Nevin, the Director of Economic and Market Research at Xpera Group, who has an extensive background in real estate economics, lending and market analysis. Mr. Nevin also serves the development, investment, legal and public agency communities with residential and commercial real estate valuation, feasibility and real estate advisory services. Mr. Nevin provided a PowerPoint presentation to the Board. See Attachment A, Economic Outlook Update Otay Water District San Diego County 2021-2027, of the staff report for further details of Mr. Nevin’s presentation. Staff responded to comments and questions from the board and stated that multiple factors are being observed to determine the impacts on the District’s revenues and rates for customers. Director Mark Robak left at 5:00 p.m. REPORTS 12. GENERAL MANAGER’S REPORT General Manager Martinez presented information from his report that included the District’s response to the COVID-19 pandemic, COVID-19 vaccines for District 5 employees, and the District’s nomination for the Chula Vista Community Champion Recognition Award. He also shared information about the 3-Day Women in Water Symposium that the District participated in and supported. 13. SAN DIEGO COUNTY WATER AUTHORITY UPDATE President Smith provided an update of CWA’s Public Notice of the 2020 Urban Water Management Plan that is updated every five years and required to include a water shortage contingency plan. He also provided information on the Notice of Completion for the Northern First Aqueduct Structures and Lining Rehabilitation Project that resulted in a $2 million savings in change orders. President Smith shared that CWA began to look at rates and charges for next fiscal year and that MWD will be meeting to discuss pass-through charges, readiness to serve charges, and capacity fees. Director Croucher provided an update of CWA’s lawsuit against MWD. He discussed his recent meeting with MWD Chairwoman Gray and shared their collaboration efforts to enhance the relationship between CWA and MWD. He also shared that there will be a new General Manager for MWD. 14. DIRECTORS' REPORTS/REQUESTS A written report from Directors Croucher, Keyes, Lopez and Robak was submitted to Acting District Secretary Ramos-Krogman, which will be attached to the minutes for today’s meeting. 15. PRESIDENT’S REPORT President Smith indicated that he plans to establish the Ad Hoc General Manager Evaluation Committee for General Manager Jose Martinez’s performance review and will be appointing himself and Director Robak to the committee. He indicated that all board members will receive a General Manager Performance Form to complete and submit to the committee for review. There was a discussion on increasing the per diem for board members. All board members in attendance agreed not to increase the per diem for next fiscal year and will revisit this topic during next year’s budget cycle. A written report from President Smith was submitted to Acting District Secretary Ramos-Krogman and will be attached to the minutes for today’s meeting. RECESS TO CLOSED SESSION 16. CLOSED SESSION The board recessed to closed session at 5:50 p.m. to discuss the following matter: a) DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC SERVICES [GOVERNMENT CODE §54957] 6 b) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION [GOVERNMENT CODE §54956.9] MARK COZIAHR, ET AL. vs OTAY WATER DISTRICT, CASE NO. 37-2015-00400000-CU-MC-CTL c) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE §54956.9(d)(2)] 1 MATTER RETURN TO OPEN SESSION 17. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. The board reconvened from closed session at approximately 6:25 p.m. and General Counsel Dan Shinoff reported that the board took no reportable actions in closed session. OTAY 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 6:26 p.m. President ATTEST: Acting 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: 3/1/21 To: 3/31/21 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED (Via Teleconference) MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 3/3/21 OWD Regular Board Meeting Monthly Board Meeting - - 2 3/9/21 Meeting with OWD Legal Counsel Discussed OWD Matters - - 3 3/10/21 Committee Agenda Briefing Met with GM Martinez to review items that will be present at the March committee meetings - - 4 3/15/21 Meeting with GM Martinez Rate Case Discussion - - 5 3/16/21 EO&WR Committee Meeting Reviewed items that will be presented at the April Board Meeting - - 6 3/19/21 OWD Special Board Meeting Discussed Closed Session Item - - 7 3/24/21 East County Caucus Meeting Discussed East County issues with agencies and CWA - - 8 9 10 Total Meeting Per Diem: $ 1,064 ($152 per diem) Total Mileage Claimed: 0 miles 04/07/21 (Director’s Signature) GM Receipt: Date: OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Gary Croucher Period Covered:  Employee Number: 7011 From: 3/1/21 To: 3/31/21 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED (Via Teleconference) MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 3/2 General Manager Quarterly update with GM - 5- 2 3/3 Board Monthly Board - - 3 3/16 Committee March E&O Committee Meeting - - 4 3/19 Board Special Board of Directors Meeting - - 5 - - 6 - - 7 - - 8 9 Total Meeting Per Diem: ($152 per diem) Total Mileage Claimed: 0 miles $608 04/07/21 (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: 3-1-21 To: 3-31-21 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 3-3-21 OWD Regular Board Meeting Monthly Board Meeting - - 2 3-5-21 SD County Tax Payer Seminar-elected officials SD County Tax Payer Educational Forum- Elected Officials - - 3 3-16-21 CPRL&L Committee Meeting Adoption of 2021 OWD Legislative Program Policy guidelines & Priorities - - 4 3-19-21 OWD Special Meeting Conference with Legal Counsel-Pending Litigation - - 5 - - 6 - - 7 - - 8 - - 9 - - 10 -- Total Meeting Per Diem: $608 ($152 per meeting) Total Mileage Claimed: 0 Miles 04/07/21 (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: 3/1/21 To: 3/31/21 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 3/03/21 Otay Water District Board Meeting General board meeting - - 2 3/17/21 Finance/Admin Committee Monthly committee meeting - - 3 3/19/21 Special Board Meeting Closed Session Meeting – Legal Counsel - - 4 - - 5 - - 6 - - 7 - - Total Meeting Per Diem: $ 456 ($152 per diem) Total Mileage Claimed: 0 miles 04/07/21 Mark Robak 7014 From:3/1/2021 3/31/2021 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 3/2/2021 East County Chamber of Commerce Government Affairs & Infrastructure Committee 0 0 2 3/3/2021 OWD Board Meeting OWD Monthly Board Meeting 0 0 3 3/4/2021 San Diego Chamber of Commerce Sustainability & Industry Committee 0 0 4 3/11/2021 ACWA 2021 Virtual Legislative Symposium Up-to-date information on critical state water policy issues. 0 0 5 3/16/2021 Otay CPRL&L Committee Meeting Discussed District legislative priorities 0 0 6 3/17/2021 Otay Finance & Administration Committee Discussed District finance and administration items 0 0 7 3/19/2021 LAFCO Special Districts Advisory Board Discussed regional matters 0 0 8 3/19/2021 Otay Special Board Meeting Discussion of legal matter - NO CHARGE 0 0 9 3/24/2021 ACWA Webinar Discussion of Federal Water Issues 0 0 10 3/31/2021 ACWA Webinar Discussion of Federal Water Issues and impacts on California’s water management strategies 0 0 0 0 $ 1,368 0 Miles GM Receipt: Date: ___________________ Pay To:Period Covered Employee Number Total Mileage Claimed: Director Signature ($152 PER MEETING) Total Meeting Per Diem: OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM 04-12-21 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 5, 2021 PROJECT: Various DIV. NO.ALL SUBMITTED BY: Jose Martinez, General Manager APPROVED BY: Joseph Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Appoint New District Secretary as Secretary to the Board of Directors GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors appoint the new District Secretary as the Secretary to the Board of Directors. PURPOSE: To request the Board’s approval to appoint the new District Secretary as the Secretary to the Board of Directors. ANALYSIS: The District currently has two (2) positions that support the Board and the General Manager in the General Manager’s Office: District Secretary and Senior Confidential Executive Assistant (SCEA). The District Secretary recently retired and the SCEA has served in a temporary capacity as District Secretary. Upon review of the two (2) positions that support the Board and General Manager, and as a result of the investments made to continue to improve workflow efficiency, I have selected the current SCEA incumbent for the District Secretary position, to be effective May 10, 2021, and will be eliminating the SCEA position. The new District Secretary will continue to perform both the District Secretary and the SCEA job functions. Section 71340 of the California Water Code provides that the Board of Directors of Municipal Water Districts shall appoint the Secretary to AGENDA ITEM 6a the Board of Directors. In addition, Chapter 2, Section 1.02 of the District’s Code of Ordinance states the following: B. District Officers. The Board shall appoint officers of the District as required by law, including a Secretary, Deputy of Assistant Secretary, Deputy or Assistant Treasurer, and such other assistants and employees as it may deem necessary to operate the District. The Secretary and Treasurer of the District may, but need not be, members of the Board. Since the District Secretary performs work for the Board of Directors, this staff report serves as a request for the Board to approve appointing the same individual to serve as the Secretary to the Board of Directors. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Relevant Excerpts of the Water Code Section 71340 and the District’s Code of Ordinance, Chapter 2 ATTACHMENT A Section 71340 of the Water Code At its first meeting, or as soon thereafter as practicable, the board shall appoint, by a majority vote, a secretary, treasurer, attorney, general manager, and auditor, and shall define their duties and fix their compensation. The board may at any meeting appoint a deputy secretary and a deputy treasurer. Each of these officers shall serve at the pleasure of the board. (Amended by Stats. 1965, Ch. 132.) Excerpts from Code of Ordinance, Chapter 2, Sections 1.02 and 1.07 1.02 OFFICERS A. Board Officers. The Board shall elect one of its members as President, and one of its members as Vice President. B. District Officers. The Board shall appoint officers of the District as required by law, including a Secretary, Deputy or Assistant Secretary, Deputy or Assistant Treasurer, and such other assistants and employees as it may deem necessary to operate the District. The Secretary and Treasurer of the District may, but need not be, members of the Board. 1.07 DUTIES OF SECRETARY A. Board Matters. With respect to the affairs of the Board of Directors, the Secretary shall have the following duties: 1. To take and prepare minutes of all Board meetings. 2. To keep in appropriate books the original copies of all final minutes, ordinances and resolutions of the Board. 3. To keep on file all Board committee reports. 4. To attest to the minutes, ordinances, resolutions and other documents of the Board. 5. To provide notice as required by law of any special meeting or regularly adjourned meeting. 6. To provide notice as required by law of any hearing before the Board. 7. In the absence of the President and Vice-President to call any meeting to order, and to preside until the election of a chair person pro tem, who shall then exercise the powers of the President at such meeting. B. Other Duties. The responsibilities enumerated in Section 7A are not intended to limit any other duties of the Secretary imposed by law, or assigned from time to time by the Board, or by the General Manager if the Secretary is an employee of the District. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 5, 2021 SUBMITTED BY: Stephen Beppler Senior Civil Engineer PROJECT: P2605-001103 P2627-001103 P2671-001103 DIV. NO. 2 & 5 APPROVED BY: Bob Kennedy, Engineering Manager Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Approval to Increase the CIP P2671 Budget in an Amount of $200,000 and Award of a Construction Contract to CCL Contracting, Inc. for the Melrose Avenue (CIP P2605) and Oleander Avenue (CIP P2627) 458/340 Pressure Reducing Stations Replacement and 980 Reservoirs Altitude Valve Vaults Renovation (CIP P2671) Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board): 1. Approve to increase the CIP P2671 budget by $200,000 (from$450,000 to $650,000); and2. Award a construction contract to CCL Contracting, Inc. (CCL)and authorize the General Manager to execute an agreement with CCL for the construction of the Melrose Avenue (CIP P2605) andOleander Avenue (CIP P2627) 458/340 Pressure Reducing Stations (PRSs) Replacement and 980 Reservoirs Altitude Valve VaultsRenovation (CIP P2671) Project in an amount not-to-exceed$1,331,523 (see Exhibits A and B for Project locations). COMMITTEE ACTION: Please see Attachment A. AGENDA ITEM 7a 2 PURPOSE: To increase the overall CIP P2671 budget in the amount of $200,000 (from $450,000 to $650,000) and to authorize the General Manager to execute an agreement with CCL for the construction of the Melrose Avenue (CIP P2605) and Oleander Avenue (CIP P2627) 458/340 Pressure Reducing Stations (PRSs) Replacement and 980 Reservoirs Altitude Valve Vaults Renovation (CIP P2671) Project (Project) in an amount not-to-exceed $1,331,523. ANALYSIS: The 340 Pressure Zone (PZ), located in the City of Chula Vista south of E. Orange Avenue and along Main Street, is a closed potable water system served by three PRSs. The Melrose Avenue and Oleander Avenue PRSs were originally constructed in the 1960s and are near the end of their useable life cycle, requiring replacement. The 340 PZ requires at least two of the three PRSs to be operational to meet peak water demands of the system. The stations feature pressure relief valves to prevent the over-pressurization of the closed system. The scope of work for CIPs P2605 and P2627 generally consists of the replacement of the two existing potable water pressure reducing stations, including construction of approximately 155 linear feet of 12-inch water line, connections to existing water lines and services, abandonment of existing water lines, pavement and surface restoration, cathodic protection, and all other associated work and appurtenances as required by the Contract Documents. For CIP 2671, the 980 PZ is served by two 5-million-gallon water storage reservoirs located north of the former Salt Creek Golf Course. The complex was constructed in the late 1980’s with each reservoir controlled by an altitude valve located in a below grade vault. Corrosion observations and subsequent investigation requires replacement of the piping within and adjacent to the vaults. The scope of work for CIP P2671 generally consists of the renovation of two potable water altitude valve vaults, including replacement of precast concrete vault tops with hatches, altitude valves, butterfly valves, steel water lines from 4-inch to 30-inch inside diameter, pavement and surface restoration, cathodic protection, and all other associated work and appurtenances as required by the Contract Documents. The Project was advertised on February 23, 2021 using Periscope S2G (formerly BidSync), the District’s online bid solicitation website, 3 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 thirty (30) contractors that have previously worked for the District. This is in addition to the numerous plan houses that provide another resource for reaching contractors to advise them of the project being out for bids. Periscope S2G provided electronic distribution of the Bid Documents, including specifications, plans, and addenda. An on-line Pre-Bid Meeting was held on March 11, 2021, which was attended by seven (7) contractors and vendors. Site visits were made available to the contractors on March 12th and 15th. Two (2) 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 March 25, 2021, with the following result: CONTRACTOR TOTAL BID AMOUNT 1 CCL Contracting, Inc., Escondido, CA $1,331,523.00 2 Cass Construction, Inc., El Cajon, CA $1,349,400.00 3 LB Civil Construction, Inc., Escondido, CA $1,389,230.00 4 Piperin Corporation, Escondido, CA $1,431,115.00 5 PPM Contracting, Oceanside, CA $1,440,149.00 6 SCW Contracting Corporation, Fallbrook, CA $1,547,459.00 7 Kay Construction Co., Santee, CA $1,692,672.00 8 James W. Fowler Co, Dallas, OR $1,927,645.00 9 Blue Pacific Eng. & Constr., San Diego, CA $1,992,800.00 The Engineer's Estimate is $1,120,000. The cost of steel pipe in the bids was higher than expected due to the small quantities in the project and supply issues. 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, 2021. 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. 4 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 P2605, as approved in the FY 2021 budget, is $750,000. Total expenditures, plus outstanding commitments and forecast, including this contract, are estimated at $575,130. See Attachment B-1 for the budget detail. The total budget for CIP P2627, as approved in the FY 2021 budget, is $750,000. Total expenditures, plus outstanding commitments and forecast, including this contract, are estimated at $614,700. See Attachment B-2 for the budget details. Based on a review of both financial budgets for CIP P2605 and P2627, the Project Manager anticipates the Project will be completed within the budgeted amounts. The total budget for CIP P2671, as approved in the FY 2021 budget, is $450,000. Total expenditures, plus outstanding commitments and forecast, including this contract, are estimated at $618,229. See Attachment B-3 for the budget details. The Project Manager anticipates that with a budget increase of $200,000, the CIP P2671 portion of the Project will be completed within the new budget amount of $650,000. The Finance Department has determined that, under the current rate model, 100% of the funding for CIPs P2605, P2627, and P2671 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." 5 LEGAL IMPACT: None. SB/BK:jf Https://otaywater365.sharepoint.com/sites/engcip/Shared Documents/P2605-P2627 458-340 PRSs Repl Melrose-Oleander/Staff Reports/2021-05-05/5-5-21 Staff Report P2605-P2627-P2671.docx Attachments: Attachment A – Committee Action Attachment B-1 – Budget Detail for P2605 Attachment B-2 – Budget Detail for P2627 Attachment B-3 – Budget Detail for P2671 Exhibit A – P2605 & P2627 Project Location Map Exhibit B – P2671 Project Location Map ATTACHMENT A SUBJECT/PROJECT: P2605-001103 P2627-001103 P2671-001103 Approval to Increase the CIP P2671 Budget in an Amount of $200,000 and Award of a Construction Contract to CCL Contracting, Inc. for the Melrose Avenue (CIP P2605) and Oleander Avenue (CIP P2627) 458/340 Pressure Reducing Stations Replacement and 980 Reservoirs Altitude Valve Vaults Renovation (CIP P2671) Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on April 20, 2021, and the following comments were made: • Staff recommended that the board approve an increase to the CIP P2671 budget by $200,000 (from $450,000 to $650,000) and Award a construction contract to CCL Contracting, Inc. (CCL) for the construction of the Melrose Avenue (CIP P2605) and Oleander Avenue (CIP P2627) 458/340 Pressure Reducing Stations (PRSs) Replacement and 980 Reservoirs Altitude Valve Vaults Renovation (CIP P2671) Project in an amount not-to-exceed $1,331,523. • After discussing the Engineer’s Estimate with staff, the Committee noted that it was 18% lower than the bid due to recent increases in the cost of steel that have about doubled in the past 6 months. It was also noted that the small quantity of small diameter steel pipe also contributed to the higher bid. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item. ATTACHMENT B-1 – Budget Detail for P2605 SUBJECT/PROJECT: P2605-001103 P2627-001103 P2627-001103 Approval to Increase the CIP P2671 Budget in an Amount of $200,000 and Award of a Construction Contract to CCL Contracting, Inc. for the Melrose Avenue (CIP P2605) and Oleander Avenue (CIP P2627) 458/340 Pressure Reducing Stations Replacement and 980 Reservoirs Altitude Valve Vaults Renovation (CIP P2671) Project Project Budget Details P2605 - Melrose Avenue 458/340 PRS Replacement 3/26/2021 Budget Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost Vendor/Comments 750,000 Planning Regulatory Agency Fees $25 $25 $0 $25 Standard Salaries $12,846 $12,846 $0 $12,846 Total Planning $12,871 $12,871 $0 $12,871 Design Consultant Contracts $2,703 $2,703 $0 $2,703 RF YEAGER ENG LLC $2,069 $2,069 $0 $2,069 RICK ENG CO $5,850 $5,850 $0 $5,850 HUNSAKER & ASSOC $5,395 $5,395 $0 $5,395 NINYO & MOORE Standard Salaries $76,000 $74,113 $1,887 $76,000 Total Design $92,017 $90,129 $1,887 $92,017 Construction Service Contract $500 $0 $500 $500 MAYER REPROGRAPHICS Service Contract $42 $42 $0 $42 DAILY JOURNAL Consultant Contracts $15,000 $0 $15,000 $15,000 Construction Management Construction Contract $414,000 $0 $414,000 $414,000 CCL CONTRACTING INC $20,700 $0 $20,700 $20,700 Contingency @ 5% Standard Salaries $20,000 $317 $19,683 $20,000 Total Construction $470,242 $359 $469,883 $470,242 Grand Total $575,130 $103,360 $471,770 $575,130 ATTACHMENT B-2 – Budget Detail for P2627 SUBJECT/PROJECT: P2605-001103 P2627-001103 P2671-001103 Approval to Increase the CIP P2671 Budget in an Amount of $200,000 and Award of a Construction Contract to CCL Contracting, Inc. for the Melrose Avenue (CIP P2605) and Oleander Avenue (CIP P2627) 458/340 Pressure Reducing Stations Replacement and 980 Reservoirs Altitude Valve Vaults Renovation (CIP P2671) Project Project Budget Details P2627 - Oleander Avenue 458/340 PRS Replacement 3/26/2021 Budget Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost Vendor/Comments 750,000 Planning Insurance $25 $25 $0 $25 Standard Salaries $16,133 $16,133 $0 $16,133 Total Planning $16,158 $16,158 $0 $16,158 Design Consultant Contracts $2,703 $2,703 $0 $2,703 RF YEAGER ENG LLC $2,069 $2,069 $0 $2,069 RICK ENG CO $5,850 $5,850 $0 $5,850 HUNSAKER & ASSOC $21,004 $21,004 $0 $21,004 NINYO & MOORE Standard Salaries $86,000 $83,289 $2,711 $86,000 Total Design $117,626 $114,915 $2,711 $117,626 Construction Service Contract $500 $0 $500 $500 MAYER REPROGRAPHICS Service Contract $42 $42 $0 $42 DAILY JOURNAL Consultant Contracts $15,000 $0 $15,000 $15,000 Construction Management Construction Contract $424,233 $0 $424,233 $424,233 CCL CONTRACTING INC $21,212 $0 $21,212 $21,212 Contingency @ 5% Standard Salaries $20,000 $85 $19,915 $20,000 Total Construction $480,986 $126 $480,860 $480,986 Grand Total $614,770 $131,199 $483,571 $614,770 ATTACHMENT B-3 – Budget Detail for P2671 SUBJECT/PROJECT: P2605-001103 P2627-001103 P2671-001103 Approval to Increase the CIP P2671 Budget in an Amount of $200,000 and Award of a Construction Contract to CCL Contracting, Inc. for the Melrose Avenue (CIP P2605) and Oleander Avenue (CIP P2627) 458/340 Pressure Reducing Stations Replacement and 980 Reservoirs Altitude Valve Vaults Renovation (CIP P2671) Project Project Budget Details P2671 - 980 Reservoirs Altitude Valve Vaults Renovation 3/26/2021 Budget Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost Vendor/Comments 450,000 Planning Regulatory Agency Fees $50 $50 $0 $50 COUNTY OF SAN DIEGO Standard Salaries $1,455 $1,455 $0 $1,455 Total Planning $1,505 $1,505 $0 $1,505 Design Consultant Contracts $3,270 $3,270 $0 $3,270 RF YEAGER ENG LLC Standard Salaries $60,000 $57,562 $2,438 $60,000 Total Design $63,270 $60,832 $2,438 $63,270 Construction Service Contract $500 $0 $500 $500 MAYER REPROGRAPHICS Consultant Contracts $15,000 $0 $15,000 $15,000 Construction Management Construction Contract $493,290 $0 $493,290 $493,290 CCL CONTRACTING INC $24,665 $0 $24,665 $24,665 Contingency @ 5% Standard Salaries $20,000 $0 $20,000 $20,000 Total Construction $553,455 $0 $553,455 $553,455 Grand Total $618,229 $62,337 $555,892 $618,229 458-340 PRS REPLACEMENT ATMELROSE AVE & OLEANDER AVE EXHIBIT A CIP P2605 & P2627F C:\OneDrive\Otay Water District\ENG CIP - Documents\P2605-P2627 458-340 PRSs Repl Melrose-Oleander\Graphics\Exhibits-Figures\Exhibit A, Location Map.mxd 0 260130 Feet ©¨F 33 33 33 33 33 33 33 33 33 33 33 33 ¹r $R ¹r $R ¹r $R $R ¹r ¹r $R $R $R $R $R ¹r ¹r ¹r ¹r $R ¹r ¹r ¹r ¹r ¹r ¹r $R ¹r $R $R ¹r$R¹r $R¹r ¹r$R l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l? l?l? l? l? l? l? l?l?l?l? l?l?l?l?l? l? l? l? l? l? l? l? l? "Cé îîSRP îîSRP ©©ST ©©ST OTAY WATER DISTRICT 1505 Oleander Ave 1571 Melrose Ave I-805 S I-805 N Oleander Ave E O r a n g e A v e M elro s e A v e Ocala Ave Olive Ave Marble Ct N o l a n C t Satinwood Way Slate St Sequoia St R i v e r a C t Olive Ct Slate Ct Teak Ct Sequoia Ct S a n d sto n e C t P ri n c e s s M a n or C t S a t i n w o o d C t E O r a n g e A v e VICINITY MAP PROJECT SITES DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 !\ ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS OTAY WATER DISTRICT OLEANDER AVE PRS 1505 OLEANDER AVE PROJECTSITE OLEANDER AVE PROJECTSITE MELROSE AVE PRS 1571 MELROSE AVE MELROSE AVE OTAY WATER DISTRICT980 RES ALTITUDE VALVE VAULTS RENOVATIONLOCATION MAP EXHIBIT BC:\OneDrive\Otay Water District\ENG CIP - Documents\P2605-P2627 458-340 PRSs Repl Melrose-Oleander\Graphics\Exhibits-Figures\980 Vaults Staff Report & NOE-Exhibit A.mxd ÃÅ125 !\ VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS PROJECTSITE CIP P2671F 0 1,000500 Feet 980-1 RESERVOIR 980-2RESERVOIR PROCTOR VAL LEY RD HUNTE P K W Y SR - 125 MT. R D MIGUEL STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 5, 2021 SUBMITTED BY: Stephen Beppler Senior Civil Engineer PROJECT: R2159-001101 DIV. NO. 4 APPROVED BY: Bob Kennedy, Engineering Manager Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Authorize the Creation of a Capital Improvement Program Project for the RecPL - 20-Inch, 680 Zone, Olympic Parkway Recycled Pipeline Rehabilitation Project in the Amount of $100,000 for the Current Fiscal Year GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) authorize the creation of a Capital Improvement Program (CIP) project for the RecPL - 20-Inch, 680 Zone, Olympic Parkway Recycled Pipeline Rehabilitation Project (Project) in the amount of $100,000 for the current fiscal year (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To establish a CIP and budget for the Olympic Parkway Recycled Pipeline Rehabilitation Project for the pipeline that was installed in 2002 and has had four pipeline breaks (2013, 2015, 2020, and 2021). AGENDA ITEM 7b 2 ANALYSIS: The 680 Pressure Zone (PZ) 20-inch recycled water line in Olympic Parkway located within the City of Chula Vista between Heritage Road and La Media Road was installed in 2002 and is about 5,500 linear feet in length. This pipeline is part of the main transmission system for conveying recycled water originating from the City of San Diego South Bay plant to the 680 PZ storage tank. The pipe material is polyvinyl chloride (PVC) manufactured by JM Eagle that was subject to quality issues during this time frame. Olympic Parkway is a major travel way through Chula Vista and the pipeline breaks have had significant impacts to the traffic flow and road integrity. Planning and design for the replacement of the pipeline will be accelerated, with hydraulic modeling used to determine immediate operation solutions and replacement options. Relining of the existing 20-inch pipe with a structural pipe material or using pipe bursting technics would avoid open trenching of over a mile of Olympic Parkway. This analysis can be performed quickly to enable a scope of work to be defined for starting the Project design before the end of the current fiscal year. The pipeline rehabilitation program is not just a single year program. In the upcoming budgetary process, staff will include this in the 2022 CIP and will outline the expected budget for the next six years. FISCAL IMPACT: Joe Beachem, Chief Financial Officer This action establishes the CIP Project for the Olympic Parkway Pipeline Rehabilitation Project budget of $100,000 for fiscal year 2021. While this expenditure was not incorporated into the planned rates, the District has sufficient financial flexibility to fund this program earlier than anticipated. Due to the strong water sales, and a $3.1 million refund from the San Diego County Water Authority this year, the general fund is currently anticipated to be $8.6 million more than budgeted. GRANTS/LOANS: Engineering staff are researching and exploring grants and loans for this Project and the District recently included this Project as a candidate for funding with a drought response package that Senate President Pro Tempore Toni Atkins is currently preparing and intending to introduce in the Legislature in the very near-term. 3 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/R2159 Olympic Parkway Pipeline Rehabilitation/Staff Reports/05-05-21/Draft 5-5-21 Staff Report R2159.docx Attachments: Attachment A – Committee Action Exhibit A – Project Location Map ATTACHMENT A SUBJECT/PROJECT: R2159-001101 Authorize the Creation of a Capital Improvement Program Project for the RecPL - 20-Inch, 680 Zone, Olympic Parkway Recycled Pipeline Rehabilitation Project in the Amount of $100,000 for the Current Fiscal Year COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on April 20, 2021, and the following comments were made: • Staff recommended that the Board authorize the creation of a Capital Improvement Program (CIP) project for the RecPL - 20-Inch, 680 Zone, Olympic Parkway Recycled Pipeline Rehabilitation Project (Project) in the amount of $100,000 for the current fiscal year. • The recycled water piping in Olympic Parkway was constructed in 2002 and is part of the main transmission system for conveying recycled water originating from the City of San Diego South Bay plant to the 680 Pressure Zone. • Staff noted that the existing PVC pipe was manufactured by JM Eagle during the time period where quality issues have been raised. • Staff indicated that the segment of 20-inch recycled water line in Olympic Parkway between Heritage Road and La Media Road has experienced four (4) pipeline breaks, in 2013, 2015, 2020 & 2021. The increased frequency of the events in a major thoroughfare places an urgency on starting the project as soon as possible and not wait for the next fiscal year when it was planned to become active. • Staff stated that the project’s scope of work calls for the replacement of about 5,500 linear feet of the 20-inch pipeline, with modeling results to indicate what pipe size is required. If a smaller line can be considered for a portion of the project, less intrusive construction methods could be considered such as relining, sliplining, or pipe bursting. • It was noted that for immediate action to reduce the risk of another break, staff is looking at alternative operating practices that may reduce pressure in the line or isolate it from service. • Staff noted that the overall budget for the CIP Project R2159 in FY 2022 will be approximately $6.25 million. • In response to several questions from the Committee, staff stated that the District is looking at prevention measures such as considering the number of pumps to run at the 680-1 Recycled Water Pump Station, isolating the pipeline while providing alternative sources to services, and installing real time leak detection. Staff stated that the pipeline breaks appear to be a product defect. • Following a discussion about public outreach, the Committee recommended that staff post a notification on the District’s website to notify customers of the project and provide updates during construction. It was noted that staff will also notify other agencies (i.e. City of Chula Vista, County of San Diego, Caltrans, private/public utility companies, etc.) of this project, in case other projects are being considered, to be proactive in minimizing impacts to the community. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item. OTAY WATER DISTRICTOLYMPIC PARKWAY PIPELINE REHABILITATIONLOCATION MAP EXHIBIT A\\Otay Water District\ENG CIP - Documents\R2159 Olympic Parkway Pipeline Rehabilitation\Staff Reports\05-05-21\Exhibit A.mxd June 11, 2015WO #15-01342 Sept 13, 2013WO #13-02433 October 6, 2020WO #16096 kj kjkj Otay RanchHigh Schoolkj April 5, 2021WO #17498 La Media Rd E Palomar St O ly m pic P k w y H erita g e R d M o r g a n H ill D r Telegraph C anyon Rd EJ St P e r s h in g R d S a n t a C o r a A v e S t a n i s l a u s Dr S a n t a D i a n a R d T r a il w o o d A v e C a r p i n t e ri a S t Birch Rd Irwin St PiedmontSt M ontera St CarmelAve Ki n c ai d Av e ApplegateSt Antioch Ave State St GoldRunRd MonteSereno A v e Lindsay St Santa Lucia Rd Heath er w o o d A v e W e averville S t Ortega S t C arnerosValley S t SantaVenetiaSt H i ll s b oro ugh St Lo k o y a Dr E d g e h ill D r W o o d c r e s t S t S a n ta M a d e r a A v e Al on dra Ave M o n a rcheDr W i n d c h i m e A v e Calle Avila Santa Victoria Rd P e m b e r A v e SierraVerde R d WestmorlandSt S a n t a D e l p h i n a A v e P a c i f i c a A v e O c o n n o r A v e G u s ti n e S t Livingston St VistaSonrisaAve Mannis Ave Santa Ynez Ave B e l l e n a A v e Via Cap r i Ten a y a L a k e R d Spa r r o w L a k e R d El Prado St L o s C o c hesCt Pleasa n t on Rd Aguirre Dr S a n t a C r u z C t Bri d l e v a l e W i n d R i v e r R d L a M a n c h a Pl Valley Bend St C errito s C t T i e r r a B o n it a P l U k iah St L o di S t L o s P i n o s C t Falcon Pe ak St Franceschi Dr H o ll y b r o o k A v e S o u t h v i e w C t A s t o r C t Saratoga Ct Delano Ct C a n o n P e r d i d o S t L a M e d i a R d H e rit a g e R d Santa LuciaRd S antaVictoria Rd E P a l o m a r S t Telegraph C a nyon R d !\ VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS CIP R2159F 0 1,000500 Feet Legend Existing Recycled Water Main 20-Inch PVC RW Main Rehabilitation kj RW Main Repairs STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 5, 2021 SUBMITTED BY: Kevin Cameron Senior Civil Engineer PROJECT: P2040-001102 P2642-001102 DIV. NO. 5 APPROVED BY: Bob Kennedy, Engineering Manager Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Award of a Professional Engineering Services Agreement for Design and Construction Support of the 1655-1 Reservoir and Rancho Jamul Hydropneumatic Pump Station Modifications Project to Richard Brady & Associates, Inc. GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award a professional engineering services agreement to Richard Brady & Associates, Inc. (Brady) and authorize the General Manager to execute a professional engineering services agreement with Brady for design and construction support of the 1655-1 Reservoir and Rancho Jamul Hydropneumatic Pump Station Modifications Project in an amount not-to-exceed $622,575.00 (see Exhibit A for Project locations). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a professional engineering services agreement with Brady for design and construction support of the 1655-1 Reservoir and Rancho Jamul Hydropneumatic Pump Station Modifications Project in an amount not- to-exceed $622,575.00. AGENDA ITEM 7c 2 ANALYSIS: The 1655-1 Reservoir and Rancho Jamul Hydropneumatic Pump Station Modifications Project (Project) includes a new potable water reservoir and modifications to the Rancho Jamul Hydropneumatic Pump Station (HPS) to convert it to the 1655-1 Pump Station to feed the new 1655-1 Reservoir and replace approximately 1,500 linear feet of existing pipe that will be experiencing pressure over the rated pressure class under the new configuration. The 1655-1 Reservoir will meet projected ultimate demands as well as provide adequate storage to the 1655 Pressure Zone. The selected consultant will design an American Water Works Association (AWWA) D110 Type-I prestressed concrete tank, ancillary piping, electrical and control systems necessary to integrate the new tank into the existing water network system. The design will also include a new access road, drainage, security, and fencing. In addition to the Reservoir design, the consultant will analyze the existing Rancho Jamul HPS and provide a design to convert the station to the permanent pump station for the new 1655-1 Reservoir. The analysis will evaluate the electrical, pumps, pump control, telemetry requirements as well as the supporting pump station systems, and the estimated remaining useful life of the existing equipment. In accordance with the Board of Directors Policy Number 21, a Request for Proposal (RFP) was advertised on October 8, 2020 using Periscope S2G (formerly BidSync), the District’s online bid solicitation website, and the Otay Water District’s website. The advertisements attracted Letters of Interest and Statements of Qualifications from nine (9) consulting firms. A Pre-Proposal Meeting was held on January 28, 2021 via Zoom online conference, which was attended by nineteen (19) consultants and subconsultants. On February 18, 2021, four (4) proposals were received from the following consulting firms: 1. Richard Brady & Associates, Inc. (San Diego, CA) 2. Horrocks Engineers, Inc. (San Diego, CA) 3. Lee + Ro, Inc. (City of Industry, CA) 4. Psomas (San Diego, CA) Two (2) firms submitted a letter of interest, but elected to partner with other firms. Woods Rodgers (San Diego, CA) teamed with Brady and Peterson Structural Engineering (San Diego, CA) teamed with Psomas. The following firms submitted letters of interest, but did 3 not submit a proposal: Kennedy Jenks (San Diego, CA), NV5 (San Diego, CA), and MKN & Associates (Irvine, CA). After the proposals were evaluated and ranked by a five-member review panel consisting of Engineering, Operations, and Administration staff, it was determined that all four (4) proposals ranked sufficiently close to warrant being invited to make an oral presentation and respond to questions from the panel. After conducting the interviews on March 17, 2021 via Zoom online conferences, the panel completed the consultant ranking process. The scores for Total Fee were added last and the sum of the scores concluded that Brady had the best approach to the Project and provided the best overall value to the District. A summary of the Proposal Ranking is shown in Exhibit B. During the RFP process, consultants were asked to include a task for Construction Support in an equal amount of $20,000 as part of the cost proposal. This allowed staff to evaluate the cost proposals for the design and negotiate the level of construction support with the selected consultant. After negotiating this with the consultant, staff decided to increase the construction support by $75,000.00. Scope and fee negotiations with Brady concluded on March 26, 2021, which resulted in a fee increase of $75,000.00 to their original proposed fee of $547,575.00. Brady’s revised proposed fee, with the adjustment described above, is $622,575.00. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP P2040, as approved in the FY 2021 budget, is $5,750,000. Total expenditures, plus outstanding commitments and forecast, are $5,740,908. See Attachment B-1 for the budget detail. The total budget for CIP P2642, as approved in the FY 2021 budget, is $2,500,000. Total expenditures, plus outstanding commitments and forecast, are $2,402,950. See Attachment B-2 for the budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budgets for each of the CIP’s are sufficient to support the Project. The Finance Department has determined that, under the current rate model, 69% of the funding is available from the Betterment Fund and 31% of the funding is available from the Expansion Fund for CIPs P2040 and P2642. 4 GRANTS/LOANS: Engineering staff researched and explored grants and loans and found none available for this Project, but will continue to pursue alternative funding 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. KC/BK:jf Https://otaywater365.sharepoint.com/sites/engcip/Shared Documents/P2040 1655-1 Reservoir 0.5 MG/Staff Reports/BD_05-05-21 1655-1 Reservoir Design Consultant Selection (KC-BK).docx Attachments: Attachment A – Committee Action Attachment B-1 – P2040 Budget Detail Attachment B-2 – P2642 Budget Detail Exhibit A – Location Map Exhibit B – Summary of Proposal Rankings ATTACHMENT A SUBJECT/PROJECT: P2040-001102 P2642-001102 Award of a Professional Engineering Services Agreement for design and construction support of 1655-1 Reservoir and Rancho Jamul Hydropneumatic Pump Station Modifications Project to Richard Brady & Associates, Inc. COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on April 20, 2021, and the following comments were made: • Staff recommended that the Board award a professional engineering services agreement to Richard Brady & Associates, Inc. (Brady) for the design and construction support of the 1655-1 Reservoir and Rancho Jamul Hydropneumatic Pump Station Modifications Project in an amount not-to-exceed $622,575.00. • Staff provided a background of the project, discussed the solicitation and selection process, and determined that Brady had the best approach to the Project and provided the best overall value to the District. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item. ATTACHMENT B-1 – P2040 Budget Detail SUBJECT/PROJECT: P2040-001102 P2642-001102 Award of a Professional Engineering Services Agreement for design and construction support of 1655-1 Reservoir and Rancho Jamul Hydropneumatic Pump Station Modifications Project to Richard Brady & Associates, Inc. 4/2/2021 Budget 5,750,000 Planning Standard Salaries 125,000 124,037 963 125,000 Consultant Contracts 5,558 5,558 - 5,558 HELIX ENVIRONMNTL PLANNING INC Service Contracts 48,401 48,401 - 48,401 ICF JONES & STOKES INC Regulatory Agency Fees 50 50 - 50 PETTY CASH CUSTODIAN Total Planning 179,009 178,046 963 179,009 Design Standard Salaries 150,000 30,379 119,621 150,000 Fixed Asset 454,378 454,378 - 454,378 PREVIOUS DESIGN Consultant Contracts 20,396 20,396 - 20,396 HUNSAKER & ASSOCIATES 353,475 - 353,475 353,475 RICHARD BRADY & ASSOCIATES, INC. 25,000 - 25,000 25,000 FUTURE GEOTECHNICAL 10,000 10,000 10,000 FUTURE HYDRAULIC MODELING Total Design 1,013,249 505,153 508,096 1,013,249 Construction Standard Salaries 250,000 - 250,000 250,000 Construcion Contract 3,800,000 - 3,800,000 3,800,000 FUTURE CONSTRUCTION CONTRACTOR Service Contracts 63,650 63,650 63,650 RICHARD BRADY & ASSOCIATES, INC. 125,000 125,000 125,000 FUTURE CONSTRUCTION MANAGEMENT 5,000 - 5,000 5,000 FUTURE WELDING INSPECTION 40,000 40,000 40,000 FUTURE SECURITY CONSULTANT 5,000 5,000 5,000 FUTURE STRUCTURAL ENGINEER 5,000 - 5,000 5,000 FUTURE TESTING Standard Materials 60,000 - 60,000 60,000 FUTURE ENVIRONMENTAL Project Closeout 5,000 - 5,000 5,000 CLOSEOUT Project Contingency 190,000 - 190,000 190,000 5% CONTINGENCY Total Construction 4,548,650 - 4,548,650 4,548,650 Grand Total 5,740,908 683,199 5,057,709 5,740,908 Vendor/Comments Otay Water District P2040-Res - 1655-1 Reservoir 0.5 MG Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost ATTACHMENT B-2 – Budget Detail SUBJECT/PROJECT: P2040-001102 P2642-001102 Award of a Professional Engineering Services Agreement for design and construction support of 1655-1 Reservoir and Rancho Jamul Hydropneumatic Pump Station Modifications Project to Richard Brady & Associates, Inc. 4/2/2021 Budget 2,500,000 Planning Standard Salaries 25,000 20,745 4,255 25,000 Total Planning 25,000 20,745 4,255 25,000 Design Standard Salaries 75,000 1,380 73,620 75,000 Consultant Contracts 174,100 8,314 165,786 174,100 RICHARD BRADY & ASSOCIATES, INC. 20,000 - 20,000 20,000 FUTURE GEOTECHNICAL Total Design 269,100 9,694 259,406 269,100 Construction Standard Salaries 125,000 - 125,000 125,000 Construcion Contract 1,750,000 - 1,750,000 1,750,000 CONSTRUCTION CONTRACTOR Service Contracts 31,350 31,350 31,350 RICHARD BRADY & ASSOCIATES, INC. 75,000 - 75,000 75,000 FUTURE CONSTRUCTION MANAGEMENT 10,000 - 10,000 10,000 FUTURE WELDING INSPECTION 5,000 - 5,000 5,000 FUTURE STRUCTURAL ENGINEER 15,000 - 15,000 15,000 FUTURE TESTING 5,000 - 5,000 5,000 FUTURE ENVIRONMENTAL Project Closeout 5,000 - 5,000 5,000 CLOSEOUT Project Contingency 87,500 - 87,500 87,500 5% CONTINGENCY Total Construction 2,108,850 - 2,108,850 2,108,850 Grand Total 2,402,950 30,439 2,372,511 2,402,950 Vendor/Comments Otay Water District P2642-Rancho Jamul Pump Station Replacement Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost OTAY WATER DISTRICT1655-1 RESERVOIR (0.5 MG)& RANCHO JAMUL HPS REPLACEMENT EXHIBIT A CIP P2040CIP P2642C:\OneDrive\Otay Water District\ENG CIP - Documents\P2040 1655-1 Reservoir 0.5 MG\Graphics\Exhibits-Figures\Exhibit A - Staff Report Location MAp.mxd HYDRO PSSITE 0 750375 Feet VICINITY MAP DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 SITE !\ ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS PRESILLA DR F P R E SIL L A D R RESERVOIRSITE Qualifications of Team Responsiveness and Project Understanding Technical and Management Approach INDIVIDUAL SUBTOTAL - WRITTEN AVERAGE SUBTOTAL - WRITTEN Cost Proposal* Consultant's Commitment to DBE TOTAL - WRITTEN Additional Creativity and Insight Strength of Project Manager Presentation and Communication Skills Responses to Questions INDIVIDUAL TOTAL - ORAL AVERAGE TOTAL ORAL SCORE WITHOUT FEE TOTAL SCORE 30 25 30 85 85 15 Y/N 100 15 15 10 10 50 50 135 150 Poor/Good/ Excellent Brandon 28 23 26 77 14 13 9 8 44 Jake 25 21 25 71 12 12 8 8 40 Kevin 28 23 26 77 14 12 8 8 42 Stephanie 25 23 25 73 12 12 8 8 40 Jeff 26 23 28 77 12 12 9 9 42 Brandon 26 21 25 72 11 10 7 6 34 Jake 26 23 22 71 9 8 6 6 29 Kevin 25 21 22 68 12 10 7 5 34 Stephanie 25 22 24 71 9 8 6 6 29 Jeff 26 20 24 70 12 10 8 6 36 Brandon 27 22 24 73 10 10 8 7 35 Jake 26 20 22 68 9 8 7 6 30 Kevin 27 22 24 73 11 11 7 6 35 Stephanie 24 22 24 70 9 8 7 6 30 Jeff 27 21 26 74 11 11 7 6 35 Brandon 24 21 24 69 11 12 6 6 35 Jake 26 22 24 72 11 9 7 7 34 Kevin 24 22 24 70 12 12 8 7 39 Stephanie 26 23 26 75 11 9 7 7 34 Jeff 27 21 25 73 12 11 8 8 39 * Review Panel does not see or consider cost proposals when scoring other categories. The cost proposals are scored by District staff who is not on Review Panel. Consultant Proposed Rates Score Brady $547,575 9 Horrocks $534,686 10 Lee & Ro $359,284 15 Psomas $836,950 1 42 32 117 102 105 10873 87 36 120 109 33 Y 15 10 75 Y 84 126 112 COST PROPOSAL SCORING CHART YHorrocks70 72 1Psomas Lee & Ro 72 Y EXHIBIT BSUMMARY OF PROPOSAL RANKINGS 1655-1 RESERVOIR (0.5 MG) AND RANCHO JAMUL HYDROPNEUMATIC PUMP STATION MODIFICATION PROJECT WRITTEN ORAL 80 MAXIMUM POINTS 9Brady REFERENCES STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 5, 2021 SUBMITTED BY: Michael J. Long Engineering Manager PROJECT: P2083-001103 P2562-001103 DIV. NO. 2 APPROVED BY: Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Approval of Change Order No. 9 in an amount not-to-exceed $117,045.51 to the Construction Contract with Pacific Hydrotech Corporation for the 870-2 Pump Station Replacement Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) authorize the General Manager to execute Change Order No. 9 to the existing construction contract with Pacific Hydrotech Corporation (Pacific Hydrotech) in the amount of $117,045.51 for the 870-2 Pump Station Replacement Project (Project) (see Exhibits A and B for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute Change Order No. 9 in the amount of $117,045.51 to the construction contract with Pacific Hydrotech for the 870-2 Pump Station Replacement Project. AGENDA ITEM 7d ANALYSIS: The District’s existing High Head (870-1) and Low Head (571-1) Pump Stations constructed in 1962 and 1966, respectively, have reached the end of their useful lives. The 870-2 Pump Station Project will replace these facilities and includes replacement of existing Reservoir inlet/outlet piping, construction of recirculation system pumps, and a chloramine disinfection booster system. Improvements of the access road and the installation of utilities for electrical, gas, sewer, and communication services are also included. The 870-2 Pump Station Replacement Project also includes the replacement of the 571-1 Reservoir (36.7 MG) floating cover and liner. The 571-1 Reservoir was originally built in 1967. In 1993, the District retrofitted the existing Reservoir to install a reservoir liner and floating cover. The existing liner and floating cover were more than 24 years old and nearing the end of their useful lives. As part of the overall Project, the existing Reservoir outlet stub-out piping located beneath the Reservoir was replaced, which allows the new 870-2 Pump Station to simultaneously perform its primary function (pump from the 571-1 Reservoir to the 870-1 Reservoir), recirculate the 571-1 Reservoir, and achieve a future function (pump from the 571-1 Reservoir to the 624 Pressure Zone). The replacement of the cover and liner under this Project mitigates having to take this critical Reservoir out of service a second time within the next few years. The demolition of the Low Head and High Head Pump Stations will be completed later (not part of this Project) when the new 870-2 Pump Station has been brought online and completed its warranty period. At the July 5, 2017 Board Meeting, the Board awarded a construction contract in the amount of $16,925,900.00 to Pacific Hydrotech. Since the award of the construction contract, eight (8) change orders have been approved. Change Order No. 1, which totaled $26,269.83, compensated the contractor for changes associated with the 571-1 Reservoir cover and liner improvements. These changes included provisions for additional cover buoyancy floats; replacement of existing unsalvageable batten bar anchor bolts; contractor reservoir disinfection in lieu of contract specified District disinfection; weather related days; and an adjustment to the contract milestone date for the 571-1 Reservoir. In total, Change Order No. 1 added twenty-seven (27) days to the contract. 3 Change Order No. 2, which totaled $48,698.12, compensated the contractor for changes including the following: modifications to the new electric meter room to accommodate San Diego Gas & Electric accessibility requirements; modifications to provide two (2) 250- gallon aqueous ammonia tanks in lieu of one (1) 550-gallon tank to better serve Station operations; provisions for two (2) 30-inch magnetic flow meters in lieu of ultrasonic flow meters to provide more resiliency and flexibility with anticipated flow conditions; and repairs to an existing rectifier electrical conduit adjacent to the access road. Change Order No. 2 also addressed contract time including weather days. In total, Change Order No. 2 added sixteen (16) days to the contract. Change Order No. 3, which totaled $64,864.00, compensated the contractor for several changes including the following: modifications to the dimensions of the backup generator concrete foundation pad; addition of structural support members for the heating, ventilation, and air-conditioning (HVAC) equipment and emergency generator muffler; revisions to the Stations louvers and associated masonry; installation of door louvers for the compressor room doors; increasing the discharge piping on the 570 zone (recirculation) pumps to 18-inches; revisions to provide a sewn protective thermal insulation jacket with clips for the emergency generator muffler and exhaust piping; modifying the emergency generator exhaust roof penetration to simplify future muffler removal/servicing; and consolidation of exterior lighting controls in a new contactor and control panel. Change Order No. 3 also addressed contract time including weather days. In total, Change Order No. 3 added twenty-five (25) days to the contract. Change Order No. 4, which totaled $49,157.89, compensated the contractor for several changes including the following: surge protection for indoor devices; additional pipe supports; spare engine exhaust catalysts; modification to Victaulic couplings; and relocation of chemical analyzers. Change Order No. 4 also reconciled credits associated with the unused portions of the Environmental/Regulatory Compliance and Reservoir Improvement Allowance items. Change Order No. 4 also addressed contract time including weather days. In total, Change Order No. 4 added forty-four (44) days to the contract. Change Order No. 5, which totaled $95,725.00, compensated the contractor for several changes including the following: profile and alignment revisions to the 66-inch and 30-inch discharge yard piping and suction header elevation; modifications to the Type D emergency batteries and test switch locations; addition of a fuel containment structure; providing position switches at the surge tank isolation valve; modifications to the thermal insulation for the pump engine coolant line piping; fire rated door hardware at door D-12; addition of bollards and a metal protective enclosure at the diesel fuel lines entrance location to the Pump Station; revisions to the suction header platform handrail; revisions to the pump engine natural gas pipe sizes; modifications to the cable tray support; ethernet communications to the pump engines; additional costs associated with dewatering existing vault No. 7; elevation and layout modifications to the suction header walkway and engine platform structures; and credits for unused items. Change Order No. 5 also addressed contract time including weather days. In total, Change Order No. 5 added thirty-eight (38) days to the contract. Change Order No. 6, which totaled $40,125.89, compensated the contractor for several changes including the following: credits associated with revisions to chain link fencing; modifications to the overhead crane electrical feed circuit; installation of flashing around pump engine exhaust canopy roof penetration; handrail and steps at the fuel containment structure; incorporation of handwheels on all suction header valves; Type II gate well frames and lids; additional conduit between CP-100 and the telephone backboard; additional electrical grounding of the gas engines; custom grade adjustment for the oil interceptor; relocation of pump engine batteries; and modifications to the planned hydroseed mix. Change Order No. 6 also addressed contract time including weather days. In total, Change Order No. 6 added twenty-seven (27) days to the contract. Change Order No. 7, which totaled $60,567.00, compensated the contractor for several changes including the following: revisions to the ammonia alarm horn/beacon mounting location; provides for cathodic protection jumper wires at the meter vault and cathodic system retesting; installation of concrete curbs at unpaved access road crossings; additional data communication and programming for chlorine analyzers; revisions to programming for pump emergency stop buttons; installation of additional UPS receptacles; replacement of sodium hypochlorite and ammonia pressure switches; revisions to the trip rating of panel LP-2 main circuit breaker; modifications to the site drainage at the Pump Station entrance; provides custom protective enclosures for fuel piping; provides type II gate well frame/lid to provide tracer wire access. Change Order No. 7 also addressed contract time including weather days. In total, Change Order No. 7 added nine (9) days to the contract. 5 Change Order No. 8, which totaled $59,903.35, compensated the contractor for several changes including the following: an additional valve and piping modifications at the 30-inch piping interconnection; installation of a storm drainpipe to convey stormwater from the new V-ditch to the underground storm drain system; installation of a 1-inch AVAR and relocation of the 66-inch suction header pressure transmitter assembly; additional signage in the pipe galley, chemical rooms, and fuel containment area; drainage modifications to the meter vault; additional V-ditches and concrete curb; delineation posts and rock protection; engine canopy lighting and a meter vault flood alarm switch; north access road grading and paving modifications; credit for unused electrical and control systems allowance; credit for unused specialized equipment electrical connections allowance; credit for unused agency permit fees allowance. Change Order No. 8 also addressed contract time including weather days. In total, Change Order No. 8 added forty-six (46) days to the contract. Change Order No. 9, which is the subject of this staff report, provides for the modifications to the four (P101, P102, P104, and P105) pumping systems, as detailed in the attached Exhibit C. Currently, the contractor has removed the four pumps and is working on machining the surface of the pump cans. The pump manufacturer is remanufacturing the right-angle drive gear boxes for the gas-powered pumps. The parts will arrive in late April and are expected to be installed by early May. Engineering construction staff continue to keep an accounting of all additional District staff time, construction management time, costs, and consultant analysis and studies that have occurred since the June 29, 2020 date of contractor substantial completion. This accounting will be utilized during project close-out for negotiation with the contractor to reimburse the unanticipated expenses resulting from the delayed operation of the Pump Station. As of May 2021, the physical construction of the 870-2 Pump Station remains approximately 99% percent complete and the project 7-day testing and startup are pending completion of the enhancements associated with this change order and contractor corrections to pump systems. As was previously reported to the Board, the District hired an expert pump consultant to assist in diagnosis on pump systems deficiencies and to ensure the proper and functional operation of the Pump Station; that the contractor would correctly address all the issues encountered during the 7-day test; that the repairs were adequately made; and for the long-term safety and reliability of the Pump Station. This pump consultant is an expert on rotational equipment 6 and has ample experience on the type of pumps installed at the 870-2 Pump Station. The items included in this Change Order No. 9 were recommended by the pump consultant. The pump consultant did not consider these items a design requirement, but to be a betterment. The items were recommended during operational pump system testing since the June 29, 2020 substantial construction completion was achieved. The added items will serve to prolong the life of the pumps and reduce the difficulty of maintenance required. In total, the cost associated with the items in Change Order No. 9 is $117,045.51. The time impacts associated with these betterments are not included in this change order. The contract duration remains at 1,070 calendar days and substantial completion of the project was achieved within that contract time. In addition, the pump consultant made observations and recommendations on retrofits to existing pumps at this and other pump stations that will serve to add operation monitoring redundancies to increase safety and longevity in the on-going operations of all District pump stations. As a result of these recommendations, engineering staff are developing a future CIP for retrofitting District pump stations with these monitoring improvements. Additionally, as part of a lessons learned exercise, Engineering staff will be revising District design standards for future pump station designs to incorporate the pump consultant recommendations. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP P2083, as approved in the FY 2021 budget, is $19,850,000. Total expenditures, plus outstanding commitments and forecast are $19,806,644. See Attachment B-1 for the budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budget is sufficient to support the Project. The total budget for CIP P2562, as approved in the FY 2021 budget, is $2,900,000. Total expenditures, plus outstanding commitments, and forecast, including this contract, are $2,779,524. See Attachment B- 2 for the budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budget is sufficient to support the Project. The Finance Department has determined that, under the current rate model, 100% of the funding is available from the Replacement Fund for CIP P2083 and for CIP P2562. 7 GRANTS/LOANS: Engineering staff researched and explored grants and loans and found none currently 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 District’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 P2083 870-2 Pump Station Replacement\Staff Reports\BD 05-05-21 Pacific Hydrotech Change Order No 9\BD 05-05-21 Staff Report CO No. 9 for 870-2 PS (Rev 2).docx Attachments: Attachment A – Committee Action Attachment B1 – P2083 Budget Detail Attachment B2 - P2562 Budget Detail Exhibit A – 870-2 Pump Station Project Location Exhibit B - 870-2 Pump Station Project Detail Map Exhibit C – Change Order No. 9 ATTACHMENT A SUBJECT/PROJECT: P2083-001103 P2562-001103 Approval of Change Order No. 9 in an amount not-to-exceed $117,045.51.00 to the Construction Contract with Pacific Hydrotech Corporation for the 870-2 Pump Station Replacement Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a Committee Meeting held on April 20, 2021, and the following comments were made: • Staff recommended that the Board authorize the General Manager to execute Change Order No. 9 to the existing construction contract with Pacific Hydrotech Corporation (Pacific Hydrotech) in the amount of $117,045.51 for the 870-2 Pump Station Replacement Project. • As noted in the staff report, on July 5, 2017, the Board awarded a construction contract in the amount of $16,925,900.00 to Pacific Hydrotech and indicated that eight (8) change orders have been approved since then. See pages 2 through 5 of the staff report for details of these change orders. • Staff discussed Change Order No. 9, which is detailed on pages 5 and 6 of the staff report. Exhibit C also provides details of this change order. • Staff stated that with Change Order No. 9, the total change order rate including allowances is 3.3% or 5.3% without allowances for this one project. Based on a review of the financial budget, it is anticipated that the budget is sufficient to support the Project. • The Committee commended staff for their efforts to collaborate with a pump consultant who made observations and recommendations on retrofits to existing pumps at all District pump stations. It was suggested that staff share their lessons-learned information with other agencies. The Committee shared information about the Water Agency Standards and thanked staff for their due diligence to increase safety in the on-going operations of all District pump stations. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item. ATTACHMENT B-1 – P2083 Budget Detail SUBJECT/PROJECT: P2083-001103 P2562-001103 Approval of Change Order No. 9 in an amount not-to-exceed $117,045.51 to the Construction Contract with Pacific Hydrotech Corporation for the 870-2 Pump Station Replacement Project 4/9/2021 Budget 19,850,000 PlanningConsultant Contracts 53,611 53,611 - 53,611 HELIX ENVIRONMENTAL 31,005 31,005 - 31,005 HELIX ENVIRONMNTL PLANNING INC 17,094 17,094 - 17,094 JONES & STOKES ASSOCIATES INC 211,296 211,296 - 211,296 ICF JONES & STOKES INC Regulatory Agency Fees 2,109 2,109 - 2,109 CA DEPT OF FISH & WILDLIFE720 720 - 720 CALIFORNIA REGIONAL WATER1,570 1,570 - 1,570 SAN DIEGO COUNTY WATER AUTH3,924 3,924 - 3,924 STATE WATER RESOURCESService Contracts 2,260 2,260 - 2,260 COUNTY OF SAN DIEGO164 164 - 164 SAN DIEGO DAILY TRANSCRIPT 505 505 - 505 THE SAN DIEGO UNION-TRIBUNE Standard Salaries 233,775 233,775 - 233,775 Fixed Asset 580,444 580,444 - 580,444 Total Planning 1,138,478 1,138,478 - 1,138,478 Design 001102 Consultant Contracts 136 136 - 136 THE WATCHLIGHT CORPORATION4,850 4,850 - 4,850 BURKETT & WONG ENGINEERS INC14,068 14,068 - 14,068 SOUTHERN CALIFORNIA SOIL 3,034 3,034 - 3,034 RICK ENGINEERING COMPANY 4,625 4,625 - 4,625 ROGER B WOODHULL 22,149 22,149 - 22,149 NINYO & MOORE GEOTECHNICAL AND 10,484 10,484 - 10,484 HUNSAKER & ASSOCIATES6,086 6,086 - 6,086 HDR ENGINEERING INC682,870 682,870 - 682,870 CAROLLO ENGINEERS INC7,974 7,974 - 7,974 AEGIS ENGINEERING MGMT INCRegulatory Agency Fees 3,694 3,694 - 3,694 SAN DIEGO GAS & ELECTRIC18,348 18,348 - 18,348 COUNTY OF SAN DIEGO Service Contracts 98 98 - 98 DAILY JOURNAL CORPORATION Standard Salaries 677,054 677,054 - 677,054 Supplier Contracts 5,350 5,350 - 5,350 INLAND AERIAL SURVEYS INC Total Design 1,460,820 1,460,820 - 1,460,820 Construction Construction Contracts 790 790 - 790 CLARKSON LAB & SUPPLY INC14,092,223 14,092,223 - 14,092,223 PACIFIC HYDROTECH CORPORATION738,919 738,919 - 738,919 PACIFIC WESTERN BANK 117,055 117,055 117,055 Pacific Hydrotech CO No. 9 Consultant Contracts 52,853 5,920 46,933 52,853 ALYSON CONSULTING 437,691 425,389 12,302 437,691 CAROLLO ENGINEERS INC 1,319 1,319 - 1,319 NINYO & MOORE GEOTECHNICAL AND10,240 10,240 - 10,240 NV5 INC70,000 15,335 54,665 70,000 ON-SITE TECHNICAL SVCS INC17,623 17,623 - 17,623 RBF CONSULTING1,038,300 1,038,300 - 1,038,300 MICHAEL BAKER INT'L INC 438 438 - 438 NINYO & MOORE GEOTECHNICAL For Ops Only - Contracted Services 1,375 1,375 - 1,375 LYNN'S LOCKSMITH SERVICE INFRASTRUCTURE EQUIPMENT & MA 1,281 1,281 - 1,281 MALLORY SAFETY & SUPPLY LLC OTHER AGENCY FEES 339,493 339,493 - 339,493 SAN DIEGO GAS & ELECTRICParking and Tolls 29 29 - 29 PETTY CASH CUSTODIANProfessional Legal Fees 276 276 - 276 ARTIANO SHINOFF280 280 - 280 STUTZ ARTIANO SHINOFFRegulatory Agency Fees 11,758 11,758 - 11,758 COUNTY OF SAN DIEGOSecurity Services 41,112 41,112 - 41,112 WATCHLIGHT CORPORATION Service Contracts 3,628 3,628 - 3,628 MAYER REPROGRAPHICS INC 119 119 - 119 SAN DIEGO DAILY TRANSCRIPT Standard Salaries 230,546 210,546 20,000 230,546 Total Construction 17,207,346 16,956,392 250,954 17,207,346 Grand Total 19,806,644 19,555,690 250,954 19,806,644 Vendor/Comments Otay Water Districtp2083-PS - 870-2 Pump Station Repl Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost ATTACHMENT B-2 – P2562 Budget Detail SUBJECT/PROJECT: P2083-001103 P2562-001103 Approval of Change Order No. 9 in an amount not-to-exceed $117,045.51 to the Construction Contract with Pacific Hydrotech Corporation for the 870-2 Pump Station Replacement Project 4/9/2021 Budget 2,900,000 Planning Regulatory Agency Fees 50 50 - 50 PETTY CASH CUSTODIAN Total Planning 50 50 - 50 Design 001102 Mileage Reimbursement 14 14 - 14 PETTY CASH CUSTODIAN Standard Salaries 51,320 51,320 - 51,320 Total Design 51,333 51,333 - 51,333 Construction Construction Contracts 206 206 - 206 CLARKSON LAB & SUPPLY INC 2,414,577 2,414,577 - 2,414,577 PACIFIC HYDROTECH CORPORATION 125,493 125,493 - 125,493 PACIFIC WESTERN BANK Consultant Contracts - - - ALYSON CONSULTING 129,300 129,300 - 129,300 MICHAEL BAKER INT'L INC Standard Salaries 58,565 58,565 - 58,565 Total Construction 2,728,140 2,728,140 - 2,728,140 Grand Total 2,779,524 2,779,524 - 2,779,524 Vendor/Comments Otay Water Districtp2562-Res - 571-1 Reservoir Cover/Liner Replac Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost OTAY WATER DISTRICT870-2 PUMP STATIONLOCATION MAP EXHIBIT A CIP P2083F P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Graphics\Exhibits-Figures\Exhibit A, Location Map, May 2016.mxd ROLLRESERVOIR(571-1) LOW HEADPUMP STATION HIGH HEADPUMPSTATION FOR PROJECT DETAILSEE EXHIBIT B ACCESS FROMALTA RD OWD PROPERTY LINE(APPROX) FirearmsTrainingFacility VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 !\ ?ò Aä ?Ë ;&s ?p F 0 250125 Feet OTAY WATER DISTRICT870-2 PUMP STATIONPROJECT DETAIL MAP EXHIBIT B CIP P2083F P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Graphics\Exhibits-Figures\Exhibit B, Project Detail Map, May 2016.mxd 0 10050 Feet Legend ExistingEasementOWD ExistingParcelOWD ExistingEasementSDGE ProposedStructure ProposedWater ProposedStormDrain ProposedSewer ProposedGas ProposedSiteCivil ExistingWaterOWD OTAY WATER DISTRICT 2554 SWEETWATER SPRINGS BLVD., SPRING VALLEY, CA. 91978, (619) 670-2222 CONTRACT/P.O. CHANGE ORDER No. 9 PROJECT/ITEM: 870-2 Pump Station Replacement CONTRACTOR/VENDOR: Pacific Hydrotech Corporation REF.CIP No.: P2083/P2562 APPROVED BY: Board REF. P.O. No: 720067 DATE: 4/6/21 DESCRIPTION: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for installation of four equipment connection fittings: two between the pump discharge flange and heat exchanger (P102 & P104) and two between pump discharge flange and pipe spool (P101 & P105) per RFP 015 and COR 150. REASON: Subsequent to pump removal as part of pump failure analysis investigations it was discovered that pump discharge piping had shifted slightly from originally installed conditions, likely a result of surge system functional testing. This discovery resulted in direction to enhance the design with installation of an equipment connection fitting (ECF) between each pump outlet flange and adjacent piping to simplify future pump alignment procedures and allow independent movement of the discharge piping mitigating potential for future stress of the pump outlet flange. This change order is required to implement the required modifications resolving all costs associated with RFP 015 and COR 150. CHANGE P.O. TO READ: Revise Contract to add $117,045.51 and add 0 days time for a total Contract amount of $17,488,256.59 with a Contract Duration of 1070 Calendar Days. ORIGINAL CONTRACT/P.O. AMOUNT: $ 16,925,900.00 ADJUSTED AMOUNT FROM PREVIOUS CHANGE: $ 445,311.08 TOTAL COST OF THIS CHANGE ORDER: $ 117,045.51 NEW CONTRACT/P.O. AMOUNT IS: $ 17,488,256.59 ORIGINAL CONTRACT COMPLETION DATE: 10/4/19 CONTRACT/P.O. TIME AFFECTED BY THIS CHANGE: No REVISED CONTRACT COMPLETION DATE: 6/30/20 IT IS UNDERSTOOD WITH THE FOLLOWING APPROVALS, THAT THE CONTRACTOR/VENDOR IS AUTHORIZED AND DIRECTED TO MAKE THE HEREIN DESCRIBED CHANGES. IT IS ALSO AGREED THAT THE TOTAL COST FOR THIS CHANGE ORDER CONSTITUTES FULL AND COMPLETE COMPENSATION FOR OBLIGATIONS REQUIRED BY THE CONTRACT/P.O. ALL OTHER PROVISIONS AND REQUIREMENTS OF THE CONTRACT/P.O. REMAIN IN FULL FORCE AND EFFECT. CONTRACTOR/VENDOR: STAFF APPROVALS: SIGNATURE: PROJ. MGR: DATE: NAME: David Power DIV.MGR:DATE: TITLE: Project Manager DATE: CHIEF: DATE: COMPANY & Pacific Hydrotech Corporation ADDRESS: 314 E. 3rd Street DISTRICT APPROVAL: Perris, CA 92570 GEN. MANAGER: DATE: COPIES: o FILE (Orig.), o CONTRACTOR/VENDOR, o CHIEF-ENGINEERING, o CHIEF-FINANCE, o ENGR. MGR. o ACCTS PAYABLE, o INSPECTION, o PROJ. MGR.,o ENGR. SECRETARY, o PURCHASING, o PROJECT BINDER EXHIBIT C Michael Baker International 9755 Clairemont Mesa Blvd San Diego, CA 92124 (858) 518-3072 REQUEST FOR PROPOSAL #15 Date: March 31, 2021 Project Name: 870-2 Pump Station Replacement To: Pacific Hydrotech, Inc. C.I.P. No.: P2083 & P2562 314 E 3rd St., Perris CA 92570 Contractor: Pacific Hydrotech Attn: David Power From: Douglas Cook Subject: Equipment Connection Fittings Page 1 of 3 Reference Drawings: attached Ref. Spec. Section: N/A Referenced RFI: N/A Description: Shop drawings required X No Shop drawings required Please lump sum proposal to furnish all required labor, material, and equipment necessary to implement the following items per the attached drawing and material information: 1. P102 & P104 o Remove Victaulic connection spool between butterfly valve and Cla-Val, disconnect all heat exchanger coolant lines, disconnect electrical conduits to Cla-Val, provide temporary support for piping and remove existing pipe stanchions. o Remove flange on discharge header and adjust outlet length to achieve a nominal length of 23.75 inches between Cla-Val and discharge header flange. Reinstall new flange and repair damaged cement mortar lining prior to bolting butterfly valve back to flange. o Shift Cla-Val and Heat Exchanger so that Cla-Val bolts to butterfly valve and a gap of 23.75 inches is achieved between the pump discharge flange and heat exchanger. o Install Romac ECF400 between pump discharge flange and heat exchanger. o Reconnect all heat exchanger coolant lines to relocated heat exchanger. o Reconnect all electrical conduits to relocated Cla-Val. o Reinstall two existing pipe stanchions beneath Cla-Val and install a new pipe support with strap beneath the heat exchanger. o Apply contractual coating system to all new piping and damaged existing coating materials. 2. P101 & P105 o Remove spool between the pump outlet flange and Cla-Val. o Modify length of spool to achieve a nominal length of 23.75 inches between pump discharge flange and spool piece. o Install Romac ECF400 between pump discharge flange and heat exchanger. o Apply contractual coating system to all new piping and damaged existing coating materials. · Please submit a lump sum cost proposal for this adjustment to your construction contract by April 5, 2021. Your proposal should include a complete detailed breakdown of labor man-hours, materials, equipment, and all other related costs which would be basis for negotiation and agreement in an adjustment to the contract price. · Please quantify the impact, if any, the above described scope of work will have upon your project completion date, by identifying the first critical path element of your schedule which is impacted and the duration of the impact. · Other requirements to be included are: N/A Michael Baker International 9755 Clairemont Mesa Blvd San Diego, CA 92124 (858) 518-3072 REQUEST FOR PROPOSAL #15 Date: March 31, 2021 Project Name: 870-2 Pump Station Replacement To: Pacific Hydrotech, Inc. C.I.P. No.: P2083 & P2562 314 E 3rd St., Perris CA 92570 Contractor: Pacific Hydrotech Attn: David Power From: Douglas Cook Subject: Equipment Connection Fittings Page 2 of 3 By: Construction Manager’s Signature ECF400 EQUIPMENT CONNECTION FITTING 1.800.426.9341 • www.romac.com Restraint for misaligned flanged fittings on field connections and equipment. • The ECF400 combines two flanged couplings with a plain spool piece and thrust restraint rods in one complete and easy-to-use assembly. • The ECF400’s flexibility and adjustability simplifies systems that are otherwise difficult to work with. • Provided in standard lengths for ease of piping system design. Available in custom lengths if required. BECF 09/2018 1.800.426.9341 www.romac.com OFFSET & DEFLECTION If your system has misaligned or offset flanges that need to be connected, the ECF400 will accommodate a minimum of 1/4” offset and deflection (see chart). Once installed, the fitting is a solid connection that will not allow your system to move. ADJUSTABLE LAYING LENGTH Just like our DJ400 and DJ405, the ECF400 has an adjustable laying length, allowing room for access, valve installation, or an extra pipe length that may be required. CONNECTION The Romac Equipment Connection Fitting accommodates a flanged system with ANSI CLS 125 and 150 bolt circles. We also can provide other configurations on request. RESTRAINT Tie-rods and harness lugs provide the means of restraint. Since the tie-rods only pass through the harness lugs and not the flanges, the rods are easily installed or removed. For sizes, pricing and other information, contact Romac 1-800-426-9341 SPOOL ASTM A53 SCH 40 pipe for 3-12” sizes and ASTM A36 steel for 14” & larger sizes. A pipe stop is available. BODIES AND END RINGS For 3- 12” Sizes, ASTM A536 ductile iron meeting or exceeding Grade 65-45-12. For 14” and larger sizes, ASTM A36 steel. Flange bolt circles accommodate ANSI CLS 125 and 150. GASKETS Compounded for water and sewer service in accordance with ASTM D2000. Other compounds available for petroleum, chemical, or high temperature service. BOLTS, NUTS, SPHERICAL WASHERS High Strength Low Alloy Steel. Type 304 Stainless Steel or Type 316 Stain- less Steel is available. TIE RODS High Strength Steel per ASTM A193 B7. Type 304 (A193 B8) and 316 (A193 B8M) Stainless steel is available. HARNESS LUGS ASTM A36 steel or ASTM A536 Ductile Iron. Coated with Fusion Bonded Epoxy. COATING All steel and ductile iron parts are coated at Romac with NSF 61 certified Fusion Bonded Epoxy. OVERVIEW NOM.MIN.MAX.LBS 3 7.50 0.60 16.50 15.50 17.50 4 5/8 - 11 5/8 23.38 2 2 3.50 0.22 0.50 0.25 0.32 49 4 9.00 0.60 16.50 15.50 17.50 8 5/8 - 11 5/8 23.75 2 2 4.50 0.24 0.50 0.25 0.32 58 6 11.00 0.63 16.63 15.63 17.63 8 3/4 - 10 5/8 24.88 2 2 6.63 0.28 0.75 0.25 0.32 92 8 13.50 0.63 16.63 15.63 17.63 8 3/4 - 10 5/8 25.25 2 3 8.63 0.32 0.75 0.25 0.32 122 10 16.00 1.24 19.25 18.25 20.25 12 5/8 - 11 X 7/8 - 9 3/4 28.75 2 3 10.75 0.37 1.00 0.70 0.77 204 12 19.00 1.25 19.50 18.50 20.50 12 7/8 - 9 7/8 29.63 2 4 12.75 0.38 1.00 0.71 0.78 268 OFFSET AT MIN. LENGTH AT MAX. LENGTH APPROX. WEIGHTNOM SIZE DIMENSIONS BOLTS TIE RODS FACE TO FACE LENGTHFLANGE OD FCA FLANGE THK QTY SPOOL SIZE SIZE LENGTH 175 PSI (CLS D) QTY 275 PSI (CLS E) QTY OD THK HARNESS LUG THK MATERIAL SPECIFICATIONS Tie-Rod SphericalWashers Nut HarnessLugs Spherical washer and harness lug assemblies are engineered to keep the tie-rods in position, and prevent bending. SPHERICAL WASHER DETAIL 1.800.426.9341 www.romac.com DIMENSIONS HARNESS LUG DETAIL HARNESS LUG DETAIL NOM.MIN.MAX.LBS 3 7.50 0.60 16.50 15.50 17.50 4 5/8 - 11 5/8 23.38 2 2 3.50 0.22 0.50 0.25 0.32 49 4 9.00 0.60 16.50 15.50 17.50 8 5/8 - 11 5/8 23.75 2 2 4.50 0.24 0.50 0.25 0.32 58 6 11.00 0.63 16.63 15.63 17.63 8 3/4 - 10 5/8 24.88 2 2 6.63 0.28 0.75 0.25 0.32 92 8 13.50 0.63 16.63 15.63 17.63 8 3/4 - 10 5/8 25.25 2 3 8.63 0.32 0.75 0.25 0.32 122 10 16.00 1.24 19.25 18.25 20.25 12 5/8 - 11 X 7/8 - 9 3/4 28.75 2 3 10.75 0.37 1.00 0.70 0.77 204 12 19.00 1.25 19.50 18.50 20.50 12 7/8 - 9 7/8 29.63 2 4 12.75 0.38 1.00 0.71 0.78 268 OFFSET AT MIN. LENGTH AT MAX. LENGTH APPROX. WEIGHTNOM SIZE DIMENSIONS BOLTS TIE RODS FACE TO FACE LENGTHFLANGE OD FCA FLANGE THK QTY SPOOL SIZE SIZE LENGTH 175 PSI (CLS D) QTY 275 PSI (CLS E) QTY OD THK HARNESS LUG THK FACE TO FACE FACE TO FACE ECF400 3"–12" ECF400 14"–72" Repair Clamps • Couplings • Expansion Joints • Pipe Restraint • Service Saddles Tapping Sleeves • Tapping Machines • Valve Insertion • Waterworks Tools 1.800.426.9341 • www.romac.com BECF 09/2018 NOTES: 2.PRESSURE RATED UP TO FLANGES PROVIDED; 14” - 72” AWWA CLS D 150 PSIG WORKING, 187 PSIG TEST. FOR HIGHER PRESSURES, 3.AWWA CLS E OR CLS F FLANGES AVAILABLE. ACCOMODATES DEFLECTION AND/OR OFFSET IN A SYSTEM PROVIDING A SOLID CONNECTION AFTER INSTALLATION,4.NOT INTENDED TO PROVIDE LATERAL MOVEMENT IN PIPELINE.5.*FLANGE BOLTS PROVIDED ARE ALL THREAD STUDS WITH TWO NUTS PER STUD AND ARE USED ONLY WHERE HARNESS LUGS BOLT TO 6.FLANGE. USER TO PROVIDE REMAINING FLANGE BOLTS. NSF 61 CERTIFIED COATING: FUSION BONDED EPOXY IS STANDARD. OTHER COATINGS AVALABLE UPON REQUEST. 1.FASTENERS: HSLA PER ASTM A588 IS STANDARD. STAINLESS STEEL TYPE 304 OR 316 PER ASTM A193 AVAILABLE UPON REQUEST. NOM PIPE SIZE DIMENSIONS BOLTS TIE RODS SPOOL HARNESS LUG THK *FLANGE BOLT OFFSET MAX DEFLECTION APPROX WEIGHTFLANGE OD FLANGE THK C - LENGTH QTY SIZE SIZE LENGTH QTY OD THK SIZE LENGTH QTY AT MIN LENGTH AT MAX LENGTHA B NOM MIN MAX D E F G H J K N R S T DEGREES LBS 14 21.00 0.94 23.75 22.25 25.25 16 5/8 - 11 1 35.00 2 14.00 0.25 1.00 1 6.50 8 0.25 0.37 2.25 286 16 23.50 1.00 24.75 23.25 26.25 20 5/8 - 11 1 36.25 2 16.00 0.25 1.00 1 6.75 8 0.25 0.36 2.00 334 18 25.00 1.06 24.75 23.25 26.25 20 5/8 - 11 1 36.50 3 18.00 0.25 1.00 1-1/8 7.00 12 0.25 0.35 2.00 391 20 27.50 1.13 24.88 23.38 26.38 24 5/8 - 11 1 37.25 4 20.00 0.25 1.00 1-1/8 7.50 16 0.25 0.35 2.00 472 24 32.00 1.25 25.13 23.63 26.63 28 5/8 - 11 1 38.00 5 24.00 0.25 1.00 1-1/4 8.00 20 0.25 0.35 2.00 631 30 38.75 1.38 26.38 24.88 27.88 32 5/8 - 11 1-1/4 40.75 5 30.00 0.38 1.25 1-1/4 8.75 20 0.25 0.34 1.75 969 36 46.00 1.63 26.88 25.38 28.38 36 5/8 - 11 1-1/4 41.75 7 36.00 0.38 1.25 1-1/2 10.00 28 0.25 0.34 1.75 1412 42 53.00 1.75 28.63 27.13 30.13 40 5/8 - 11 1-1/4 44.00 9 42.00 0.38 1.25 1-1/2 10.50 36 0.25 0.33 1.50 1862 48 59.50 1.88 30.75 29.25 32.25 44 5/8 - 11 1-1/2 47.75 8 48.00 0.38 1.75 1-1/2 11.50 32 0.25 0.32 1.25 2282 54 66.25 2.13 31.25 29.75 32.75 48 5/8 - 11 1-1/2 49.25 10 54.00 0.38 1.75 1-3/4 12.75 40 0.25 0.32 1.25 3018 60 73.00 2.25 31.50 30.00 33.00 56 5/8 - 11 1-1/2 49.75 13 60.00 0.38 1.75 1-3/4 12.00 52 0.25 0.32 1.25 3670 66 80.00 2.50 34.88 33.38 36.38 60 5/8 - 11 1-3/4 54.75 11 66.00 0.38 2.00 1-3/4 13.00 44 0.25 0.30 1.00 4441 72 86.50 2.63 35.13 33.63 36.63 64 5/8 - 11 1-3/4 55.25 13 72.00 0.38 2.00 1-3/4 13.25 52 0.25 0.30 1.00 5128 REVISIONS REV. DESCRIPTION DATE APPROVED 0 INITIAL RELEASE IN PDM, UPDATED TO CURRENT DESIGN 1/24/2013 PNN 1 FIXED DIM "C" 5/21/2015 NST AWWA C207 CLS D FLANGEQTY: 2 A A A WRITTEN PERMISSION OF ROMAC IND., INC. DRAWING FILE NAME: NOT HAVE ITS INFORMATION DISCLOSED 1/64 DRAWN SIGNATURESUNLESS OTHERWISE SPECIFIED ROMAC INDUSTRIES INC. REV. NO. TITLE APPROVED NTS 1 OF 1ASCALESIZE WHICH IT WAS SUBMITTED AND SHALL DRAWING BE USED ONLY FOR THE PURPOSE FOR SHEET OR REPRODUCED IN WHOLE OR IN PART MODEL CAD #: CAD-005118 PROPERTY OF ROMAC IND., INC. IT IS TO DWG. NO. ECF400 - 14 - 72 - AWWA CLS D - STANDARD DATE AUTHOR: Peter NielsenMODEL NAME: ECF400 - 14 - 72 - AWWA CLS D - STANDARD LENGTHS - WITH OFFSET PROPRIETARY NOTICE 01/24/2013 2/5/2013 PROPRIETARY INFORMATION AND IS THE FOR ANY PURPOSE WITHOUT PRIOR ECF400 - 14 - 72 - AWWA CLS D - STANDARD LENGTHS - CUSTOMER LENGTHS CAD-005065 CAD-005065 1 Peter Nielsen Sam Hill CONFIGURATION NAME:Default THIS DRAWING CONTAINS CONFIDENTIAL DIMENSIONS ARE IN INCHES TOLERANCES ARE ON: 1 PL DECIMALS 0.0602 PL DECIMALS 0.0303 PL DECIMALS 0.010ANGLES 1FRACTIONS LEGACY DRAWING #: B2358-A FO R C U S T O M E R U S E A-Fab_V2 SPHERICAL WASHER SET, TIE ROD, "F" UNC X "G" LG, ASTM A36. QTY: 2 PER TIE ROD QTY: "H" QTY: "D" ASTM A193 GR. B7, B8 OR B8M.QTY: "T" SPOOL, "J" OD X "K" THK, "R" UNC X 'S" LENGTH,*FLANGE BOLT QTY: 2 BODY ASTM A193 GR. B7, B8 OR B8M. ALLOWS FOR DEFLECTION, GASKET: SUITABLEFOR WATER & SEWERSERVICE, 180 F MAX,75 DUROMETER, BOLTS, "E" SIZE, END RING SECTION A-A B C B K G N OFFSET J PACIFIC HYDROTECH CORPORATION 314 E. 3RD ST, PERRIS, CA 92570 (951) 943-8803 FAX (951) 943-1093 COR: 150 April 6, 2021 Michael Baker International, 9755 Clairemont Mesa Blvd San Diego, CA 92124 Attention: Doug Cook Reference: C1710 870-2 Otay Pump Station Replacement: COR # 150 Piping Enhancements Doug: Per attached RFP #15, please find attached cost to furnish all required labor, material, and equipment necessary to implement piping enhancements per the attached drawing and material information, as requested by owner. Amount of this Proposed Lump Sum Change Order: $117,045.51 Exclusions: Any work not specifically mentioned. Please review this change order request and if everything is acceptable to you, please issue us a Change Order in the amount of $117,045.51 at your earliest convenience. Sincerely, David N. Power Pacific Hydrotech Corporation PACIFIC HYDROTECH CORPORATION 314 E 3RD Street Perris,CA 92570(951)943-8803 EXTRA WORK DESCRIPTION:COR: PROJECT NAME:JOB #: DATE:EQUIPMENT UOM UNIT RATE*TOTAL LABOR HR RATE**TOTAL Tool Truck HR 160 $39.12 6,259.20$ Backhoe 420D w/4WD HR 0 $50.05 -$ Foreman (prep,layout,investigate)40 95.00$ 3,800.00$ Mini Excavator HR 0 $31.61 -$ Working Superintendent 24 102.00$ 2,448.00$ Wacker Compactor HR 0 $10.19 -$ Foreman 80 95.00$ 7,600.00$ Gradall HR 0 $72.47 -$ Operator 0 91.32$ -$ Generator HR 0 $14.99 -$ Carpenter 0 75.21$ -$ Rotohammer HR 0 $9.97 -$ Pipe Fitter 320 73.00$ 23,360.00$ Roller Compactor HR 0 $94.78 -$ Cement Mason 0 70.60$ -$ Excavator 345CL HR 0 $167.40 -$ Bricklayer 0 68.00$ -$ Water Truck HR 0 $28.17 -$ Laborer 80 72.00$ 5,760.00$ Welder HR 0 $165.00 -$ Welder 80 135.00$ 10,800.00$ Forklift HR 0 $56.42 -$ Crane HR 0 $250.00 -$ Sr. Project Manager 0 124.93$ -$ 5 Yd. Loader HR 0 $175.08 -$ Superintendent 0 134.13$ -$ Crane Rental LS 0 $0.00 -$ Foreman (prep,layout,investigate)0 124.93$ -$ -$ Operator 0 119.27$ -$ -$ Carpenter 0 99.38$ -$ -$ Pipe Fitter 0 96.00$ -$ -$ Cement Mason 0 88.73$ -$ Subtotal 6,259.20$ Bricklayer 0 89.42$ -$ Markup 15%938.88$ Laborer 87.85$ -$ Total Cost 7,198.08$ MATERIAL UOM UNIT COST TOTAL Material list per attached LS 1 31,516.71$ 31,516.71$ Sr. Project Manager 0 156.75$ -$ -$ -$ Superintendent 0 168.30$ -$ Misc. Materials LS 1 500.00$ 500.00$ Foreman (prep,layout,investigate)0 156.75$ -$ -$ -$ Operator 0 147.91$ -$ -$ -$ Carpenter 0 124.11$ -$ -$ -$ Pipe Fitter 0 120.45$ -$ -$ -$ Cement Mason 0 107.29$ -$ -$ -$ Bricklayer 0 112.20$ -$ -$ Laborer 0 108.35$ -$ -$ -$ -$ Subtotal 53,768.00$ Subtotal 32,016.71$ Markup 15%8,065.20$ Markup 15%4,802.51$ Total Cost 61,833.20$ Total Cost 36,819.22$ INCIDENTALS UOM UNIT COST TOTAL Equipment Total Cost $7,198.08Electrical Subcontractor LS 1.0 3,000.00$ 3,000.00$ Material Total Cost $36,819.22 Painter (Labor & Materials)LS 1.0 5,000.00$ 5,000.00$ Subcontracts Total Cost $8,900.00-$ Labor Total Cost $61,833.20 -$ Subtotal $114,750.50 -$ Bond 1%1147.50 -$ Insurance 1%1147.50 -$ TOTAL COSTS $117,045.51 -$ -$ -$ Subtotal 8,000.00$ Markup 15%900.00$ Total Cost 8,900.00$ **Rates exclude weekends and are subject to increase in accordance with the DIR. *All other equipment not included above will be per Cal Trans rates. Pipe Enhancements at Pumps 101, 102, 104 & 105 C1710 April 2, 2021 Otay 870-2 Pump Station Regular Time Overtime Double Time P2083 & P2562-001103 C.O.AMOUNT BY DATE DESCRIPTION TYPE C.O. 1 $ 26,269.83 Chief 5/18/2018 Additional buoyancy floats in reservoir; replace existing to be reused anchor bolts, disinfect reservoir for water quality testing and weather days Lump Sum 2 $ 48,698.12 Chief 1/29/2019 Electric service room modifications; ammonia storage modifications; replace ultrasonic flow meters with magnetic type; Relocate existing rectifier power conduit and weather days Lump Sum 3 $ 64,864.00 Board 4/3/2019 Provide bathroom finishes; increase size of generator foundation; provide additional HVAC supports, add pilasters for louver relocation; add compressor room louvers; increase 570- zone discharge piping; emergency generator jacket insulation betterment; exhaust roof penetration detail modification; lighting controls modification and weather days Lump Sum 4 $ 49,157.89 Board 11/7/2019 Cathodic system modifications; HVAC modifications; additional 4-inch irrigation valve; indoor devices surge protection; surge tank concrete foundation modifications; Type G LED exit light fixture mount modifications; chemical resistant coating in chemical rooms; lighting controller modifications; additional pipe supports in the pump room; add EF-4 to pump room; spare exhaust catalyst and add make-up oil storage tanks; increase size of Victaulic couplings; add Type A light fixture to electrical service entrance room; incorporate two new prima roof drains and overflow drains; relocate HVAC ductwork in electric room; reorientation of electrical busway in emergency generator room; relocation of chemical analyzers; add 2-inch pressure reducing valves; add disassembly flanges on pump engine coolant piping; add cove base in restroom; add flexible connection for engine coolant and gas piping to pump engines; add support gussets on aluminum platform above the suction piping; add 1-hour fire labeling at the generator room interior door; weather and bid item quantity adjustments Lump Sum 5 $ 95,725.00 Board 2/6/2020 Suction piping revisions; type D emergency batteries and test switch locations; fuel containment structure; position switches at surge tank isolation valve; thermal insulation for pump engine coolant line piping; door D-12 fire rated door hardware; protective enclosure for diesel fuel lines; suction header platform handrail modifications; natural gas engine piping modifications; cable tray support modification; ethernet communication to pump engines; vault 7 dewatering; AVAR piping connection material changes; suction header platform modifications; weather and bid item quantity adjustments Lump Sum 6 $ 40,125.89 Board 4/1/2020 Fencing revisions; overhead crane electrical feed changes; pump engine exhaust penetration; handrail and steps at fuel containment; suction header valve handwheels; gate well frames/lids; conduit between CP-100 and backboard; gas engine electrical grounding; oil interceptor grade adjustment; relocate pump engine batteries; change hydroseed mix and density Lump Sum 7 $ 60,567.00 Board 6/9/2020 Ammonia Alarm Mounting; Meter Vault Cathodic Revisions; Concrete Curbs; Chlorine Analyzer Data/Comm Mods; Pump Estop Revisions; CP-100 UPS Outlets; Chemical Pressure Switch Revisions; LP-2 Panel Trip Rating Revision; Entrance Drainage Mod; Fuel Pipe Protective Enclosure; Gate Well Frame/Lid for Cathodic Lump Sum 8 $ 59,903.35 Board 10/8/2020 Additional Interconnect Valve; Add 'l Storm Drain Pipe; Relocate Pressure xmiter and AVAR; Add 'l signage & Display Cover; Meter Vault Drainage Mods; Add 'l V-Ditches and curb/gutter; Delineation Posts and Rock Protection; Engine Canopy Lighting, Convenience Outlets, Meter Vault Flood Alarm; North Access Road Grading and Paving Mods, Bid Item Reconciliation Lump Sum 9 $117,045.51 Board Install equipment connection fittings on P101, P102, P104, P015 Lump Sum 10 Total C.O.'s To Date: $562,356.59 3.3% Original Contract Amount:$16,925,900.00 Current Contract Amount:$17,488,256.59 Change Order Breakdown for the Month: Month Net C.O.$Limit Authorization Absolute C.O.$ Absolute C.O. % 4/21 $0.00 $5,000/5%PM/Supervisor $0.00 0.0% $10,000/10%Manager $0.00 0.0% $15,000/20%Chief $0.00 0.0% $50,000/30%GM $0.00 0.0% CHANGE ORDER LOG 870-2 Pump Station (P2083 & P2562) APPROVED STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 5, 2021 SUBMITTED BY: Lisa Coburn-Boyd Environmental Compliance Specialist Bob Kennedy Engineering Manager PROJECT: P1253-004000 DIV. NO. 5 APPROVED BY: Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Award of a Professional Environmental Services Contract for the San Miguel Habitat Management Area and CIP-Associated Mitigation Projects for Three Years (June 2021–June 2024) GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award a Professional Environmental Services Contract to Merkel & Associates, Inc. (Merkel) for the maintenance and monitoring of the San Miguel Habitat Management Area and CIP-Associated Mitigation Projects for a three-year period (June 2021–June 2024) and authorize the General Manager to execute an agreement in an amount not-to-exceed $382,881.30 (see Exhibit A for location map). COMMITTEE ACTION: Please see Attachment A. PURPOSE: That the Board authorize the General Manager to execute a Professional Environmental Services Agreement with Merkel in an amount not-to-exceed $382,881.30 for the maintenance, monitoring, and reporting for the San Miguel Habitat Management Area and CIP- Associated Mitigation Projects for three years (June 2021–June 2024). AGENDA ITEM 7e 2 ANALYSIS: The District’s Habitat Management Area (HMA) is a 230-acre, designated biological reserve located within the District’s 509-acre Use Area property within the City of Chula Vista. The HMA serves as a mitigation bank with credits that can be utilized to offset habitat impacts associated with District projects and facilities. It also serves as a habitat restoration area for vegetation impacts associated with the construction of District CIP projects. The District is required to conduct biological monitoring, provide continuous maintenance, and submit annual reports to the U.S. Fish and Wildlife Service and the California Department of Fish & Wildlife for the HMA. The HMA has been in existence since 1997 and is required to be monitored and maintained in perpetuity. Individual restoration areas associated with CIP projects at the HMA generally have a three (3) to five (5) year maintenance, monitoring, and reporting period. Currently, ICF is the firm that has the contract for the HMA maintenance, monitoring, and reporting. Their contract will conclude at the end of May 2021. In order to have a new consultant on board immediately following the end of the current contract so that maintenance services are not neglected, the District solicited Professional Environmental Consulting Services from consulting firms by placing an advertisement on the District’s website and in various other publications. Ten (10) firms submitted a Letter of Interest and Statement of Qualifications. The Request for Proposal (RFP) was sent to all ten (10) firms resulting in seven (7) proposals received on February 25, 2021, from the following consulting firms: • Artemis (Carlsbad, CA) • Helix Environmental Planning (La Mesa, CA) • ICF (San Diego, CA) • Merkel & Associates, Inc. (San Diego, CA) • SummitWest Environmental, Inc. (San Diego, CA) • KMEA (National City, CA) • Tierra Data, Inc. (Escondido, CA) In accordance with the District’s Policy 21, staff evaluated and scored six (6) of the written proposals. The proposal from Tierra Data was deemed non-responsive as their cost proposal (as evaluated by the Engineering Manager) was twice the amount of all other proposals. Five of the firms were interviewed on April 5, 2021. Merkel received the highest score for their services based on their extensive experience in the management of habitat areas, comprehensive understanding of the scope of work, proposed method to 3 accomplish the work, and overall strength of their project team. A summary of the complete evaluation is shown in Exhibit B. Merkel submitted 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 This contract totals $382,881.30 and will be expended from June 2021 through June 2024, encompassing Fiscal years 2021-2024. The Project Manager expects that this contract amount is sufficient to cover the required expenditures in each of these years. The Operating Budget amount for FY 2021 is $150,000. The Project Manager anticipates this amount is sufficient to cover the expenses for this fiscal year. The requested budget for FY 2022 is $180,000 and, if approved, the Project Manager anticipates the requested budget to be sufficient to cover the operating expenses for the HMA maintenance, monitoring and reporting services required. Likewise, future operating budgets will be requested to support these required expenditures. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." LEGAL IMPACT: None. LC-B/BK:jf https://otaywater365.sharepoint.com/sites/engoperating/Shared Documents/Environmental/HMA/2021-2024 HMA RFP & Contract/Staff Report/BD 05-05-21, Staff Report, San Miguel HMA Services Contract – 2021-2024 (LCB-BK).docx Attachments: Attachment A – Committee Action Attachment B – Summary of Proposal Rankings Exhibit A – Location Map ATTACHMENT A SUBJECT/PROJECT: P1253-004000 Award of a Professional Environmental Services Contract for the San Miguel Habitat Management Area and CIP-Associated Mitigation Projects for Three Years (June 2021–June 2024) COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on April 20, 2021, and the following comments were made: • Staff recommended that the Board award a Professional Environmental Services Contract to Merkel & Associates, Inc. (Merkel) for the maintenance and monitoring of the San Miguel Habitat Management Area (HMA) and CIP-Associated Mitigation Projects for a three-year period (June 2021–June 2024) and authorize the General Manager to execute an agreement in an amount not-to-exceed $382,881.30. • Staff noted that the District is required to conduct biological monitoring, provide continuous maintenance, and submit annual reports to the U.S. Fish and Wildlife Service and the California Department of Fish & Wildlife for the HMA. • In response to a question from the Committee, staff stated that there are burrowing owls on the District’s HMA. • The Committee inquired if the annual budget for the HMA was just for this contract or if it included budget for staff time or other tasks. Staff indicated that the annual budget includes the contract but also includes funding for additional maintenance of invasive plants in the abandoned golf course area and to deal with the increased trespassing that has been happening in the HMA. • The Committee requested that staff provide an update of the Salt Creek Golf Course at a future meeting with information of District projects that surround the site. It was also requested that staff discuss the on-going issues in the area and the District’s preventative measures to control issues. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item. Qualifications of Staff Understanding of Scope, Schedule and Resources Soundness and Viability of Proposed Project Plan INDIVIDUAL SUBTOTAL - WRITTEN AVERAGE SUBTOTAL - WRITTEN Proposed Fee*Consultant's Commitment to DBE AVERAGE TOTAL WRITTEN Additional Creativity and Insight Strength of Project Manager Presentation, Communication Skills Quality of Response to Questions INDIVIDUAL TOTAL - ORAL AVERAGE TOTAL ORAL 30 25 30 85 85 15 Y/N 100 15 15 10 10 50 50 150 Poor/Good/ Excellent Andrea Carey 29 24 28 81 13 13 7 9 42 Lisa Coburn-Boyd 29 24 29 82 13 13 8 8 42 Damon Newman 28 23 29 80 12 13 9 9 43 Mike O'Donnell 28 23 28 79 12 14 8 8 42 Kent Payne 28 24 28 80 13 13 9 8 43 Andrea Carey 27 22 27 76 12 13 9 8 42 Lisa Coburn-Boyd 27 23 27 77 13 13 8 9 43 Damon Newman 26 22 27 75 11 13 10 9 43 Mike O'Donnell 29 22 27 78 13 14 9 9 45 Kent Payne 26 22 26 74 13 13 9 9 44 Andrea Carey 29 25 28 82 14 13 8 9 44 Lisa Coburn-Boyd 29 24 28 81 14 13 8 9 44 Damon Newman 28 24 29 81 14 14 9 9 46 Mike O'Donnell 29 25 29 83 14 13 9 9 45 Kent Payne 28 24 28 80 14 13 9 9 45 Andrea Carey 26 22 26 74 10 10 6 6 32 Lisa Coburn-Boyd 27 23 27 77 10 10 7 7 34 Damon Newman 26 23 27 76 11 11 7 8 37 Mike O'Donnell 28 23 27 78 11 12 7 7 37 Kent Payne 25 20 25 70 10 10 6 6 32 Andrea Carey 28 23 26 77 14 14 9 9 46 Lisa Coburn-Boyd 28 24 27 79 14 14 9 9 46 Damon Newman 28 23 26 77 Y 13 14 9 9 45 Mike O'Donnell 28 22 26 76 14 13 9 9 45 Kent Payne 27 22 27 76 14 14 9 9 46 Andrea Carey 25 21 25 71 Lisa Coburn-Boyd 26 21 26 73 Summit Damon Newman 25 22 25 72 Y Mike O'Donnell 25 21 25 71 Kent Payne 24 21 24 69 Andrea Carey Lisa Coburn-Boyd Damon Newman Mike O'Donnell Kent Payne NR: Non-responsive DNI: Did Not Interview Consultant Proposed Fee Position Score Merkel $382,881 lowest 15 Helix $410,032 12 Artemis $425,540 11 ICF $447,121 9 Summit $499,066 3 MAXIMUM POINTS KMEA Y 45 ORAL 42 43 ICF Attachment B San Miguel HMA Services 2021-2024 TOTAL SCORE 75 NR NR Y 90 91 Y 77 71 15 SUMMARY OF PROPOSAL RANKINGS DNI REFERENCES 76 11 12 9 1 WRITTEN 133 FEE SCORING CHART Helix Artemis 131 Y 88 110 TierraData 34 Merkel 3 135 80 76 81 NR Excellent92 74 46 138 https://otaywater365.sharepoint.com/sites/engoperating/Shared Documents/Environmental/HMA/2021-2024 HMA RFP & Contract/Staff Report/Summary of Proposal Rankings - HMA Services 21-24.xlsx P:\ W o r k i n g \ P 2 4 9 5 - S a n M i g u e l H M A a n d A s s o c . M i t i g a t i o n P r o j e c t s \ S t a f f R e p o r t s \ E x h i b i t A (;+,%,7$ ! VICINITY MAP NTS ?ò Aä ?Ë ;&s DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?p SITE HMA SITE OTAY WATER DISTRICT Environmental Setting MapSan Miguel Habitat Management Area F CIP P2495 F CIP P1253 P: \ W O R K I N G \ C I P P 1 2 5 3 \ S u b p r o j e c t 0 0 4 0 0 0 - H M A \ H M A C o n t r a c t - 2 0 1 8 - 2 0 2 1 \ S t a f f R e p o r t \ B D 0 5 - 0 2 - 1 8 , E x h i b i t A - S a n M i g u e l H M A l o c a tio n m a p . m x d STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 5, 2021 SUBMITTED BY: Eid Fakhouri, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Kevin Koeppen, Assistant Chief of Finance Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Adopt Resolution No. 4394 Amending Policy No. 27, the Investment Policy, of District’s Code of Ordinances and the Re-Delegation of Authority for All Investment Related Activities to the Chief Financial Officer GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Resolution No. 4394 amending Policy No. 27, the Investment Policy, of the District’s Code of Ordinances and re-delegate authority for all investment related activities to the Chief Financial Officer, in accordance with Government Code Section 53607. COMMITTEE ACTION: See Attachment A. PURPOSE: Government Code Section 53646 recommends that the District’s Investment Policy be tendered to the Board on an annual basis for review. In addition, Government Code Section 53607 requires that for the Board’s delegation of investment responsibilities to the Chief Financial Officer to remain effective, the governing board must re-delegate authority over investment activities on an annual basis. ANALYSIS: The primary goals of the Investment Policy are to assure compliance with the California Government Code, Sections 53600 et seq. The primary objectives, in priority order, of investment activities are: AGENDA ITEM 8a 1. Protect the principal of the funds. 2. Remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated. 3. The District’s return is a market rate of return that is commensurate with the conservative investments approach to meet the first two objectives of safety and liquidity. The code provides a conservative range of investment options for local agencies, including Federal Treasuries, Federal Agencies, Callable Federal Agencies, the State Pool, the County Pool, high-grade corporate debt, and others. Each year, staff reviews the California Debt and Investment Advisory Commission (CDIAC)Investment Guidelines to ensure our Investment Policy reflects the most recent and relevant updates approved by the California State Legislature. During this year’s policy review, there were no relevant legislative changes that affect our Investment Policy. In 2020, the California State Treasurer increased the amount an Agency can deposit with the California Local Agency Investment Fund (LAIF) from $65M to $75M. The proposed Investment Policy reflects this increase under section 8.02, Local Agency Investment Fund. Because of the District’s adherence to a conservative range of authorized investments, we have been able to maintain a healthy and diversified portfolio that meets our overall investment objectives and supports our long-term financial plans. The policy is consistent with the current law and the overall objectives of the policy are being met. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Demonstrate financial health through formalized policies, prudent investing, and efficient operations. LEGAL IMPACT: None. Attachments: A) Committee Action B) Resolution No. 4394 Exhibit 1 - Policy No. 27 Strike-through Exhibit 2 – Policy No. 27 Proposed C) PowerPoint Presentation ATTACHMENT A SUBJECT/PROJECT: Adopt Resolution No. 4394 Amending Policy No. 27, the Investment Policy, of District’s Code of Ordinances and the Re-Delegation of Authority for All Investment Related Activities to the Chief Financial Officer COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on April 21, 2021, and the following comments were made: • Staff recommended that the Board adopt Resolution No. 4394 amending Policy No. 27, the Investment Policy, of the District’s Code of Ordinances, and to re-delegate authority for all investment related activities to the Chief Financial Officer, in accordance with Government Code Section 53607. • In response to a question from the Committee, staff stated that having a conservative portfolio mix is definitely one of the objectives of Policy No. 27. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as an Action Item. Page 1 of 2 RESOLUTION NO.4394 WHEREAS, the Otay Water District Board of Directors has been presented with an amended Investment Policy No. 27 of the District’s Code of Ordinances for the financial management of the Otay Water District; and WHEREAS, the amended Investment Policy has been reviewed and considered by the Board, and it is in the interest of the District to adopt the amended Investment Policy; and WHEREAS, the strike-through copy of the proposed policy is attached as Exhibit 1 to this resolution; and NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Board of Directors of the Otay Water District that the amended Investment Policy, incorporated herein as Exhibit 2, is hereby adopted. PASSED, APPROVED AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 5th day of May 2021, by the following vote: Ayes: Noes: Abstain: Absent: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING INVESTMENT POLICY NO.27 OF THE DISTRICT’S CODE OF ORDINANCES Attachment B Page 2 of 2 _______________________ President ATTEST: ____________________________ District Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 1 of 19 1.0: POLICY It is the policy of the Otay Water District to invest public funds in a manner which will provide maximum security with the best interest return, while meeting the daily cash flow demands of the entity and conforming to all state statues governing the investment of public funds. 2.0: SCOPE This investment policy applies to all financial assets of the Otay Water District. The District pools all cash for investment purposes. These funds are accounted for in the District’s audited Comprehensive Annual Financial Report (CAFR) and include: 2.1) General Fund 2.2) Capital Project Funds 2.2.1) Designated Expansion Fund 2.2.2) Restricted Expansion Fund 2.2.3) Designated Betterment Fund 2.2.4) Restricted Betterment Fund 2.2.5) Designated Replacement Fund 2.2.6) Restricted New Water Supply Fund 2.3) Other Post Employment Fund (OPEB) 2.4) Debt Reserve Fund Exceptions to the pooling of funds do exist for tax-exempt debt proceeds, debt reserves and deferred compensation funds. Funds received from the sale of general obligation bonds, certificates of participation or other tax-exempt financing vehicles are segregated from pooled investments and the investment of such funds are guided by the legal documents that govern the terms of such debt issuances. 3.0: PRUDENCE Investments should be made with judgment and care, under current prevailing circumstances, which persons of prudence, discretion and intelligence, exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Exhibit 1 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 2 of 19 The standard of prudence to be used by investment officials shall be the “Prudent Person” and/or "Prudent Investor" standard (California Government Code 53600.3) and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 4.0: OBJECTIVE As specified in the California Government Code 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be: 4.1) Safety: Safety of principal is the foremost objective of the investment program. Investments of the Otay Water District shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the District will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions. 4.2) Liquidity: The Otay Water District’s investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated. 4.3) Return on Investment: The Otay Water District’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the District’s investment risk constraints and the cash flow characteristics of the portfolio. 5.0 DELEGATION OF AUTHORITY OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 3 of 19 Authority to manage the Otay Water District’s investment program is derived from the California Government Code, Sections 53600 through 53692. Management responsibility for the investment program is hereby delegated to the Chief Financial Officer (CFO), who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the CFO. The CFO shall establish written investment policy procedures for the operation of the investment program consistent with this policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the CFO. 6.0: ETHICS AND CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the District. 7.0: AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The Chief Financial Officer shall maintain a list of District selected financial institutions and security broker/dealers authorized and approved to provide investment services in the State of California. Investment services include the buying or selling of permissible investments such as treasuries, government agencies, etc. for delivery to the custodian bank. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3- 1 (Uniform Net Capital Rule). No public deposit shall be made except OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 4 of 19 in a qualified public depository as established by state laws. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the District with the following, as appropriate: • Audited Financial Statements. • Proof of Financial Industry Regulatory Authority (FINRA) certification. • Proof of state registration. • Completed broker/dealer questionnaire. • Certification of having read the District’s Investment Policy. • Evidence of adequate insurance coverage. An annual review of the financial condition and registrations of qualified bidders will be conducted by the CFO. A current audited financial statement is required to be on file for each financial institution and broker/dealer through which the District invests. 8.0: AUTHORIZED AND SUITABLE INVESTMENTS From the governing body perspective, special care must be taken to ensure that the list of instruments includes only those allowed by law and those that local investment managers are trained and competent to handle. The District is governed by the California Government Code, Sections 53600 through 53692, to invest in the following types of securities, as further limited herein: 8.01) United States Treasury Bills, Bonds, Notes or those instruments for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity limitation is applicable. 8.02) Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, may be used up to the maximum permitted by State Law (currently $65 75 million). The OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 5 of 19 District may also invest bond proceeds in LAIF with the same but independent maximum limitation. 8.03) Bonds, debentures, notes and other evidence of indebtedness issued by any of the following government agency issuers: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 6 of 19 • Federal Home Loan Bank (FHLB) • Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac") • Federal National Mortgage Association (FNMA or "Fannie Mae") • Government National Mortgage Association (GNMA or “Ginnie Mae”) • Federal Farm Credit Bank (FFCB) • Federal Agricultural Mortgage Corporation ( FAMCA or “Farmer Mac”) There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity from the settlement date limitation is applicable. Government agencies whose implied guarantee has been reduced or eliminated shall require an “A” rating or higher by a nationally recognized statistical rating organization. 8.04) Interest-bearing demand deposit accounts must be made only in Federal Deposit Insurance Corporation (FDIC) insured accounts. For deposits in excess of the insured maximum of $250,000, approved collateral shall be required in accordance with California Government Code, Section 53652. Certificates of Deposit (CD) will be made only to the FDIC-insured limit of $250,000. Investments in CD’s are limited to 15 percent of the District’s portfolio. 8.05) Commercial paper, which is short-term, unsecured promissory notes of corporate and public entities. Purchases of eligible commercial paper may not exceed 2 percent of the outstanding paper of an issuing corporation, and maximum investment maturity will be restricted to 270 days. Investment is further limited as described in California Government Code, Section 53601(h). Purchases of commercial paper may not exceed 10 percent of the District’s portfolio. 8.06) Medium-term notes defined as all corporate debt securities with a maximum remaining maturity of five years from the settlement date or less, and that meet the further OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 7 of 19 requirements of California Government Code, Section 53601(k). Investments in medium-term notes are limited to 10 percent of the District’s portfolio and no more than 2 percent of the outstanding medium-term notes of any single issuer. 8.07) Money market mutual funds that invest only in Treasury securities and repurchase agreements collateralized with Treasury securities, and that meet the further requirements of California Government Code, Section 53601(l). Investments in money market mutual funds are limited to 10 percent of the District's portfolio. 8.08) The San Diego County Treasurer’s Pooled Money Fund, which is a County managed investment pool, may be used by the Otay Water District to invest excess funds. There is no percentage limitation of the portfolio which can be invested in this category. 8.09) Under the provisions of California Government Code 53601.6, the Otay Water District shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools, or any investment that may result in a zero interest accrual if held to maturity. Also, the borrowing of funds for investment purposes, known as leveraging, is prohibited. 9.0: INVESTMENT POOLS/MUTUAL FUNDS A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. There shall be a questionnaire developed which will answer the following general questions: • A description of eligible investment securities, and a written statement of investment policy and objectives. • A description of interest calculations and how it is distributed, and how gains and losses are treated. • A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 8 of 19 • A description of who may invest in the program, how often, and what size deposits and withdrawals are allowed. • A schedule for receiving statements and portfolio listings. • Are reserves, retained earnings, etc., utilized by the pool/fund? • A fee schedule, and when and how is it assessed. • Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? 10.0 COLLATERALIZATION Collateralization will be required on certificates of deposit exceeding the $250,000 FDIC insured maximum. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest. Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted. 11.0: SAFEKEEPING AND CUSTODY All security transactions entered into by the Otay Water District shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third party custodian designated by the District and evidenced by safekeeping receipts. 12.0: DIVERSIFICATION The Otay Water District will diversify its investments by security type and institution, with limitations on the total amounts invested in each security type as detailed in Paragraph 8.0, above, so as to reduce overall portfolio risks while attaining benchmark average rate of return. With the exception of U.S. Treasury securities, government agencies, and authorized pools, no more than 50% of the District’s total investment portfolio will be invested with a single financial institution. 13.0: MAXIMUM MATURITIES OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 9 of 19 To the extent possible, the Otay Water District will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the District will not directly invest in securities maturing more than five years from the settlement date of the purchase. However, for time deposits with banks or savings and loan associations, investment maturities will not exceed two years. Investments in commercial paper will be restricted to 270 days. 14.0: INTERNAL CONTROL The Chief Financial Officer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. 15.0: PERFORMANCE STANDARDS The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The Otay Water District’s investment strategy is passive. Given this strategy, the basis used by the CFO to determine whether market yields are being achieved shall be the State of California Local Agency Investment Fund (LAIF) as a comparable benchmark. 16.0: REPORTING The Chief Financial Officer shall provide the Board of Directors monthly investment reports which provide a clear picture of the status of the current investment portfolio. The management report should include comments on the fixed income markets and economic conditions, discussions regarding restrictions on percentage of investment by categories, possible changes in the portfolio structure going forward and thoughts on investment strategies. Schedules in the quarterly report should include the following: • A listing of individual securities held at the end of the reporting period by authorized investment category. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 10 of 19 • Average life and final maturity of all investments listed. • Coupon, discount or earnings rate. • Par value, amortized book value, and market value. • Percentage of the portfolio represented by each investment category. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 11 of 19 17.0: INVESTMENT POLICY ADOPTION The Otay Water District’s investment policy shall be adopted by resolution of the District’s Board of Directors. The policy shall be reviewed annually by the Board and any modifications made thereto must be approved by the Board. 18.0: GLOSSARY See Appendix A. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 12 of 19 APPENDIX A: GLOSSARY ACTIVE INVESTING: Active investors will purchase investments and continuously monitor their activity, often looking at the price movements of their stocks many times a day, in order to exploit profitable conditions. Typically, active investors are seeking short term profits. AGENCIES: Federal agency securities and/or Government-sponsored enterprises. BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments. BROKER/DEALER: Any individual or firm in the business of buying and selling securities for itself and others. Broker/dealers must register with the SEC. When acting as a broker, a broker/dealer executes orders on behalf of his/her client. When acting as a dealer, a broker/dealer executes trades for his/her firm's own account. Securities bought for the firm's own account may be sold to clients or other firms, or become a part of the firm's holdings. CERTIFICATE OF DEPOSIT (CD): A short or medium term, interest bearing, FDIC insured debt instrument offered by banks and savings and loans. Money removed before maturity is subject to a penalty. CDs are a low risk, low return investment, and are also known as “time deposits”, because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from a few months to several years. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 13 of 19 COMMERCIAL PAPER: An unsecured short-term promissory note, issued by corporations, with maturities ranging from 2 to 270 days. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the Otay Water District. It includes detailed financial information prepared in conformity with generally accepted accounting principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a set date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 14 of 19 DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures deposits in member banks and thrifts. FEDERAL FARM CREDIT BANK (FFCB): The Federal Farm Credit Bank system supports agricultural loans and issues securities and bonds in financial markets backed by these loans. It has consolidated the financing programs of several related farm credit agencies and corporations. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL AGRICULTURAL MORTGAGE CORPORATION (FAMC or Farmer Mac): A stockholder owned, publicly-traded corporation that was established under the Agricultural Credit Act of 1987, which added a new Title VIII to the Farm Credit Act of 1971. Farmer Mac is a government sponsored enterprise, whose mission is to provide a secondary market for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. The corporation is authorized to purchase and guarantee securities. Farmer Mac guarantees that all security holders will receive timely payments of principal and interest. FEDERAL HOME LOAN BANK (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC or Freddie Mac): A stockholder owned, publicly traded company chartered by the United OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 15 of 19 States federal government in 1970 to purchase mortgages and related securities, and then issue securities and bonds in financial markets backed by those mortgages in secondary markets. Freddie Mac, like its competitor Fannie Mae, is regulated by the United States Department of Housing and Urban Development (HUD). FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): An independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly. It is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry. FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD). GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): A government owned agency which buys mortgages from lending institutions, securitizes them, and then sells them to investors. Because the payments to investors are guaranteed by the full faith and credit of the U.S. Government, they return slightly less interest than other mortgage-backed securities. INTEREST-ONLY STRIPS: A mortgage backed instrument where the investor receives only the interest, no principal, from a pool of mortgages. Issues are highly interest rate sensitive, and cash flows vary between OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 16 of 19 interest periods. Also, the maturity date may occur earlier than that stated if all loans within the pool are pre-paid. High prepayments on underlying mortgages can return less to the holder than the dollar amount invested. INVERSE FLOATER: A bond or note that does not earn a fixed rate of interest. Rather, the interest rate is tied to a specific interest rate index identified in the bond/note structure. The interest rate earned by the bond/note will move in the opposite direction of the index. An inverse floater increases the market rate risk and modified duration of the investment. LEVERAGE: Investing with borrowed money with the expectation that the interest earned on the investment will exceed the interest paid on the borrowed money. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase/reverse repurchase agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 17 of 19 MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. MUTUAL FUNDS: An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase various investment vehicles, such as stocks, bonds, and money market instruments. MONEY MARKET MUTUAL FUNDS: An open-end mutual fund which invests only in money markets. These funds invest in short term (one day to one year) debt obligations such as Treasury bills, certificates of deposit, and commercial paper. PASSIVE INVESTING: An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase investments with the intention of long term appreciation and limited maintenance, and typically don’t actively attempt to profit from short term price fluctuations. Also known as a buy-and-hold strategy. PRIMARY DEALER: A designation given by the Federal Reserve System to commercial banks or broker/dealers who meet specific criteria, including capital requirements and participation in Treasury auctions. These dealers submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission registered securities broker/dealers, banks, and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 18 of 19 PUBLIC SECURITIES ASSOCIATION (PSA): A trade organization of dealers, brokers, and bankers who underwrite and trade securities offerings. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RANGE NOTE: An investment whose coupon payment varies and is dependent on whether the current benchmark falls within a pre-determined range. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REGIONAL DEALER: A securities broker/dealer, registered with the Securities & Exchange Commission (SEC), who meets all of the licensing requirements for buying and selling securities. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding securities issues following their initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/51/211 9 Page 19 of 19 SEC RULE 15C3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, FAMCA, etc.), and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 1 of 17 1.0: POLICY It is the policy of the Otay Water District to invest public funds in a manner which will provide maximum security with the best interest return, while meeting the daily cash flow demands of the entity and conforming to all state statues governing the investment of public funds. 2.0: SCOPE This investment policy applies to all financial assets of the Otay Water District. The District pools all cash for investment purposes. These funds are accounted for in the District’s audited Comprehensive Annual Financial Report (CAFR) and include: 2.1) General Fund 2.2) Capital Project Funds 2.2.1) Designated Expansion Fund 2.2.2) Restricted Expansion Fund 2.2.3) Designated Betterment Fund 2.2.4) Restricted Betterment Fund 2.2.5) Designated Replacement Fund 2.2.6) Restricted New Water Supply Fund 2.3) Other Post Employment Fund (OPEB) 2.4) Debt Reserve Fund Exceptions to the pooling of funds do exist for tax-exempt debt proceeds, debt reserves and deferred compensation funds. Funds received from the sale of general obligation bonds, certificates of participation or other tax-exempt financing vehicles are segregated from pooled investments and the investment of such funds are guided by the legal documents that govern the terms of such debt issuances. 3.0: PRUDENCE Investments should be made with judgment and care, under current prevailing circumstances, which persons of prudence, discretion and intelligence, exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Exhibit 2 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 2 of 17 The standard of prudence to be used by investment officials shall be the “Prudent Person” and/or "Prudent Investor" standard (California Government Code 53600.3) and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 4.0: OBJECTIVE As specified in the California Government Code 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be: 4.1) Safety: Safety of principal is the foremost objective of the investment program. Investments of the Otay Water District shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the District will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions. 4.2) Liquidity: The Otay Water District’s investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated. 4.3) Return on Investment: The Otay Water District’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the District’s investment risk constraints and the cash flow characteristics of the portfolio. 5.0 DELEGATION OF AUTHORITY Authority to manage the Otay Water District’s investment program is derived from the California Government Code, Sections 53600 through 53692. Management responsibility for the investment program is hereby OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 3 of 17 delegated to the Chief Financial Officer (CFO), who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the CFO. The CFO shall establish written investment policy procedures for the operation of the investment program consistent with this policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the CFO. 6.0: ETHICS AND CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the District. 7.0: AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The Chief Financial Officer shall maintain a list of District selected financial institutions and security broker/dealers authorized and approved to provide investment services in the State of California. Investment services include the buying or selling of permissible investments such as treasuries, government agencies, etc. for delivery to the custodian bank. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3- 1 (Uniform Net Capital Rule). No public deposit shall be made except in a qualified public depository as established by state laws. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the District with the following, as appropriate: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 4 of 17 •Audited Financial Statements. •Proof of Financial Industry Regulatory Authority (FINRA) certification. •Proof of state registration. •Completed broker/dealer questionnaire. •Certification of having read the District’s Investment Policy. •Evidence of adequate insurance coverage. An annual review of the financial condition and registrations of qualified bidders will be conducted by the CFO. A current audited financial statement is required to be on file for each financial institution and broker/dealer through which the District invests. 8.0: AUTHORIZED AND SUITABLE INVESTMENTS From the governing body perspective, special care must be taken to ensure that the list of instruments includes only those allowed by law and those that local investment managers are trained and competent to handle. The District is governed by the California Government Code, Sections 53600 through 53692, to invest in the following types of securities, as further limited herein: 8.01) United States Treasury Bills, Bonds, Notes or those instruments for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity limitation is applicable. 8.02) Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, may be used up to the maximum permitted by State Law (currently $75 million). The District may also invest bond proceeds in LAIF with the same but independent maximum limitation. 8.03) Bonds, debentures, notes and other evidence of indebtedness issued by any of the following government agency issuers: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 5 of 17 •Federal Home Loan Bank (FHLB) •Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac") •Federal National Mortgage Association (FNMA or "Fannie Mae") •Government National Mortgage Association (GNMA or “Ginnie Mae”) •Federal Farm Credit Bank (FFCB) •Federal Agricultural Mortgage Corporation ( FAMCA or “Farmer Mac”) There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity from the settlement date limitation is applicable. Government agencies whose implied guarantee has been reduced or eliminated shall require an “A” rating or higher by a nationally recognized statistical rating organization. 8.04) Interest-bearing demand deposit accounts must be made only in Federal Deposit Insurance Corporation (FDIC) insured accounts. For deposits in excess of the insured maximum of $250,000, approved collateral shall be required in accordance with California Government Code, Section 53652. Certificates of Deposit (CD) will be made only to the FDIC-insured limit of $250,000. Investments in CD’s are limited to 15 percent of the District’s portfolio. 8.05) Commercial paper, which is short-term, unsecured promissory notes of corporate and public entities. Purchases of eligible commercial paper may not exceed 2 percent of the outstanding paper of an issuing corporation, and maximum investment maturity will be restricted to 270 days. Investment is further limited as described in California Government Code, Section 53601(h). Purchases of commercial paper may not exceed 10 percent of the District’s portfolio. 8.06) Medium-term notes defined as all corporate debt securities with a maximum remaining maturity of five years from the settlement date or less, and that meet the further requirements of California Government Code, Section 53601(k). Investments in medium-term notes are limited to 10 percent of the OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 6 of 17 District’s portfolio and no more than 2 percent of the outstanding medium-term notes of any single issuer. 8.07) Money market mutual funds that invest only in Treasury securities and repurchase agreements collateralized with Treasury securities, and that meet the further requirements of California Government Code, Section 53601(l). Investments in money market mutual funds are limited to 10 percent of the District's portfolio. 8.08) The San Diego County Treasurer’s Pooled Money Fund, which is a County managed investment pool, may be used by the Otay Water District to invest excess funds. There is no percentage limitation of the portfolio which can be invested in this category. 8.09) Under the provisions of California Government Code 53601.6, the Otay Water District shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools, or any investment that may result in a zero interest accrual if held to maturity. Also, the borrowing of funds for investment purposes, known as leveraging, is prohibited. 9.0: INVESTMENT POOLS/MUTUAL FUNDS A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. There shall be a questionnaire developed which will answer the following general questions: • A description of eligible investment securities, and a written statement of investment policy and objectives. • A description of interest calculations and how it is distributed, and how gains and losses are treated. • A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. • A description of who may invest in the program, how often, and what size deposits and withdrawals are allowed. • A schedule for receiving statements and portfolio listings. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 7 of 17 • Are reserves, retained earnings, etc., utilized by the pool/fund? • A fee schedule, and when and how is it assessed. • Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? 10.0 COLLATERALIZATION Collateralization will be required on certificates of deposit exceeding the $250,000 FDIC insured maximum. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest. Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted. 11.0: SAFEKEEPING AND CUSTODY All security transactions entered into by the Otay Water District shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third party custodian designated by the District and evidenced by safekeeping receipts. 12.0: DIVERSIFICATION The Otay Water District will diversify its investments by security type and institution, with limitations on the total amounts invested in each security type as detailed in Paragraph 8.0, above, so as to reduce overall portfolio risks while attaining benchmark average rate of return. With the exception of U.S. Treasury securities, government agencies, and authorized pools, no more than 50% of the District’s total investment portfolio will be invested with a single financial institution. 13.0: MAXIMUM MATURITIES To the extent possible, the Otay Water District will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the District will not directly invest in securities maturing more than five years from the settlement date OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 8 of 17 of the purchase. However, for time deposits with banks or savings and loan associations, investment maturities will not exceed two years. Investments in commercial paper will be restricted to 270 days. 14.0: INTERNAL CONTROL The Chief Financial Officer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. 15.0: PERFORMANCE STANDARDS The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The Otay Water District’s investment strategy is passive. Given this strategy, the basis used by the CFO to determine whether market yields are being achieved shall be the State of California Local Agency Investment Fund (LAIF) as a comparable benchmark. 16.0: REPORTING The Chief Financial Officer shall provide the Board of Directors monthly investment reports which provide a clear picture of the status of the current investment portfolio. The management report should include comments on the fixed income markets and economic conditions, discussions regarding restrictions on percentage of investment by categories, possible changes in the portfolio structure going forward and thoughts on investment strategies. Schedules in the quarterly report should include the following: • A listing of individual securities held at the end of the reporting period by authorized investment category. • Average life and final maturity of all investments listed. • Coupon, discount or earnings rate. • Par value, amortized book value, and market value. • Percentage of the portfolio represented by each investment category. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 9 of 17 17.0: INVESTMENT POLICY ADOPTION The Otay Water District’s investment policy shall be adopted by resolution of the District’s Board of Directors. The policy shall be reviewed annually by the Board and any modifications made thereto must be approved by the Board. 18.0: GLOSSARY See Appendix A. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 10 of 17 APPENDIX A: GLOSSARY ACTIVE INVESTING: Active investors will purchase investments and continuously monitor their activity, often looking at the price movements of their stocks many times a day, in order to exploit profitable conditions. Typically, active investors are seeking short term profits. AGENCIES: Federal agency securities and/or Government-sponsored enterprises. BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments. BROKER/DEALER: Any individual or firm in the business of buying and selling securities for itself and others. Broker/dealers must register with the SEC. When acting as a broker, a broker/dealer executes orders on behalf of his/her client. When acting as a dealer, a broker/dealer executes trades for his/her firm's own account. Securities bought for the firm's own account may be sold to clients or other firms, or become a part of the firm's holdings. CERTIFICATE OF DEPOSIT (CD): A short or medium term, interest bearing, FDIC insured debt instrument offered by banks and savings and loans. Money removed before maturity is subject to a penalty. CDs are a low risk, low return investment, and are also known as “time deposits”, because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from a few months to several years. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: An unsecured short-term promissory note, issued by corporations, with maturities ranging from 2 to 270 days. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 11 of 17 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the Otay Water District. It includes detailed financial information prepared in conformity with generally accepted accounting principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a set date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 12 of 17 FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures deposits in member banks and thrifts. FEDERAL FARM CREDIT BANK (FFCB): The Federal Farm Credit Bank system supports agricultural loans and issues securities and bonds in financial markets backed by these loans. It has consolidated the financing programs of several related farm credit agencies and corporations. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL AGRICULTURAL MORTGAGE CORPORATION (FAMC or Farmer Mac): A stockholder owned, publicly-traded corporation that was established under the Agricultural Credit Act of 1987, which added a new Title VIII to the Farm Credit Act of 1971. Farmer Mac is a government sponsored enterprise, whose mission is to provide a secondary market for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. The corporation is authorized to purchase and guarantee securities. Farmer Mac guarantees that all security holders will receive timely payments of principal and interest. FEDERAL HOME LOAN BANK (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC or Freddie Mac): A stockholder owned, publicly traded company chartered by the United States federal government in 1970 to purchase mortgages and related securities, and then issue securities and bonds in financial markets backed by those mortgages in secondary markets. Freddie Mac, like its competitor Fannie Mae, is regulated by the United States Department of Housing and Urban Development (HUD). OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 13 of 17 FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): An independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly. It is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry. FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD). GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): A government owned agency which buys mortgages from lending institutions, securitizes them, and then sells them to investors. Because the payments to investors are guaranteed by the full faith and credit of the U.S. Government, they return slightly less interest than other mortgage-backed securities. INTEREST-ONLY STRIPS: A mortgage backed instrument where the investor receives only the interest, no principal, from a pool of mortgages. Issues are highly interest rate sensitive, and cash flows vary between interest periods. Also, the maturity date may occur earlier than that stated if all loans within the pool are pre-paid. High prepayments on underlying mortgages can return less to the holder than the dollar amount invested. INVERSE FLOATER: A bond or note that does not earn a fixed rate of interest. Rather, the interest rate is tied to a specific interest OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 14 of 17 rate index identified in the bond/note structure. The interest rate earned by the bond/note will move in the opposite direction of the index. An inverse floater increases the market rate risk and modified duration of the investment. LEVERAGE: Investing with borrowed money with the expectation that the interest earned on the investment will exceed the interest paid on the borrowed money. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase/reverse repurchase agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. MUTUAL FUNDS: An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 15 of 17 various investment vehicles, such as stocks, bonds, and money market instruments. MONEY MARKET MUTUAL FUNDS: An open-end mutual fund which invests only in money markets. These funds invest in short term (one day to one year) debt obligations such as Treasury bills, certificates of deposit, and commercial paper. PASSIVE INVESTING: An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase investments with the intention of long term appreciation and limited maintenance, and typically don’t actively attempt to profit from short term price fluctuations. Also known as a buy-and-hold strategy. PRIMARY DEALER: A designation given by the Federal Reserve System to commercial banks or broker/dealers who meet specific criteria, including capital requirements and participation in Treasury auctions. These dealers submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission registered securities broker/dealers, banks, and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. PUBLIC SECURITIES ASSOCIATION (PSA): A trade organization of dealers, brokers, and bankers who underwrite and trade securities offerings. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 16 of 17 RANGE NOTE: An investment whose coupon payment varies and is dependent on whether the current benchmark falls within a pre-determined range. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REGIONAL DEALER: A securities broker/dealer, registered with the Securities & Exchange Commission (SEC), who meets all of the licensing requirements for buying and selling securities. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding securities issues following their initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, FAMCA, etc.), and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 9/15/93 5/5/21 Page 17 of 17 TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. INVESTMENT POLICY No. 27 MAY 5, 2021 Eid Fakhouri, CPA Finance Manager Attachment C POLICY REVIEW Purpose: Annual Investment Policy Review California Government Code Section 53646 Delegation of Investment Authority Chief Financial Officer California Government Code Section 53607 INVESTMENT OBJECTIVE To safeguard principal, maintain liquidity, and to achieve a market investment return. Fund Objectives (in order of priority) Safety Liquidity Yield POLICY CHANGES CDIAC –Annual Legislative Review No Recommended Changes California State Treasurer Increase LAIF from $65M to $75M DELEGATION OF INVESTMENT AUTHORITY Re-delegate authority for all investment related activities to the Chief Financial Officer in accordance with Government Code Section 53607. BOARD ACTION Adopt Resolution 4394, Amending Investment Policy No. 27 Re-delegate authority for all investment related activities to the Chief Financial Officer. QUESTIONS? STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: May 5, 2021 SUBMITTED BY: Tita Ramos-Krogman, Acting District Secretary W.O./G.F. NO: DIV. NO. APPROVED BY: Tita Ramos-Krogman, Acting District Secretary Jose Martinez, General Manager SUBJECT: Board of Directors 2021 Calendar of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendar for 2021 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2021 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 2021 G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 05-05-21.doc AGENDA ITEM 9a Board of Directors, Workshops and Committee Meetings (Teleconference) 2021 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 6, 2021 February 3, 2021 March 3, 2021 April 7, 2021 May 5, 2021 June 2, 2021 July 7, 2021 August 4, 2021 September 1, 2021 October 6, 2021 November 3, 2021 December 1, 2021 January 20, 2021 February 17, 2021 March 17, 2021 April 21, 2021 May 19, 2021 June 16, 2021 July 21, 2021 August 18, 2021 September 15, 2021 October 20, 2021 November 17, 2021 December 15, 2021 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 5, 2021 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 resulted in a portion of the District’s staff telecommuting. The District has had no impacts to its water supply and has maintained a continuity of operations and services during the challenging and dynamic environment. Staff continues to monitor and provide updates relating to responding to this pandemic, as needed, including but not limited to: water and wastewater services, supplies, operations, finances, and communication. The District is continuing to hold Board of Directors meetings via teleconference services, which provides public access to the meetings. The District remains committed to the safety of the public and its employees who continue to provide the public with essential services. A Safe Reopening Plan and a Social Distancing and Sanitation Protocol have been implemented and are updated in accordance with county health guidelines, including the recent emergency regulations discussed in this report. Staff will continue to monitor and comply with all Federal, State and Local orders and guidelines. The District continues to advocate for and communicate COVID- related funding relief to those customers adversely affected by the pandemic as a result of the restrictions imposed by Proposition 218 that restricts the ability of water suppliers to utilize rate revenue for delinquency forgiveness or relief. AGENDA ITEM 10 2 • California Special District Association – On April 19th, the General Manager participated virtually in the quarterly meeting of the San Diego chapter executive board. • Workforce Development – On March 26th, the General Manager had the opportunity to discuss workforce development with the chair of the State Water Resources Control Board, Joaquin Esquivel. Topics included, but were not limited to: partnerships with colleges, labor organizations, and veteran organizations; mentorship; incentivizing workforce development in underserved communities; and opportunities for certification equivalency across overlapping industries. ADMINISTRATIVE SERVICES: GIS: • Multiple As-Builts for Assets - Staff kicked-off a new project of creating a new data structure for multiple as-builts associated to specific assets. With District facilities reaching certain ages, there are increasing assets in need of being associated with multiple as-builts. A solution of appending new as-builts to existing as-builts was proposed, however, a GIS display of the as- builts was preferred by staff, which will provide easier access. The new function requires not only programming but also data structure modification. Staff will report on the progress later this summer. Human Resources: • Supplemental Paid Sick Leave (SB95) – The State of California enacted emergency legislation SB95 to grant additional time-off for employees that need time-off related to COVID—19, retroactive to January 1, 2021 through September 30, 2021. The District worked to implement required updates and notified employees. • Employee Information Meeting - The District held employee information meetings on April 13th. These meetings are held twice a year to provide employees with relevant information regarding key District projects and updates. The meeting this month included topics such as: COVID Time-Off Update, District Technology Updates, Strategic Plan Refresher, Fraud Policy Overview, Portable Potable Water Trailer Pumps, and Treatment Plant Improvements. • Recruitments/New Hires/Promotions - The District is or will be recruiting for the following positions: o Accountant o Chief, Water Operations o Construction Inspector I/II o Safety and Security Specialist o Warehouse Technician o Utility Worker I/II (3 positions) 3 IT Operations: • Monthly Board Meetings - Staff will introduce an additional method for the public to virtually attend monthly Board and Committee meetings. Starting this month, all committee and Board meetings will be streamed live on the District's YouTube channel. The YouTube information will be made available on social media outlets and the District’s website. • Performance Evaluation Automated Form - The new automated performance review solution is in its final stages of development. Employee annual reviews, tasks assignments, and recommendations will be simplified with the latest solution, removing paperwork and manual workflow, therefore, saving significant processing time. The solution will be made available via SharePoint before the new rating period begins in July. The new solution is being developed internally and with an existing District technology (Nintex). Purchasing & Facilities: • Doing Business with Otay Water District - On April 20, 2021, the Procurement Technical Assistance Center (PTAC), a Southwestern College economic development program and a San Diego Contracting Opportunities Center (SDCOC) affiliate, held a minority and disadvantaged business outreach webinar on behalf of the District. This interactive program is held twice yearly and includes an “Otay Water District at a Glance” presentation along with introductions to Capital Improvement Programs, general business and contracting opportunities, methods of procurement and sales call protocol. The PTAC is partially funded by the City of San Diego Small Business Enhancement Program, other local government agencies including Otay Water District, prime contractors, and the Department of Defense. Its mission is “to assist San Diego, Orange and Imperial counties small businesses with the information, resources, and technical assistance they need to effectively compete for and perform on federal, state, and local government contracts.” Safety & Security: • Coordination of Safety Training - Staff is assisting with the following off-site (Pacific Safety Center) and onsite trainings. o Trenching and Shoring o Confined Space o Flagger and Traffic Control o Fall Protection o First Aid/CPR (to be conducted onsite) Staff has reviewed the COVID protocols for the training providers and they adhere to current COVID safety and preventive protocols. 4 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. Collections and Bad Debt Exposure # of Accounts $'s March 2020 (31 Days) March 2021 (31 Days) April 2021 (20 Days) FY 2020 End of Year Lockable Lockable Balances as of April 2021 (20 Days) FY 2020 Remainder FY 2021 Lockable Total Lockable Accounts Owner 129 592 618 $205,805 $37,086 $315,254 $352,340 Tenant 147 529 514 $158,471 $32,786 $285,348 $318,134 Total 276 1,121 1,132 $364,276 $69,872 $600,602 $670,474 Typical Monthly Values 200 Actual Sales $40,861,103 $74,790,758 Percent of Bad Debt Exposure 0.17% 0.80% FY2021 Waived Penalties $665,390 Lockable $'s From Recycled Accounts $- $3,348 There is one lockable recycle account. Note: Prior to the COVID-19 pandemic the lockable balance was $48,500. 5 • FY 2022 Budget – Staff is continuing its efforts to prepare the FY 2022 proposed budget. The Economist report was presented at the April 7th Board meeting and the budget workshop was held at a special Board meeting on April 28th. Staff is preparing the final Budget documents which are scheduled to be presented at the June Board meeting. • Chula Vista Sewer Billing Services – The District has a contract with the City of Chula Vista to perform sewer billing and collections on behalf of the City for its sewer customers served by the District. The term of the current contract is five (5) years, plus five (5) additional one-year extensions. The initial five- year term expires June 30, 2021. Staff is working with the City of Chula Vista to execute the first of five one-year extensions. Staff will be requesting the Board approve the extension at the June Board meeting. As part of that request, staff will also be requesting the Board grant the General Manager authority to execute the remaining four one-year extensions. • SDRMA Open Claims – At the time of the transition to ACWA Joint Powers Insurance Authority on July 1, 2020, the District had three active claims with SDRMA. Two of the three claims are now settled and closed. The business income interruption claim due to COVID-19 remains open and under review by SDRMA’s excess insurance carrier. • FY 2021 Audit Schedule – The District’s upcoming financial audit schedule is now set with Teaman, Ramirez and Smith, Inc. (TRS). Interim audit work will begin on May 17th and final audit work will begin on August 23rd. Due to the ongoing pandemic, the audit work will be conducted remotely using online tools and web-conferences. This is the final year of the audit services contract with TRS; an RFP will be issued later this year soliciting bids for audit services. • FY 2022 Lakeview HOA Hydro-pneumatic Pump Station – With the assistance of Operations, Finance completed the FY 2022 O&M budget calculation for the dedicated hydro-pneumatic pump station. This budget is used to calculate the monthly operating bill the Lakeview HOA pays for the operation of its dedicated pump station. Additionally, the HOA is responsible for funding the replacement cost of a new pump station. Each year, the District reviews the funding reserves and provides the HOA an update on the annual amount needed to fund the replacement. The updated reserve amount and FY 2022 O&M budget was provided to the HOA and will go into effect on July 1, 2021. • FEMA/COVID-19 Policy Update – The Biden Administration issued an updated policy referred to as “COVID-19 Pandemic: Safe Opening and Operation.” It applies to safe opening and operation of work 6 conducted from January 21, 2021, through September 30, 2021. Under the new guidelines, the Federal Government has broadened the definition of eligible expenses to include the following: cleaning and disinfection to stop the spread, COVID-19 testing to determine if someone entering or using the facility has an active infection, screening and temperature scanning, physical and temporary barriers, and purchase and storage of PPE. Although not financially material, the District will begin tracking these expenditures as a new project application with FEMA. Assistance for eligible costs will be provided at 100 percent federal funding. • Changes to Lien Process – A letter was sent out to owners of tenant-occupied properties at the end of April notifying them of the changes made to the Code of Ordinances making property owners responsible for any unpaid balances left by their tenants after the tenant moves out. The letter also explained the procedures for notifying owners of their tenant’s past due balances as well as their final balance at the time the accounts is closed. These changes take effect on July 1st. • Chula Vista Sewer 218 Notice – The City of Chula Vista is preparing a 218 notice regarding changes to their sewer rates. Otay has agreed to a request by the City of Chula Vista to insert their sewer 218 notice in with the Otay billing statements in May and/or June. The notice will clearly show that the notice is from the City of Chula Vista and is not related to Otay water or sewer rates or charges. Although there are no planned increases, the City is changing their rate structure to add a Metro pass-through charge which will allow them to modify rates if Metro increases their fees to the City. Financial Reporting: • The financial reporting for March 31, 2021 is as follows: o For the ninth month ending March 31, 2021, there are total revenues of $84,160,177 and total expenses of $74,158,571. The revenues exceeded expenses by $10,001,606. • The financial reporting for investments for March 31, 2021 is as follows: o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of March 31, 2021 total $82,383,359 with an average yield to maturity of 0.661%. The total earnings year to date are $469,405. 7 ENGINEERING AND WATER SYSTEM OPERATIONS: Engineering: • 870-2 Pump Station Replacement: This project consists of a new Pump Station to replace the existing Low Head 571-1 and High Head 870-1 Pump Stations. The project also includes the replacement of the existing liner and cover for the 571-1 Reservoir (36.7 MG). On June 29, 2020, Pacific Hydrotech, the Pump Station’s contractor, achieved substantial completion and began seven-day operational testing. Currently, the Pump Station remains in the testing phase and remains offline pending mechanical repairs. The Pump Station has four (4) pumps, two (2) electric motor driven and two (2) external gas engine driven motor/pump combinations. There are on- going mechanical repairs that are expected to be complete in May 2021, at which time, the 7-day testing will resume and be completed for project acceptance. Unanticipated District costs associated with the continuing repairs are being tracked for reimbursement from the contract retention. (P2083 & P2562) • Temporary Lower Otay Pump Station Redundancy: This project will add a second pump to the District’s existing Temporary Lower Otay Pump Station (TLOPS) to provide redundancy. Substantial completion was achieved on April 5, 2021 and the punch list, commissioning, and start-up are currently underway. Project completion is expected in May 2021. The project is within budget. COVID-19 IMPACTS: The contractor is alleging that the project has experienced delays associated with pipe fabrication. The District has collected $292K in liquidated damages through April 5, 2021 and is currently negotiating the justified amount due to contractor COVID delay claims. (P2619) • Portable Trailer Mounted VFD Pumps: This project consists of procurement of a portable trailer mounted hydropneumatic pump station designed for deployment at up to seven (7) existing sites including four (4) hydropneumatic pump stations and three (3) small pressure zones each fed by a single gravity reservoir. The trailer is currently deployed at the District’s existing 1200-1 Pump Station site and pumping into the 1200 Pressure Zone in support of the 1200- 1 Reservoir Interior/Exterior Coating Project (P2533) and to complete system integration and testing. (P2640) • Otay Mesa Pipeline Cathodic Protection Improvements: This project includes repairs to existing cathodic protection systems, such as anode replacement and cathodic test station repairs located in the Otay Mesa Area. The construction contract was awarded at the August 2020 Board Meeting. Notice to proceed was issued September 8, 2020. Notice of Completion was submitted to the County of San 8 Diego and project closeout is underway. This project is within budget. (P2648) • 14-Inch Force Main Air-Vac Replacements Project: This project includes replacement of nineteen (19) existing combination air- vacuum valve assemblies previously replaced in 2006-2008, which are reaching the end of their useful life. The construction contract was awarded at the August 2020 Board Meeting. The District’s contractor, Burtech, mobilized to the site early November 2020. Project substantial completion was achieved on December 18, 2020. Project final acceptance recommendation was received on March 24, 2021 and project Notice of Completion has been submitted to the County of San Diego and closeout is underway. This project is within budget. (R2156) • Vista Diego Hydropneumatic Pump Station Replacement: This project includes replacement of the existing Pump Station, which serves the small 1530 Pressure Zone, containing approximately thirty-seven (37) potable water meters and four (4) hydrants. District staff have been working with the design consultant, Murraysmith, to develop and select a replacement concept for preliminary design. District staff coordinated with the Vista Diego Property Owners Association (VDPOA) and the District’s as-needed geotechnical engineer consultant, Ninyo & Moore, to complete geotechnical field work late February 2021 in Vista Diego Road and at the Pump Station site. Murraysmith is anticipated to deliver a draft preliminary design report by May 2021. This project is within budget. (P2639) • 1090-1 Pump Station Renovation: This project includes renovation of the existing Pump Station, including pump replacement and addition of a third pump, which serves the small 1090 Pressure Zone, containing approximately thirty-three (33) potable water meters and seven (7) hydrants. Award of the contract to Cora Constructors was authorized at the November 2020 Board Meeting. Notice to proceed was issued on January 8, 2021. A Pre- construction Meeting was held on January 20, 2021. The contractor is in the process of purchasing long lead items. This project is within budget. (P2174) • RWCWRF Disinfection System Improvements: Currently, the Ralph W. Chapman Water Reclamation Facility uses the 14-inch force main to meet the contact time (CT) for the disinfection of recycled water from the plant. This makes the force main part of the treatment process and requires sampling of the plant effluent to be performed at the Day Use area over a 20-minute drive time away. An update of a study to perform disinfection on-site, completed in 2015, has been completed by Arcadis U.S., Inc., to compare the newest generation of ultraviolet (UV) methods, that are significantly more energy efficient, to constructing a chlorine contact basin. The 9 final report was submitted in November 2020. Staff has advertised for the consultant selection for design and is expected to bring this selection to the Board for consideration at the June 2021 Board Meeting. (R2117) • Melrose Ave and Oleander Ave PRSs and 980 Reservoirs Altitude Valve Vaults: Project involves the replacement of two 1960’s era pressure reducing stations in Chula Vista. The 340 Pressure Zone is a closed system with no storage, requiring pressure relief capabilities at each station. The project was advertised in February 2021, with it being packaged with renovations to the 980-1 & -2 Reservoirs altitude valve vaults. The valves and piping have significant corrosion impacts, with new corrosion protection included in the design. Bid opening was held on March 25, 2021 and will go to the Board for award at the May Board Meeting. Projects are within budget. (P2605, P2627, P2671) • 850-1 & 1200-1 Reservoirs Interior/Exterior Coating and Upgrades: This project consists of removing and replacing the interior and exterior coatings of the 850-1 (1.15 MG) and the 1200-1 (1.0 MG) Reservoirs, along with providing structural upgrades, to ensure the tanks comply with both state and federal OSHA standards as well as the American Water Works Association and the Health Department standards. Capital Industrial Coatings, Inc. completed the structural work and interior coating on the 850-1 Reservoir. The contractor completed the exterior coating. The 850-1 is expected to be returned to service in early May 2021. Work on the 1200-1 Reservoir began on April 19, 2021. The project is within budget. (P2543 & P2533) • Recycled Water Storage Tank Coating: This project consists of removing and replacing the interior and exterior coatings of the Recycled Water Storage Tank (0.43 MG) and minor structural repairs. The tank was built in 1979 and is located at the R.W. Chapman Water Recycling Facility. Substantial completion was achieved on February 23, 2021 and the project closeout is underway based on the delivery and installation of the plastic resin ball floating cover system on April 23, 2021. The project is within budget. (R2120) • FY 2021 Sewage Flows to Metro vs Planned Capacity: The treatment plant was offline from November 2020 through February 2021 due to construction work on the force main and storage tank, with recycled water production restarted on March 1, 2021. The projected total flow to Metro for the fiscal year will be about 190 MG or just over 0.5 MGD. Metro flows for next fiscal year should return to below the planned capacity as there are no planned projects to require the plant to go offline for an extended period. The Metro amended agreement indicates three (3) consecutive years of exceeding the allocated capacity before having to increase the agency’s capacity. 10 • • • • • • • • • • • • • • • • Summary of Budgeted and Sold Meters and EDUs for Fiscal Year 2021 up through March 31, 2021: Water System Operations (reporting for March): • The following events occurred on Wednesday, March 3rd: o Staff performed a simulated power outage to test 1200 VFD trailer. The trailer performed well, and staff made final adjustments to ATS switch to transfer back up power faster. o Staff performed a planned shutdown on 6930 Camino Maquiladora in Otay Mesa to replace an eight-inch valve for fire service. The shutdown lasted for four and a half hours with 15 meters affected. Four water trailers were available on site. • On Wednesday, March 10th, staff tested the VFD trailer pumping into 1200 Pressure Zone and simulated flow demand. The trailer performed well. Date Meters (Budgeted) Meters Sold (Actual) EDUs (Budgeted) EDUs Sold (Actual) Total $ Collected (Budgeted) Total $ Collected (Actual) March 2021 23.8 10 37.9 49.5 $256,459 $546,684 Totals FY 2021 213.8 198 341.3 472.5 $2,308,125 $4,613,919 11 • On Thursday, March 11th, staff performed a planned shutdown on Corte De Vela in Chula Vista to replace a six-inch fire hydrant valve. The shutdown lasted for two and a half hours with 51 meters affected. There were three water trailers available on site. • On Thursday, March 18th, staff performed a planned shutdown on Rainbow Drive in Chula Vista to replace a six-inch fire hydrant valve. The shutdown lasted for two and a half hours with 24 meters affected. Two water trailers were available on site. • On Friday, March 19th, staff responded to a main break to a six-inch AC main at 640 Concepcion Avenue in Spring Valley caused by a beam break. The shutdown lasted for three and a half hours with 17 meters affected. There were two water trailers available on site. • On Monday, March 29th, staff was contacted by the San Diego County Sanitation District to inquire about the District’s interest in a Future Mutual Aid Agreement on equipment (backhoe, CCTV truck, generator, excavator, portable pump, etc.) for the collections system. The District decided to participate when the agreement becomes available. • On Tuesday, March 30th, the District submitted a one-time large entity reporting to California Air Resources Board (CARB). The purpose of this reporting is to collect information about how vehicles are being operated by individual fleets and entities, including vehicle type, usage, and home base information as part of the Advanced Clean Fleet Regulation and Public Fleet Requirements under executive order N-79-20. The executive order requires 100 percent of in-state sales of new passenger cars and trucks to be zero-emission by 2035 and that the goal of the State 100 percent of medium and heavy-duty vehicles in the State be zero-emission by 2045. • Cass-Arrieta has been paid a total amount of $513,714.10 on PO 721343 for Paseo Ladera emergency main break. There is a $27,037.59 in retention that will be paid once all outstanding expenses have been paid by the contractor for a total amount of $540,751.69 ($167,363.93 for pipe work and $373,387.76 for street work). In addition, an internal work order was created to track expenses for street work totaling up to date $125,097.08, including a charge of $11,968.15 from the City of Chula Vista for their assistance to clean up the streets during the main break. • District staff has contacted SDG&E to find out more about their electrification programs to install infrastructure needed to support medium and heavy-duty electric vehicles operated by Fleet, including pay for design and electrical upgrades on customer property along with the implementation of new electric rates to 12 encourage electric vehicles. If these programs are cost-effective, it would help the District to transition to an electric fleet and comply with the Advanced Clean Fleet Regulation by the California Air Resources Board (CARB). The programs will be reviewed, and a recommendation will be made to the General Manager and Board of Directors. • Engineering Department created CIP R2117 for a UV System Study to eliminate the chlorine gas disinfection and supplement with a UV System at the Treatment Plant. On Wednesday, March 24th, the Treatment Plant installed a UVT Sensor that is now tracking the UV transmittance of the filter effluent water, pre-chlorinated. The data collected from the UV transmittance will be used to apply to the size of the UV System. • Fleet vehicles # 215, 231, and 249 were recalled by Ford for suspension advisory. If the vehicle exhibits steering wheel oscillation after hitting a bump in the road Ford will replace steering components to repair the condition. Staff will continue to monitor and if the vehicle condition develops, Ford will repair the vehicle up to 100,000 miles. Vehicle # 215 was repaired and # 231 and 249 were tested but no issues, vehicles were kept in service. This was completed by the end of March and early April. Current vehicle recall, 12, is in progress with an estimated completion by the second week of May. Purchases and Change Orders: • The following table summarizes purchases and Change Orders issued during the period from March 17 through April 9, 2021, that were within staff’s signatory authority: Date Action Amount Contractor/ Consultant Project 3/17/2021 P.O. $31,445.54 AZTEC FENCE CO II, INC. GATE MOTOR REPLACEMENT PROGRAM 3/31/2021 P.O. $552.55 SOUTHLAND PIPE CORP. POTABLE WATER PRESSURE VESSEL PROGRAM (P2663) 4/02/2021 P.O. -$62,600.00 BURTECH PIPELINE, INC. 14-INCH RWCWRF EFFLUENT FORCE MAIN IMPROVEMENTS (R2156) 4/08/2021 P.O. $36,850.46 GATES AND CONTROLS, INC. GATE MOTOR REPLACEMENT PROGRAM 4/08/2021 P.O. $93,231.03 ASSOCIATION OF CA WATER AGENCIES FY 2021 WORKERS’ COMP PROGRAM (QTR 3) 4/09/2021 P.O. $16,162.50 WATCHLIGHT CORP. TEMPORARY LOWER OTAY PUMP STATION REDUNDANCY (P2619) 13 Water Conservation and Sales: • Water Conservation – March 2021 usage was 17% lower than March 2013 usage. Since March 2020, customers have saved an average of 8% over 2013 levels. • Potable Water Purchases – The March potable water purchases were 1,740 acre-feet which is 16% above the budget of 1,616 acre-feet. The cumulative purchases through March were 22,022 acre-feet which is 19% above the cumulative budget of 18,517 acre-feet. The surplus volumes for the month and year are most likely due to March year-to-date rainfall being below the three-year average rainfall by 49%. In addition, the FY 2021 potable water sales budget was cut by 12% from the projected FY 2021 actuals as a response to COVID-19 and the expected economic impacts. 14 • Recycled Water Purchases – The March recycled water purchases from the City of San Diego and production at the District’s treatment facility were 176 acre-feet which is 73% above the budget of 102 acre-feet. The cumulative production and purchases through March were 3,012 acre-feet which is 31% above the cumulative budget of 2,309 acre-feet. The surplus volumes for the month and year are most likely due to March year-to-date rainfall being below the three-year average rainfall by 49%. In addition, the FY 2021 recycled water sales budget was cut by 15% from the projected FY 2021 actuals as a response to COVID-19 and the expected economic impacts. Potable, Recycled, and Sewer (Reporting up to the month of March): • Total number of potable water meters: 51,251. • Total number of sewer connections: 4,740. • Recycled water consumption for the month of March: o Total consumption: 145.64 acre-feet or 47,453,868 gallons. o Average daily consumption: 1,530,769 gallons per day. o Total cumulative recycled water consumption since March 1, 2020: 3,017 acre-feet. o Total number of recycled water meters: 746. • Wastewater flows for the month of March: o Total basin flow: 1,639,032 gallons per day. ▪ This is a decrease of 3.7 percent from February 2020. o Spring Valley Sanitation District flow to Metro: 544,074 gallons per day. 15 o Total Otay flow: 1,095,065 gallons per day. o Flow processed at the Ralph W. Chapman Water Recycling Facility: 804,516 gallons per day. o Flow to Metro from Otay Water District: 290,548 gallons per day. o By the end of March there were 6,752 wastewater EDUs. Exhibit A Annual YTD YTD YTD Budget Actual Budget Variance Var % REVENUES: 4110 Potable Water Sales 46,419,000$ 43,086,867$ 35,134,000$ 7,952,867$ 22.6% 31-4118 Recycled Water Sales 8,411,000 7,519,405 5,813,500 1,705,905 29.3% 4140 Potable Energy Charges 2,034,000 2,025,407 1,663,100 362,307 21.8% 4120 Potable System Charges 16,805,000 12,577,907 12,561,000 16,907 0.1% 4150 Potable MWD & CWA Fixed Charges 12,869,000 9,581,172 9,573,000 8,172 0.1% 4310 Potable Penalties and Other Fees 622,000 24,365 414,600 (390,235) (94.1%) Total Water Sales 87,160,000 74,815,123 65,159,200 9,655,923 14.8% 4210 Sewer Charges 2,870,000 2,115,802 2,116,800 (998) (0.0%) 4133 Meter Fees 123,000 101,330 91,800 9,530 10.4% 4136 Capacity Fee Revenues 1,869,000 1,665,113 1,552,200 112,913 7.3% 4414 Non-Operating Revenues 2,177,000 2,017,380 1,568,200 449,180 28.6% 4621 Tax Revenues 4,155,000 3,279,267 2,711,800 567,467 20.9% 4512 Interest 179,000 166,162 137,200 28,962 21.1% Total Revenues 98,533,000$ 84,160,177$ 73,337,200$ 10,822,977$ 14.8% EXPENSES: 5511 Potable Water Purchases 33,631,000$ 26,599,437$ 25,014,200 (1,585,237)$ (6.3%) 5515 Recycled Water Purchases 4,058,000 3,245,500 3,245,500 - 0.0% 5523 CWA-Infrastructure Access Charge 2,839,000 2,083,878 2,077,647 (6,231) (0.3%) 5521 CWA-Customer Service Charge 1,703,000 1,292,833 1,277,100 (15,733) (1.2%) 5524 CWA-Reliability Charge 2,711,000 2,017,700 2,016,150 (1,550) (0.1%) 5522 CWA-Emergency Storage Charge 4,608,000 3,468,546 3,477,981 9,435 0.3% 5531 MWD-Capacity Res Charge 628,000 464,892 460,785 (4,107) (0.9%) 5532 MWD-Readiness to Serve Charge 720,000 537,028 539,946 2,918 0.5% Subtotal Water Purchases 50,898,000 39,709,814 38,109,309 (1,600,505) (4.2%) 5411 Power Charges 2,898,000 2,391,681 2,160,900 (230,781) (10.7%) Payroll & Related Costs 21,860,000 15,447,993 15,746,900 298,907 1.9% Material & Maintenance 3,720,000 2,709,103 2,836,225 127,122 4.5% Administrative Expenses 6,280,000 4,281,577 4,712,500 430,923 9.1% 5251 Legal Fees 707,000 490,803 490,300 (503) (0.1%) Expansion Reserve 150,000 112,500 112,500 - 0.0% Replacement Reserve 9,676,000 7,257,000 7,257,000 - 0.0% OPEB Trust 1,100,000 825,000 825,000 - 0.0% General Fund Reserve 259,000 194,300 194,300 - 0.0% Total Expenses 98,533,000$ 74,158,571$ 73,183,734$ (974,837)$ (1.3%) EXCESS REVENUES(EXPENSE) -$ 10,001,606$ 153,466$ 9,848,140$ OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR THE NINE MONTHS ENDED MARCH 31, 2021 F:/MORPT/FS2021-0321 v2.xlsx 4/22/2021 6:04 PM COMPARATIVE BUDGET SUMMARY NET REVENUES AND EXPENSES FOR THE NINE MONTHS ENDED MARCH 31, 2021 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 $6,000,000 $6,500,000 $7,000,000 $7,500,000 $8,000,000 $8,500,000 $9,000,000 $9,500,000 $10,000,000 $10,500,000 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 The year-to-date actual net revenues through March show a positive variance of $9,848,140. $1,803,131 2.19% $76,847,340 93.36% $3,664,256 4.45% Otay Water District Investment Portfolio: 03/31/2021 Banks (Passbook/Checking/CD)Pools (LAIF & County)Agencies & Corporate Notes Total Cash and Investments: $82,314,727 (Book Value) July FY20 Aug FY20 Sep FY20 1st Qtr FY20 Oct FY20 Nov FY20 Dec FY20 2nd Qtr FY20 Jan FY20 Feb FY20 Mar FY20 3rd Qtr FY20 Apr FY20 May FY20 Jun FY20 4th Qtr FY20 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 LAIF 2.38 2.34 2.28 2.33 2.19 2.10 2.04 2.11 1.97 1.91 1.79 1.89 1.65 1.36 1.22 1.41 0.92 0.78 0.69 0.80 0.62 0.58 0.54 0.58 0.46 0.41 0.36 0.41 Otay 1.91 1.90 1.93 1.92 1.94 1.97 1.92 1.95 1.90 1.86 1.71 1.83 1.51 1.31 1.19 1.34 0.95 0.93 0.82 0.91 0.81 0.87 0.77 0.82 0.72 0.70 0.65 0.70 Difference -0.47 -0.44 -0.35 -0.42 -0.25 -0.13 -0.12 -0.16 -0.07 -0.05 -0.08 -0.06 -0.14 -0.05 -0.03 -0.07 0.03 0.15 0.14 0.11 0.19 0.29 0.23 0.24 0.26 0.29 0.29 0.29 -1.00 -0.50 0.00 0.50 1.00 1.50 2.00 2.50 3.00 Re t u r n o n I n v e s t m e n t s Month Performance Measure FY-21 Return on Investment LAIF Otay Difference Target: Meet or Exceed 100% of LAIF OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW March 31, 2021 INVESTMENT OVERVIEW & MARKET STATUS: At the Federal Reserve Board’s regular scheduled meeting on March 15, 2020, the Committee lowered the target range for the federal funds rate from 1.50-1.750% to 0-0.25% in light of the effects of the coronavirus which harmed communities and disrupted economic activity in many countries, including the United States. There have been no further changes made to the federal funds rate at the most recent meeting which was held on March 17, 2021. The Committee anticipates maintaining the target range of 0-0.25% until labor market conditions have reached levels consistent with the Committee’s assessment of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. The Committee will continue to observe the effects of incoming information for 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 the month of March 2021 was .65%, which was five basis points lower than the previous month. LAIF return on deposits was five basis points lower than the previous month, reaching an average effective yield of .36% for the month of March 2021. 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: March 31, 2021 Investment State Limit Otay Limit Otay Actual 8.01: Treasury Securities 100% 100% 0 8.02: Local Agency Investment Fund (Operations) $75 Million $65 Million $34.78 Million 8.02: Local Agency Investment Fund (Bonds) 100% 100% $ .75 Million 8.03: Federal Agency Issues 100% 100% $ 3.66 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 8.08: San Diego County Pool 100% 100% 50.19% 12.0: Maximum Single Financial Institution 100% 50% 2.19% Month End Portfolio Management March 31, 2021 Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days toMaturityTerm YTM360 Equiv.YTM365 Equiv. Federal Agency Issues - Coupon 3,664,256.60 7364.55 1.4541623,687,120.503,650,000.00 1.474 BOND PROCEEDS (LAIF)754,020.92 10.94 0.3521754,978.42754,020.92 0.357 Local Agency Investment Fund (LAIF)34,776,967.31 143.20 0.352134,821,128.9534,776,967.31 0.357 San Diego County Pool 41,316,351.37 151.32 0.838141,317,000.0041,316,351.37 0.850 80,511,596.20 100.00%Investments 80,580,227.8780,497,339.60 34 8 0.652 0.661 Cash (not included in yield calculations)Passbook/Checking 1,803,130.80 1 0.22711,803,130.801,803,130.80 0.230 82,314,727.00Total Cash and Investments 82,383,358.6782,300,470.40 34 8 0.652 0.661 Current Year March 31 46,448.10 Fiscal Year To Date 469,404.59 Average Daily Balance Effective Rate of Return 84,752,372.08 77,971,372.53 0.80%0.65% 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 06, 2020. 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: 04/20/2021 14:51 Reporting period 03/01/2021-03/31/2021 Run Date: 04/20/2021 - 14:51 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.5 04/21/2021 YTM360 Page 1 Par Value Book Value MaturityDateStatedRateMarket Value March 31, 2021 Portfolio Details - Investments AverageBalanceIssuer Portfolio Management Month End Days toMaturityS&PCUSIPInvestment #PurchaseDate Federal Agency Issues - Coupon 1.454Federal Home Loan Bank2384 1,005,000.00 1,008,925.45 09/10/20212.37509/05/2019 1,015,220.85 AA313378JP7 162 1.454Federal Home Loan Bank2385 2,645,000.00 2,655,331.15 09/10/20212.37509/05/2019 2,671,899.65 AA313378JP7 162 3,664,256.603,687,120.503,650,000.003,665,514.79Subtotal and Average 1.454 162 BOND PROCEEDS (LAIF) 0.352STATE OF CALIFORNIA9015 754,020.92 754,020.92 0.357754,978.42LAIF 2018 1 754,020.92754,978.42754,020.92848,085.44Subtotal and Average 0.352 1 Local Agency Investment Fund (LAIF) 0.352STATE OF CALIFORNIA9001 34,776,967.31 34,776,967.31 0.35734,821,128.95LAIF 1 34,776,967.3134,821,128.9534,776,967.3136,041,483.44Subtotal and Average 0.352 1 San Diego County Pool 0.838San Diego County9007 41,316,351.37 41,316,351.37 0.85041,317,000.00SD COUNTY POOL 1 41,316,351.3741,317,000.0041,316,351.3741,316,351.37Subtotal and Average 0.838 1 84,752,372.08 80,497,339.60 0.652 880,580,227.87 80,511,596.20Total and Average Portfolio OTAY NL! APData Updated: SET_ME8: 04/20/2021 14:51 Run Date: 04/20/2021 - 14:51 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.5 YTM360 Page 2 Par Value Book Value StatedRateMarket Value March 31, 2021 Portfolio Details - Cash AverageBalanceIssuer Portfolio Management Month End Days toMaturityS&PCUSIPInvestment #PurchaseDate Union Bank 0.010STATE OF CALIFORNIA9002 391,876.10 391,876.10 0.010391,876.10UNION MONEY 1 0.000STATE OF CALIFORNIA9003 2,950.00 2,950.002,950.00PETTY CASH 1 0.444STATE OF CALIFORNIA9004 907,386.44 907,386.44 0.450907,386.44UNION OPERATING 1 0.000STATE OF CALIFORNIA9005 363,507.38 363,507.3807/01/2020 363,507.38PAYROLL 1 0.030STATE OF CALIFORNIA9010 23,100.72 23,100.72 0.03007/01/2020 23,100.72RESERVE-10 COPS 1 0.030STATE OF CALIFORNIA9011 55,607.94 55,607.94 0.03007/01/2020 55,607.94RESERVE-10 BABS 1 0.000STATE OF CALIFORNIA9014 58,702.22 58,702.2207/01/2020 58,702.22UBNA-FLEX ACCT 1 0.00 84,752,372.08 82,300,470.40 0.652 8 1Average Balance 82,383,358.67 82,314,727.00Total Cash and Investments Portfolio OTAY NL! APData Updated: SET_ME8: 04/20/2021 14:51 Run Date: 04/20/2021 - 14:51 PM (PRF_PM2) 7.3.0 Month End Activity Report Sorted By Issuer March 1, 2021 - March 31, 2021 Current Rate Transaction Date BalanceBeginning Balance Ending Par Value Percent of Portfolio Par Value CUSIP Investment #Issuer Purchases orDeposits Redemptions orWithdrawals Issuer: STATE OF CALIFORNIA BOND PROCEEDS (LAIF) STATE OF CALIFORNIA9015 0.000.357 729,000.00LAIF 2018 729,000.001,483,020.92 754,020.92Subtotal and Balance 0.00 Union Bank STATE OF CALIFORNIA9002 3.560.010 0.00UNION MONEY STATE OF CALIFORNIA9004 1,625,295.320.450 1,488,071.91UNION OPERATING STATE OF CALIFORNIA9005 333,961.95 0.00PAYROLL STATE OF CALIFORNIA9010 11,934.660.030 0.00RESERVE-10 COPS STATE OF CALIFORNIA9011 31,409.940.030 0.00RESERVE-10 BABS STATE OF CALIFORNIA9014 50,383.33 9,787.66UBNA-FLEX ACCT 1,497,859.571,248,001.61 1,803,130.80Subtotal and Balance 2,052,988.76 Local Agency Investment Fund (LAIF) STATE OF CALIFORNIA9001 7,300,000.000.357 5,900,000.00LAIF 5,900,000.0033,376,967.31 34,776,967.31Subtotal and Balance 7,300,000.00 9,352,988.76 8,126,859.5736,107,989.84 37,334,119.0345.363%Issuer Subtotal Issuer: Federal Home Loan Bank Federal Agency Issues - Coupon 3,650,000.00 3,650,000.00Subtotal and Balance 0.00 0.003,650,000.00 3,650,000.004.435%Issuer Subtotal Issuer: San Diego County San Diego County Pool 41,316,351.37 41,316,351.37Subtotal and Balance 0.00 0.0041,316,351.37 41,316,351.3750.202%Issuer Subtotal Portfolio OTAY NL! APData Updated: SET_ME8: 04/20/2021 14:51 Run Date: 04/20/2021 - 14:51 DA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Current Rate Transaction Date BalanceBeginning Balance Ending Par Value Page 2 Percent of Portfolio Par Value March 1, 2021 - March 31, 2021 Activity Report Month End CUSIP Investment #Issuer Purchases orDeposits Redemptions orWithdrawals 81,074,341.21 82,300,470.40Total8,126,859.579,352,988.76100.000% Portfolio OTAY NL! APData Updated: SET_ME8: 04/20/2021 14:51 Run Date: 04/20/2021 - 14:51 DA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Month End Duration Report Sorted by Investment Type - Investment Type Through 03/31/2021 Investment #Security ID Issuer Investment Class Book Value Par Value Market Value Current Rate YTM Current Yield Maturity/ Call Date DurationModified360Fund Federal Home Loan Bank238499 1,005,000.00 1,015,220.85313378JP7 0.338 09/10/2021 0.4431,008,925.45 1.454Fair2.375000 Federal Home Loan Bank238599 2,645,000.00 2,671,899.65313378JP7 0.338 09/10/2021 0.4432,655,331.15 1.454Fair2.375000 STATE OF CALIFORNIA901599 754,020.92 754,978.42LAIF 2018 0.357 0.000754,020.92 0.352Fair.3570000 STATE OF CALIFORNIA900199 34,776,967.31 34,821,128.95LAIF 0.357 0.00034,776,967.31 0.352Fair.3570000 San Diego County900799 41,316,351.37 41,317,000.00SD COUNTY 0.850 0.00041,316,351.37 0.838Fair.8500000 0.609 0.02080,511,596.20 80,497,339.60 80,580,227.87Report Total Portfolio OTAY NL! APPage 1Data Updated: SET_ME8: 04/20/2021 14:51 Run Date: 04/20/2021 - 14:51 DU (PRF_DU) 7.1.1 Report Ver. 7.3.5 Month End GASB 31 Compliance Detail Sorted by Fund - Fund March 1, 2021 - March 31, 2021 Investment #Maturity Date BeginningInvested Value Purchaseof Principal InvestmentClassFundCUSIP Adjustment in Value EndingInvested ValueAdditionto Principal Redemptionof Principal AmortizationAdjustment Change inMarket Value Fund: Treasury Fund 2384 1,017,502.20Fair Value 09/10/2021 -2,281.3599 1,015,220.85313378JP70.00 0.00 0.00 0.00 2385 2,677,903.80Fair Value 09/10/2021 -6,004.1599 2,671,899.65313378JP70.00 0.00 0.00 0.00 9002 391,872.54Amortized 0.0099 391,876.10UNION MONEY 0.00 3.56 0.00 0.00 9003 2,950.00Amortized 0.0099 2,950.00PETTY CASH 0.00 0.00 0.00 0.00 9015 1,486,389.33Fair Value -2,410.9299 754,978.42LAIF 2018 0.00 0.00 729,000.00 0.00 9004 770,163.03Amortized 0.0099 907,386.44UNION OPERATING 0.00 1,625,295.32 1,488,071.91 0.00 9001 33,452,777.02Fair Value -31,648.0799 34,821,128.95LAIF0.00 7,300,000.00 5,900,000.00 0.00 9010 11,166.06Amortized 0.0099 23,100.72RESERVE-10 COPS 0.00 11,934.66 0.00 0.00 9011 24,198.00Amortized 0.0099 55,607.94RESERVE-10 BABS 0.00 31,409.94 0.00 0.00 9014 18,106.55Amortized 0.0099 58,702.22UBNA-FLEX ACCT 0.00 50,383.33 9,787.66 0.00 9005 29,545.43Amortized 0.0099 363,507.38PAYROLL0.00 333,961.95 0.00 0.00 9007 41,521,000.00Fair Value -204,000.0099 41,317,000.00SD COUNTY POOL 0.00 0.00 0.00 0.00 81,403,573.96Subtotal -246,344.49 82,383,358.670.00 9,352,988.76 8,126,859.57 0.00 81,403,573.96Total 82,383,358.67-246,344.490.00 9,352,988.76 8,126,859.57 0.00 Portfolio OTAY NL! APData Updated: SET_ME8: 04/20/2021 14:51 Run Date: 04/20/2021 - 14:51 GD (PRF_GD) 7.1.1 Report Ver. 7.3.5 Month End Interest Earnings Sorted by Fund - Fund March 1, 2021 - March 31, 2021 Yield on Beginning Book Value Maturity Date Current Rate Ending Par Value EndingSecurityTypeFundBook ValueBeginningBook Value Adjusted Interest Earnings AccretionAmortization/EarningsAdjusted InterestAnnualized YieldCUSIPInvestment #Interest Earned Fund: Treasury Fund 1,008,925.4523841,005,000.00 2.375FAC09/10/2021 1,989.06 -740.65 1,248.411.456991,009,666.10313378JP7 2,655,331.1523852,645,000.00 2.375FAC09/10/2021 5,234.90 -1,949.27 3,285.631.456992,657,280.42313378JP7 391,876.109002391,876.10 0.010PA1 3.33 0.00 3.330.01099391,872.54UNION MONEY 754,020.929015754,020.92 0.357LA2 257.14 0.00 257.140.204991,483,020.92LAIF 2018 907,386.449004907,386.44 0.450PA1 896.92 0.00 896.921.37199770,163.03UNION OPERATING 34,776,967.31900134,776,967.31 0.357LA1 10,927.98 0.00 10,927.980.3859933,376,967.31LAIF 23,100.72901023,100.72 0.030PA1 0.50 0.00 0.500.0539911,166.06RESERVE-10 COPS 55,607.94901155,607.94 0.030PA1 1.18 0.00 1.180.0579924,198.00RESERVE-10 BABS 41,316,351.37900741,316,351.37 0.850LA3 29,827.01 0.00 29,827.010.8509941,316,351.37SD COUNTY POOL 81,875,310.80Subtotal 81,889,567.40 0.675 46,448.10-2,689.9249,138.0281,040,685.75 81,875,310.80Total 81,889,567.40 0.675 46,448.10-2,689.9249,138.0281,040,685.75 Portfolio OTAY NL! APData Updated: SET_ME8: 04/20/2021 14:51 Run Date: 04/20/2021 - 14:51 IE (PRF_IE) 7.2.0 Report Ver. 7.3.5 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 5, 2021 SUBMITTED BY: Eid Fakhouri, Finance Manager, Treasury & Accounting Services W.O./G.F. NO: DIV. NO. APPROVED BY: APPROVED BY: SUBJECT: PURPOSE: Joseph Beachem, Chief Financial Officer Jose Martinez, General Manager Accounts Payable Demand List Attached is the list of demands for the Board's information. FISCAL IMPACT: SUMMARY FOR PERIOD 3/25/2021 - 4/21/2021 NET DEMANDS CHECKS (2055775 - 2055899) $ 1,798,122.95 VOID CHECKS (0) $ 0.00 TOTAL CHECKS $ 1,798,122.95 WIRE TO: CITY TREASURER - RECLAIMED WATER PURCH (CY2020 TAKE OR PAY) $ 1,230,117.63 CITY TREASURER - RECLAIMED WATER PURCHASE (FEB 2021) $ 97,386.95 CITY TREASURER - RECLAIMED WATER PURCHASE (JAN 2021) $ 95,709.87 OTAY WATER DISTRICT - BI-WEEKLY PAYROLL DEDUCTION $ 630.00 OTAY WATER DISTRICT - BI-WEEKLY PAYROLL DEDUCTION $ 630.00 PREFERRED BENEFIT INSURANCE - DENTAL & COBRA CLAIMS (MAR 2021) $ 12,622.40 PREFERRED BENEFIT INSURANCE - DENTAL BENEFITS ADMINISTRATION (CY2021) $ 1,059.51 PUBLIC EMPLOYEES RET SYSTEM - BI-WEEKLY PERS CONTRIBUTION $ 113,337.82 PUBLIC EMPLOYEES RET SYSTEM - BI-WEEKLY PERS CONTRIBUTION $ 113,479.34 SAN DIEGO COUNTY WATER AUTH - WATER DELIVERIES & CHARGES (FEB 2021) $ 3,503,169.75 SPECIAL DISTRICT RISK - EMPLOYEE MEDICAL BENEFITS 2021 $ 358,519.31 UNION BANK - BI-WEEKLY PAYROLL TAXES $ 163,707.64 UNION BANK - BI-WEEKLY PAYROLL TAXES $ 178,333.19 US BANK CAL CARD EXPENSES (MONTHLY) $ 149,139.72 VOYA FINANCIAL - BI-WEEKLY 401A & 457 PLAN $ 38,634.29 VOYA FINANCIAL - BI-WEEKLY 401A & 457 PLAN $ 38,024.19 TOTAL CASH DISBURSEMENTS $ 7,892,624.56 RECOMMENDED ACTION: That the Board received the attached list of demands. Jb/Attachment Check Total 2,930.00 19,490.00 1,408.00 EMERGENCY REPAIRS PASEO LADERA 271,049.10 271,049.10205577903/30/21 00848 CASS CONSTRUCTION INC P2722-0001 01/31/21 12,180.00 2055812 04/07/21 20410 CAPITAL INDUSTRIAL 303192021 03/19/21 850-1 & 1200-1 RES PROJECT (3/19/21)293,550.00 293,550.00 453.05 453.05 2055865 04/21/21 20374 CALBURTON INC CAL361 04/05/21 UTILITY LOCATING SERVICES (MAR 2021)12,180.00 CUSTOMER REFUND 1,940.50 1,940.50 2055811 04/07/21 18154 BUSINESSOLVER.COM INC 0069675 03/30/21 ACA SERVICES (MAR 2021) 754101713 02/28/21 ELECTRICAL DESIGN (FEB 2021)330.00 2055838 04/14/21 20658 BUSHRA SHAOO 5844041221 04/12/21 58.00 2055864 04/21/21 14112 BSE ENGINEERING INC 754101714 03/31/21 ELECTRICAL DESIGN (MAR 2021)1,078.00 3,249.74 3,249.74 2055778 03/30/21 20644 BRENDAN THIESSEN Ref002621838 03/29/21 UB Refund Cst #0000153642 58.00 WESSELS REPLACEMENT BLADDER 4,231.34 4,231.34 2055863 04/21/21 00145 BARRETT ENGINEERED PUMPS 120832 02/25/21 RWCWRF-SW PUMPS 2055810 04/07/21 00145 BARRETT ENGINEERED PUMPS 121042 03/17/21 93,231.03 2055837 04/14/21 07785 AT&T 000016159687 03/12/21 TELEPHONE SERVICES (2/12/2021 - 3/11/2021)4,744.94 4,744.94 28,584.50 28,584.50 2055836 04/14/21 20199 ASSOC OF CA WATER AGENCIES 040521 04/05/21 FY2021 WORKERS' COMP PROGRAM (QTR 3)93,231.03 EMPLOYEE ASSISTANCE PROGRAM CY2021 953.40 953.40 2055809 04/07/21 17264 ARTIANO SHINOFF ABED 304736 03/18/21 PROF SERV - FEB 2021 2055808 04/07/21 08967 ANTHEM EAP 80285 04/01/21 CM202121 03/15/21 CMIS (FEB 2021)1,120.00 CM202128 03/15/21 CMIS (FEB 2021)480.00 CM202127 03/15/21 CMIS (FEB 2021)2,187.50 CM202125 03/15/21 CMIS (FEB 2021)1,200.00 CM202124 03/15/21 CMIS (FEB 2021)3,200.00 CM202123 03/15/21 CMIS (FEB 2021)2,880.00 CMIS (FEB 2021)5,062.50 CM202122 03/15/21 CMIS (FEB 2021)3,360.00 2055807 04/07/21 14462 ALYSON CONSULTING CM202126 03/15/21 9111468649 03/26/21 AS-NEEDED AQUA AMMONIA 1,138.00 9111468650 03/26/21 AS-NEEDED AQUA AMMONIA 476.00 695.00 695.00 2055862 04/21/21 07732 AIRGAS SPECIALTY PRODUCTS INC 9111468648 03/26/21 AS-NEEDED AQUA AMMONIA 1,316.00 INTERNET CIRCUIT SERVICES FY20-22 1,013.64 1,013.64 2055861 04/21/21 17989 ADS CORP 22446.22-0321 03/27/21 SEWER FLOW MONITORING 2055806 04/07/21 18122 ACC BUSINESS 210722883 03/27/21 542.72 2055835 04/14/21 08488 ABLEFORCE INC 10015 04/07/21 SHAREPOINT & INTRANET SUPPORT SVCS 1,125.00 1,125.00 Amount 2055777 03/30/21 20643 440800 TESORO #11 Ref002621837 03/29/21 UB Refund Cst #0000122674 542.72 CHECK REGISTER Otay Water District Date Range: 3/25/2021 - 4/21/2021 Check #Date Vendor Vendor Name Invoice Inv. Date Description Page 1 of 7 Check Total Amount CHECK REGISTER Otay Water District Date Range: 3/25/2021 - 4/21/2021 Check #Date Vendor Vendor Name Invoice Inv. Date Description 5,031.00 505.00 UPFP PERMIT RENEWAL (4/30/21-4/30/22)565.00 565.00 2055843 04/14/21 02122 COUNTY OF SAN DIEGO 045442002RI 03/24/21 PERMIT FEES # 04544 (MAY 2021-MAY 2022) 2055842 04/14/21 00184 COUNTY OF SAN DIEGO 2818021421 02/14/21 1,824.50 2055815 04/07/21 00184 COUNTY OF SAN DIEGO 4908011221 01/12/21 UPFP PERMIT RENEWAL (6/30/20-6/30/21)3,132.00 3,132.00 3,749.70 3,749.70 2055814 04/07/21 00099 COUNTY OF SAN DIEGO DPWMWD0221 03/10/21 EXCAVATION PERMITS (FEB 2021)1,824.50 INVENTORY 4,687.13 4,687.13 2055813 04/07/21 18331 CORE & MAIN LP N820650 03/12/21 INVENTORY 20384 03/31/21 BACTERIOLOGICAL TESTING (3/10/21)103.00 2055781 03/30/21 18331 CORE & MAIN LP N814637 03/03/21 20386 03/31/21 BACTERIOLOGICAL TESTING (3/15/21)168.50 20385 03/31/21 BACTERIOLOGICAL TESTING (3/10/21)113.00 20391 03/31/21 BACTERIOLOGICAL TESTING (3/23/21)178.00 20393 03/31/21 BACTERIOLOGICAL TESTING (3/25/21)178.00 20388 03/31/21 BACTERIOLOGICAL TESTING (3/18/21)178.00 20390 03/31/21 BACTERIOLOGICAL TESTING (3/23/21)178.00 20383 03/31/21 BACTERIOLOGICAL TESTING (3/9/21)188.00 20396 03/31/21 BACTERIOLOGICAL TESTING (3/30/21)188.00 20382 03/31/21 BACTERIOLOGICAL TESTING (3/3/21)206.00 20387 03/31/21 BACTERIOLOGICAL TESTING (3/15/21)188.50 20392 03/31/21 BACTERIOLOGICAL TESTING (3/23/21-3/24/21)376.00 20379 03/31/21 BACTERIOLOGICAL TESTING (3/1/21)206.00 20394 03/31/21 BACTERIOLOGICAL TESTING (3/29/21-3/31/21)528.00 20389 03/31/21 BACTERIOLOGICAL TESTING (3/16/21-3/17/21)414.00 20395 03/31/21 BACTERIOLOGICAL TESTING (3/29/21-3/30/21)556.00 20380 03/31/21 BACTERIOLOGICAL TESTING (3/1/21-3/2/21)528.00 1,943.64 2055868 04/21/21 04119 CLARKSON LAB & SUPPLY INC 20381 03/31/21 BACTERIOLOGICAL TESTING (3/2/21-3/3/21)556.00 900.00 900.00 2055780 03/30/21 05131 CITY OF SAN DIEGO PTS2400844720 01/31/21 TLOPS PROJECT INSPECTION (JAN 2021)1,943.64 UB Refund Cst #0000214884 49.71 49.71 2055867 04/21/21 00446 CITY OF CHULA VISTA 7986354521 04/15/21 TOW TRUCK FEES 2055841 04/14/21 20671 CHARLES MCCOY Ref002624733 04/12/21 191.07 2055840 04/14/21 15800 CHAN, SIU MAN POLLY PC040921 04/09/21 TUITION REIMBURSEMENT 820.00 820.00 242,665.00 242,665.00 2055839 04/14/21 20672 CELESINO DULNUAN Ref002624734 04/12/21 UB Refund Cst #0000251726 191.07 EMERGENCY REPAIRS PASEO LADERA 271,049.10 271,049.10 2055866 04/21/21 00848 CASS CONSTRUCTION INC P2722-0002 02/28/21 EMERGENCY REPAIRS PASEO LADERA 2055779 03/30/21 00848 CASS CONSTRUCTION INC P2722-0001 01/31/21 Page 2 of 7 Check Total Amount CHECK REGISTER Otay Water District Date Range: 3/25/2021 - 4/21/2021 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,010.00 5,943.31 7,287.02 422.16 102,986.76 75.00 25.00 25.00 2055846 04/14/21 19640 FRANCHISE TAX BOARD Ben2624793 04/15/21 BI-WEEKLY PAYROLL DEDUCTION 75.00 BI-WEEKLY PAYROLL DEDUCTION 75.00 75.00 2055805 03/30/21 20481 FRANCHISE TAX BOARD Ben2621871 04/01/21 BI-WEEKLY PAYROLL DEDUCTION 210148 03/31/21 2021 FORD F-150 TRUCKS 34,021.49 2055804 03/30/21 19640 FRANCHISE TAX BOARD Ben2621869 04/01/21 2021 FORD F-150 TRUCKS 34,943.78 210146 03/31/21 2021 FORD F-150 TRUCKS 34,021.49 2163435 04/02/21 FLEET WASH SERVICES FY21 33.35 2055876 04/21/21 19868 FORD OF CHULA VISTA 210127 03/31/21 2140059 03/05/21 FLEET WASH SERVICES FY21 75.10 2145639 03/12/21 FLEET WASH SERVICES FY21 53.40 135.00 135.00 2055875 04/21/21 11962 FLEETWASH INC 2151966 03/19/21 FLEET WASH SERVICES FY21 260.31 DOCUMENT SERVICE (MONTHLY)99.00 99.00 2055874 04/21/21 02591 FITNESS TECH 11845 04/01/21 GYM EQUIPMENT MAINTENANCE 2055873 04/21/21 17888 FIRST AMERICAN DATA TREE LLC 9003400321 03/31/21 5,381.14 0751876 03/30/21 CHECK ARRESTOR 1,503.33 07511801 03/25/21 VICTAULIC MATERIAL 402.55 VICTAULIC MATERIAL 1,637.80 1,637.80 2055872 04/21/21 03546 FERGUSON WATERWORKS # 1083 0749427 03/30/21 INVENTORY 2055845 04/14/21 03546 FERGUSON WATERWORKS # 1083 0751180 03/19/21 0751503 03/17/21 INVENTORY 1,977.33 0751503-1 03/19/21 INVENTORY 128.33 1,285.10 2055817 04/07/21 03546 FERGUSON WATERWORKS # 1083 07441601 03/10/21 INVENTORY 3,837.65 107.11 107.11 2055783 03/30/21 20511 EYEMED 164723466 03/20/21 VISION BENEFITS ADMINISTRATION (CY2021)1,285.10 EXPENSE REIMBURSEMENT 250.00 250.00 2055782 03/30/21 02447 EDCO DISPOSAL CORPORATION 09-E3 155458 03/29/21 RECYCLED WASTE SERVICE 2055871 04/21/21 20598 DILAYRE, SHIELA 033121 03/31/21 14.17 2055775 03/30/21 20563 DELORES LEONARD Ref002621836 03/29/21 UB Refund Cst #0000048094 30.00 30.00 4,043.49 4,043.49 2055844 04/14/21 20667 DAISY LAAG Ref002624729 04/12/21 UB Refund Cst #0000030035 14.17 MILEAGE REIMBURSEMENT (MAR 2021)2.80 2.80 2055816 04/07/21 11797 D&H WATER SYSTEMS INC 2021-0261 03/09/21 CHLORINE GAS PARTS 04/04/21 SHUT DOWN TEST (3/30/21)612.00 612.00 2055870 04/21/21 03098 CROUCHER, GARY D 030121033121 03/31/21 505.00 047452002RI 03/24/21 PERMIT FEES # 04745 (MAY 2021-MAY 2022)505.00 2055869 04/21/21 00184 COUNTY OF SAN DIEGO E602140321 2055843 04/14/21 02122 COUNTY OF SAN DIEGO 045442002RI 03/24/21 PERMIT FEES # 04544 (MAY 2021-MAY 2022) Page 3 of 7 Check Total Amount CHECK REGISTER Otay Water District Date Range: 3/25/2021 - 4/21/2021 Check #Date Vendor Vendor Name Invoice Inv. Date Description 2,897.97 4,972.39 27,195.69 187258 02/28/21 BILL PROCESSING SERVICES 4,230.06 187744 03/01/21 BILL PROCESSING SERVICES 2,598.17 855.43 855.43 2055822 04/07/21 08969 INFOSEND INC 187259 02/28/21 BILL PROCESSING SERVICES 12,058.04 GAS DETECTION PROGRAM 316.93 316.93 2055880 04/21/21 17816 INDUSTRIAL SCIENTIFIC CORP 2407243 03/31/21 GAS DETECTION PROGRAM 2055821 04/07/21 17816 INDUSTRIAL SCIENTIFIC CORP 2404539 03/12/21 17,836.02 0153635 03/11/21 ENVIRONMENTAL SVCS (1/30/21-2/26/21)8,459.67 0154030 03/30/21 ENVIRONMENTAL SVCS (1/30/21-2/26/21)900.00 SAN MIGUEL HMA (1/30/21-2/26/21)9,874.50 9,874.50 2055879 04/21/21 15622 ICF JONES & STOKES INC 0153869 03/18/21 ENVIRONMENTAL SVCS (1/30/21-2/26/21) 2055849 04/14/21 15622 ICF JONES & STOKES INC 0153866 03/18/21 41.57 2055820 04/07/21 13349 HUNSAKER & ASSOCIATES 2021020027 03/10/21 LAND SURVEYING SERVICES (1/30/21-2/26/21)445.68 445.68 3,055.00 3,055.00 2055848 04/14/21 20669 HEATHER ANSLEY Ref002624731 04/12/21 UB Refund Cst #0000156143 41.57 ASSET MANAGEMENT SVCS (FEB 2021)5,936.25 5,936.25 2055878 04/21/21 18436 HAZEN AND SAWYER DPC 2009400214 03/30/21 POTABLE PIPELINE PROJECT (12/1/20-2/28/21) 738999 04/01/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 159.14 2055819 04/07/21 18436 HAZEN AND SAWYER DPC 200940045 03/10/21 739000 04/01/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 205.88 737770 03/24/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 181.40 739001 04/01/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 890.31 738998 04/01/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 556.45 AS-NEEDED SODIUM HYPOCHLORITE FY21 1,866.32 738000 03/25/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 1,112.89 735962 03/12/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 156.92 2055877 04/21/21 19978 HASA INC.739686 04/05/21 735963 03/12/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 445.16 735819 03/11/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 277.11 736841 03/18/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 723.38 736248 03/15/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 569.80 1,544.07 1,544.07 2055818 04/07/21 19978 HASA INC.735386 03/09/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 725.60 UB Refund Cst #0000242435 12.57 12.57 2055785 03/30/21 20653 FULCRUM CONSTRUCTION LLC Ref002621847 03/29/21 UB Refund Cst #0000260413 2055784 03/30/21 20650 FRANCISCO JAQUEZSILVA Ref002621844 03/29/21 75.00 2055847 04/14/21 20481 FRANCHISE TAX BOARD Ben2624795 04/15/21 BI-WEEKLY PAYROLL DEDUCTION 25.00 25.00 2055846 04/14/21 19640 FRANCHISE TAX BOARD Ben2624793 04/15/21 BI-WEEKLY PAYROLL DEDUCTION 75.00 Page 4 of 7 Check Total Amount CHECK REGISTER Otay Water District Date Range: 3/25/2021 - 4/21/2021 Check #Date Vendor Vendor Name Invoice Inv. Date Description 20,582.36 22,066.61 1,056.91 25,507.50 INVENTORY 940.66 940.66205588804/21/21 01002 PACIFIC PIPELINE SUPPLY INC S100425496.001 03/23/21 4,857.50 2055887 04/21/21 16834 ON-SITE TECHNICAL SVCS INC 10295 04/05/21 IN-PLANT SERVICES (3/23/21-3/24/21)2,017.68 2,017.68 8,900.00 8,900.00 2055886 04/21/21 18332 NV5 INC 201909 03/24/21 ENGINEERING DESIGN (JAN 2021)4,857.50 GEOTECHNICAL SERVICES (1/27/21-2/26/21)4,361.00 4,361.00 2055885 04/21/21 03517 NOBEL SYSTEMS 15024 03/31/21 FACILITY MAP BOOK DEVELOPMENT 1926560014 03/31/21 PLAN CHECK SERVICES (FEB 2021)10,723.50 2055825 04/07/21 00761 NINYO & MOORE GEOTECHNICAL 247464 03/22/21 3,800.00 2055884 04/21/21 19824 MURRAYSMITH INC 202947002 03/30/21 HYDROPNEUMATIC PS REPLACE (FEB 2021)14,784.00 55.39 55.39 2055883 04/21/21 19765 MORAES/PHAM & ASSOCIATES 2010510 03/31/21 ELECTRICAL ENGINEERING SVCS (MAR 2021)3,800.00 UB Refund Cst #0000265981 58.74 58.74 2055853 04/14/21 20668 MARLON HATHAWAY Ref002624730 04/12/21 UB Refund Cst #0000143621 04/12/21 UB Refund Cst #0000258033 6.79 6.79 2055833 04/14/21 20624 MARLENE CORSINI Ref002624739 04/12/21 696.11 OWD-12347 03/22/21 AS-NEEDED PRINTING & MAILING SERVICES 360.80 2055852 04/14/21 20673 MARIA MILLAN Ref002624735 RETAINAGE RELEASE 62,144.61 62,144.61 2055824 04/07/21 10512 MAIL MANAGEMENT GROUP INC OWD-12337 03/11/21 AS-NEEDED PRINTING & MAILING SERVICES 2055790 03/30/21 14513 LB CIVIL CONSTRUCTION INC 00018781 01/22/21 180.00 2055823 04/07/21 15615 LAYFIELD USA CORPORATION E90655 03/22/21 MAINT OF FLOATING RES COVERS FY21 67,770.00 67,770.00 24.49 24.49 2055851 04/14/21 10089 KENNEDY, ROBERT 040821 04/08/21 EXPENSE REIMBURSEMENT 180.00 UB Refund Cst #0000260385 18.82 18.82 2055789 03/30/21 20651 JOSE ARREOLA Ref002621845 03/29/21 UB Refund Cst #0000257217 2055788 03/30/21 20652 JENNIFER LANGTON Ref002621846 03/29/21 1,633.60 2055787 03/30/21 20654 JEANIE ARIA Ref002621848 03/29/21 UB Refund Cst #0000260719 50.05 50.05 18.85 18.85 2055882 04/21/21 10563 JCI JONES CHEMICALS INC 849315 03/17/21 AS-NEEDED CHLORINE GAS 1,633.60 UB Refund Cst #0000258309 78.18 78.18 2055786 03/30/21 20646 JASON CAMPBELL Ref002621840 03/29/21 UB Refund Cst #0000203305 189304 04/02/21 BILL PROCESSING SERVICES 2,639.84 2055850 04/14/21 20675 JANA ANDRADE Ref002624737 04/12/21 BILL PROCESSING SERVICES 14,436.28 188981 03/31/21 BILL PROCESSING SERVICES 4,990.49 2055881 04/21/21 08969 INFOSEND INC 188982 03/31/21 188291 03/19/21 BILL PROCESSING SERVICES 1,400.75 188290 03/19/21 BILL PROCESSING SERVICES 295.34 Page 5 of 7 Check Total Amount CHECK REGISTER Otay Water District Date Range: 3/25/2021 - 4/21/2021 Check #Date Vendor Vendor Name Invoice Inv. Date Description 116,140.76 17,634.36 1,051.90 UB Refund Cst #0000267400 2,046.00 2,046.00205579703/30/21 20656 UNIFIED FIELD SERVICES CORP Ref002621850 03/29/21 UNDERGROUND ALERTS (MONTHLY)628.75 dsb20201608 04/01/21 DIG SAFE BOARD FEES (MONTHLY)423.15 2055893 04/21/21 00427 UNDERGROUND SERVICE ALERT 320210503 04/01/21 5,330.00 2055859 04/14/21 20665 THE VERTEX COMPANIES INC 0142884 02/16/21 ECONOMIC OUTLOOK STUDY 12,000.00 12,000.00 2,500.00 2,500.00 2055892 04/21/21 17704 T&T JANITORIAL INC 2018-6697 03/31/21 JANITORIAL SERVICES 5,330.00 COMMUNICATIONS CONSULTING SERVICES 2,500.00 2,500.00 2055891 04/21/21 18376 SVPR COMMUNICATIONS 1398 03/31/21 COMMUNICATIONS CONSULTING SERVICES 497562 03/17/21 UNLEADED FUEL & DIESEL 5,141.79 2055796 03/30/21 18376 SVPR COMMUNICATIONS 1394 02/01/21 1,474.00 2055858 04/14/21 10339 SUPREME OIL COMPANY 497561 03/17/21 UNLEADED FUEL & DIESEL 12,492.57 35.26 35.26 2055890 04/21/21 01460 STATE WATER RESOURCES SW-0212834 04/06/21 ANNUAL PERMIT FEE (04/01/21-03/31/22)1,474.00 OTHER AGENCY FEE 713.57 713.57 2055795 03/30/21 20645 SHERR AQUINO Ref002621839 03/29/21 UB Refund Cst #0000188419 2055829 04/07/21 05512 SD COUNTY VECTOR CONTROL PROG 2020-21 10/05/20 35.63 2055857 04/14/21 20676 SARAH DUTTON Ref002624738 04/12/21 UB Refund Cst #0000260177 15.22 15.22 1,084.20 1,084.20 2055794 03/30/21 20642 SARA ROGERS Ref002621834 03/29/21 UB Refund Cst #0000013381 35.63 UTILITY EXPENSES (MONTHLY)89,448.96 89,448.96 2055889 04/21/21 00121 SAN DIEGO GAS & ELECTRIC 041221 04/12/21 UTILITY EXPENSES (MONTHLY) 032621 03/26/21 UTILITY EXPENSES (MONTHLY)10.00 2055856 04/14/21 00121 SAN DIEGO GAS & ELECTRIC 040821 04/08/21 71,704.67 033021 03/30/21 UTILITY EXPENSES (MONTHLY)43,738.54 032621A 03/26/21 UTILITY EXPENSES (MONTHLY)687.55 UTILITY EXPENSES (MONTHLY)59,934.04 59,934.04 2055828 04/07/21 00121 SAN DIEGO GAS & ELECTRIC 033021A 03/30/21 UTILITY EXPENSES (MONTHLY) 2055793 03/30/21 00121 SAN DIEGO GAS & ELECTRIC 032321 03/23/21 3,287.50 2055827 04/07/21 02586 SAN DIEGO COUNTY ASSESSOR 202100252 04/01/21 ASSESSOR DATA (MONTHLY)125.00 125.00 5,862.05 5,862.05 2055826 04/07/21 16173 RISK MANAGEMENT PROFESSIONALS 172057 03/30/21 CALARP AUDITS 3,287.50 BUTTSTRAPS FOR PROCTOR VALLEY LINE 2,235.81 2,235.81 2055792 03/30/21 16173 RISK MANAGEMENT PROFESSIONALS 172029 03/11/21 CALARP AUDITS 2055791 03/30/21 00521 RICK POST WELD & WET TAPPING 12824 03/07/21 35.07 2055855 04/14/21 20670 RENEE GOFF Ref002624732 04/12/21 UB Refund Cst #0000185587 25.06 25.06 2,310.00 2,310.00 2055776 03/30/21 14259 RANDOLPH BLUM Ref002621835 03/29/21 UB Refund Cst #0000015111 35.07 2055854 04/14/21 00137 PETTY CASH CUSTODIAN 040921 04/09/21 PETTY CASH REIMBURSEMENT (04/09/21) Page 6 of 7 Check Total Amount CHECK REGISTER Otay Water District Date Range: 3/25/2021 - 4/21/2021 Check #Date Vendor Vendor Name Invoice Inv. Date Description 738.93 Amount Pd Total:1,798,122.95 Check Grand Total:1,798,122.95 17,466.51 2055834 04/14/21 12232 ZARMINA KHALIQ Ref002624728 04/12/21 UB Refund Cst #0000019736 175.00 175.00 7,891.68 7,891.68 2055899 04/21/21 14857 XYLEM/YSI INCORPORATED 864304 03/29/21 UVT SENSOR 17,466.51 EMPLOYEE BENEFITS 802.50 802.50 2055832 04/07/21 14857 XYLEM/YSI INCORPORATED 863280 03/23/21 NITRATE PROBES 2055898 04/21/21 08023 WORKTERRA 0099664 03/31/21 17.58 2055803 03/30/21 19866 WOOD RODGERS INC 144286 02/28/21 HYDRAULIC MODELING (FEB 2021)3,902.50 3,902.50 1,569.34 1,569.34 2055860 04/14/21 20674 WILSON LAI Ref002624736 04/12/21 UB Refund Cst #0000258060 17.58 UB Refund Cst #0000241373 1,067.06 1,067.06 2055802 03/30/21 20649 WEST COAST GENERAL CORP Ref002621843 03/29/21 UB Refund Cst #0000241375 2055801 03/30/21 20648 WEST COAST GENERAL CORP Ref002621842 03/29/21 125.00 2055800 03/30/21 20647 WEST COAST GENERAL CORP Ref002621841 03/29/21 UB Refund Cst #0000241372 1,303.95 1,303.95 4,490.00 4,490.00 2055831 04/07/21 01343 WE GOT YA PEST CONTROL INC 41719 03/12/21 AS-NEEDED BEE REMOVAL 125.00 SECURITY ALARM MONITORING 2,795.92 2,795.92 2055897 04/21/21 15726 WATER SYSTEMS CONSULTING INC 5522 03/31/21 UWMP ASSISTANCE SERVICES (MAR 2021) 2055896 04/21/21 15807 WATCHLIGHT CORPORATION 713290 04/15/21 77.03 2055830 04/07/21 15807 WATCHLIGHT CORPORATION 709510 03/15/21 SECURITY ALARM MONITORING 2,795.92 2,795.92 5,364.00 5,364.00 2055799 03/30/21 20655 VIVIANA BENITEZ ROBLES Ref002621849 03/29/21 UB Refund Cst #0000264649 77.03 LEAK DETECTION SERVICES 2021 5,383.42 5,383.42 2055895 04/21/21 08028 VALLEY CONSTRUCTION MANAGEMENT SD030503 04/05/21 CMIS (MAR 2021) 114-11701224 03/09/21 PORT. TOILET RENTAL 90.10 2055894 04/21/21 18517 UTILITY SERVICES ASSOC LLC 126354 04/02/21 439.85 114-11711492 03/10/21 PORT. TOILET RENTAL 110.07 114-11711485 03/10/21 PORT. TOILET RENTAL 98.91 UB Refund Cst #0000267400 2,046.00 2,046.00 2055798 03/30/21 15675 UNITED SITE SERVICES INC 114-11711723 03/10/21 PORT. TOILET RENTAL 2055797 03/30/21 20656 UNIFIED FIELD SERVICES CORP Ref002621850 03/29/21 Page 7 of 7