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HomeMy WebLinkAbout07-11-18 Board Packet 1 OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY BOARD OF DIRECTORS MEETING DISTRICT BOARDROOM 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY July 11, 2018 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. PRESENTATION OF AWARD FOR WATERSMART LANDSCAPE CONTEST “BEST IN DISTRICT” WINNER, MS. ROSALBA PONCE (OTERO) 5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF APRIL 4, 2018 6. 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 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 AN INCREASE TO THE CIP P2561 BUDGET IN THE AMOUNT OF $150,000 AND AWARD A CONSTRUCTION CONTRACT TO LAYFIELD USA CORPORATION FOR THE RESERVOIR 711-3 FLOATING COVER AND LINER REPLACEMENT PROJECT IN AN AMOUNT NOT-TO-EXCEED $1,997,000.40 b) APPROVE CALTRANS UTILITY AGREEMENT NO. 33718 FOR SR-11 UTILITY RELOCATIONS ON ENRICO FERMI DRIVE AND ALTA ROAD 2 c) REJECT A BID FOR THE CONSTRUCTION OF THE PIPELINE CATHODIC PROTECTION IMPROVEMENTS – PHASE II PROJECT (NOTWITHSTANDING, THE COMMITTEE REJECTED STAFF’S RECOMMENDATION AND RECOM- MENDS THAT THE CONTRACT BE AWARDED TO THE SOLE BIDDER, M-RAE ENGINEERING, INC. IN THE AMOUNT OF $347,000) [NOTE: APPROVAL OF THIS ITEM ON THE CONSENT CALENDAR IS AN APPROVAL OF THE BOARD COMMITTEE’S RECOMMENDATION TO AWARD A CONTRACT TO M-RAE EN- GINEERING, INC. FOR THE CONSTRUCTION OF THE PIPELINE CATHODIC PROTECTION IMPROVEMENTS – PHASE II PROJECT IN THE AMOUNT OF $347,000] d) REJECT ALL BIDS FOR THE CONSTRUCTION OF THE VALVE REPLACE- MENT PROGRAM – PHASE I PROJECT e) APPROVE THE TRANSFER $30.0 MILLION OF POTABLE RESERVES TO CALPERS AND THE TRANSFER $1.8 MILLION OF SEWER RESERVES TO CALPERS; AND APPROVE THE SALE OF CURRENTLY HELD INVESTMENTS, AS NEEDED, TO TRANSFER THESE FUNDS 8. RECESS OTAY WATER DISTRICT BOARD MEETING 9. CONVENE OTAY WATER DISTRICT FINANCING AUTHORITY BOARD MEETING 10. ROLL CALL CONSENT CALENDAR 11. ADOPT RESOLUTION NO. 2018-01 TO AMEND THE OTAY WATER DISTRICT FI- NANCING AUTHORITY BY-LAWS AUTHORIZING THE AUTHORITY TO HOLD REGU- LAR MEETINGS ON EACH DATE THAT IS A REGULAR MEETING DATE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT 12. ADJOURN OTAY WATER DISTRICT FINANCING AUTHORITY BOARD MEETING 13. CONVENE OTAY WATER DISTRICT BOARD MEETING ACTION ITEMS 14. BOARD a) DISCUSS CENSURE OF DIRECTOR HECTOR GASTELUM IMPLEMENTED BY THE OTAY WATER DISTRICT BOARD THROUGH THE ADOPTION OF RESO- LUTION NO. 4333 ON APRIL 17, 2017 b) DISCUSS THE 2018 BOARD MEETING CALENDAR 3 INFORMATIONAL ITEM 15. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) INFORMATIONAL UPDATE ON THE CURRENT AGREEMENT WITH THE CITY OF SAN DIEGO, THE CURRENT COST OF RECYCLED WATER, AND ALTER- NATIVE SUPPLY STUDIES (CAMERON) b) RECEIVE A PRESENTATION OF THE IMPACT OF SEWER ISSUING DEBT IN FY 2019 VS. FY 2020; AND DIRECT STAFF TO PREPARE THE SEWER 218 NOTICES USING THE RATES ASSOCIATED WITH THE FY 2020 DEBT ISSU- ANCE (KOEPPEN) c) RECEIVE AN UPDATE ON THE DISTRICT’S COMPUTER AND CYBERSECU- RITY LANDSCAPE (KERR) REPORTS 16. GENERAL MANAGER’S REPORT 17. SAN DIEGO COUNTY WATER AUTHORITY UPDATE 18. DIRECTORS' REPORTS/REQUESTS 19. PRESIDENT’S REPORT/REQUESTS RECESS TO CLOSED SESSION 20. CLOSED SESSION a) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERN- MENT CODE §54956.9] OTAY WATER DISTRICT v. CITY OF SAN DIEGO; CASE NO. 37-2017- 00019348-CU-WM-CTL b) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION [GOVERN- MENT CODE §54956.9] MARK COZIAHR vs. OTAY WATER DISTRICT; CASE NO. 37-2015-00023413 c) PUBLIC EMPLOYEE PERFORMANCE EVALUATION [GOVERNMENT CODE §54957.6] TITLE: GENERAL MANAGER 4 RETURN TO OPEN SESSION 21. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION 22. 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 through the District Secretary by contacting her at (619) 670-2280. If you have any disability which would require accommodation in order to enable you to partici- pate in this meeting, please call the District Secretary at (619) 670-2280 at least 24 hours prior to the meeting. Certification of Posting I certify that on July 6, 2018, 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 July 6, 2018. /s/ Susan Cruz, District Secretary 1 MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT April 4, 2018 1. The meeting was called to order by President Smith at 3:30 p.m. 2. ROLL CALL Directors Present: Croucher, Gastelum, Robak, Smith and Thompson Staff Present: General Manager Mark Watton, General Counsel Dan Shinoff, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Pedro Porras, Asst. Chief of Finance, Asst. Chief of Operations Jose Martinez, District Secretary Susan Cruz and others per attached list. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF AGENDA A motion was made by Director Croucher, and seconded by Director Robak and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve the agenda. 5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF JANUARY 3, 2018 A motion was made by Director Robak, and seconded by Director Gastelum and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve the minutes of the regular board meetings of January 3, 2018. 6. UPDATE ON CUYAMACA COLLEGE’S CENTER FOR WATER STUDIES PARTNERSHIP 2 Mr. Don Jones, Project Coordinator for the Center for Water Studies at Cuyamaca College, provided an update on their Center (for Water Studies). The Center’s objective is to educate the next generation of water industry professionals. His presentation included information on the:  Water Industry Challenges  California Community College System  Cuyamaca Water and Wastewater Program  Center for Water Studies  Forging Stronger Industry Partnerships He stated that the program is a partnership with the water industry. Cuyamaca College is educating and preparing the next generation of workers for the water and wastewater industry and the industry is hiring their students. Cuyamaca College’s goal is to have the best facilities, curricula and faculty to prepare successful industry professionals. They have invested more than $2 million in the program and hope that the water industry will share in the investment with them. President Smith thanked Mr. Jones for his presentation. He stated the program is a tremendous effort to train the next water and wastewater professionals and the District very much appreciates their efforts. Director Robak noted that Mr. Jones is a longtime veteran of the water industry. He worked for the City of San Diego Public Works Department for 30 years and Vista Irrigation District for 12 years. He is the driving force behind the Cuyamaca College program. Director Robak inquired if job postings are being shared with the College. Mr. Jones indicated that they are receiving job postings periodically and they hope to develop a system where the College could have a presence on the District’s and other agencies’ websites HR page and vice versus for job postings. Mr. Jones indicated in response to another inquiry from Director Robak that three years ago the State Chancellor’s office, after direction from the legislature, authorized the California community colleges to develop 15 four year degree pilot programs that are not offered by either the California State Universities or University California campuses. He stated that these pilot programs are taking place now. Additionally, during this legislative session, the legislature is discussing the possibility of expanding with 15 more pilot programs. When this occurs, the staff at Cuyamaca College will be approaching the San Diego County water agencies to provide letters of support that will be presented with a proposal for a four year program for the Center for Water Studies. He indicated that 4,500 to 5,000 people in San Diego County work in the water and wastewater industry that supports a population of 3.3 million. This is a very small workforce that we depend on 24 hours a day, 7 days a week. He stated that this is a program that is needed in the County. 3 Director Croucher inquired about tours of their facilities and program and Mr. Jones indicated that they would be happy to provide tours to those interested. 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 Mr. Joe Pantoja of Chula Vista indicated that he was a golf instructor at Salt Creek Golf Course and he is attending today’s meeting to request that the District’s Board consider reopening the Salt Creek Golf Course. He stated that he and other investors have organized themselves and wish an opportunity to take over the golf course. He asked that the Board review and consider what they have to offer. President Smith provided background on the Salt Creek Golf Course. He stated that the Otay WD has owned the golf course property for many years. The property was first used as “spray fields” for wastewater before the District constructed the Chapman water reclamation plant. The land has been leased by multiple golf course owners and the first lessee opened the golf course in 2000. The original developer, Mr. Michael Strode, invested approximately $20 million to develop the golf course. At that time, golf was gaining in popularity. After about 11 years, the golf course began to have financial difficulty and eventually went bankrupt. Director Thompson added that the District, in an effort to assist the golf course lessee keep the course open, provided a lease reduction two (2) years ago and, unfortunately, they were unable to keep the course open. Mr. Ruben Osorid of Chula Vista indicated that he did not feel it was a fair economic review of the golf course. He asked that the board consider that the Cities of Chula Vista and San Diego need open space for children and places to work. He asked that the Board reconsider the closing of the golf course. Mr. John Devore of Chula Vista and the golf coach for Olympic HS stated that the Salt Creek Golf Couse has been their home for golfing for the past twelve (12) years. They share time on the golf course with Bonita Vista HS, Hilltop HS and Otay Ranch HS. He stated it is a community resource with a unique European style course and vast practice facilities. He stated he is appealing to the Board to consider keeping the golf course open to invest in the kids and the community. Mr. Joe Heinz of Bonita stated that he is the coordinator of athletics for the Sweetwater Union HS district which encompasses twelve (12) high schools in the South Bay and he is also the President of the Metro Conference which encompasses the twelve (12) high schools and Mater Dei Catholic HS. He indicated he wished to echo Mr. Devore’s sentiments. Their athletic program has limited resources within its boundaries for practice and with Salt Creek closing, it will make a big impact on their program. They have 300 to 350 student athletes that participate in the sport of golf and the program is growing. He stated anything the Board can do to keep the Salt Creek Golf Course open will pay dividends to the students and the community. 4 Ms. Delsy Pantoja of Chula Vista indicated that she is asking that the Board reconsider options for the future of the Salt Creek Golf Course. She shared that her daughter played golf on her high school team and it not only provided her personal growth, but was a benefit to her on her college application. She asked the Board to please consider the impact the closing of the Salt Creek Golf Course will have on the future potential educational options of our community’s children. Mr. Edward Fletcher of Bonita indicated that there should at least be an investigation on how the prior lessee utilized the Salt Creek Golf Course to acquire the Warner Springs Golf Course. He indicated that Salt Creek Golf Course is the only “links” style course in the County of San Diego with the exception of Barona. He asked the Board to please not close the Salt Creek Golf Course and to work with the community to find other options for Salt Creek. Mr. Steve Deutsch of Chula Vista indicated he is a parent of one of the student golfers utilizing the Salt Creek Golf Course. He stated that his son is in an excellent training facility at Salt Creek. The course has the best training area and it would be a tremendous benefit for him to continue to train there. He asked the Board to consider keeping the Salt Creek Golf Course open and giving Mr. Pantoja an opportunity to take over the lease. Mr. Tyler Torano of Chula Vista indicated that he has been playing golf since he was eight (8) years old and while growing up he had an opportunity to play at the Salt Creek Golf Course. He stated that he is fortunate enough to call himself a professional golfer and he had the privilege of representing San Diego at the Farmers Insurance Open this year. He stated that the Salt Creek Golf Course means so much to the high school athletic program and community and he hoped that the Board would consider keeping the golf course open. Mr. Julio Cesar Pantoja of San Diego indicated he grew up in Chula Vista and he asked that the Board consider what the Salt Creek Golf Course provides to the entire County. He asked that the Board consider looking at the options of what this course could be. He and his brother have looked at how to revamp the course to bring it up to a world class golf course and market the golf course. Director Croucher indicated that the District is just the lease holder and it was a business decision by the lessee to close the Salt Creek Golf Course. There are a lot of golf courses in the District’s service area and the District will be looking at all options and will collaborate with other agencies and the City of Chula Vista. Mr. Bob Barrett of El Cajon indicated that he is the golf team’s coach at Eastlake HS. He stated that the Salt Creek Golf Course is an asset to the community and the course is highly used by the community members. He asked that the Board look at all its options and hope that they would reconsider closing the golf course. 5 The following persons wished to advise that they opposed the closing of the Salt Creek Golf Course, but did not wish to speak: Mr. Manny Ortiz, Mr. Jerome David, Mr. Fidel Arce and Mr. Edward Fletcher. The board thanked the speakers for attending today’s meeting and indicated that the golf course issue will be agendized for a future meeting and that they should watch the meeting postings on the District’s website so they may come back for the discussion. 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 Thompson, seconded by Director Croucher and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve the following consent calendar items: a) AWARD A CONSTRUCTION CONTRACT TO FRANK AND SON PAVING, INC. FOR THE OWD ADMINISTRATION AND OPERATIONS PARKING LOT IMPROVEMENTS, PH. II – PAVEMENT RESTORATION PROJECT IN AN AMOUNT NOT-TO-EXCEED $165,046.00 b) APPROVE CHANGE ORDER NO. 1 TO THE EXISTING CONTRACT WITH SIMPSON SANDBLASTING AND SPECIAL COATINGS, INC. IN THE AMOUNT OF $229,152.00 FOR THE 980-2 RESERVOIR INTERIOR/EXTERIOR COATINGS AND UPGRADES PROJECT; AND INCREASE THE CIP BUDGET FOR THE P2546 (980-2 RESERVOIR) BY $240,000.00 (INCREASE FROM $1,450,000.00 TO $1,690,000.00) c) AWARD TWO (2) PROFESSIONAL AS-NEEDED ASSET MANAGEMENT SERVICES CONTRACTS TO HAZEN & SAWYER, INC. AND HDR, INC., EACH IN AN AMOUNT NOT-TO-EXCEED $175,000; THE TOTAL AMOUNT OF THE TWO (2) CONTRACTS WILL NOT EXCEED $175,000 DURING FISCAL YEARS 2018, 2019, AND 2020 (ENDING JUNE 30, 2020) d) ADOPT RESOLUTION NO. 4344 ALLOWING FOR THE REIMBURSEMENT OF CERTAIN EXPENDITURES FROM THE PROCEEDS OF THE SEWER DEBT OBLIGATIONS OF THE DISTRICT, WHICH IS ANTICIPATED TO BE ISSUED DURING 2018 6 ACTION ITEMS 9. BOARD a) DISCUSSION OF 2018 BOARD MEETING CALENDAR Director Croucher indicated that on May 2, 2018 he will be in Redding, CA and will be unable to attend the District’s board meeting on that day. Director Thompson indicated that he would not be able to attend the July board meeting. There were no changes to the board meeting calendar. INFORMATIONAL ITEM 10. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) UPDATE ON THE CHANGES TO THE AUTOMATED METER READING CHANGE OUT CAPITAL IMPROVEMENT PROGRAM APPROVED BY THE BOARD IN 2017 Customer Service Manager Andrea Carey provided an update on the District’s Automated Meter Reading change out Capital Improvement Program which was approved by the board in 2017. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Ms. Carey’s report. In response to an inquiry from Director Gastelum, Ms. Carey indicated that the Allegro Meters are digital register meters. They will “sleep” until a receiver is in the area to “wake them up” to read their water use data. The 3G meters transmit usage data every 11 seconds even if there is no transponder in the area to pick- up the information. b) PRESENTATION ON THE ANALYSIS OF THE COST BENEFIT OF KEEPING THE RALPH W. CHAPMAN WATER RECYCLING FACILITY TREATMENT PLANT OPEN, COMPARED TO CLOSING THE PLANT AND SENDING ALL SEWER FLOWS TO SAN DIEGO METROPOLITAN WASTEWATER Finance Manager Rita Bell presented the analysis of the cost benefit of keeping the Ralph W. Chapman Water Recycling Facility (RWCWRF) treatment plant open, compared to closing the plant and sending all sewer flows to San Diego Metropolitan Wastewater (Metro). Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Ms. Bell’s report. Director Thompson indicated that the District’s Finance and Administration Committee discussed that the District has conferred with the County of San 7 Diego on possible ways to make sewer services more cost effective and, thus far, there has not been a fruitful outcome to our discussions. The District will continue to discuss this issue with the County periodically. c) UPDATE ON SENATE BILL 229, ACCESSORY DWELLING UNITS NEW LEGISLATION, EFFECTIVE JANUARY 1, 2018 Engineering Manager Dan Martin provided an update to the board on new legislation under SB 229, Accessory Dwelling Units (ADU), which became effective January 1, 2018. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Mr. Martin’s report. Director Thompson noted that SB 229 is a small piece of legislators’ response to the shortage of rental housing units which is impacting our economy and making us less competitive nationally. The legislature is trying to restrict agency fees related to ADU’s and the District needs to assure that its ratepayers are not affected to the extent it has the ability to. Director Thompson asked staff to review the District’s ability to possibly provide a payment plan for capacity fees the District charges for the addition of an ADU on an existing customer’s property. Staff indicated that they would review the District’s ability to do so. Director Croucher indicated that when a homeowner remodels a home that was built before fire sprinklers were required, the remodel triggers the requirement that the homeowner update and install fire sprinklers. SB 229 allows ADU’s to be built without fire sprinklers and cautioned the District in assisting homeowners with a payment plan at the cost of public safety. He indicated if the homeowner can afford to finance their ADU that is fine, but does the District really want to be the financier of customers ADUs. Mr. Bob Bakayou of El Cajon requested to speak on this item. He indicated that he had also spoken on this issue at the District’s special board meeting held on December 11, 2017. He stated that he is currently building an ADU on his property which is in the planning stages. He indicated that he is replacing 2500 square feet of landscaping on his property with an ADU and he did not feel that he will be placing additional burden on the system, but rather would likely be decreasing the amount of water he is using. He stated that the intent of the laws is to make it easier to build ADU’s and he feels the District’s fees are excessive and is not proportionate to the change in water use his ADU would put on the system. In response to an inquiry from Director Croucher, Engineering Manager Dan Martin indicated that the property’s existing home is 2,871 square feet, the ADU will be 1,198 square feet and the fixture count on the property will increase from 36 to 53. The ADU being proposed would not only require a meter size upgrade, but the property owner will also be adding sewer services to his property. Mr. Martin stated that this particular ADU is not ministerially approved and is treated similar to a developer requesting a meter for a 53 fixture unit which would require a 1” meter. He indicated that Senate Bill 229 does not impact the District’s 8 business practice and that Mr. Bakayou’s existing meter was not configured to include landscape use. In response to an inquiry from Director Gastelum, it was indicated that the District can check the difference in water use before and after the ADU is built. d) PIPELINE NEWSLETTER OUTLOOK (OTERO) The board noted receipt of the report and would forego a presentation as the item was reviewed in detail in committee. e) SOCIAL MEDIA AND WEB ANALYTICS UPDATE (OTERO) The board noted receipt of the report and would forego a presentation as the item was reviewed in detail in committee. REPORTS 11. GENERAL MANAGER’S REPORT General Manager Watton presented information from his report which included an update on the Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Presentation Award received by the Otay Water District from the Government Finance Officers Association, the Campo Road Sewer Replacement Project, meter sales, water conservation and sales. The board had comments and questions concerning a few items in the General Manager’s report and staff responded to the questions and comments. 12. CWA REPORT Director Croucher reported that CWA has moved their regular board meeting in April to Thursday, April 12, 2018 and a special board meeting has been scheduled on Thursday, April 26, 2018. He also indicated that CWA has met with Mr. Randy Record of MWD as the agencies continue to work on enhancing the relationship between the two agencies and they plan to meet again on April 23. President Smith added that CWA’s CalPERS unfunded liability is 68% funded and Otay WD’s is 59% funded. He stated that the agencies are collaborating on possible solutions to increase the funding of the liability up to 75% over a period of 15 to 20 years. He noted that the “Water Fix” has been in the news and MWD has indicated that they plan on supporting the one tunnel option. The recommendation will be presented to MWD’s board this month and if approved, the cost for the tunnel will be funded by MWD’s member agencies. He lastly shared that CWA is developing an Asset Management Plan similar to Otay WD’s. 13. DIRECTORS' REPORTS/REQUESTS 9 Director Thompson reported that he will be participating in the San Diego Regional Chamber’s 2018 Binational Delegation trip to Mexico City. He stated that he will be paying particular attention to infrastructure discussions and monitoring the dialogue regarding desalination versus water reuse. Director Croucher inquired if there was any progress on the video for customers regarding how water rates are developed/billed. Communications Officer Tenille Otero indicated that it is on the District’s list of videos to develop and staff is currently working on a video concerning the impact of grease on the sewer system. General Manager Watton indicated in response to another inquiry from Director Croucher that the water fill stations are on order and he is not certain if staff has ordered water bottles for Otay employees for the water fill stations as of yet. The new water fill stations will replace the current water fountains throughout the administration and operations buildings. Director Gastelum reported that he attended the Annual WaterNow Alliance Summit held at the University of Utah. He indicated that he heard an interesting presentation on how Moulton Niguel Water District has been working with Netflix, YouTube, etc. to utilize their predictive modeling tools and analytics to improve the forecasting of water use and manage peak usage to avoid the cost of building unneeded infrastructure. He stated that the presentation was very interesting and is an example of how the private and public sectors can work together to improve services. Director Robak indicated that he felt that social media is a great tool in disseminating information to the public. 14. PRESIDENT’S REPORT President Smith indicated that he had an opportunity to attend the WateReuse Annual Conference. He stated that the City of San Diego and Padre Dam MWD are looking at reservoir augmentation and the regulations for reservoir augmentation have been revised. The City will be the first to utilize the new regulations in California. He stated the City also reviewed in 2016 whether direct potable reuse was feasible and they determined that it is and the regulatory agencies must determine regulations for direct potable reuse in order to make it feasible by December 31, 2023. He indicated that, thus, direct potable reuse may become a reality in San Diego in approximately five (5) years. He stated that it was noted at the conference, that direct potable reuse is already being done by northern California agencies. Following the President’s Report, General Manager Watton presented a video on the Rosarito Desalination Project Groundbreaking Ceremony. 15. CLOSED SESSION The board recessed to closed session at 6:05 p.m. to discuss the following matter: 10 a) CONFERENCE WITH REAL PROPERTY NEGOTIATORS [GOVERNMENT CODE §54956.8] PROPERTY: SALT CREEK GOLF COURSE 525 HUNTE PARKWAY CHULA VISTA, CA 91914 AGENCY NEGOTIATOR: MARK WATTON, GENERAL MANAGER NEGOTIATING PARTIES: BILL McWETHY, PACIFIC HOSPITALITY GROUP UNDER NEGOTIATIONS: INSTRUCT NEGOTIATOR CONCERNING THE LEASE AND DISPOSITION OF THE PROPERTY The board reconvened from closed session at 6:59 p.m. General Counsel Daniel Shinoff indicated that the board met in closed session and took no reportable actions. 16. ADJOURNMENT With no further business to come before the Board, President Smith adjourned the meeting at 6:59 p.m. ___________________________________ President ATTEST: District Secretary 11 President’s Report Tim Smith April 4, 2018 Board Meeting # Date Meeting Purpose 1 1-Mar Metro Commission Monthly Commission Meeting 2 2-Mar Board Agenda Briefing Met with General Manager Watton and Attorney Blumenfeld to review items that will be presented at the March Board Meeting 3 6-Mar OWD Special Board Meeting Tour of the 870 Pump Station 4 7-Mar OWD Regular Board Meeting Monthly board meeting 5 9-Mar Otay Mesa Chamber of Commerce Presented on SB 623 6 14-Mar Chula Vista Chamber of Commerce Presented on SB 623 7 16-Mar Committee Agenda Briefing Met with General Manager Watton to review items that will be presented at the March committee meetings 8 19-Mar OWD PRL&L Committee Reviewed items that will be presented at the April board meeting. 9 20-Mar OWD EO&WR Committee Reviewed items that will be presented at the April board meeting. 10 21-Mar East County Caucus Discussed Otay's key issues with East County water agencies and CWA 11 29-Mar Board Agenda Briefing Met with General Manager Watton and General Counsel Shinoff to review items that will be presented at the April Board Meeting STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: July 11, 2018 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: P2561-001103 DIV. NO. 2 APPROVED BY: Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Approval to Increase the CIP P2561 Budget in an Amount of $150,000 and Award of a Construction Contract to Layfield USA Corporation for the Reservoir 711-3 Floating Cover and Liner Replacement Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board): 1. Increase the budget for CIP P2561 by $150,000 (increase the CIP budget for P2561 from $2,150,000 to $2,300,000); 2. Increase the overall FY 2019 CIP budget by $150,000 (increase the overall FY 2019 CIP budget from $24,239,000 to $24,389,000) 3. Award a construction contract to Layfield USA Corporation (Layfield); and 4. Authorize the General Manager to execute an agreement with Layfield for the Reservoir 711-3 Floating Cover and Liner Replacement Project in an amount not-to-exceed $1,997,000.40 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization to increase the CIP P2561 budget in the amount of $150,000 from $2,150,000 to $2,300,000 and to obtain Board authorization for the General Manager to enter into a construction contract with Layfield for the Reservoir 711-3 Floating Cover and 2 Liner Replacement Project (Project) in an amount not-to-exceed $1,997,000.40. ANALYSIS: The 16 million gallon 711-3 Reservoir was originally constructed with its existing reinforced polypropylene (RPP) floating cover and liner in 2002. In the last few years, the floating cover has been repeatedly repaired to maintain the integrity of the cover material. Dive videos taken recently show leaks and sunlight penetrating the floating cover in many places. The existing cover material typically has a life expectancy of 20 years. It is no longer cost effective to continue to repair the existing cover that has reached the end of its life expectancy. The District has typically replaced polypropylene covers on other reservoirs at a frequency of approximately 15 years, which is commensurate with the age of the existing 711-3 Reservoir existing cover and liner material. Staff researched the warranty provided by Gundle/SLT Environmental (GSE Environmental), who acquired the manufacturer of the RPP material, Serrot International, Inc., on or about February 4, 2002. GSE Environmental and its affiliates filed for Chapter 11 bankruptcy in 2014. The warranty provides that GSE Environmental will replace material only on a prorated basis, if the material fails before the 20 year warranty. The warranty doesn’t include freight charges or the cost of the labor to make the repairs. Staff calculated and determined that this would be worth around $40,000 worth of material to make repairs. Staff attempted to contact GSE Environmental, but have been unsuccessful. Staff checked with District’s legal counsel and are still evaluating options. District staff performed a life cycle cost analysis for the replacement of the liner and cover with various combinations of geomembrane materials and concluded that the longer lasting reinforced chlorosulfonated polyethylene (CSPE) was the best alternative. The analysis considered replacement frequencies of materials with dissimilar warranties. The CSPE geomembrane will have a 30 year warranty. The warranty will not be prorated for the first 15 years, and then prorated for years 16 through 30. Staff contacted the sole CSPE manufacturer in the United States (Burke Environmental Products) and the two installation contractors that are certified to install the CSPE material supplied by Burke Environmental Products prior to the bid process to encourage them to submit a bid for the Project. Floating cover installation work is very specialized. 3 On May 1, 2018, the Project was formally advertised for bid using BidSync, an online bid solicitation website. The Project was also advertised in the Daily Transcript and the District’s website. BidSync provided electronic distribution of the Bid Documents, including specifications, plans, and addendums. A Pre-Bid Meeting was held on May 9, 2018, which was attended by both Layfield and Raven Industries, Inc. 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. Staff prepared the contract documents in-house. Bids were publicly opened on May 31, 2018, and the bid analysis was completed with the following results: CONTRACTOR TOTAL BID AMOUNT 1 Layfield (Spring Valley, CA) $1,997,000.40 2 Raven Industries, Inc. (Sioux Falls, SD) $2,791,600.00 The Engineer’s Estimate was $1,750,000 when the Project was initially advertised; however, District staff added scope via addendum including a new under-liner geotextile and minor subgrade preparation estimated at $75,000. A new under-liner geotextile and minor subgrade preparation was added during the bid phase based on recommendations by Layfield, Raven, and the District’s 870-2 Pump Station/Roll Reservoir construction management/inspection consultant (Michael Baker). The under-liner geotextile was successfully salvaged on two previous District floating cover/liner replacement projects (Patzig and Pond 4). The under-liner geotextile was replaced at the Roll Reservoir due to the substantial underground work beneath and through the earthen embankment associated with the 870-2 Pump Station project. Replacing the geotextile at the Roll Reservoir was proven beneficial to inspect the subgrade and provide a sound foundation for the long-lasting CSPE liner material. A review of the bids was performed by District staff for conformance with the contract requirements and determined that Layfield was the lowest responsive and responsible bidder. Layfield 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 May 31, 2020. An internet background search of the company was performed and revealed no outstanding issues. The references indicated that Layfield is a well-established and well recognized company, as well as a recognized leader for development of the “mechanically tensioned” style cover that is currently in use at the 711-3 Reservoir. Layfield acquired the business assets of CW Neal Corporation (CW Neal) in April 2004. CW Neal installed the existing 4 711-3 Reservoir floating cover in 2002. Layfield also installed the District’s three (3) most recent floating cover/liner projects, including 624-1 Patzig (2013), 927-1R Pond 4 (2014), and 570-1 Roll (2018). Staff verified that the bid bond provided by Layfield is valid. Staff will also verify that Layfield’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 P2651, as approved in the FY 2019 budget, is $2,150,000. Total expenditures, plus outstanding commitments and forecast including this contract, are $2,300,000. See Attachment B for budget detail. Based on a review of the financial budget, the Project Manager anticipates that with a budget increase of $150,000, the Project will be completed within the new budget amount of $2,300,000 and the new overall FY 2019 CIP budget of $24,389,000. The Finance Department has determined that, under the current rate model, 100% of the funding will be available from the Replacement Fund. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District, in a professional, effective and efficient manner” and the General Manager’s Vision, "A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service." LEGAL IMPACT: None. DM/RP:mlc P:\WORKING\CIP P2561 711-3 Reservoir Cover-Liner Replacement\Staff Reports\BD 07-11-18 Staff Report 711- 3 Res Floating Cover-Liner Award.docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Location Map ATTACHMENT A SUBJECT/PROJECT: P2561-001103 Approval to Increase the CIP P2561 Budget in an Amount of $150,000 and Award of a Construction Contract to Layfield USA Corporation for the Reservoir 711-3 Floating Cover and Liner Replacement Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on June 25, 2018, and the following comments were made:  Staff reviewed the staff report with the Committee that included a recommendation to the Board, information on the project’s analysis, and selection process. Results of the selection process is provided on page 3 of the staff report.  It was noted in the staff report that staff researched the warranty for the existing material and estimates the value of the remaining warranty material to be worth around $40,000. Staff has attempted to contact GSE Environmental, the current warranty provider, but has been unsuccessful. Staff has reviewed this with the District’s legal counsel and options to pursue the warranty are being evaluated.  The Committee inquired about staff’s attempts to reach out to GSE Environmental regarding the project’s warranty. Staff stated that they tried contacting the company by phone, emails and through the company’s website. The next step is to have legal counsel reach out to the company regarding this matter.  In response to a question from the Committee, staff stated that they have adjusted the cost estimates for CIP projects to anticipate the aggressive bidding climates.  The Committee discussed the feasibility of converting the reservoir into a raw water reservoir and implementing a treatment facility in lieu of constructing the covered reservoir to store treated water. Staff stated that it would not be feasible due to site constraints and ongoing operational costs that would not be cost effective. Following the discussion, the Committee supported staffs’ recommendation and presentation of this item to the full board on the consent calendar. ATTACHMENT B – Budget Detail SUBJECT/PROJECT: P2561-001103 Approval to Increase the CIP P2561 Budget in an Amount of $150,000 and Award of a Construction Contract to Layfield USA Corporation for the Reservoir 711-3 Floating Cover and Liner Replacement Project 5/31/2018 Budget 2,150,000 Planning & Design Consultant Contracts 4,377 4,377 - 4,377 LAYFIELD USA CORPORATION Regulatory Agency Fees 50 50 - 50 PETTY CASH CUSTODIAN Standard Salaries 42,346 40,346 2,000 42,346 Total Planning 46,774 44,774 2,000 46,774 Construction 1,997,000 - 1,997,000 1,997,000 Layfield USA Corporation 100,000 - 100,000 100,000 Standard Salaries 50,000 - 50,000 50,000 CM 106,226 - 106,226 106,226 Contingency @ 5% of const contract Total Construction 2,253,226 - 2,253,226 2,253,226 Grand Total 2,300,000 44,774 2,255,226 2,300,000 Vendor/Comments Otay Water District p2561-Res - 711-3 Reservoir Cover/Liner Replac Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost OTAY WATER DISTRICT711-3 RESERVOIR COVER REPLACEMENTLOCATION MAP EXHIBIT A CIP P2561F P:\WORKING\CIP P2561 711-3 Reservoir Cover-Liner Replacement\Graphics\Exhibits-Figures\Exhibit A (ALTERNATE) - Staff Report.mxd !\ VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 F 0 490245 Feet 711-3 RESERVOIRPROJECT SITE HU NTE PKWY PROCTOR VALLEY RD O L D TRAIL R D D U N C A N RANCH RD STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: July 11, 2018 SUBMITTED BY: Jeff Marchioro Senior Civil Engineer Bob Kennedy Engineering Manager PROJECT: P2453- 005102 P2453- 006102 DIV. NO. 2 APPROVED BY: Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Approve Caltrans Utility Agreement No. 33718 for SR-11 Utility Relocations on Enrico Fermi Drive and Alta Road GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) authorize the General Manager to execute Caltrans Utility Agreement No. 33718 for SR-11 Utility Relocations on Enrico Fermi Drive and Alta Road (see attached Exhibit A for Project location, and Exhibit B for Utility Agreement). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute Caltrans Utility Agreement No. 33718 for relocation of District facilities in conflict with SR-11 at Enrico Fermi Drive and Alta Road. 2 ANALYSIS: The District and Caltrans completed the first two rounds of relocations (Caltrans Utility Agreement Numbers 33592 and 33622) in FY 2016, including relocation of 10-inch, 12-inch, and 18-inch potable water mains in the vicinity of Sanyo Avenue and a single 6- inch blow off at the intersection of SR 125 and Otay Mesa Road. In January 2017, District and Caltrans staff began planning the relocations of the District’s 12-inch PVC distribution main in Enrico Fermi Drive and 24-inch and 16-inch ACP transmission mains in Alta Road. The District’s facilities will be constructed in new bridges that will be built over the freeway extension to the border. Responding to a request from Caltrans, staff submitted draft claim letters dated April 24, 2018 related to the utility conflicts. The District has prior and superior rights at each crossing. The District received a Notice to Owner directing the District to relocate conflicting utilities on May 30, 2018. The District’s As-Needed Engineering Design Consultant (NV5) designed the bid documents in Caltrans’ format. The estimated construction cost for the relocated pipelines and appurtenances is $2,806,689. The District’s relocations will be constructed through a construction contract administered by Caltrans as an integral part of Caltrans’ freeway construction project. Caltrans will pay the contractor directly. Consequently, the attached utility agreement does not include construction costs. The total planning, design, inspection, and closeout costs to be incurred by the District are estimated at $848,890. The calculated depreciation cost for all existing pipelines and appurtenances is $46,723. The total cost that Caltrans will reimburse the District at completion of the construction work is estimated at $802,167. Consistent with the conditions of all other utility agreements between the District and Caltrans, actual costs may not exceed 125 percent of the estimated cost in the agreement without a revised amendment being executed. Caltrans anticipates that the above-described relocations will be advertised for bid in the fall of 2018. Caltrans intends to start construction in the fall of 2019. 3 An additional Utility Agreement(s) will be presented to the Board as SR-11 progresses to a future Port of Entry facility and the U.S. border with Mexico. A future bridge crossing is anticipated at Siempre Viva Road. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP P2453, as approved in the FY 2019 budget, is $4,000,000. Total expenditures, plus outstanding commitments and forecast, including this agreement, are $2,442,471. See Attachment B for budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budget for CIP P2453 is sufficient to support the Project. The Finance Department has determined that, under the current rate model, 100% of the funding will be available from the Replacement Fund. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District, in a professional, effective and efficient manner” and the General Manager’s Vision, "A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service." LEGAL IMPACT: None. JM/BK:jf P:\WORKING\CIP P2453 SR-11 Utility Relocations\Staff Reports\BD 2018-07-11 Utility Agreement 33718\BD 07-11-18 Staff Report SR-11 Utility Agreement No 33718 with Caltrans.docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Location Map Exhibit B – Caltrans signed Utility Agreement ATTACHMENT A SUBJECT/PROJECT: P2453-005102 P2453-006102 Approve Caltrans Utility Agreement No. 33718 for SR-11 Utility Relocations on Enrico Fermi Drive and Alta Road COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on June 25, 2018, and the following comments were made:  Staff reviewed the staff report with the Committee and recommended that the Board authorize the General Manager to execute Caltrans Utility Agreement No. 33718 for SR-11 Utility Relocations on Enrico Fermi Drive and Alta Road.  As noted in the staff report, Caltrans will reimburse the District for all costs incurred by the District. Currently, non-construction contract costs and less depreciation are estimated at $802,167. Staff indicated that the agreement allows for adjustments in an amount up to 125% without an amendment. The agreement also allows for amendments if the actual cost exceeds 125%.  The Committee inquired if the project area has additional needs that require the District to collaborate with any other utility agencies besides Caltrans. Staff stated that none are known at this time.  In response to a question from the Committee, staff indicated that previous agreements and the current agreement allows for adjustments that exceeds 25% of the agreement amount without an amendment. Following the discussion, the Committee supported staffs’ recommendation and presentation of this item to the full board on the consent calendar. 5 ATTACHMENT B – Budget Detail SUBJECT/PROJECT: P2453-005102 P2453-006102 Approve Caltrans Utility Agreement No. 33718 for SR-11 Utility Relocations on Enrico Fermi Drive and Alta Road 5/22/2018 Budget 4,000,000 Planning/Design/Construction, Utility Agreement Number 33592 (Vicinity of Sanyo Avenue ) Standard Salaries 345,804 345,804 - 345,804 Consultant Contracts 970 970 - 970 ALTA LAND SURVEYING INC 4,901 4,901 - 4,901 NARASIMHAN CONSULTING SERVICES 2,561 2,561 - 2,561 CPM PARTNERS INC 2,763 2,763 - 2,763 V & A CONSULTING ENGINEERS 61,864 61,864 - 61,864 ATKINS 35,400 35,400 - 35,400 ALYSON CONSULTING 520 520 - 520 RFYEAGER ENGINEERING LLC 5,018 5,018 - 5,018 CLARKSON LAB & SUPPLY INC Professional Legal Fees 121 121 - 121 STUTZ ARTIANO SHINOFF Service Contracts 2,985 2,985 - 2,985 MAYER REPROGRAPHICS INC 84 84 - 84 SAN DIEGO DAILY TRANSCRIPT - - - - UNDERGROUND SOLUTIONS INC 1,382 1,382 - 1,382 US BANK 1,382 1,382 - 1,382 US BANK CORPORATE PAYMENT Construction Contract 48,843 48,843 - 48,843 REGENTS BANK 928,017 928,017 - 928,017 COFFMAN SPECIALTIES INC Total UA 33592 1,442,615 1,442,615 - 1,442,615 Planning/Design/Construction, Utility Agreement Number 33622 (Blow Off) Standard Salaries 53,988 53,988 - 53,988 Consultant Contracts 13,480 13,480 - 13,480 DARNELL & ASSOCIATES INC 3,786 3,786 - 3,786 ICF JONES & STOKES INC 2,875 2,875 - 2,875 ATKINS 6,000 6,000 - 6,000 ALYSON CONSULTING Parking and Tolls 12 12 - 12 PETTY CASH CUSTODIAN Professional Legal Fees 180 180 - 180 STUTZ ARTIANO SHINOFF Service Contracts 2,310 2,310 - 2,310 MAYER REPROGRAPHICS INC 96 96 - 96 SAN DIEGO DAILY TRANSCRIPT Construction Contract 66,253 66,253 - 66,253 TC CONSTRUCTION CO INC 1,986 1,986 - 1,986 COUNTY OF SAN DIEGO Total UA 33622 150,966 150,966 - 150,966 Planning/Design/Construction, Utility Agreement Number 33718 (Enrico Fermi Drive & Alta Road) Standard Salaries 266,989 84,989 182,000 266,989 Consultant Contracts 227,115 136,585 90,530 227,115 NV5 INC 380 380 - 380 WATER SYSTEMS CONSULTING INC 600 600 - 600 MICHAEL D KEAGY REAL ESTATE 200,000 200,000 200,000 Inspection 100,000 100,000 100,000 Construction Management 5,000 5,000 5,000 As-Needed Corrosion Engineer 48,806 48,806 48,806 Contingency @ 12% of const phase Total UA 33718 (Enrico Fermi)848,890 222,554 626,336 848,890 Grand Total 2,442,471 1,816,134 626,336 2,442,471 Reinbursement Agreements UA 33592 (1,400,609) CALTRANS FINAL PAYMENT UA 33622 (143,966) CALTRANS FINAL PAYMENT UA 33718 (802,167) CALTRANS UTILITY AGREEMENT Grand Total (2,346,742) Vendor/Comments Projected Final Cost Vendor/Comments Otay Water District p2453-SR-11 Utility Relocations Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost OTAY WATER DISTRICTSR-11 UTILITY RELOCATIONSLOCATION MAP EXHIBIT A P2453P:\WORKING\CIP P2453 SR-11 Utility Relocations\Graphics\Exhibits-Figures\REVISED P2453 Exhibit A - Staff Report.mxd Otay CrossingsCommerce Park?ÜFUTURE FUTURE ?Ü FUTURE PORTOF ENTRY MEXICO U.S.A. Alta Rd Otay Mesa Rd Enrico Fermi Dr CA-11 E A v en i da In te r n a c io n al O t a y Airway Rd Marconi Dr Donovan State Prison Rd Paseo de la Fuente Calzada de la Fuente Siempre Viva Rd Via de la Amistad Access Rd Kuebler Ranch Rd VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë !\ F 0 1,400700 Feet F 24 IN WATER PIPELINE 24 IN WATER PIPELINE 16 IN WATER PIPELINE 12 IN WATER PIPELINE POTABLE WATER PIPELINE Legend UA 33718 STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION UTILITY AGREEMENT RW 13-5 (REV 12/201 6) DISTRICT I COUNTY I ROUTE 11 SD 11 FEDERAL PARTICIPATION P011 (006) FEDERAL PARTICIPATION On the Project lSI Yes 0No POST MILE I PROJECT ID I 0.0-2.80 1100020520 OWNER'S FILE NUMBER P2453-005102 & P2453-006102 On the Utilities lSI Yes 0No Owner Payee Data No. VC000002091 0 or Form STD 204 is attached D UTILITY AGREEMENT NO. 33718 DATE __ .;...__ __ Page I of 4 EA 056331 The State of California, acting by and through the Department of Transportation, hereinafter called "STATE", proposes to construct SR-11 from Enrico Fermi Dr. to the proposed port of entry at the Mexico border. NAME: Otay Water District ADDRESS: 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 hereinafter called "OWNER," owns and maintains a 12-inch pipeline within Enrico Fermi Drive and a 16-inch and 24-inch pipelines within Alta Road within the limits of STATE'S project which requires relocation to accommodate STATE's project. It is hereby mutually agreed that: I. WORK TO BE DONE In accordance with Notice to Owner No. 33718 dated May 30, 2018, STATE shall relocate OWNER's water facilities as shown on OWNER's plans prepared by NV5 with final revision date of May 23, 2018, which plans are included in STATE's Contract Plans for the improvement of State Route 11 , EA 056331 which, by this reference, are made a part hereof. Deviations from the OWNER's plan described above initiated by either the STATE or the OWNER, shall be agreed upon by both parties hereto under a Revised Notice to Owner. Such Revised Notices to Owner, approved by the STATE and agreed to/acknowledged by the OWNER, will constitute an approved revision of the OWNER's plan described above and are hereby made a part hereof. No work under said deviation shall commence prior to written execution by the OWNER of the Revised Notice to Owner. Changes in the scope of the work will require an amendment to this Agreement in addition to the revised Notice to Owner. OWNER shall have the right to inspect the work by STATE's contractor during construction. Upon completion of the work by STATE, OWNER agrees to accept ownership and maintenance of the constructed facilities and relinquishes to STATE ownership of the replaced facilities, except in the case of liability determined pursuant to Water Code 7034 or 7035. II. LIABILITY FOR WORK Existing facilities are located in their present position pursuant to rights superior to those of the STATE and will be relocated at STATE expense. Ill. PERFORMANCE OF WORK OWNER shall have access to all phases of the relocation work to be performed by STATE, as described in Section I above, for the purpose of inspection to ensure that the work is in accordance with the specifications contained in the Highway Construction Contract; however, all questions regarding the work being performed will be directed to STATE's Resident Engineer for their evaluation and final disposition. Engineering services for preparation of plans, specifications, and estimates are to be furnished by the consulting engineering firm of NV5 on a fee basis previously approved by STATE. Cost principles for determining the reasonableness and allowability of consultant costs shall be determined in accordance with 48 CFR, Chapter 1, Part 31 ; 23 CFR, Chapter 1, Part 645; and OMB Circular A-87, as applicable. ADA Notice: For individuals with sensory disabilities, this document is available in alternate formats. For alternate formal inform ation, contact the Forms Management Unit at (9 16) 445-1 233, TTY 711 , or write to Records and Forms Management, 11 20 N Street, MS-89, Sacramento, CA 958 14. UTILITY AGREEMENT (cont.) RW 13-5 (REV 12/2016) Page 2 of4 I UTILITY AG REEMENT NO. 33718 Use of out-of-state personnel (or personnel requiring lodging and meal per diem expenses) will not be allowed without prior written authorization by State's representative. Requests for such authorization must be contained in OWNER's estimate of actual and necessary relocation costs. Accounting Form FA 1301 is to be completed and submitted for all non-State personnel travel per diem. OWNER shall include an explanation why local employee or contract labor is not considered adequate for the relocation work proposed . Per Diem expenses shall not exceed the per diem expense amounts allowed under the State's Department of Personnel Administration travel expense guidelines. IV. PAYMENT FOR WORK The STATE shall pay its share of the actual and necessary cost of the herein described work within 45 days after receipt of OWNER's itemized bill, signed by a responsible official of OWNER's organization and prepared on OWNER's letterhead, compiled on the basis of the actual and necessary cost and expense. The OWNER shall maintain records of the actual costs incurred and charged or allocated to the project in accordance with recognized accounting principles. The OWNER's billing cost to STATE is $802 ,167.00. It is understood and agreed that the STATE will not pay for any betterment or increase in capacity of OWNER's facilities in the new location and that OWNER shall give credit to the STATE for the accrued depreciation of the replaced facilities and for the salvage value of any material or parts salvaged and retained or sold by OWNER. Not more frequently than once a month, but at least quarterly, OWNER will prepare and submit progress bills for costs incurred not to exceed OWNER's recorded costs as of the billing date less estimated credits applicable to completed work. Payment of progress bills not to exceed the amount of this Agreement may be made under the terms of this Agreement. Payment of progress bills which exceed the amount of this Agreement may be made after receipt and approval by STATE of documentation supporting the cost increase and after an Amendment to this Agreement has been executed by the parties to this Agreement. The OWNER shall submit a final bill to the STATE within 360 days after the completion of the work described in Section I above. If the STATE has not received a final bill within 360 days after notification of completion of OWNER's work described in Section I of this Agreement, and STATE has delivered to OWNER fully executed Director's Deeds, Consents to Common Use or Joint Use Agreements, if required for OWNER's facilities, STATE will provide written notification to OWNER of its intent to close its file within 30 days and OWNER hereby acknowledges, to the extent allowed by law, that all remaining costs will be deemed to have been abandoned. If the STATE processes a final bill for payment more than 360 days after notification of completion of OWNER's work, payment of the late bill may be subject to allocation and/or approval by the California Transportation Commission. The final billing shall be in the form of an itemized statement of the total costs charged to the project, less the credits provided for in this Agreement, and less any amounts covered by progress billings. However, the STATE shall not pay final bills which exceed the estimated cost of this Agreement without documentation of the reason for the increase of said cost from the OWNER and approval of documentation by STATE. Except, if the final bill exceeds the OWNER's estimated costs solely as the result of a Revised Notice to Owner as provided for in Section I, a copy of said Revised Notice to Owner shall suffice as documentation . In either case, payment of the amount over the estimated cost of this Agreement may be subject to allocation and/or approval by the California Transportation Commission. In any event if the final bill exceeds 125% of the estimated cost of this Agreement, an Amended Agreement shall be executed by the parties to this Agreement prior to the payment of the OWNER'S final bill. Any and all increases in costs that are the direct result of deviations from the work described in Section I of this Agreement shall have the prior concurrence of STATE. Detailed records from which the billing is compiled shall be retained by the OWNER for a period of three years from the date of the final payment and will be available for aud it by State and/or Federal auditors. In performing work under this agreement, Owner agrees to comply with the contract cost principles and procedures as set forth in 48 CFR, Chapter 1, Part 31 , et seq., 23 CFR , Chapter 1, Part 645 and 2CFR, Part 200, et al. If a subsequent State and/or Federal audit determines payments to be unallowable, OWNER agrees to reimburse STATE upon receipt of STATE billing. If OWNER is subject to repayment due to failure by State/Local Public Agency (LPA) to comply with applicable UTILITY AGREEMENT (cont.) RW 13-5 (REV 12/2016) Page 3 of 4 I UTILITY AGREEMENT NO. 33 71 8 laws, regulations, and ordinances, then STATE/LPA will ensure that OWNER is compensated for actual cost in performing work under this agreement. V. GENERAL CONDITIONS All costs accrued by OWNER as a result of STATE's request of February 10, 2014 to review, study and/or prepare relocation plans and estimates for the project associated with this Agreement may be billed pursuant to the terms and conditions of this Agreement. If STATE's project which precipitated this Agreement is canceled or modified so as to eliminate the necessity of work by OWNER, STATE will notify OWNER in writing and STATE reserves the right to terminate this Agreement by Amendment. The Amendment shall provide mutually acceptable terms and conditions for terminating the Agreement. All obligations of STATE under the terms of this Agreement are subject to the passage of the annual Budget Act by the State Legislature and the allocation of those funds by the California Transportation Commission. OWNER shall submit a Notice of Completion to the STATE within 30 days of the completion of the work described herein . Where OWNER has prior rights in areas which will be within the highway right of way and where OWNER's facilities will remain on or be relocated on STATE highway right of way, a Joint Use Agreement or Consent to Common Use Agreement shall be executed by the parties. It is understood that said highway is a Federal aid highway and accordingly, 23 CFR, Chapter 1, Part 645 is hereby incorporated into this Agreement. In addition, the provisions of 23 CFR 635.410, Buy America, are also incorporated into this agreement. The Buy America requirements are further specified in Moving Ahead for Progress in the 21st Century (MAP-21 ), section 1518; 23 CFR 635.410 requires that all manufacturing processes have occurred in the United States for steel and iron products (including the application of coatings) installed on a project receiving funding from the FHWA. STATE represents and warrants that this Utility Agreement is not subject to 23 CFR 635.410, the Buy America provisions. UTILITY AGREEMENT (cont.) RW 13-5 (REV 12/2016) Page 4 of 4 I UTILITY AGREEMENT NO. 33718 IN WITNESS WHEREOF, the above parties have executed thi s Agreement the day and year above written. STATE: DEPA By ~~+-----r-~~--r-------­Name Title APPROVAL RECOMMENDED: By S· -sL., Name SYNDX\)T:fER Title Utili ty Coordinator s-A1tf} Date OWN ER: OTAY WATER DISTRI CT By --------------------------Name Title By -------------------------- Name Title Date Date THIS AGREEMENT SHALL NOT BE EXECUTED BY THE STATE OF CALIFORNIA -DEPARTMENT OF TRANSPORTATION UNTIL FUNDS ARE CERTIFIED. DO NOT WRITE BELOW -FOR ACCOUNTING PURPOSES ONLY PLANN ING AND MANAGEMENT TO COMPLETE UN SHADED FIELDS: UTILITY COMPLETES: T DOCUMENT SUF CHG PROJECT SPECIAL OBJ DOLLAR CODE NUMBER FIX DIST UNIT DIST ID PHASE DES IGNAT ION FFY FA CODE AMOUNT UA UA PROJECT ID FUNDING VERIFIED: REV IEW/REQUEST FUNDING: Sign:> Sign> s~~;; ~~ s:--~\) -\ ~ Print> CARMENCITA COMER Date Print> SYN~ SUTTER Date R/W Planning and Management Utility Coordinator THE ESTIM ATED COST TO STATE FOR ITS SHARE OF T HE ABOVE DESCRI BED WORK. IS $3,608,856.00. CERTIFICATION O F FUNDS I hereby certify upon my own personal knowledge that budgeted funds are available for the period and purpose of the expenditure shown here. Planning and Management ITEM CHAP STAT I I Distributio n: 2 origi nals to R/W Accounting I original to Util ity Owner I origi nal to Uti lity File Date FY AMOUNT FUND TYPE PROJECT ID AMOUNT Design Funds $ Construction Funds 11 00020520 $2,806,689.00 RW Fund s 11 00020520 $ 802,167.00 Vendor/Customer: VC000002091 0 Address 10: ADOO I STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: July 11, 2018 SUBMITTED BY: Jeff Marchioro Senior Civil Engineer Bob Kennedy Engineering Manager PROJECT: P2508-001102 DIV. NO. 1-3 & 5 APPROVED BY: Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Reject Construction Bid for the Pipeline Cathodic Protection Improvements – Phase II Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) reject a bid for the construction of the Pipeline Cathodic Protection Improvements – Phase II Project (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to reject a bid for the construction of the Pipeline Cathodic Protection Improvements - Phase II Project (Project) and to rebid the Project. ANALYSIS: The District’s Cathodic Protection (CP) Program (Program) was implemented over a decade ago to provide the long-term benefit of preserving the life expectancy of metallic pipeline and reservoir facilities and reducing the risk of costly failures. A portion of the Program includes annual data collection from roughly 1,000 2 pipeline cathodic test stations. The effort results in a list of recommendations for repairs to existing cathodic protection systems such as anode replacement, cathodic test station repairs, retrofit/ repair of isolation kits, and repair of existing impressed current systems and anode beds. The first phase of Pipeline CP Improvements was completed on the District’s 1980 era RWCWRF 14-inch force main in 2017. A portion of the second phase was bid and awarded with the District’s 870-2 Pump Station project for work in vaults immediately adjacent to the Roll Reservoir. The work associated with this construction bid for the Project is for the replacement and repairs of existing cathodic protection systems on five (5) pipelines in environmentally sensitive areas. This includes the District's existing 2000 era Interconnect Pipelines between the Central Area and Otay Mesa, 1998 era pipeline along Proctor Valley Road, 1987 era pipelines in the Sweetwater River Bridge at Campo Road, 2004 era pipeline crossing Salt Creek, and 1981 era pipeline crossing the Sweetwater River. Each pipe system includes several sites which require three (3) agency permits from Caltrans, City of Chula Vista, and County of San Diego. Overall, the work includes approximately eleven (11) phases of traffic control and approximately twenty (20) sites total. On April 19, 2018, the Project was formally advertised for bid using BidSync, an online bid solicitation website. The Project was also advertised in the Daily Transcript and the District’s website. BidSync provided electronic distribution of the Bid Documents, including specifications, plans, and addendums. A Pre-Bid Meeting was held on April 26, 2018, which was attended by a single corrosion contractor (Corrpro). Three (3) addenda were sent out to all bidders and plan houses to address questions and clarifications to the contract documents during the bidding period. The District’s As- Needed Corrosion Engineer (RFYeager), the District’s As-Needed Traffic Engineer (Rick Engineering), and District staff jointly prepared the bid documents. Specialty corrosion contractors, Corrpro and Farwest, both expressed interest bidding this Project as prime before and during the bid phase. Ultimately, Corrpro decided not to bid the Project as prime a few days before the original bid opening. Consequently, District staff extended the bid date two (2) weeks to allow more time to encourage general contractors to submit bids. Despite District staff’s outreach effort by e-mail to twenty-two (22) general contractors and phone calls with three (3) specialty 3 corrosion contractors/consultants four to five (4-5) weeks before the bid opening, only a single bid was received and publicly opened on May 23, 2018. The table below provides the bid result. CONTRACTOR TOTAL BID AMOUNT 1 M-Rae Engineering, Inc (Descanso, CA) $347,000.00 The Engineer’s Estimate was $350,000. Because only one (1) bid was received, staff contacted several general contractors to inquire as to why they did not bid the Project. A variety of reasons were given and they are shown in the table below: CONTRACTOR REASON 1 Basile Construction Too busy. Can be selective with bids because there are more bids to choose from compared to capacity to bid projects. 2 Bert W. Salas, Inc. Too busy. 3 Charles King Company Too busy. 4 Fordyce Too busy. 5 Piperin Attempted to bid Project, but did not receive corrosion specialty subcontract bid until too late. After the bid opening, three (3) specialty corrosion subcontractors that prepared subcontract bids (Corrpro, Farwest, and California Corrosion Specialists) all suggested that general contractors may have found it difficult to dedicate the resources to this bid given the large number of sites (approximately 20 sites total). Staff intends to combine this Project with another pipeline project, which may draw more interest. Therefore, staff recommends rejecting the bid and rebidding the project with a larger pipeline project to generate more interest. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District, in a professional, effective and efficient manner” 4 and the General Manager’s Vision, "A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service." LEGAL IMPACT: None. JM/BK:mlc P:\WORKING\CIP P2508 Cathodic Protection Replacement Program\Staff Reports\BD 07-11-18 Staff Report Pipeline CP Rehab Phase II reject bids.docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Location Map ATTACHMENT A SUBJECT/PROJECT: P2508-001102 Reject Construction Bid for the Pipeline Cathodic Protection Improvements – Phase II Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on June 25, 2018, and the following comments were made:  Staff reviewed the staff report with the Committee.  It was noted that despite District staffs’ outreach effort by email to twenty two (22) general contractors and phone calls with three (3) specialty corrosion contractors/consultants four to five weeks before the bid opening, only a single bid was received. Page 3 of the staff report provides a variety of reasons as to why other contractors did not submit a bid.  In response to a question from the Committee, staff stated that the Committee can recommended that the District award the contract to the only bidder, M-Rae Engineering, Inc. (M-Rae).  The Committee commented that M-Rae submitted a bid in the amount of $347,000.00, which was lower than the Engineer’s Estimate of $350,000. The Committee is concerned that if the bid is rejected, it may come back at a higher bid than the current Engineer’s Estimate.  Staff indicated that their recommendation to reject all bids is not firm.  The Committee inquired about M-Rae’s background. Staff stated that they were recently awarded a project with the District and no outstanding issues were noted with respect to work performed on the reference project.  The Committee believes that rejecting staff’s recommendation and awarding the contract to M-Rae would be more cost effective to both the District and contractor. Following the discussion, the Committee rejected staff’s recommendation and authorized the General Manager to award a Construction Contract to M-Rae Engineering, Inc. for the Pipeline Cathodic Protection Replacement Program Phase II Project for an amount not-to-exceed $347,000.00 and present this item to the full board on the consent calendar. ATTACHMENT B – Budget Detail SUBJECT/PROJECT: P2508-001102 Reject Construction Bid for the Pipeline Cathodic Protection Improvements – Phase II Project 6/13/2018 Budget 1,250,000 Planning Consultant Contracts 17,733 17,733 - 17,733 HDR ENGINEERING INC 18,261 18,261 - 18,261 ICF JONES & STOKES INC Regulatory Agency Fees 50 50 - 50 PETTY CASH CUSTODIAN 1,500 1,500 - 1,500 STATE WATER RESOURCES Standard Salaries 108,424 108,424 - 108,424 Total Planning 145,968 145,968 - 145,968 Design 001102 Consultant Contracts 14,865 14,865 - 14,865 RFYEAGER ENGINEERING LLC 13,176 13,176 - 13,176 RICK ENGINEERING COMPANY 54,110 54,110 - 54,110 HDR ENGINEERING INC OTHER AGENCY FEES 749 749 - 749 COUNTY OF SAN DIEGO Standard Salaries 231,455 231,455 - 231,455 Total Design 314,355 314,355 - 314,355 Construction Construction Contracts 242,300 242,300 - 242,300 CHARLES KING COMPANY Consultant Contracts 2,146 2,146 - 2,146 AIRX UTILITY SURVEYORS INC 3,586 3,586 - 3,586 RICK ENGINEERING COMPANY Infrastructure Equipment & Materials 607 607 - 607 PACIFIC PIPELINE SUPPLY INC Service Contracts 83 83 - 83 DAILY JOURNAL CORPORATION Standard Salaries 11,777 11,777 - 11,777 Total Construction 260,499 260,499 - 260,499 Grand Total 720,822 720,822 - 720,822 Vendor/Comments Otay Water District p2508-Pipeline Cathodic Protection Repl Prog Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost OTAY WATER DISTRICT PIPELINE CATHODIC PROTECTION IMPROVEMENTSPHASE II - LOCATION MAP EXHIBIT A CIP P2508F P:\WORKING\CIP P2508 Cathodic Protection Replacement Program\Graphics\Exhibits-Figures\B&W Staff Report -Exhibit A.mxd §¨¦805 §¨¦8 §¨¦805 §¨¦8 ÃÅ125 ÃÅ94 ÃÅ125 ÃÅ94 ÃÅ94 LOWEROTAY RESERVOIR INTERCONNECTIONPIPELINES F S A N D I EGOSAN D I EGOCOUNTYCOUNTY O TAY O TAY WA T ERWATERDISTRICTDISTRICT C I T Y OF C I T Y OF S A N D I EGOSAN D I EGO WILLOW GLENPIPELINE CAMPO ROADBRIDGE PIPELINE SALT CREEKPIPELINE PROCTOR VALLEY RDPIPELINE 0 8,9004,450 Feet F VICINITY MAP NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 !\ !\ !\ !\ !\ TextPROJECT SITE PROJECT SITE PROJECT SITEPROJECT SITE ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 F STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: July 11, 2018 SUBMITTED BY: Kevin Cameron Associate Civil Engineer Bob Kennedy Engineering Manager PROJECT: P2610-001103 DIV. NO. 5 APPROVED BY: Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Reject all Construction Bids for the Valve Replacement Program – Phase I Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) reject all bids for the construction of the Valve Replacement Program – Phase I Project (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to reject all bids for the construction of the Valve Replacement Program – Phase I Project (Project). ANALYSIS: The District’s distribution system has over 22,000 valves throughout its service area. Through the Valve Exercise Program, the Operations staff periodically “exercises” or closes then opens valves to ensure they are functional and mechanically sound. Valves that are 2 inoperable or do not function properly are logged and scheduled for repair. In some cases, inoperable valves are in areas that would require putting a large number of businesses and/or customers out of service. Performing these repairs with District forces could tie up the Construction staff for multiple days, and could delay response time should an emergency occur. The Valve Replacement Project was created to have contractors perform the construction that would require extended time to repairs to problem valves. Phase I was a pilot program to test the shutdown coordination and the public outreach during the construction. This would serve as a lessons learned, and the experience would help fine tune future more larger and extensive valve repair projects. Phase I consisted of replacing two (2) hydrant valves on Doubletree Road in Spring Valley. Staff developed contract documents and the Project was advertised for bid on May 2, 2018 on the District’s website and several other publications including the San Diego Daily Transcript. Bidsync also provided electronic distribution of the bid documents, including plans, specifications, and addendums. District staff reached out to eighteen (18) general contractors via e-mail notifying them of the Project. A Pre-Bid Meeting was held on May 15, 2018, which one contractor, RGC General Engineering, attended. One (1) addendum was 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 May 24, 2018, with the following results: CONTRACTOR TOTAL BID AMOUNT 1 Bunker Construction, Inc., dba Bunker Engineering Indio, CA $76,000.00 2 Blue Pacific Engineering & Construction San Dieqo, CA $76,000.00 3 RGC General Engineering, Inc. Chula Vista, CA $78,788.00 4 Piperin Corporation Escondido, CA $97,000.00 The Engineer’s Estimate is $29,000. Two contractors submitted bid amounts that were the same and happened to be the lowest bid. The low bid amount is 2.5 times higher than the engineer’s estimate. Staff believes that the Project was too small to get reasonable interest and pricing, and from outreach done on other projects, contractors are overwhelmed with their current workload being done locally. Staff intends to combine this Project 3 with another larger pipeline replacement project, which may draw more interest and provide the District with better value. Therefore, staff recommends rejecting all bids, and rebidding the Project with a future pipeline replacement project. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. KC/BK:jf P:\WORKING\CIP P2610 Valve Replacement Program\Staff Reports\BD 07-11-2018, Staff Report Valve Replacement Program-Phase I-Reject All Bids.docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Project Location Map ATTACHMENT A SUBJECT/PROJECT: P2610-001103 Reject all Construction Bids for the Valve Replacement Program – Phase I Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on June 25, 2018, and the following comments were made:  Staff provided the staff report to the Committee and recommended that the Board reject all bids for the construction of the Valve Replacement Program – Phase I Project.  As noted in the staff report, staff indicated that the two bids submitted to the District were 2.5 times higher than the Engineers Estimate. Staff believes the Project was too small to get reasonable interest and pricing, and from outreach done on other projects, contractors are overwhelmed with their current workload being done locally.  Staff intends to combine this project with another larger pipeline replacement project, which may draw more interest and provide the District with better value. Following the discussion, the Committee supported staffs’ recommendation and presentation of this item to the full board on the consent calendar. ATTACHMENT B – Budget Detail SUBJECT/PROJECT: P2610-001103 Reject all Construction Bids for the Valve Replacement Program – Phase I Project Date Updated: 6/14/18 Budget 275,000 Planning Standard Salaries 4,596 4,596 - 4,596 Regulatory Agency Fees 50 50 - 50 PETTY CASH CUSTODIAN Total Planning 4,646 4,646 - 4,596 Design Standard Salaries 12,535 12,535 - 12,535 Equipment Charges 5 5 - 5 EQUIPMENT CHARGES Total Design 12,540 12,540 - 12,540 Construction Standard Salaries 872 872 - 872 Service Contracts 86 86 - 86 DAILY JOURNAL CORP Equipment Charges 5 5 - 5 EQUIPMENT CHARGE Total Construction 963 963 - 963 Grand Total 18,149 18,149 - 18,149 Vendor/Comments Otay Water District P2610 - Valve Replacement Program - Phase 1 Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost OTAY WATER DISTRICT PHASE 1EXHIBIT AP:\WORKING\CIP P2610 Valve Replacement Program\Graphics\Exhibits-Figures\(Portrait Layout)Valve Replacement.mxd 0 500250 Feet B U G G Y W H I P D R W H I P P L E LN SINGLETREE LN D O U B L E T R E E VALVE REPLACEMENT PROJECT - VICINITY MAP PROJECT SITE NTS DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë F !\ F J A M A C H A B L V D P2610 TREE JAMACHA BLVD T R A C E R D HYDRANT VALVEREPLACEMENTTWO (2) LOCATIONS ! ! R D STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: July 11, 2018 SUBMITTED BY: Kevin Koeppen, Asst Chief of Finance W.O./G.F. NO: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: Approve the Transfer $30.0 Million of Potable Reserves to CalPERS and the Transfer $1.8 Million of Sewer Reserves to CalPERS. Approve the Sale of Currently Held Investments, as Needed, to Transfer These Funds GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors: 1. Approve the transfer $30.0 million of potable reserves to CalPERS, 2. Approve the transfer $1.8 million of sewer reserves to CalPERS, 3. Approve the sale of currently held investments, as needed, to transfers these funds. COMMITTEE ACTION: See Attachment A. PURPOSE: To obtain Board approval for the transfer $30.0 million of potable reserves to CalPERS and the transfer $1.8 million of sewer reserves to CalPERS to reduce the District’s unfunded pension liability. ANALYSIS: On May 2 and May 21, 2018, Staff presented informational items regarding an option for providing an advance funding to CalPERS, which will reduce the District’s unfunded actuarial liability (UAL) and provide a cashflow benefit to the District. Based on the analysis performed by the District’s Financial Advisor, Suzanne Harrell, presented to the Board on May 21, 2018 the District expects to achieve a cumulative cashflow savings of $16.4 million over 25 years. As of June 30, 2018, the District is projected to have a UAL of $51.3 million, which is charged interest at 7.0%, and is approximately 62% funded. The advance payment will reduce the high interest UAL cost and will result in the savings communicated in the previous paragraph. After the advance payment the UAL will be approximately $19.5 million and approximately 85% funded. The UAL is comprised of several layers related to CalPERS actuarial assumptions differing from actual results and changes in actuarial assumptions. The balance of the UAL carries is charged interest at a rate of 7.0%, which is the District’s highest cost debt. The annual UAL payment charged by CalPERS represents the annual amortization of these tiers and a prepayment will result in the elimination of defined tiers and a reduction in the annual UAL payment. As part of the advance funding the District is able to define which layers of the UAL it would like to pay down. The following table summarizes the UAL tier balance as of June 30, 2016, the application of the $31.8 million advance funding, and the balance remaining after the advance funding. Tiers were selected based on maximizing the savings and avoiding the creation of a stranded asset. The purpose of not backloading the remaining UAL obligation is to provide a safeguard for additional tiers that CalPERS will add in the future. A stranded asset is created when a negative UAL tier, which reduces the UAL, has no offsetting negative tier, which increases the UAL. A negative tier cannot be used to offset the pensions normal cost, so if the negative tier has no offsetting positive tier the asset is stranded until future positive tiers are created. The tiers selected maximize the cashflow benefit, reduce the District interest costs and do not result in a stranded asset. The District will have approximately $15 million of reserves that can be transferred to CalPERS in July. The remaining amounts would need to be funded through the sale or maturity of investments. Due to rising interest rates and currently held investments yielding lower rates than the currently available investments, the sale of the District’s investments prior to maturity would likely result in an investment loss. The District has identified investments to sell based on minimizing this loss. The estimated loss as of June 6, 2018 would be $75,000. By selling these investments and reinvesting the funds with CalPERS, the funds will effectively earn 7.0%. The District will realize a greater interest rate and will realize more earnings than were lost on the sale. FISCAL IMPACT: This action would generate a cashflow savings of approximately $16.4 million over the next 25 years, including an average savings of $1.3 million per year from FY 2020 to FY 2025. STRATEGIC GOAL: The District ensures its continued financial health through long-term financial planning and debt planning. LEGAL IMPACT: None. General Manager Attachments: A) Committee Action ATTACHMENT A SUBJECT/PROJECT: Approve the Transfer $30.0 Million of Potable Reserves to CalPERS and the Transfer $1.8 Million of Sewer Reserves to CalPERS. Approve the Sale of Currently Held Investments, as Needed, to Transfers These Funds COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on June 19, 2018 and the following comments were made:  Staff is requesting that the board approve the transfer of $30 million of potable reserves to CalPERS; approve the transfer of $1.8 million of sewer reserves to CalPERS; and approve the sale of currently held investments, as needed, to transfer these funds.  Staff reviewed information in the staff report.  It was noted that with the advanced funding of CalPERS in the amount of $31.8 million, the District will increase its funding level from 62% to 85% and will realize $16.4 million in savings over 25 years.  The Committee suggested that staff develop a report that tracks the District’s actual savings over the 25 years. Staff indicated that such a report can be developed.  The Committee also requested that the savings realized by this action be a repeated message in public communications. Upon completion of the discussion, the committee supported staffs’ recommendation and presentation to the full board on the consent calendar. STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: July 11, 2018 SUBMITTED BY: Kevin Koeppen, Asst Chief of Finance W.O./G.F. NO: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: Adopt Resolution No. 2018-01 to Amend the Otay Water District Financing Authority By-Laws Authorizing the Otay Water District Financing Authority to Hold Regular Meetings on Each Date That is a Regular Meeting Date of the Board of Directors of the Otay Water District GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Resolution No. 2018-01 to amend the Otay Water District Financing Authority by-laws authorizing the Otay Water District Financing Authority to hold regular meetings on each date that is a regular meeting date of the Board of Directors of the Otay Water District. COMMITTEE ACTION: None. PURPOSE: To present for the Board’s consideration the adoption of Resolution No. 2018-01 to amend the Otay Water District Financing Authority By- Laws authorizing the Otay Water District Financing Authority to hold regular meetings on each date that is a regular meeting date of the Board of Directors of the Otay Water District. ANALYSIS: At the May 2 and May 21, 2018 Board meetings staff presented items proposing to the Board that the District’s water side issue approximately $30 million of debt to fund the District’s eligible CIP projects. Based on feedback from the Board, staff has proceeded with the process to engage the financing team in June, and update documents associated with issuing debt. Based on the current timeline, staff anticipates requesting approval from the Board authorizing the General Manager to issue debt in September or October of 2018. The proposed debt would be issued by the Otay Water District Financing Authority (the Authority) and must be approved at an Authority regular board meeting. The Authority’s current by-laws define January and March as the only months the Authority can hold regular meetings and must be updated to meet the current timeline for issuing debt. The requested changes will provide the ability for the Authority to hold a regular meeting that meets the timeframe of the proposed debt issuance and prevent undo delays in future debt issuances. FISCAL IMPACT: Joe Beachem, Chief Financial Officer There is no fiscal impact associated with this action. STRATEGIC GOAL: The District ensures its continued financial health through long-term financial planning and debt planning. LEGAL IMPACT: None. General Manager Attachments: A) Committee Action B) Resolution No. 2018-01 Exhibit A - Strike-through By-laws C) Proposed By-Laws ATTACHMENT A SUBJECT/PROJECT: Adopt Resolution No. 2018-01 to Amend the Otay Water District Financing Authority By-Laws Authorizing the Otay Water District Financing Authority to Hold Regular Meetings on Each Date That is Regular Meeting Date of the Board of Directors of the Otay Water District COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on June 19, 2018 and the following comments were made:  Staff is requesting that the board adopt Resolution No. 2018- 01 to amend the Otay Water District Financing Authority by- laws authorizing the Otay Water District Financing Authority to hold regular meetings on each date that is a regular meeting date of the Board of Directors of the Otay Water District.  Staff reviewed information in the staff report.  Staff is planning to request that the OWD Financing Authority authorize a new debt issuance for water between September and October of 2018. By State law, the OWD Financing Authority’s action to approve debt issuances must occur at a regular board meeting. The Financing Authority’s current bylaws define January and March as the only months the Authority holds regular board meetings. To allow the Authority to comply with State law, meet the current timeline for the proposed debt issuance, and to prevent delays for future issuances, staff is requesting that the board authorize the OWD Financing Authority to hold regular meetings on each date that a regular meeting of the Otay Water District Board of Directors is held by adlpting Resolution No. 2018-01. Upon completion of the discussion, the committee supported staffs’ recommendation and presentation to the full board on the consent calendar. DOCSOC/1893123v1/200077-0008 RESOLUTION NO. 2018-01 A RESOLUTION OF THE AUTHORITY COMMISSION OF THE OTAY WATER DISTRICT FINANCING AUTHORITY AMENDING ITS BYLAWS WHEREAS, the Otay Water District Financing Authority (the “Authority”) has been formed pursuant to a Joint Exercise of Powers Agreement (the “Agreement”) between the Otay Water District (the “District”) and the California Municipal Finance Authority (“CMFA”), dated as of March 3, 2010, between the District and CMFA; and WHEREAS, the Authority Commission, as the governing board of the Authority, has adopted bylaws (the “Bylaws”) which provide various provisions for the operation of the Authority including when regular meetings will be held; and WHEREAS, the Authority has determined that it is desirable and furthers its public purpose to amend Article III, Section 1 of the Bylaws in order to provide for more frequent regular meetings; and WHEREAS, Article IV, Section 1 of the Bylaws provide that the Bylaws may be amended at a regular or a special meeting of the Authority Commission; and WHEREAS, the meeting at which this resolution is being adopted is a special meeting called with all notice required by law; NOW, THEREFORE, BE IT RESOLVED by the Authority Commission as follows: Section 1. The Authority Commission hereby adopts the amendment to Article XIII, Section 1 of the Bylaws set forth in Exhibit A hereto which highlights the change from the original text of the Bylaws. Section 2. Pursuant to the Bylaws, regular meetings of the Authority Commission will be held on each date that is a regular meeting date of the Board of Directors of the District and on such other dates and times as are established by resolution of the Authority Commission from time to time. Section 3. All of the recitals herein set forth are true and correct and the Authority Commission so finds and determines. Section 4. This Resolution shall take effect immediately upon passage. ATTACHMENT B DOCSOC/1893123v1/200077-0008 PASSED, APPROVED AND ADOPTED this 11th day of July, 2018. ________________________________________ Tim Smith, President of the Commission Otay Water District Financing Authority Attest: _________________________ Susan Cruz, Secretary to the Otay Water District Financing Authority DOCSOC/1893123v1/200077-0008 STATE OF CALIFORNIA ) ) ss COUNTY OF SAN DIEGO ) I, Susan Cruz, Secretary to the Commission of the Otay Water District Financing Authority, do hereby certify that the foregoing Resolution No. 2018-01 was duly adopted by the Commission of the Otay Water District Financing Authority at a regular meeting thereof held on the 11th day of July, 2018 by the following vote: Ayes: Noes: Abstain: Absent: I further certify that the foregoing is a full, true and correct copy of Resolution No. 2018-01, and that the same has not been modified, amended or repealed. DATE: _____________, _______ _______________________________ Susan Cruz, Secretary to the Otay Water District Financing Authority DOCSOC/1893123v1/200077-0008 Strike-through change to Bylaws BYLAWS OF THE OTAY WATER DISTRICT FINANCING AUTHORITY ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The name of the Authority shall be the "Otay Water District Financing Authority" (the "Authority"). Section 2. Office of Authority. The office of the Authority shall be at the offices of Otay Water District (the “District”) the 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Section 3. Governing Body. The members of the Board of Directors of Otay Water District shall constitute the governing body of the Authority, which governing body shall be known as the Authority Commission. The members of the Authority Commission shall serve in the same capacity for the Authority as they serve for the Otay Water District. The President and Vice-President of the Authority Commission shall be as follows: President. The President shall be the member of the Authority Commission who is the then current President of the Board of Directors of the District. The President shall preside at all meetings of the Authority Commission. Vice-President. The Vice-President shall be the member of the Authority Commission who is the then current Vice President of the Board of Directors of the District. The Vice-President shall perform the duties of the President in the absence or incapacity of the President. ARTICLE II - OFFICERS Section 1. Officers. The officers of the Authority, in addition to the President and the Vice President of the Authority Commission, shall be an Executive Director, a Secretary and a Treasurer/Auditor. An officer is authorized to sign for and in the name of the Authority all contracts, deeds and other instruments approved by the Authority Commission to be made by the Authority. Section 2. Executive Director. The Executive Director of the Authority shall be the General Manager of the Otay Water District. The Executive Director shall conduct day-to-day administration of the Authority's business and affairs, subject to the direction of the Authority Commission. EXHIBIT A DOCSOC/1893123v1/200077-0008 Section 3. Treasurer/Auditor. The Treasurer/Auditor shall be the then current or acting Chief Financial Officer of the Otay Water District. The Treasurer/Auditor shall keep regular books of accounts showing receipts and expenditures and shall render to the Authority Commission, as requested, an account of the transactions of the Authority and shall perform the duties required by the Joint Exercise of Powers Act, being California Government Code Section 6500 et seq. (the "Act") and any other duties that are designated from time to time by the Authority. The Treasurer/Auditor or in the absence of the Treasurer/Auditor, a person appointed by the Treasurer/Auditor or the Authority Commission, shall have the care and custody of all funds of the Authority. The Treasurer/Auditor may enter into agreements on behalf of the Authority with any financial institution authorized to accept deposits of public funds, providing for the transfer of funds between accounts maintained therein by the Authority upon request by telephone. Such agreements may also provide for the investment upon request by telephone of funds maintained in such accounts, in property or securities in which public agencies may legally invest money subject to their control. Such agreements shall designate the accounts maintained by the Authority which are subject thereto, and the persons who may, from time to time, make such transfers and direct such investments by telephone request. Section 4. Secretary. The Secretary shall be the then current or acting Secretary of Otay Water District. The Secretary shall keep the records of the Authority, shall act as Secretary of the meetings of the Authority Commission and record all votes, and shall keep a record of the proceedings of the Authority Commission in the form of minutes to be kept for such purpose, and shall perform all duties incident to the office of Secretary. Section 7. General Counsel. The then current General Counsel of the District shall serve as General Counsel to the Authority. Section 8. Duties. The officers of the Authority shall perform such other duties and functions as may from time to time be required by the Authority or these Bylaws or by resolution, rules and regulations or by motion of the Authority Commission. Any officer of the Authority may sign, with the countersignature of one other officer, deputy officer or member of the Authority, all orders and checks for the payment of money under the direction of the Authority. Section 9. Assistants and Deputies; Additional Personnel. Whenever an officer of the Otay Water District is designated an officer of the Authority, the assistants and deputies of such officers from time to time shall also be, ex officio, officers of the Authority; and whenever a power is granted to, or a duty imposed upon, such officer, the power may be exercised, or a duty performed, by such assistant or deputy. The Authority Commission may from time to time employ such other personnel as it deems necessary to exercise its powers, duties and functions. The selection and compensation of such officers and other personnel shall be determined by the Authority Commission. DOCSOC/1893123v1/200077-0008 ARTICLE III - MEETINGS Section 1. Regular Meetings. Regular meetings of the Authority Commission shall be held at least once a year at the business office of the Authority, or at such other place as the President may designate, onon each date that is a regular meeting date of the Board of Directors of the Otay Water District at the same location as the meeting of the Board of Directors and on such other dates and at a time as fixed by the President oftimes as are established by resolution adopted by the Authority Commission. If at any time any regular meeting falls on a legal holiday, such at a regular or special meeting shall be held on the next business day at the same time. Initially, regular meetings will be held on the first Wednesday of January and March in each calendar year. Section 2. Special Meetings. A special meeting may be called at any time by the President or upon the request of a majority of the members of the Authority Commission as permitted by law. Section 3. Closed Sessions. Nothing contained in these bylaws shall be construed to prevent the Authority Commission from holding closed sessions during a regular or special meeting concerning any matter permitted by law to be considered in a closed session. Section 4. Public Hearing. All public hearings held by the Authority Commission shall be held during regular or special meetings of the Authority Commission. Section 5. Adjourning Meetings and Continuing Public Hearings to Other Times or Places. The Authority Commission may adjourn any meeting to a time and place specified in the order of adjournment. Less than a quorum may so adjourn from time-to-time. If all members are absent from any regular meeting or adjourned regular meeting, the Secretary or Acting Secretary of the Authority may declare the meeting adjourned to a stated time and place and shall cause a written notice of the adjournment to be given in the manner permitted by law. Any public hearing being held, or any hearing noticed or ordered to be held at any meeting may by order or notice of continuance be continued, or recontinued to any subsequent meeting in the same manner and to the same extent set forth herein for the adjournment of the meetings; provided, that if the hearing is continued to a time less than 24 hours after the time specified in the order or notice of hearing a copy of the order or notice of continuance shall be posted immediately following the meeting at which the order or declaration of continuance was adopted or made. Section 6. Applicability of Ralph M. Brown Act. Meetings of the Authority shall be held, notice given and the business of the Authority conducted, all as provided in the Ralph M. Brown Act, being California Government Code Section 54950 et seq. DOCSOC/1893123v1/200077-0008 Section 7. Quorum. A majority of the members of the Authority Commission shall constitute a quorum for the purpose of conducting its business and exercising its powers and for all other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. Action may be taken by the Authority Commission upon a vote of a majority of a quorum, unless a higher vote is required by law or by these Bylaws. Section 8. Manner of Voting. The manner of voting on resolutions and on other matters shall be as prescribed by the President. ARTICLE IV - AMENDMENTS Section 1. Amendments to Bylaws. The Bylaws may be amended by the Authority at any regular or special meeting by the affirmative vote of a majority of the members of the Authority Commission. DOCSOC/1893123v1/200077-0008 Proposed Bylaws AMENDED BYLAWS OF THE OTAY WATER DISTRICT FINANCING AUTHORITY ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The name of the Authority shall be the "Otay Water District Financing Authority" (the "Authority"). Section 2. Office of Authority. The office of the Authority shall be at the offices of Otay Water District (the “District”) the 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Section 3. Governing Body. The members of the Board of Directors of Otay Water District shall constitute the governing body of the Authority, which governing body shall be known as the Authority Commission. The members of the Authority Commission shall serve in the same capacity for the Authority as they serve for the Otay Water District. The President and Vice-President of the Authority Commission shall be as follows: President. The President shall be the member of the Authority Commission who is the then current President of the Board of Directors of the District. The President shall preside at all meetings of the Authority Commission. Vice-President. The Vice-President shall be the member of the Authority Commission who is the then current Vice President of the Board of Directors of the District. The Vice-President shall perform the duties of the President in the absence or incapacity of the President. ARTICLE II - OFFICERS Section 1. Officers. The officers of the Authority, in addition to the President and the Vice President of the Authority Commission, shall be an Executive Director, a Secretary and a Treasurer/Auditor. An officer is authorized to sign for and in the name of the Authority all contracts, deeds and other instruments approved by the Authority Commission to be made by the Authority. Section 2. Executive Director. The Executive Director of the Authority shall be the General Manager of the Otay Water District. The Executive Director shall conduct day-to-day administration of the Authority's business and affairs, subject to the direction of the Authority Commission. ATTACHMENT C DOCSOC/1893123v1/200077-0008 Section 3. Treasurer/Auditor. The Treasurer/Auditor shall be the then current or acting Chief Financial Officer of the Otay Water District. The Treasurer/Auditor shall keep regular books of accounts showing receipts and expenditures and shall render to the Authority Commission, as requested, an account of the transactions of the Authority and shall perform the duties required by the Joint Exercise of Powers Act, being California Government Code Section 6500 et seq. (the "Act") and any other duties that are designated from time to time by the Authority. The Treasurer/Auditor or in the absence of the Treasurer/Auditor, a person appointed by the Treasurer/Auditor or the Authority Commission, shall have the care and custody of all funds of the Authority. The Treasurer/Auditor may enter into agreements on behalf of the Authority with any financial institution authorized to accept deposits of public funds, providing for the transfer of funds between accounts maintained therein by the Authority upon request by telephone. Such agreements may also provide for the investment upon request by telephone of funds maintained in such accounts, in property or securities in which public agencies may legally invest money subject to their control. Such agreements shall designate the accounts maintained by the Authority which are subject thereto, and the persons who may, from time to time, make such transfers and direct such investments by telephone request. Section 4. Secretary. The Secretary shall be the then current or acting Secretary of Otay Water District. The Secretary shall keep the records of the Authority, shall act as Secretary of the meetings of the Authority Commission and record all votes, and shall keep a record of the proceedings of the Authority Commission in the form of minutes to be kept for such purpose, and shall perform all duties incident to the office of Secretary. Section 7. General Counsel. The then current General Counsel of the District shall serve as General Counsel to the Authority. Section 8. Duties. The officers of the Authority shall perform such other duties and functions as may from time to time be required by the Authority or these Bylaws or by resolution, rules and regulations or by motion of the Authority Commission. Any officer of the Authority may sign, with the countersignature of one other officer, deputy officer or member of the Authority, all orders and checks for the payment of money under the direction of the Authority. Section 9. Assistants and Deputies; Additional Personnel. Whenever an officer of the Otay Water District is designated an officer of the Authority, the assistants and deputies of such officers from time to time shall also be, ex officio, officers of the Authority; and whenever a power is granted to, or a duty imposed upon, such officer, the power may be exercised, or a duty performed, by such assistant or deputy. The Authority Commission may from time to time employ such other personnel as it deems necessary to exercise its powers, duties and functions. The selection and compensation of such officers and other personnel shall be determined by the Authority Commission. DOCSOC/1893123v1/200077-0008 ARTICLE III - MEETINGS Section 1. Regular Meetings. Regular meetings of the Authority Commission shall be held on each date that is a regular meeting date of the Board of Directors of the Otay Water District at the same location as the meeting of the Board of Directors and on such other dates and times as are established by resolution adopted by the Authority Commission at a regular or special meeting. Section 2. Special Meetings. A special meeting may be called at any time by the President or upon the request of a majority of the members of the Authority Commission as permitted by law. Section 3. Closed Sessions. Nothing contained in these bylaws shall be construed to prevent the Authority Commission from holding closed sessions during a regular or special meeting concerning any matter permitted by law to be considered in a closed session. Section 4. Public Hearing. All public hearings held by the Authority Commission shall be held during regular or special meetings of the Authority Commission. Section 5. Adjourning Meetings and Continuing Public Hearings to Other Times or Places. The Authority Commission may adjourn any meeting to a time and place specified in the order of adjournment. Less than a quorum may so adjourn from time-to-time. If all members are absent from any regular meeting or adjourned regular meeting, the Secretary or Acting Secretary of the Authority may declare the meeting adjourned to a stated time and place and shall cause a written notice of the adjournment to be given in the manner permitted by law. Any public hearing being held, or any hearing noticed or ordered to be held at any meeting may by order or notice of continuance be continued, or recontinued to any subsequent meeting in the same manner and to the same extent set forth herein for the adjournment of the meetings; provided, that if the hearing is continued to a time less than 24 hours after the time specified in the order or notice of hearing a copy of the order or notice of continuance shall be posted immediately following the meeting at which the order or declaration of continuance was adopted or made. Section 6. Applicability of Ralph M. Brown Act. Meetings of the Authority shall be held, notice given and the business of the Authority conducted, all as provided in the Ralph M. Brown Act, being California Government Code Section 54950 et seq. Section 7. Quorum. A majority of the members of the Authority Commission shall constitute a quorum for the purpose of conducting its business and exercising its powers and for all other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. Action may be taken by the Authority Commission upon a vote of a majority of a quorum, unless a higher vote is required by law or by these Bylaws. DOCSOC/1893123v1/200077-0008 Section 8. Manner of Voting. The manner of voting on resolutions and on other matters shall be as prescribed by the President. ARTICLE IV - AMENDMENTS Section 1. Amendments to Bylaws. The Bylaws may be amended by the Authority at any regular or special meeting by the affirmative vote of a majority of the members of the Authority Commission. RESOLUTION NO. 4333 RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT TO CENSURE DIRECTOR HECTOR GASTELUM FOR OFFICIAL MISCONDUCT WHEREAS, the Otay Water District endeavors to foster public respect, confidence, and trust between its elected officials and the constituents whom it represents pursuant to Code of Ordinances, Board of Directors Policy, No. 40, Ethics, and; WHEREAS, the Otay Water District's elected officials are required to be independent, impartial and responsible to the people and to conduct themselves in a manner above reproach, and; WHEREAS, the Otay Water District's elected officials are expected to set an example which always demonstrates respect, confidence, and trust between themselves and the community they serve; and WHEREAS, it is the Otay Water District's expectation that its elected officials will consistently behave in an ethical manner, show deference to those who disagree, and encourage public respect, confidence, and trust to all segments of the community they endeavor to serve, and; WHEREAS, in February 2017, Director Hector Gastelum posted a series of comments on social media, which comments were considered to be derogatory and offensive in nature, and which violated the Otay Water District's ethical values of mutual respect and inclusion, and; WHEREAS, ·during the March 1, 2017 meeting of the Otay Water District's Board of Directors, Director Gastelum failed to acknowledge the disparaging impact of his words and made further incendiary comments, and; WHEREAS, the Otay Water District's Board of Directors reaffirmed its intolerance for discrimination, bias, or prejudice by adopting Resolution 4329 during the meeting of the Board of Directors on March 1, 2017 condemning discrimination on the basis of any legally protected status recognized by federal, state, or local laws, and; \ WHEREAS, by this Resolution the Board of Directors finds it necessary and prudent to publically acknowledge that Director Gastelum's public behavior is reprehensible and intolerable, and; WHEREAS, by this Resolution the Board of Directors desires again to reinforce its commitment to mutual respect and inclusivity of all constituents of its diverse community; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Otay Water District that the above stated recitals are incorporated herein by reference; IT IS RESOLVED FURTHER that Director Gastelum's comments to the media, on social media, and at the Board meeting on March I, 20I7, have demonstrated that he is not impartial and responsible to the people he represents and he has not conducted himself in a manner above reproach; and IT IS RESOLVED FURTHER that the Board of Directors hereby reaffirms its commitment to insuring that all constituents of the Otay Water District be treated with respect and integrity, and; IT IS RESOLVED FURTHER that Director Gastelum's comments to the media, on social media, and at the Board meeting on March I, 20 I7, do not set an example or the tone for demonstrating respect, confidence, and trust between the District, and the community it serves, and; IT IS RESOLVED FURTHER that Director Gastelum's comments to the media, on social media, and at the Board meeting on March I, 20I7, have demonstrated that he has not conducted himself in a professional manner, or shown deference to those who disagree with him, and he has failed to encourage public respect, confidence, and trust, and; IT IS RESOLVED FURTHER that Director Gastelum's comments to the media, on social media, and at the Board meeting on March I, 20I7,were reprehensible and intolerable, and they violated the Otay Water District's ethical values of mutual respect and inclusion, and; IT IS RESOLVED FURTHER that Director Gastelum's comments to the media, on social media, and at the Board meeting on March I, 2017, violate Board of Directors Policy No. 40, Ethics Policy, and they constitute official misconduct, and; IT IS RESOLVED FURTHER that Director Gastelum's comments to the media, on social media, and at the Board meeting on March I, 20 I 7, constitute cause fo r censure, and; IT IS RESOLVED FURTHER that Director Gastelum is hereby censured for his reprehensible and intolerable comments to the media, on social media, and his further incendiary comments during the March I, 2017 Board meeting, and; IT IS RESOLVED FURTHER that the Board of Directors intends to monitor the future conduct of Director Gastelum and will consider further future actions shou ld such future actions be deemed warranted, and; IT IS RESOLVED FURTHER that the Board of Directors, pursuant to § 5.03 of the Code of Ordinances, requests that the Board President under the powers granted to him, conduct a review of the current Committee assignments for Director Gastelum and determine whether a temporary or permanent removal of some or all said committee assignments might be appropriate at the present time. FINALLY BE IT RESOLVED that this resolution shall be m fu ll force and effect immediately after its passage and approval. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 171h day of April, 20 I 7. ATTEST: D Ayes: Directors Croucher, Robak, Srni th and Thompson Noes: None Abstain: None Absent: None ~w President STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: July 11, 2018 SUBMITTED BY: Mark Watton, General Manager W.O./G.F. NO: DIV. NO. APPROVED BY: Susan Cruz, District Secretary Mark Watton, General Manager SUBJECT: Board of Directors 2018 Calendar of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendar for 2018 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2018 Board of Director’s meeting calendar and amend the schedule 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 2018 G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 7-11-18.doc Board of Directors, Workshops and Committee Meetings 2018 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 3, 2018 February 7, 2018 March 7, 2018 April 4, 2018 May 2, 2018 June 6, 2018 July 11, 2018 August 1, 2018 September 5, 2018 October 3, 2018 November 7, 2018 December 5, 2018 January 17, 2018 March 21, 2018 March 21, 2018 April 18, 2018 May 23, 2018 June 20, 2018 July 18, 2018 August 15, 2018 September 19, 2018 October 17, 2018 November 21, 2018 December 19, 2018 SPECIAL BOARD MEETINGS: BOARD WORKSHOPS: STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: July 11, 2018 SUBMITTED BY: Kevin Cameron Associate Civil Engineer Bob Kennedy Engineering Manager CIP./G.F. NO: P1210- 010000 DIV. NO. ALL APPROVED BY: Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Informational Item - Status of the current agreement with the City of San Diego, the current cost of recycled water, and alternative supply studies GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To update the Otay Water District (District) Board of Directors (Board) on the status of the current agreement with the City of San Diego (City), the current cost of recycled water at the RWCRWF and from the City, and alternative supply studies. ANALYSIS: AGREEMENT WITH THE CITY OF SAN DIEGO On October 20, 2003, the District and the City entered into an agreement for the purchase of recycled water (Agreement) from the South Bay Water Reclamation Plant (SBWRP). In 2007, the District began taking water from SBWRP. Under the terms of this Agreement, a minimum annual contract amount must be purchased (take-or-pay). This Agreement expires on January 1, 2027, unless a new agreement is negotiated with the City. 2 The District operates one of the largest recycled water distribution systems in San Diego County and will supply approximately 3,660 acre-feet of recycled water to 719 customers in Fiscal Year 2018. The District’s Ralph W. Chapman Water Recycling Facility (RWCWRF) produces on average 1,000 acre-feet per year (AFY) of recycled water with the balance purchased from the City’s SBWRP. The District will be required to pay for 5,029 AFY even though the District expects to take only 2,660 AFY from the SBWRP. The District is the single largest user of recycled water buying about 99% of the recycled water the City has available for sale from the SBWRP. RWCWRF AND THE CURRENT COST OF RECYCLED WATER On April 4, 2018, staff from the District’s Finance Department presented to the Board an analysis of sewer and recycled water cost on Fiscal Year 2016’s actual cost, to determine the cost benefit of whether the District should keep the RWCWRF plant open (status quo) or to shut down the plant and send 100% of the flow through the County to Metro for treatment. Based on this analysis, the cost of recycled water produced at the District’s RWCWRF is $982.47 per AF. The cost to purchase recycled water from the SBWRP at the current rate is $756 per AF, but when the meter fee and the take-or-pay contractual amount is included, the effective rate is $1,396.87 per AF. The April 4, 2018 analysis also reveals that for sewer customers it is far more cost effective to treat sewage at the RWCWRF as the savings is $592,284. For recycled customers it is almost cost neutral due to the fixed nature of the contract to purchase water from the City of San Diego. It should be noted that this is a snapshot of the current status and does not consider future events. In summary, the analysis showed that it is cost effective to have the RWCWRF running at full capacity as opposed to shutting down the treatment plant and sending flows to San Diego Metropolitan Wastewater (Metro) system. ALTERNATIVE SUPPLY STUDIES The 2018-2022 Strategic Plan will consider various aspects of the future of sewer and recycled water on a short-term and long- term basis. The analysis presented in this staff report is short-term and does not consider future events, such as what the cost of the City’s Pure Water will do to the Metro costs or how Metro may propose changes to their rate structure. Some options that will be considered in the strategic plan are to perform an analysis to have the RWCWRF plant only treat 3 sewage on a seasonal basis, or have the County of San Diego take over the collection system and lease out the plant. Additionally, the strategic plan will look at the future of recycled water such as receiving supply from the International Boundary and Water Commission (IBWC) should the City not renew the contract for recycled water at SBWRP. A variation of the study could have additional wastewater diverted to the SBWRP from IBWC’s facility to supplement flows to meet 100% of the District’s summer peak day demands. FISCAL IMPACT: Joe Beachem, Chief Financial Officer No fiscal impact as this is an informational item only. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. KC/BK:jf P:\WORKING\As Needed Services\Alternative Recycled Water Source\Staff Report\07-11-18 Staff Report Recycled Water Alternatives Info Item-Working (KC-BK).doc Attachment: Attachment A – Committee Action ATTACHMENT A SUBJECT/PROJECT: P1210-000000 Informational Item - Status of the current agreement with the City, the current cost of recycled water from the City, and alternative supply studies COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on June 25, 2018 and the following comments were made:  Staff reviewed the staff report with the Committee as an informational item.  It was noted that the analysis presented in the staff report is short-term and does not consider future events, such as what the cost of the City’s Pure Water will do to the Metro costs or how Metro may propose changes to their rate structure.  The Committee inquired if staff has considered purposeful concepts for the unused water that the District will have to pay for. Staff stated that various concepts have been considered and implemented but some concepts were not feasible due to cost or regulatory restrictions. These have been documented in several studies and to the Board through staff reports. At the request of the Committee, these reports and studies will be presented by staff in a separate informational item at a future Committee and Board meeting.  Staff stated that there is a plan to schedule a tour for the Board of the City of San Diego’s South Bay Water Reclamation Plant (SBWRP) and the International Boundary and Water Commission’s International Wastewater Treatment Plant. The Metro Joint Powers Authority Commissioners will be invited to attend the tour of the SBWRP. Following the discussion, the Committee supported staffs’ recommendation and presentation of this item to the full board on the consent calendar. STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: July 11, 2018 SUBMITTED BY: Kevin Koeppen, Asst Chief of Finance W.O./G.F. NO: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Mark Watton, General Manager SUBJECT: Present to the Board the Impact of Sewer Issuing Debt in FY 2019 vs. FY 2020; and Obtain Direction to Prepare the Sewer 218 Notices Using the Recommended Timing of the Debt Issuance GENERAL MANAGER’S RECOMMENDATION: That the Board direct staff to prepare the Sewer 218 Notices using the rates associated with the FY 2020 debt issuance. COMMITTEE ACTION: See Attachment A. PURPOSE: Present to the Board the rate impact of sewer issuing debt in FY 2019 vs. FY 2020; and obtain direction to prepare the Sewer 218 Notices using the recommended timing of the debt issuance. ANALYSIS: As part of the FY 2019 Budget presented to the Board on May 21, 2018, staff communicated that the District’s sewer side would need to issue $5.0 million of debt in FY 2020. This staff report responds to a question raised at that meeting. Staff was asked to evaluate the timing of the sewer debt issuance to determine if it would be cost beneficial for the debt to be issued in FY 2019 versus issuing debt in FY 2020, which would likely be issued at a higher interest rate. The following two debt scenarios are being presented as part of this Staff Report followed by a discussion of each scenario including: the net present value benefit, revenue/rate impact and other risks/benefits: 1. Issue $5.0 million in FY 2020 (FY 2019 Budget proposal) 2. Issue $5.0 million in FY 2019 The following table demonstrates the rate impacts of the each scenario. Scenario #1: Issue $5.0 million in FY 2020 If the District were to issue $5.0 million in FY 2020 (November 2019) and interest rates were to increase 0.3% compared to interest rates associated with an FY 2019 issuance (November 2018), the annual debt service would be $342,000. This option allows the impacts of the debt issuance to be gradually inputted into customer rates from FY 2019 to FY 2021, and would result in proposed sewer rate increases of 4.6% for FY 2019 and 5.0% for FY 2020. The FY 2020 increase of 5.0% is greater than the 4.6% presented in the May 21, 2018 board workshop due to reducing the maturities on $1.8 million of the debt from 30 years to 20 years. The following table demonstrates the estimated impact on residential monthly bills based on this scenario. The risk associated with this option would be increasing interest rates. At this time our Financial Advisor’s best estimate is that long-term interest rates may increase around 30 basis points between the timing of the two issuance scenarios. A 25 basis point increase in the effective interest rate equates to an $8,000 increase in annual debt service, which has a 0.30% impact on sewer rates. The estimated overall impact of increasing interest rates is summarized in the next scenario. 2019 2020 2021 2022 2023 2024 Issue Debt in 2019 7.7%7.7%3.0%3.0%3.0%3.0% Issue Debt in 2020 4.6%5.0%4.6%4.6%4.6%4.6% Proposed Revenue Increases Winter Average Range (HCF) FY18 Winter Average FY19 Winter Average Increase in Winter Average % Increase in Winter Average Current Monthly Charge FY 2019 Proposed Monthly Charge $ Inc/( Dec) % Inc/(Dec) 0 - 10 5.8 6.1 0.3 4.3%$30.82 $29.91 ($0.91)-3.0% 11 - 20 10.7 14.4 3.6 33.9%$42.34 $47.87 $5.53 13.1% 21 - 29 15.2 24.2 9.0 59.4%$52.43 $68.52 $16.09 30.7% 30 and up 20.2 36.2 16.0 78.9%$63.71 $91.07 $27.36 42.9% Residential Scenario #2: Issue $5.0 million in FY 2019 If the District were to issue $5.0 million in FY 2019 (November 2018), the annual debt service would be approximately $324,000, which is $18,000 less per year than issuing the debt in FY 2020. When compared to issuing the debt in FY 2020, this equates to a net 30- year present value savings of $75,000. However, this compacts the period over which the revenues must increase to meet debt coverage covenants. To meet the debt coverage covenant under this earlier scenario revenues would need to increase 7.7% in both FY 2019 and FY 2020. The following table demonstrates the estimated impact on residential monthly bills based on this scenario. Under this earlier scenario the short-term percentage impacts on residential customer monthly bills is greater than under the previous scenario. In addition, there remain risks associated with the City of San Diego’s Pure Water funding program that could result in near term metro costs increasing more than the current projections, which would put additional pressure on revenues and rates. Waiting to the point where the debt is necessary allows various uncertainties to play out and makes it more certain that the optimal amount of debt will be issued. With a 2019 debt issuance, it may be advisable to modify the language proposed for sewer’s 218 notice. As part of the May 21, 2018 budget approval, staff proposed a 10% maximum rate increase be allowed for internal cost increases, which includes the need to meet debt coverage covenants. The maximum single year decline in winter average that a 10% maximum internal cost limit could absorb is 16%. The maximum actual single year winter average decline the District has realized in recent history was approximately 20%. With winter averages now close to normal levels this level of decline is repeatable. If winter averages were to decline 20% in a single year, a 12% maximum allowable increase for internal costs would be needed to meet the debt covenant. As a note, under the 2020 debt issuance scenario, the 10% proposed maximum internal cost increase would be sufficient to meet the debt service coverage covenant in the event winter averages declined 20% in a single year. Winter Average Range (HCF) FY18 Winter Average FY19 Winter Average Increase in Winter Average % Increase in Winter Average Current Monthly Charge FY 2019 Proposed Monthly Charge $ Inc/( Dec) % Inc/(Dec) 0 - 10 5.8 6.1 0.3 4.3%$30.82 $30.98 $0.16 0.5% 11 - 20 10.7 14.4 3.6 33.9%$42.34 $48.94 $6.60 15.6% 21 - 29 15.2 24.2 9.0 59.4%$52.43 $70.48 $18.05 34.4% 30 and up 20.2 36.2 16.0 78.9%$63.71 $93.88 $30.17 47.4% Residential Recommendation Based on the upfront impacts on rates, the smoothing of rates, and the greater certainty of issuing the optimal amount staff is recommending sewer debt be issued in FY 2020. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The below tables summarize the proposed revenue increases and debt service associated with the two options above. Issuing debt in 2020 aligns with the FY 2019 budget and no additional revenues are needed. Issuing debt in 2019 would result in the need to raise additional revenues in the near term in accordance with the tables above. STRATEGIC GOAL: The District ensures its continued financial health through long-term financial planning and debt planning. LEGAL IMPACT: None. General Manager Attachments: A) Committee Action Form 2019 2020 2021 2022 2023 2024 Issue Debt in 2019 7.7%7.7%3.0%3.0%3.0%3.0% Issue Debt in 2020 4.6%5.0%4.6%4.6%4.6%4.6% 2019 2020 2021 2022 2023 2024 Issue Debt in 2019 $100 $324 $324 $324 $324 $324 Issue Debt in 2020 $0 $103 $342 $342 $342 $342 Proposed Revenue Increases Annual Debt Service (thousands $'s) ATTACHMENT A SUBJECT/PROJECT: Present to the Board the Impact of Sewer Issuing Debt in FY 2019 vs. FY 2020; and Obtain Direction to Prepare the Sewer 218 Notices Using the Recommended Timing of the Debt Issuance COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on June 19, 2018 and the following comments were made:  Staff is presenting to the board the impact to the District of issuing sewer debt in fiscal year 2019 (FY) versus FY 2020 and recommending the Board direct staff to prepare the sewer 218 notices using the rates associated with a FY 2020 debt issuance.  Staff reviewed information in the staff report.  Based on input from the District’s financial advisor, Ms. Suzanne Harrell of Harrell & Company Advisors, LLC, a FY 2020 debt issuance may carry an effective interest rate of at least 30 basis points above a FY 2019 debt issuance, which increases debt service by approximately $18,000 per year.  While a FY 2019 debt issuance would carry a lower interest rate, it reduces the timeframe for sewer to reach rates necessary to meet the debt coverage ratio covenant associated with an earlier debt issuance. The District’s average revenue increases for the next two years would increase from 4.6% in FY 2019 and 5.0% in FY 2020 to 7.7% in both fiscal years, followed by 3.0% revenue increases in the following 4 years.  Additionally, the sewer side faces risks related to the pass- through of pure water costs from the City of San Diego, which could put further pressure on rates and impact the recommended amount of debt that will be issued. Waiting until the time when the debt is necessary allows for various uncertainties to play out and more certainty that the optimal amount of debt is issued.  Subsequent to the preparation of this staff report, the Federal Reserve increased rates a quarter of a percent. These increases have a greater impact on short-term rates, but are largely already a component of long term interest rates. As of the date of the committee meeting, 30-year rates had increased one (1) basis point.  Based on the upfront impact on rates, the smoothing of rates and greater certainty that the optimal amount of debt is issued, staff is recommending sewer debt be issued in FY 2020.  The Committee indicated that the reason they wished staff to review if it would be more cost effective to issue debt in FY 2019 as opposed to FY 2020, is to take advantage of today’s lower interest rates as they are expected to rise. Additionally, it could possibly assist in keeping rate increases level.  It was indicated that the budget was prepared based on a 2020 debt issuance and the District’s rate increases of 4.6% and 5% to get the District’s debt coverage ratio to where it needs to be at the time the debt is issued.  Ms. Harrell indicated that there may be an ability to moderate rates slightly, but the District would likely not be able to get to the 4.6% that it is projected by just modifying the debt service curve.  It was further discussed that if the District wished to issue debt now, even if the District was able to structure the principal payments to be phased in overtime, the rating agencies look at the ultimate payment requirement. Thus, the District must have the debt coverage ratio at or above target at the time the debt is issued.  In response to an inquiry from the Committee, staff indicated that they did look at issuing a portion of the debt in 2019 and the remaining debt in 2020 and concluded that the option was cost prohibitive.  The committee inquired about whether or not a single issuance with a provision to draw down the loan amount over two years would be cost beneficial. Staff followed up the Financial Advisor regarding this option. This structure is not available under a negotiated sale process and would need to be executed through a private placement. The maximum term under a private placement would be 15 to 20 years, which will increase the annual debt service by approximately $176,000 and require additional rate increases to meet the bond covenants.  It was discussed that by the District waiting until FY 2020 to issue debt, it will know the optimal amount of debt that needs to be issued. If debt is issued in FY 2019, the District could issue too much or too little and could possibly need to issue more debt should the issuance be smaller than required. It also impacts the time needed by the District to reach adequate revenue levels necessary to meet the debt coverage ratio requirement. Because of these reasons, staff is recommending that debt be issued in FY 2020.  It was communicated that, in addition to greater rate increases in 2019 and 2020, staff would recommend that the 218 notices be modified to increase the provision for a 10% rate increase for internal costs be raised to 12%. The increase would be necessary to provide the District with the flexibility to meet debt service coverage covenants in the event winter averages fluctuated significantly. Upon completion of the discussion, the committee supported staffs’ recommendation and presentation to the full board as an informational item. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: July 11, 2018 SUBMITTED BY: Mark Watton General Manager W.O./G.F. NO: N/A DIV. NO. N/A APPROVED BY: Mark Watton, General Manager SUBJECT: General Manager’s Report ADMINISTRATIVE SERVICES: GIS:  Drone Testing and Software Evaluation - Staff is evaluating Esri’s Drone2Map application, which integrates drone imagery for the eventual production of 2D and 3D maps, visual analysis, and asset inspection reports.  Asset Management Data Gap Analysis - In preparation for asset management consultant work, to include the configuration of InfoMaster, the decision making, and asset forecasting tool, staff is updating the ArcGIS desktop application for engineering staff. Staff will also be preparing the required access and data sets for the consultant. Human Resources:  Annual Performance Evaluations - Human Resources met with supervisory staff in June to review recent updates made to the performance evaluation form and process. Managers and Supervisors will be completing the annual performance evaluations during the months of June and July. HR will provide assistance where needed.  Labor Negotiations - Negotiations with the Otay Water District Employees’ Association began in late June, with additional meetings scheduled in late July and late August.  Recruitments/New Hires/Promotions: o The Water Systems Operator I position was filled in June. 2 o The District is recruiting for: Utility Worker, Recycled Water Specialist, Construction Inspector, Customer Service Field Representative I/II, Meter Maintenance Worker I/II, and Reclamation Plant Operator II/III. o These vacancies are related to retirements, new positions recently approved, or transfers to other departments, and are critical to District operations. IT Operations:  Office 365 Cloud Email - Staff recently deployed the new Microsoft Office365 solution. The new productivity suite will offer enhanced security, automatic up-to-date versions of Office productivity applications, and reliability. Staff will also hold training on new features and functionality upon completion of the implementation.  Cityworks Assessment - Staff engaged with an outside consultant to assist in creating an up-to-date assessment of the District’s work order management system, Cityworks. Staff and consultant met with District operations and engineering work groups to develop the production of a comprehensive report outlining recommendations to leverage Cityworks, GIS, and other related systems. The assessment is part of the advancement of the work order system and asset management program. Recommendations will be discussed and a plan of action will follow by mid-August. Purchasing & Facilities:  SB 989 – Fuel Island Secondary Containment Certification - Every 36 months the Fuel Island underground secondary containment system must be tested for proper operation. In the event that the primary fuel delivery systems fails, the secondary is designed to immediately detect any leaks and shut the system down thereby preventing fuel from escaping into the environment. Jenal Engineering completed the inspection and testing on June 7, 2018 reporting that the system is fully operational and fully compliant with the Unified Program Facility Permit issued by the County of San Diego Department of Environmental Health.  San Diego County Water Authority (CWA) Bid and Solicitation Portals (Board Requested Information) – CWA has used “The Network” for many years as a portal to publish solicitations online. The portal was originally created as a clearinghouse by Metropolitan Water District (MWD) who then recruited other agencies such as CWA. MWD long ago abandoned The Network leaving CWA and four smaller agencies to manage on their own. BidNet, who gathers and republishes federal, state and local government RFP’s from newspapers, websites and other sources, now provides backend support for The Network; they also run eBidboard which CWA uses to publish construction projects. CWA has stayed with The Network 3 mainly for its low $7,500 annual subscription fee. By paying an annual fee, CWA can offer the service to vendors, suppliers and contractors at no cost. CWA manually maintains its solicitations in three online locations: CWA website, The Network, and eBidboard. In similar fashion, the District publishes its projects online through BidSync, one of the larger solicitation portals operating in California. Solicitations are also published automatically on the District’s website through an imbedded BidSync page with links to current and past projects. An annual fee of $8,000 allows the District to offer the service free to vendors, suppliers and contractors. Through BidSync, the District advertises to contractors specifically invited by staff, contractors who subscribe to applicable project categories, and solicitation aggregators who republish on their sites such as BidNet/eBidboard (CWA’s portal), Dodge Data, The Bluebook, San Diego Associated General Contractors Plan Room, Construction Connect, Construction Bid Source, Federation of CA Builders Exchange, GovWin-Onvia and other plan rooms.  BidSync Solicitations – Two (2) solicitations advertised on the District’s solicitation web portal, BidSync, recently closed: o “As-Needed Construction Management and Inspection Services” – For the services of construction management and inspection consulting firm(s) on an as-needed basis to support the delivery of the District’s CIP projects. The projects include, but are not limited to, sanitary sewer pipelines, potable water pipelines, recycled water pipelines, pump station upgrades, interconnections, and reservoir coating projects. The budget is a not-to-exceed $600,000 covering Fiscal Years 2019 and 2020. o “Provide & Install Transparent Bullet Resistant Barrier Systems” - For quotations from responsible vendors/contractors to provide and install transparent bullet resistant barrier systems at the District’s Customer Service and the Public Service Counters. Safety & Security:  Regulatory Training – Staff completed the annual hearing conservation training and testing. Staff exposed to noise exposures equal or exceeding an 8-hour time-weighted average sound level of 85 decibels are required to be part of a hearing conservation program. The results of this year’s test were: zero changes in hearing and no re-tests required. The training and testing were completed successfully.  Regulatory Inspections – The Treatment Plant laboratory chemical hoods (2), underwent an inspection and certification by the County’s Department of Environmental Health. The inspection and certification was completed successfully and the two laboratory chemical hoods are operating properly. 4  Monthly WebEOC Exercise – Staff completed the June monthly WebEOC exercise, which consisted of: “Under Status Boards, create a Point of Dispensing (POD) status”. This is for dispensing medication in case of a county-wide medical emergency, e.g., pandemic. The exercise was completed satisfactorily.  Department of Transportation (DOT) – District staff, whom drive commercial vehicles routinely, underwent a refresher review on commercial vehicles’ daily checks, and a Behind-the-Wheel Evaluation and Road Test. The refresher was completed with good results. FINANCE:  Water Rate Increase Notices and Sewer 218 Notices – Finance, Public Relations and Legal Counsel are finalizing rate notices, which are scheduled to be mailed to customers from mid-July to mid-August. A 218 Hearing for sewer rates will be scheduled for October 3, 2018 with new sewer rates becoming effective for billings after January 1, 2019. New water rates will be implemented based on last year’s 218 Hearing and will be effective for billing after January 1, 2019.  ADP Implementation – Finance, IT and HR staff have kicked off the ADP implementation project. Timesheet and payroll modules are scheduled to go live with the first payroll in 2019. The HR and benefits modules are scheduled to go live in March of 2019.  Salt Creek Exit – Finance staff is working with Legal staff on drafting a release agreement finalizing the exit of the Highlands Golf from the Salt Creek Golf course and remaining amounts owed for rent, water and other miscellaneous exit costs.  Water Debt – Finance staff is preparing narratives and schedules needed to complete the draft Official Statement for issuing $30M of water debt. Staff is scheduling for all documents to be drafted by September and will be bringing the debt related items to the Board in the September/October timeframe.  Fiscal Year-End Payroll Updates – Staff will be implementing COLA, PERS and Workers Compensation Insurance rate changes into Eden starting this week with an effective date of 7/1/2018.  Remarketing Agent – Union Bank has informed the District that they are exiting the Remarketing industry and has requested the District find a replacement. Staff has received interest from three institutions and is planning to complete the replacement within the next three to five months. 5  AMR Change Outs- Concord Utility Services will begin AMR change outs on July 9th. Over 10,000 change outs will be completed throughout the District between July and September. These change outs are part of the District’s AMR Change Out Capital Improvement Program.  Financial Reporting: o For the eleven months ending May 31, 2018, there are total revenues of $95,705,311 and total expenses of $91,947,139. The revenues exceeded expenses by $3,758,172. o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of May 31, 2018 total $86,427,555 with an average yield to maturity of 1.474%. The total earnings year-to-date are $949,037. 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). During the month of June 2018, Pacific Hydrotech completed work to place reinforcing steel, place forms and pour the concrete for the west galley wall. It is anticipated that the pump station suction header will be delivered to the project in July 2018. Pump station specific submittals are in progress. The project is within budget and scheduled to complete in October 2019. (P2083 & P2562)  SR-11 Utility Relocations: This project consists of relocating several District potable water pipelines located in Otay Mesa Road, Sanyo Avenue, Enrico Fermi Drive, Alta Road, and within District easements. The first two rounds of relocations (Caltrans Utility Agreement Numbers 33592 and 33622) were completed in FY 2016. Caltrans approved the District’s water main relocation consultant’s (NV5) drawings for the relocations in Enrico Fermi Drive and Alta Road on May 29, 2018. Caltrans has scheduled the start of construction in fall of 2019. Utility agreements corresponding to the final design will be presented to the District’s Committee and Board in the June/July 2019 timeframe. As part of the SR-11 project, Caltrans will need to acquire a portion of the District’s fee-owned right-of-way that is located in the Alta Road alignment south of Otay Mesa Road. The Board approved the sale of the property to Caltrans at the June 2018 meeting of the Board of 6 Directors. It is anticipated that the sale of the property will be completed in July 2018. (P2453)  978-1 & 850-2 Reservoir Interior/Exterior Coatings & Upgrades: This project consists of removing and replacing the interior and exterior coatings of the 978-1 (0.5 MG) Reservoir and the 850-2 (3.1 MG) Reservoir along with providing structural upgrades to ensure the tanks comply with both state and federal OSHA standards as well as the American Water Works Association and the County Health Department standards. The 978-1 Reservoir was placed back in service in July 2017. The 850-2 Reservoir was placed back in service on January 12, 2018. Contract acceptance and recordation of the Notice of Completion by the District was completed on May 31, 2018. Project delivery by the contractor was behind schedule due to contractor coordination. As a result, the District has assessed liquidated damages for late delivery of the project starting in September 2017 through substantial completion, which occurred when the 850-2 Reservoir was placed back in service on January 12, 2018. The contractor has sent claims correspondence to the District disputing the assessment of liquidated damages. The District’s construction manager for the project has issued the Engineer’s Entitlement Decision denying the claims. The contractor has filed for mediation on the project. The project is within budget. (P2534 & P2544)  Campo Road Sewer Replacement: The existing sanitary sewer from Avocado Road to Singer Lane is undersized and located in environmentally sensitive areas that are difficult to access. The Campo Road Sewer Replacement project will install approximately 7,420 linear feet of new 15-inch gravity sewer pipe and includes abandonment of the existing sewer main. In June 2018, work continued at the Rancho San Diego Village shopping center. Work at the shopping center included potholing to identify existing utilities and installation of the new sewer main, which is approximately 30 feet deep. This work is occurring at night to minimize impacts to the shopping center. It is anticipated that during the month of July, the sewer installation work will progress to the shopping center’s main entrance. This is one of four entrances to the shopping center. Staff is coordinating the work and the closure of the driveway entrance with the property management of the Rancho San Diego Village shopping center. During May 2018, a walk-through of the restoration work completed at the Rancho San Diego Towne Center was performed with the shopping center’s Property Manager. Punch list items were identified and addressed. Acceptance of the completed work is pending from the Rancho San Diego Towne Center property management staff. The project is within budget and the overall project is scheduled for completion in May 2019. (S2024) 7  Hillsdale Road Potable Water and Sewer Replacement: The existing water line in Hillsdale Road between Jamacha Road and Vista Grande Road has experienced several leaks and is nearing the end of its useful life. This project consists of replacing approximately 4,050 linear feet of steel water line with a 12-inch Polyvinyl Chloride (PVC) water line. The project also includes the replacement of approximately 760 linear feet of 8-inch PVC sewer within Hillsdale Road. During June 2018, the District’s contractor TC Construction Company, Inc., completed the planned sewer replacement work. The contractor also began the trench pavement restoration work along with the pavement replacement work in the area that fronts Valhalla High School. The project is within budget and on schedule to complete in June 2018. The District’s pavement repair work on Hillsdale Road is being coordinated with the County of San Diego’s Hillsdale Road asphalt pavement overlay project. The County’s project will begin once the District’s work is complete. (P2573 & S2048)  Vista Vereda and Hidden Mesa Water Pipelines Replacement: The existing 1950’s steel water line along Vista Vereda between Vista Grande Road and Hidden Mesa Trail in the Hillsdale area has experienced leaks and is nearing the end of its useful life. The existing water main is located primarily within easements, many of which have had significant improvements performed over the years since the water line was constructed. Through the District’s As- Needed Engineering Design contract, a Task Order was issued on May 2, 2017 to Rick Engineering to design the project. A preliminary design report has been completed, with the final report submitted to the District on January 10, 2018. The changing of the Vista Vereda water line from a transmission main to local distribution only and upgrading the water lines in Hidden Mesa Road to become a transmission main is recommended based upon assessment of the challenges of reconstructing a transmission main along the same current alignment. A task order change was executed to revise the scope of work to reflect this. A community meeting was held on February 10, 2018. Staff continues to discuss the project with property owners who have requested additional information with a letter to be distributed updating them on the alignment changes at the 60% design and a follow up letter to be sent after the 90% design with more detailed impacts to individual properties. In March, the 60% design was reviewed and potholing of existing utilities performed to verify proposed water line alignments. The 90% design is currently being reviewed by the District with comments to be returned to Rick Engineering by the end of June, at which time the County permits applications will be prepared and submitted. The project is on schedule for completion of the design in July 2018 (the community outreach efforts delayed this a month from the original schedule). (P2574 & P2625) 8  Fuerte Drive Sewer Relocation Project: The County of San Diego has designated a section of Fuerte Drive west of Calavo Drive at the intersection of Fuerte Drive and Alzeda Drive for road realignment for safety issues, prompting the relocation of approximately 255 linear feet of 8-inch sewer. During June 2018, Burtech Pipeline, Inc., the District’s construction contractor for the project, began the sewer relocation work on Fuerte Drive. It is anticipated that the relocation work will reach substantial completion at the end of June 2018. The project is within budget. (S2045)  OWD Administration and Operations Parking Lot Improvements, Phase II – Pavement Restoration: Phase I of this project, completed in October 2017, upgraded the parking lot light fixtures in both the Administration and Operations lots. Phase II consists of repairing the asphalt concrete paving, slurry sealing, and restriping both asphalt concrete parking lots. In addition to the pavement improvements, a carport will be installed to protect the larger fleet vehicles, and gates will be installed to better secure the Operations parking lot. During June 2018, Frank and Son Paving, Inc., the District’s construction contractor for the OWD Administration & Operations Parking Lot Improvements, PH. II – Pavement Restoration project, began submittals for the project. The pavement restoration work and striping will be performed during weekends to minimize disruption to customers and the District’s employees. It is anticipated that the contractor will complete the project in late July 2018. The project is within budget. (P2555)  980-2 Reservoir Interior/Exterior Coating and Upgrades: This project consists of removing and replacing the interior and exterior coatings of the 980-2 (5.0 MG) Reservoir, along with providing structural upgrades, to ensure the tank complies with both state and federal OSHA standards as well as the American Water Works Association and the County Health Department standards. During the month of June 2018, the contractor completed interior blasting, prime coat, and final coating of the reservoir. It is anticipated that the exterior blasting, prime coat, and final coating work will complete in July 2018. The project is within the approved budget and scheduled to complete in August 2018. (P2546)  Rancho San Diego Pump Station Rehabilitation: On April 30, 2014, the District and the San Diego County Sanitation District (Sanitation District) executed a reimbursement agreement for the improvements to the Rancho San Diego Pump Station. The Sanitation District awarded a construction contract to TC Construction Company, Inc. on September 14, 2016. The County has extended the construction completion date to July 2018 in response to several change orders with the contractor. Testing of the pumps began in April 2018 and continued through May as one of the pumps had a failure during on-site testing and had to be returned to the 9 manufacturer for repairs. Construction is anticipated to be completed by the end of June 2018. A meeting between the County and District operators will be held in July 2018 at the pump station to confirm coordination between the station and RWCWRF with the new improvements. (S2027)  Salt Creek and Roll Reservoir Trails: Staff is working with the County Parks and Recreation Department and other stakeholders (CDFW, USFWS, City of San Diego, City of Chula Vista, Border Patrol, BLM) on the Otay Regional Trail Implementation Study. Two (2) trails being considered have segments that cross OWD parcels, one at Salt Creek, adjacent to the HMA, and one that goes around the west side of the 571-1 (Roll) Reservoir. If these trails are determined to be viable after the study is complete, staff would ask the Board to approve the trail segments. An agreement between OWD and the County would need to be entered into, with the County assuming all liability for the trails, their maintenance, and any other conditions deemed necessary by staff and the Board. Staff attended the Public Workshop for the Trails Study that was held on June 20, 2018 in Chula Vista. The workshop was very well attended (approximately 70 attendees) and many of the attendees were very interested in the trail that is proposed adjacent to the HMA. They were very happy to see that it has the potential to be a trail in the future.  Pure Water Update: The Pure Water Project would construct facilities that have the ability to produce an annual average daily flow of 30 MGD in 2021, which in turn would reduce total suspended solids discharged to the ocean. The project will expand the existing North City Water Reclamation Plant and construct an adjacent North City Pure Water Facility. Staff submitted comments on November 21, 2017, to be included in the final document considered by the decision-making authorities. On April 10, 2018, the City of San Diego (City) approved the Environmental Impact Report (EIR) for the project. The City responded, in the Final EIR, to the Metro Wastewater Joint Powers Authority’s (Metro JPA) concern that the City failed to address the project’s ability to achieve Secondary Equivalency at the Point Loma WWTP that this is an issue related to the design of the project and not the adequacy of the environmental analysis. Other concerns expressed by the Metro JPA were dismissed as well. The final EIR can be found at: https://www.sandiego.gov/water/purewater/purewatersd/reports Metro JPA negotiated a tolling agreement with the City to give Metro JPA and the City more time to negotiate changes to the project to address Metro JPA’s concerns. To date, one lawsuit has been filed against the project by San Diego environmental attorney, Cory Briggs, on behalf of a neighborhood that could be impacted by this project. On May 14, 2018, the Metro JPA distributed a draft of the “Amended and Restated Regional Wastewater Disposal Agreement Between 10 the City of San Diego and the Participating Agencies in the Metropolitan Sewerage System” to the agencies for comment. This doesn’t give Metro JPA much time since this is expected to be presented to Metro JPA for consideration at the August 2, 2018 meeting. The City of San Diego will be considering this agreement at the Environment Committee meeting on September 13, 2018 and then present it to the City Council at its October 2, 2018 for approval. District staff will be presenting a staff report on the status of this agreement at the August 1, 2018 Board meeting.  Community Outreach: Staff from the District have been active in the community giving a presentation at San Diego State University (SDSU) and mentoring high school students. Engineering staff gave a presentation on the District’s RWCWRF to the SDSU student chapter of AWWA and judged the student’s projects at the annual engineering competition that is part of the science, technology, engineering, and medicine (STEM) program at Santana High School. Engineering staff attended several after school meetings this school year offering recommendations on improving their curriculum, purchasing equipment, and providing an opportunity for high school students to talk with engineers that live and work in their community.  For the month of May 2018, the District sold 71 meters (79 EDUs), generating $695,156 in revenue. The projection for this period was 23.6 meters (30.8 EDUs), with a budgeted revenue of $270,083. Total revenue for Fiscal Year 2018 is $8,258,190 against the annual budget of $3,241,000. WATER SYSTEM OPERATIONS (reporting for May):  On May 3, staff assisted the Inspection Section with a CIP shutdown to tie-in the new main to Jalisco Road and Jamacha Road in Rancho San Diego. There were twenty-eight (28) residential homes affected. Water trailers were on site during the shutdown from 7:30 am to 6:30 pm.  On May 8, staff assisted the Inspection Section with a CIP shutdown to tie-in the new mainline on Hillsdale Road to Windriver Road in Rancho San Diego. There were forty-two (42) customers affected by the shutdown and water trailers were on site during the shutdown from 7:30 am to 6:00 pm.  On May 8, staff performed an emergency shutdown at 2400 Steamboat Springs Court in Chula Vista to repair a leaking air-vac line. Thirty-six (36) residential meters were affected from 9:30 am to 11:30 am. No water trailers were provided due to the short duration of the shutdown. 11  On May 9, staff assisted the Inspection Section with a CIP shutdown to tie-in the new main on Hillsdale Road to Vista Grande Road in Rancho San Diego. There were five (5) residential meters affected and a water trailer was on site during the shutdown from 7:30 am to 8:15 pm.  On May 10, staff performed a planned shutdown to replace an 8-inch inoperable valve inside the Rancho San Diego Village shopping center from 10:00 pm to 6:00 am. A water trailer was on site for the 24hr Fitness Center, which was the only business affected.  On May 17, an email was received from San Diego County Water Authority stating that Mexico flow deliveries scheduled for May 23 were postponed for the months of July through September 2018. However, no specific start date or duration is specified. Notification of a definitive delivery start date is anticipated later as we get closer to July 2018.  On May 18, the City of San Diego Wastewater Treatment Plant (City) notified staff of a planned shutdown of recycled water for May 19 from 9:00 am to 11:30 pm due to an emergency transformer and breaker repair on their substations 61 and 66. Again on May 24, the City informed staff of another planned recycled inflow shutdown for May 25 from 6:30 am to 3:30 pm due to another emergency electric breaker repair on their substation 61, where they were unable to complete the repairs during the shutdown on May 18. Actual recycled flow resumed on May 25 at 6:00 pm.  On May 25, the Lab completed the Environmental Laboratory Accreditation Program (ELAP) (water only) and the Transnational Institute (TNI). The closing conference with the inspector had some minor administrative paperwork suggestions. The inspector however, was impressed with staff’s knowledge and the lab organization was excellent. On June 14 staff had the ELAP (wastewater only) inspection and also minor administrative paperwork was suggested. Comments from the inspector were “excellent.” The final reports with the formal recommendations for all three inspections will not be available for approximately one to two months. 12 Purchases and Change Orders:  The following table summarizes purchases and Change Orders issued during the period of May 21, 2018 through June 7, 2018 that were within staff signatory authority: Water Conservation and Sales:  Water Conservation – May 2018 usage was 13% lower than May 2013. Since May 2017, customers have saved an average of 7% over 2013 levels. Date Action Amount Contractor/ Consultant Project 05/21/18 P.O. $13,860.00 ESM Software, LLC Strategic Planning Software 05/21/18 P.O. $4,442.66 GHA Technologies, Inc. Cradlepoints Routers 05/22/18 P.O. $3,247.37 GHA Technologies, Inc. HP Laptop 05/22/18 P.O. $858.09 Protective Life Insurance Co. Life Insurance Premium 05/30/18 P.O. $3,340.00 24 Hour Elevator, Inc. Elevator Flooring Work 05/31/18 P.O. $65,727.50 Parkson Corporation RWCWRF Aeration Panels Replacement (S2046) 06/05/18 P.O. $500.00 Carlton Oaks Golf & Country Club Holiday Party Rental Deposit 06/05/18 P.O. $600.00 Susan Marcus Yoga Class 06/05/18 P.O. $2,380.00 Timmons Group, Inc. GAP Analysis 06/07/18 P.O. $12,285.50 Cultura Cubicle Reconfiguration 13  The May potable water purchases were 2,535.7 acre-feet which is 10.1% above the budget of 2,302.4 acre-feet. The cumulative purchases through May were 26,931.8 acre-feet which is 11.7% above the cumulative budget of 24,110.2 acre-feet.  The May recycled water purchases and production were 353.3 acre- feet which is 2.4% above the budget of 345.0 acre-feet. The cumulative production and purchases through May were 3,722.5 acre- feet which is 12.7% above the cumulative budget of 3,301.9 acre- feet. 14 Potable, Recycled, and Sewer (Reporting up to the month of May):  Total number of potable water meters: 50,156.  Recycled water consumption for the month of May: o Total consumption: 366.6 acre-feet or 119,400,248 gallons. o Average daily consumption: 3,851,621 gallons per day. o Total cumulative recycled water consumption since July 1, 2017: 3,745.9 acre-feet. o Total number of recycled water meters: 726.  Wastewater flows for the month of May: o Total basin flow: 1,555,645 gallons per day. This is a decrease of 3.65% from May 2017. o Spring Valley Sanitation District Flow to Metro: 516,750 gallons per day. o Total Otay flow: 1,038,871 gallons per day. o Flow Processed at the Ralph W. Chapman Water Recycling Facility: 696,000 gallons per day. o Flow to Metro from Otay Water District: 342,871 gallons per day.  By the end of May there were 6,739 wastewater EDUs. Check Total 7,053.52 8,818.81 8,626.73 4,630.44 4,630.44 UB Refund Cst #0000240840 976.59 976.59 2050480 06/13/18 08156 BROWNSTEIN HYATT FARBER 721014 05/25/18 LEGISLATIVE ADVOCACY (THRU APRIL 2018) 2050479 06/13/18 18865 BRIGHTVIEW LANDSCAPE & DEV Ref002508162 06/11/18 1,296.75 2050516 06/20/18 16290 BIDSYNC SI4115 05/01/18 SOFTWARE SERVICES (7/1/18-6/30/19) 8,000.00 8,000.00 200.00 200.00 2050515 06/20/18 18599 ATKINSON ANDELSON LOYA RUUD 546515 05/31/18 LEGAL/CONSULTING SERVICES (MAY 2018) 1,296.75 EMPLOYEE PROGRAM 200.00 200.00 2050381 05/30/18 03407 ATKINS, SUSAN 052818 05/29/18 EMPLOYEE PROGRAM 2050514 06/20/18 03407 ATKINS, SUSAN 061818 06/18/18 TELEPHONE SERVICES (5/12/18-6/11/18) 4,313.56 000011329821 06/15/18 TELEPHONE SERVICES (4/12/18-5/11/18) 4,313.17 2050513 06/20/18 07785 AT&T 000011469850 06/19/18 6,203.10 2050431 06/06/18 01971 ARMORCAST PRODUCTS COMPANY 0192478IN 05/11/18 VAULT HINGES 687.11 687.11 872.41 872.41 2050512 06/20/18 03492 AQUA-METRIC SALES COMPANY 0069795IN 06/06/18 INVENTORY 6,203.10 UB Refund Cst #0000204570 32.83 32.83 2050380 05/30/18 18831 ANGUS ASPHALT INC Ref002507009 05/24/18 UB Refund Cst #0000241380 2050379 05/30/18 18811 ALICIA CYR Ref002506989 05/24/18 9,285.90 2050430 06/06/18 15024 AIRX UTILITY SURVEYORS INC 204302018 05/15/18 UTILITY LOCATING (APR 2018) 20,450.00 20,450.00 1,016.08 1,016.08 2050429 06/06/18 18755 ADVANCED INFRASTRUCTURE 180506 05/14/18 RADIO DETECTION LOCATOR 9,285.90 SHAREPOINT SERVICES (5/3/18-5/31/18) 2,625.00 2,625.00 2050511 06/20/18 18122 ACC BUSINESS 181353850 05/27/18 INTERNET CIRCUITS (4/11/18-5/10/18) 2050510 06/20/18 08488 ABLEFORCE INC 7968 06/04/18 1025301 05/17/18 SODIUM HYPOCHLORITE 864.40 1024773 05/10/18 SODIUM HYPOCHLORITE 535.93 1024774 05/10/18 SODIUM HYPOCHLORITE 1,231.29 1024697 05/09/18 SODIUM HYPOCHLORITE 960.45 SODIUM HYPOCHLORITE 2,825.63 1025302 05/17/18 SODIUM HYPOCHLORITE 2,401.11 2050428 06/06/18 01910 ABCANA INDUSTRIES INC 1024775 05/10/18 1025577 05/24/18 SODIUM HYPOCHLORITE 1,075.70 1025576 05/24/18 SODIUM HYPOCHLORITE 641.58 2,503.88 1025578 05/24/18 SODIUM HYPOCHLORITE 1,418.58 1025982 05/31/18 SODIUM HYPOCHLORITE 1,413.78 TELECOM SYSTEM (MAY 2018) 5,917.70 5,917.70 2050509 06/20/18 01910 ABCANA INDUSTRIES INC 1025983 05/31/18 SODIUM HYPOCHLORITE 2050508 06/20/18 18088 8X8 INC 2177732 06/01/18 2,046.00 2050507 06/20/18 15416 24 HOUR ELEVATOR INC 53704 05/23/18 ELEVATOR FLOORING WORK 3,340.00 3,340.00 Amount 2050378 05/30/18 05619 ABC CONSTRUCTION CO INC Ref002507001 05/24/18 UB Refund Cst #0000233745 2,046.00 CHECK REGISTER Otay Water District Date Range: 5/24/2018 - 6/20/2018 Check # Date Vendor Vendor Name Invoice Inv. Date Description Page 1 of 8 Check TotalAmount CHECK REGISTER Otay Water District Date Range: 5/24/2018 - 6/20/2018 Check # Date Vendor Vendor Name Invoice Inv. Date Description 592.72 3,964.00 72,855.17 8,619.000297041608 04/16/18 UPFP PERMIT RENEWAL (6/30/18-6/30/19) 469.00 0295041618 04/16/18 UPFP PERMIT RENEWAL (6/30/18-6/30/19) 469.00 0296041618 04/16/18 UPFP PERMIT RENEWAL (6/30/18-6/30/19) 469.00 3169041618 04/16/18 UPFP PERMIT RENEWAL (6/30/18-6/30/19) 469.00 2786041618 04/16/18 UPFP PERMIT RENEWAL (6/30/18-6/30/19) 469.00 0351041618 04/16/18 UPFP PERMIT RENEWAL (6/30/18-6/30/19) 547.00 0294041618 04/16/18 UPFP PERMIT RENEWAL (6/30/18-6/30/19) 547.00 2,861.00 0891041608 04/16/18 UPFP PERMIT RENEWAL (6/30/18-6/30/19) 1,694.00 0405041618 04/16/18 UPFP PERMIT RENEWAL (6/30/18-6/30/19) 625.00 BUSINESS MEETING (5/15/18) 45.00 45.00 2050438 06/06/18 00184 COUNTY OF SAN DIEGO 4908041618 04/16/18 UPFP PERMIT RENEWAL (6/30/18-6/30/19) 06/14/18 BUSINESS MEETING (6/19/18) 45.00 45.00 2050437 06/06/18 02612 COUNCIL OF WATER UTILITIES 05152018 05/15/18 64,671.55 I888965 05/25/18 INVENTORY 8,183.62 2050519 06/20/18 02612 COUNCIL OF WATER UTILITIES 06192018 BACTERIOLOGICAL TESTING (4/2/18-4/3/18) 1,095.00 1,095.00 2050518 06/20/18 18331 CORE & MAIN LP I558271 05/25/18 INVENTORY 2050436 06/06/18 04119 CLARKSON LAB & SUPPLY INC 95803 05/14/18 96291 05/31/18 BACTERIOLOGICAL TESTING (5/18/18-5/19/18) 183.00 96290 05/31/18 BACTERIOLOGICAL TESTING (5/18/18) 159.00 96289 05/31/18 BACTERIOLOGICAL TESTING (5/17/18-5/19/18) 344.00 96292 05/31/18 BACTERIOLOGICAL TESTING (5/22/18) 290.00 96287 05/31/18 BACTERIOLOGICAL TESTING (5/8/19-5/9/18) 832.00 96288 05/31/18 BACTERIOLOGICAL TESTING (5/15/18) 416.00 BACTERIOLOGICAL TESTING (5/22/18-5/23/18) 908.00 96286 05/31/18 BACTERIOLOGICAL TESTING (5/8/18-5/9/18) 832.00 2050517 06/20/18 04119 CLARKSON LAB & SUPPLY INC 96293 05/31/18 AR048789 05/14/18 GARDEN TOUR (4/17/18) 137.08 AR048791 05/14/18 GARDEN TOUR (4/19/18) 125.50 GARDEN TOUR (2/28/18) 190.27 AR048790 05/14/18 GARDEN TOUR (4/18/18) 139.87 2050435 06/06/18 02026 CHULA VISTA ELEM SCHOOL DIST AR048626 04/12/18 21,543.00 2050482 06/13/18 18866 CH SS FUND FRONTERA Ref002508163 06/11/18 UB Refund Cst #0000241849 573.85 573.85 226.28 226.28 2050434 06/06/18 15177 CAROLLO ENGINEERS INC 0167626 05/10/18 CONSTRUCTION FOR 870-2 PS (4/1/18-4/30/18) 21,543.00 EMPLOYEE PROGRAM 500.00 500.00 2050382 05/30/18 18825 CARMAN GOBEN Ref002507003 05/24/18 UB Refund Cst #0000239010 2050433 06/06/18 18835 CARLTON OAKS GOLF & CNTRY CLUB 53118CO 05/31/18 121.23 2050432 06/06/18 08490 CALIFORNIA BANK & TRUST 704302018 05/15/18 RET/TC CONST A#7003 (ENDING 4/30/18) 11,200.13 11,200.13 2050481 06/13/18 16171 BURGIN, BRUNO 051018 06/07/18 SAFETY BOOT REIMBURSEMENT 121.23 Page 2 of 8 Check TotalAmount CHECK REGISTER Otay Water District Date Range: 5/24/2018 - 6/20/2018 Check # Date Vendor Vendor Name Invoice Inv. Date Description 14,713.53 4,398.47 403.33 481.00 481.00 2050486 06/13/18 18727 FRANCHISE TAX BOARD Ben2508205 06/14/18 BI WEEKLY PAYROLL DEDUCTION 403.33 BI-WEEKLY PAYROLL DEDUCTION 125.00 125.00 2050391 05/30/18 18727 FRANCHISE TAX BOARD Ben2507044 05/31/18 BI WEEKLY PAYROLL DEDUCTION 2050390 05/30/18 18600 FRANCHISE TAX BOARD Ben2507042 05/31/18 87.61 2050485 06/13/18 18600 FRANCHISE TAX BOARD Ben2508201 06/14/18 BI-WEEKLY PAYROLL DEDUCTION 125.00 125.00 135.00 135.00 2050389 05/30/18 11962 FLEETWASH INC x1310165 05/04/18 FLEET VEHICLE WASHING 87.61 ONLINE DOCUMENTS 99.00 99.00 2050524 06/20/18 02591 FITNESS TECH 10931 06/01/18 EQUIPMENT MAINTENANCE (JUNE 2018) 2050523 06/20/18 17888 FIRST AMERICAN DATA TREE LLC 9003400518 05/31/18 INVENTORY 4,021.34 06309841 05/09/18 INVENTORY 377.13 2050443 06/06/18 03546 FERGUSON WATERWORKS # 1083 0633918 05/16/18 0637356 06/11/18 INVENTORY 436.98 0637632 06/13/18 INVENTORY 433.16 06339183 06/07/18 INVENTORY 1,252.06 06339181 05/23/18 INVENTORY 835.44 0635838 05/31/18 4" GATE VALVES 3,148.46 06339182 05/31/18 INVENTORY 1,619.72 13,860.00 13,860.00 2050522 06/20/18 03546 FERGUSON WATERWORKS # 1083 0637336 06/13/18 INVENTORY 6,987.71 UB Refund Cst #0000182430 121.16 121.16 2050442 06/06/18 18795 ESM SOFTWARE LLC 493 05/21/18 STRATEGIC PLANNING SOFTWARE (5/21/18-5/20/19) 2050388 05/30/18 18808 EPIFANIA R RODRIGUEZ Ref002506986 05/24/18 248.34 2050484 06/13/18 18658 ENVIRONMENTAL LEVERAGE INC 7090 05/10/18 ONSITE AUDIT & TRAINING CLASS 4,485.00 4,485.00 106.20 106.20 2050387 05/30/18 18807 ELVA CAMPOS Ref002506985 05/24/18 UB Refund Cst #0000173341 248.34 SAFETY BOOTS REIMBURSEMENT 150.00 150.00 2050386 05/30/18 18829 ELEANOR LUMAHAN Ref002507007 05/24/18 UB Refund Cst #0000240692 2050441 06/06/18 14323 EDWARDS, JEFFREY 051118 06/01/18 5.25 2050385 05/30/18 18827 DONALD HAVERKAMP Ref002507005 05/24/18 UB Refund Cst #0000240017 72.90 72.90 1,525.75 1,525.75 2050384 05/30/18 18799 DONALD BELANGER Ref002506977 05/24/18 UB Refund Cst #0000047573 5.25 RECONFIGURATION DESIGN 2,950.00 2,950.00 2050440 06/06/18 18705 DELPAK SYSTEMS LTD EI1883000075 05/09/18 GPS TRACKING SYSTEM (APR 2018) 2050439 06/06/18 18756 CULTURA 3237 03/30/18 8,478.70 2050521 06/20/18 04443 CSI SERVICES INC 8220 05/30/18 COATING INSPECTION (4/23/18-5/11/18) 10,180.25 10,180.25 134.47 134.47 2050520 06/20/18 17770 COX BUSINESS 6702052418 05/24/18 TELECOM SVCS / METRO-E (5/24/18-6/23/18) 8,478.70 UB Refund Cst #0000238875 30.06 30.06 2050483 06/13/18 17770 COX BUSINESS 0301052818 05/28/18 TELECOM SVCS / METRO-E (5/28/18-6/27/18) 2050383 05/30/18 18824 COURTNEY MONTBRAND Ref002507002 05/24/18 Page 3 of 8 Check TotalAmount CHECK REGISTER Otay Water District Date Range: 5/24/2018 - 6/20/2018 Check # Date Vendor Vendor Name Invoice Inv. Date Description 3,247.37 19,083.60 CUSTOMER REFUND 185.44 185.442050489 06/13/18 17399 JENNIFER HULL 8946060618 06/06/18 1,837.80 2050397 05/30/18 18806 JEANETTE BOLIN Ref002506984 05/24/18 UB Refund Cst #0000139794 21.95 21.95 1,837.80 1,837.80 2050453 06/06/18 10563 JCI JONES CHEMICALS INC 755790 05/08/18 CHLORINE GAS 1,837.80 ANTENNA SUBLEASE (JUNE 2018) 1,673.00 1,673.00 2050529 06/20/18 10563 JCI JONES CHEMICALS INC 758505 06/04/18 CHLORINE GAS 2050396 05/30/18 17106 IWG TOWERS ASSETS II LLC 446082 06/01/18 137515 05/31/18 BILL PROCESSING SVCS (MAY 2018) 4,289.68 137918 06/04/18 BILL PROCESSING SVCS (MAY 2018) 2,255.25 704.58 704.58 2050528 06/20/18 08969 INFOSEND INC 137516 05/31/18 BILL PROCESSING SVCS (MAY 2018) 12,538.67 AS-NEEDED ENVIRONMENTAL (4/1/18-4/27/18) 480.00 480.00 2050527 06/20/18 17816 INDUSTRIAL SCIENTIFIC CORP 2103040 05/31/18 GAS DETECTION PROGRAM (MAY 2018) 2050452 06/06/18 15622 ICF JONES & STOKES INC 0129971 05/14/18 1,696.52 2050451 06/06/18 13349 HUNSAKER & ASSOCIATES 2018040085 05/10/18 LAND SURVEYING (3/31/18-4/27/18) 5,224.00 5,224.00 32.18 32.18 2050395 05/30/18 13237 HOWARD ASBURY 4216052318 05/29/18 CUSTOMER REFUND 1,696.52 UB Refund Cst #0000242048 324.98 324.98 2050394 05/30/18 18802 HOMETOWN PADILLA REALTY Ref002506980 05/24/18 UB Refund Cst #0000071613 2050393 05/30/18 18753 HOMEFED VILLAGE III LLC Ref002507010 05/24/18 1,869.48 2050392 05/30/18 18828 HERITAGE BUILDING & DEVELOPMEN Ref002507006 05/24/18 UB Refund Cst #0000240669 85.78 85.78 4,962.24 4,962.24 2050450 06/06/18 00062 HELIX WATER DISTRICT 0062050518 05/03/18 WTR CONS DATABASE SVCS (7/1/17-6/30/18) 1,869.48 ENVIRONMENTAL SERVICES (APR 2018) 12,792.11 12,792.11 2050526 06/20/18 02008 HELIX ENVIRONMNTL PLANNING INC 66479 05/29/18 AS-NEEDED ENVIRONMENTAL (ENDING 5/20/18) 2050449 06/06/18 02008 HELIX ENVIRONMNTL PLANNING INC 66057 05/15/18 7,500.00 2050448 06/06/18 18436 HAZEN AND SAWYER DPC 200940003 05/15/18 HYDRAULIC MODELING (APR 2018) 2,460.00 2,460.00 8,909.50 8,909.50 2050447 06/06/18 03668 HARRELL & COMPANY ADVISORS LLC 052318 05/23/18 MUNICIPAL ADVISOR 7,500.00 CLARIFIER SPARE PARTS 4,915.23 4,915.23 2050446 06/06/18 12907 GREENRIDGE LANDSCAPE INC 16879 05/15/18 LANDSCAPING SERVICES (MAY 2018) 2050445 06/06/18 12008 GIERLICH-MITCHELL INC 15235 05/11/18 10026034 05/23/18 HP LAPTOP 236.62 10026319 05/24/18 HP LAPTOP 209.66 4,442.66 4,442.66 2050525 06/20/18 03537 GHA TECHNOLOGIES INC 10027514 05/31/18 HP LAPTOP 2,801.09 MILEAGE REIMBURSEMENT (5/2/18-5/30/18) 207.65 207.65 2050488 06/13/18 03537 GHA TECHNOLOGIES INC 10025533 05/21/18 CRADLEPOINTS ROUTERS 2050487 06/13/18 17855 GASTELUM, HECTOR 050218053018 06/12/18 2050444 06/06/18 13563 FRIENDS OF THE WATER 456 06/04/18 GARDEN TOURS (MAY 2018) 3,040.00 3,040.00 Page 4 of 8 Check TotalAmount CHECK REGISTER Otay Water District Date Range: 5/24/2018 - 6/20/2018 Check # Date Vendor Vendor Name Invoice Inv. Date Description WEB CONSULTING 2,310.00 2,310.002050531 06/20/18 18172 NIGHTCODERS 138 05/24/18 13,421.22 2050413 05/30/18 16255 NATIONWIDE RETIREMENT Ben2507032 05/31/18 BI-WEEKLY DEFERRED COMP PLAN 15,021.12 15,021.12 2,700.00 2,700.00 2050493 06/13/18 16255 NATIONWIDE RETIREMENT Ben2508191 06/14/18 BI-WEEKLY DEFERRED COMP PLAN 13,421.22 UB Refund Cst #0000217125 33.39 33.39 2050459 06/06/18 16898 NATIONAL METER & AUTOMATION S1092930002 05/14/18 CELL UNITS 2050412 05/30/18 18816 NALEE TANGI Ref002506994 05/24/18 75.32 2050458 06/06/18 18622 MRC GLOBAL (US) INC 8522668001 05/11/18 LIMITORQUE VALVE REPAIRS 8,359.79 8,359.79 252.50 252.50 2050411 05/30/18 18826 MISTY HARVIE Ref002507004 05/24/18 UB Refund Cst #0000239254 75.32 UB Refund Cst #0000031614 32.38 32.38 2050492 06/13/18 16613 MISSION RESOURCE CONSERVATION 389 06/06/18 WATERSMART SERVICES (MAY 2018) 2050491 06/13/18 18863 MELODY BATUYONG Ref002508160 06/11/18 42.24 2050457 06/06/18 02882 MAYER REPROGRAPHICS INC 0024294IN 05/25/18 REPROGRAPHIC SERVICES 428.99 428.99 11.55 11.55 2050410 05/30/18 18833 MATTHEW MCCUTCHEON Ref002507012 05/24/18 UB Refund Cst #0000242349 42.24 UB Refund Cst #0000243622 1,202.22 1,202.22 2050409 05/30/18 18820 MARY JO JAMISON Ref002506998 05/24/18 UB Refund Cst #0000231337 2050408 05/30/18 18834 MARK CHAPMAN Ref002507013 05/24/18 9.32 2050407 05/30/18 18809 MARICELA RIOS Ref002506987 05/24/18 UB Refund Cst #0000199302 28.29 28.29 84.05 84.05 2050406 05/30/18 18819 MARIA GUZMAN Ref002506997 05/24/18 UB Refund Cst #0000231163 9.32 UB Refund Cst #0000232077 324.98 324.98 2050405 05/30/18 18810 MARCELLA GAPUSAN Ref002506988 05/24/18 UB Refund Cst #0000203967 2050490 06/13/18 18864 LUSARDI CONTRUCTION Ref002508161 06/11/18 61.47 2050404 05/30/18 18804 LINDA SANDERS Ref002506982 05/24/18 UB Refund Cst #0000080607 150.00 150.00 1,050.00 1,050.00 2050403 05/30/18 18805 LEONARDO PASCO Ref002506983 05/24/18 UB Refund Cst #0000086771 61.47 CP#10 FUEL TRAILER 14,650.00 14,650.00 2050530 06/20/18 15597 LEONARD H VILLARREAL 052918 05/29/18 PROFESSIONAL SERVICES 2050456 06/06/18 18618 LDJ MANUFACTURING INC 30655 04/20/18 4,440.96 2050402 05/30/18 18832 KRUER GENERAL ENGINEERING Ref002507011 05/24/18 UB Refund Cst #0000242347 1,280.60 1,280.60 25.53 25.53 2050455 06/06/18 12276 KONECRANES INC SDG001026890 05/17/18 CORD REEL 4,440.96 (CP) REPLACEMENT 1/2 TON TRUCKS 168,069.10 168,069.10 2050401 05/30/18 18815 KIMBERLY RUGAMA Ref002506993 05/24/18 UB Refund Cst #0000213328 2050454 06/06/18 05109 KEARNY PEARSON FORD OWS006 04/30/18 108.71 2050400 05/30/18 18797 JOSE FIGUEROA Ref002506975 05/24/18 UB Refund Cst #0000002867 94.63 94.63 349.57 349.57 2050399 05/30/18 18800 JOEL SACHS Ref002506978 05/24/18 UB Refund Cst #0000047699 108.71 2050398 05/30/18 18803 JENNIFER SECORD Ref002506981 05/24/18 UB Refund Cst #0000072854 Page 5 of 8 Check TotalAmount CHECK REGISTER Otay Water District Date Range: 5/24/2018 - 6/20/2018 Check # Date Vendor Vendor Name Invoice Inv. Date Description 92,731.57 116,544.67053118 05/31/18 UTILITY EXPENSES (MONTHLY) 492.17 UTILITY EXPENSES (MONTHLY) 95,248.18 052318a 05/23/18 UTILITY EXPENSES (MONTHLY) 20,804.32 2050497 06/13/18 00121 SAN DIEGO GAS & ELECTRIC 060418 06/04/18 UTILITY EXPENSES (MONTHLY) 73,231.93 052418 05/24/18 UTILITY EXPENSES (MONTHLY) 19,499.64 2050463 06/06/18 00121 SAN DIEGO GAS & ELECTRIC 052418A 05/24/18 250.00 2050543 06/20/18 00003 SAN DIEGO COUNTY WATER AUTH 0000001677 05/24/18 REFUND DEPOSIT 97.71 97.71 250.00 250.00 2050462 06/06/18 00003 SAN DIEGO COUNTY WATER AUTH 0000001672 05/11/18 WATERSMART PROGRAM (MAR 2018) 250.00 INVENTORY 3,318.70 3,318.70 2050496 06/13/18 02586 SAN DIEGO COUNTY ASSESSOR 201800511 06/04/18 ASSESSOR DATA (MAY 2018) 2050542 06/20/18 09148 S & J SUPPLY COMPANY INC S100111029001 04/25/18 10,950.00 2050461 06/06/18 08972 RICK ENGINEERING COMPANY 0061022 05/17/18 CAMPO RD SUPP SVCS (3/31/18-4/27/18) 1,478.00 1,478.00 140.20 140.20 2050541 06/20/18 15647 RFYEAGER ENGINEERING LLC 18101 06/01/18 CORROSION SERVICES (MAY 2018) 10,950.00 UB Refund Cst #0000232638 46.18 46.18 2050495 06/13/18 00334 RANDOLPH MANUFACTURING CO 3018602 04/02/18 REPAIR PART 2050418 05/30/18 18821 RACHEL HEERANN Ref002506999 05/24/18 1,663.67 2050417 05/30/18 18822 PULICE CONSTRUCTION INC Ref002507000 05/24/18 UB Refund Cst #0000232868 1,673.23 1,673.23 437.50 437.50 2050416 05/30/18 18817 PULICE CONSTRUCTION INC Ref002506995 05/24/18 UB Refund Cst #0000226414 1,663.67 TRAVEL EXPENSE REIMB (6/10/18-6/14/18) 1,262.66 1,262.66 2050540 06/20/18 03613 PSOMAS 141101R 05/31/18 DESIGN SERVICES (ENDING 4/26/18) 2050539 06/20/18 03351 POSADA, ROD 061018061418 06/14/18 117.00 2050538 06/20/18 15081 PINOMAKI DESIGN 5715 06/01/18 GRAPHIC DESIGN 677.50 677.50 34,959.81 34,959.81 2050494 06/13/18 18867 PATRICIA DELGADO 0113060418 06/04/18 CUSTOMER REFUND 117.00 INVENTORY 1,840.46 1,840.46 2050537 06/20/18 18562 PACIFIC WESTERN BANK 504302018 05/25/18 RET/PACIFIC HYDROTECH A#7533 (ENDING 4/30/18) 2050536 06/20/18 01002 PACIFIC PIPELINE SUPPLY INC 323138 06/14/18 10.32 2050535 06/20/18 06646 PACIFIC HYDROTECH CORPORATION 504302018 05/25/18 870-2 PS REPLACEMENT (ENDING 4/30/18) 664,236.29 664,236.29 742.82 742.82 2050415 05/30/18 18814 OWEN USHER Ref002506992 05/24/18 UB Refund Cst #0000208288 10.32 ENGINEERING DESIGN (APR 2018) 20,915.00 20,915.00 2050534 06/20/18 17527 OTERO, TENILLE 040918041218 06/12/18 TRAVEL EXPENSE REIMB (4/9/18-4/12/18) 2050533 06/20/18 18332 NV5 INC 90445 06/01/18 13.77 2050460 06/06/18 18332 NV5 INC 88448 05/09/18 ENGINEERING DESIGN (MAR 2018) 28,827.30 28,827.30 4,223.50 4,223.50 2050414 05/30/18 18801 NORMA BARRAGAN Ref002506979 05/24/18 UB Refund Cst #0000050669 13.77 2050532 06/20/18 00761 NINYO & MOORE GEOTECHNICAL 218468 05/30/18 GEOTECHNICAL SERVICES (3/31/18-4/27/18) Page 6 of 8 Check TotalAmount CHECK REGISTER Otay Water District Date Range: 5/24/2018 - 6/20/2018 Check # Date Vendor Vendor Name Invoice Inv. Date Description 86,753.73 115.86 MGMT/INSP (APR 2018) 24,078.00 24,078.002050473 06/06/18 08028 VALLEY CONSTRUCTION MANAGEMENT SD177611 05/01/18 110.00 2050548 06/20/18 08028 VALLEY CONSTRUCTION MANAGEMENT SD177612 06/01/18 MGMT/INSP (MAY 2018) 18,135.00 18,135.00 7,994.20 7,994.20 2050472 06/06/18 06829 US SECURITY ASSOCIATES INC 2184412 05/24/18 PATROLLING SERVICES (MAY 2018) 110.00 ADM FEES FOR 2016 WTR REV BNDS (5/1/18-4/30/19)2,855.00 2,855.00 2050471 06/06/18 08402 US POSTMASTER OWD10914P 05/25/18 POSTAGE - PERMIT #700 2050470 06/06/18 13047 UNION BANK NA 1098403 05/20/18 34.98 2050547 06/20/18 00427 UNDERGROUND SERVICE ALERT 520180501 06/01/18 UNDERGROUND ALERTS 851.50 851.50 28,671.00 28,671.00 2050422 05/30/18 18813 TRAVIS ZANDER Ref002506991 05/24/18 UB Refund Cst #0000206200 34.98 UB Refund Cst #0000230056 59.69 59.69 2050469 06/06/18 02641 TRANE US INC 38941041 04/09/18 BUILDING AUTOMATION SYSTEM 2050421 05/30/18 18818 TOMAS CAVERO Ref002506996 05/24/18 91.65 2050468 06/06/18 15398 TIMMONS GROUP INC 205627 05/07/18 CITYWORKS ASSESSMENT (APRIL 2018) 2,380.00 2,380.00 1,050.00 1,050.00 2050502 06/13/18 18862 THOMAS BRULE Ref002508159 06/11/18 UB Refund Cst #0000009624 91.65 HILLSDALE RD PROJECTS (ENDING 4/30/18) 212,802.37 212,802.37 2050546 06/20/18 02376 TECHKNOWSION INC 2826 06/05/18 SCADA SERVICES (5/30/18-6/1/18) 2050467 06/06/18 01834 TC CONSTRUCTION CO INC 704302018 05/15/18 2,500.00 2050466 06/06/18 17704 T&T JANITORIAL INC 20184649 04/30/18 JANITORIAL SERVICES (APR 2018) 4,780.00 4,780.00 600.00 600.00 2050501 06/13/18 18376 SVPR COMMUNICATIONS 1208 03/31/18 COMMUNICATION CONSULTANT (MAR 2018) 2,500.00 LIFE INSURANCE AND LTD/STD 9,215.35 9,215.35 2050478 06/06/18 07362 SUSAN MARCUS 60518SM 06/05/18 EMPLOYEE PROGRAM (JUNE 2018) 050118053118a 06/12/18 EXPENSE REIMBURSEMENT (MAY 2018) 23.75 2050420 05/30/18 15974 SUN LIFE FINANCIAL 81665118 05/24/18 1,528.37 1,528.37 2050500 06/13/18 16229 SMITH, TIMOTHY 050118053118 06/12/18 MILEAGE REIMBURSEMENT (MAY 2018) 92.11 RESEVOIR COATING & UPGRADES (ENDING 5/31/18)137,814.17 137,814.17 2050499 06/13/18 00258 SLOAN ELECTRIC COMPANY 5112501 03/30/18 REPAIR OF FLOATING MIXERS 2050545 06/20/18 18396 SIMPSON SANDBLASTING & SPECIAL 505312018 05/25/18 146.00 2050465 06/06/18 18396 SIMPSON SANDBLASTING & SPECIAL 404302018 05/16/18 RESEVOIR COATING & UPGRADES (ENDING 4/30/18)612,157.57 612,157.57 7,440.00 7,440.00 2050464 06/06/18 15000 SEGURA, ADOLFO 061118061418 06/04/18 MEAL ADVANCEMENT (6/11/18-6/14/18) 146.00 TUITION REIMBURSEMENT 311.43 311.43 2050544 06/20/18 12421 SCS ENGINEERS 0326349 05/31/18 CAL-ARP PROGRAM UPDATE (MAY 2018) 052218 05/22/18 UTILITY EXPENSES (MONTHLY) 603.44 2050498 06/13/18 07442 SCHULTZ, ALEXANDER 060718AS 06/07/18 UTILITY EXPENSES (MONTHLY) 76,262.52 052318 05/23/18 UTILITY EXPENSES (MONTHLY) 9,887.77 2050419 05/30/18 00121 SAN DIEGO GAS & ELECTRIC 051818 05/18/18 Page 7 of 8 Check TotalAmount CHECK REGISTER Otay Water District Date Range: 5/24/2018 - 6/20/2018 Check # Date Vendor Vendor Name Invoice Inv. Date Description 4,690.74 16,650.54 500.00 375.00 Amount Pd Total: 3,086,776.35 Check Grand Total: 3,086,776.35 787.50 2050553 06/20/18 18215 ZAYO GROUP LLC 2018060024566 06/01/18 COLOCATION SERVICES (JUNE 2018) 2,180.71 2,180.71 212,320.29 212,320.29 2050552 06/20/18 08023 WORKTERRA 0088770IN 05/31/18 EMPLOYEE BENEFITS (MAY 2018) 787.50 RET/WEIR CONST #2222 (ENDING 4/30/18) 11,174.75 11,174.75 2050477 06/06/18 18101 WIER CONSTRUCTION CORP 1004302018 05/14/18 SEWER REPLACEMENT (ENDING 4/30/18) 13476 05/29/18 BEE REMOVAL 125.00 2050476 06/06/18 18173 WESTERN ALLIANCE BANK 1004302018 05/14/18 BEE REMOVAL 125.00 13444 05/22/18 BEE REMOVAL 125.00 2050551 06/20/18 01343 WE GOT YA PEST CONTROL INC 13443 05/22/18 11150 02/13/18 BEE REMOVAL 125.00 11163 02/15/18 BEE REMOVAL 125.00 BEE REMOVAL 125.00 11100 02/07/18 BEE REMOVAL 125.00 2050475 06/06/18 01343 WE GOT YA PEST CONTROL INC 13347 05/08/18 9,827.67 572004 04/11/18 PROJECTOR INSTALLATION 4,875.95 575104 05/15/18 ALARM MONITORING (JUNE 2018) 1,946.92 ALARM EQUIPMENT INSTALLATION 8,633.16 8,633.16 2050474 06/06/18 15807 WATCHLIGHT CORPORATION 572624 04/24/18 EMERGENCY SYSTEM 2050506 06/13/18 15807 WATCHLIGHT CORPORATION 571934 04/09/18 576942 05/23/18 SECURITY EQUIPMENT INSTALLATION 1,570.58 576941 05/23/18 SECURITY EQUIPMENT INSTALLATION 1,172.09 23.32 23.32 2050550 06/20/18 15807 WATCHLIGHT CORPORATION 576939 05/23/18 SECURITY EQUIPMENT INSTALLATION 1,948.07 FLEXIBLE SPENDING ACCT (MAY 2018) 417.50 417.50 2050427 05/30/18 18830 WALEED ZAKO Ref002507008 05/24/18 UB Refund Cst #0000240918 2050549 06/20/18 10340 WAGEWORKS INC INV724849 05/23/18 196.14 2050426 05/30/18 18798 VIRGILIO PADILLA Ref002506976 05/24/18 UB Refund Cst #0000008662 87.38 87.38 47,871.34 47,871.34 2050425 05/30/18 18812 VILAY FERRENBURG Ref002506990 05/24/18 UB Refund Cst #0000204657 196.14 BI-WEEKLY 401A PLAN 1,179.27 1,179.27 2050505 06/13/18 12686 VANTAGEPOINT TRANSFER AGENTS Ben2508203 06/14/18 401A TERMINAL PAY 2050504 06/13/18 06414 VANTAGEPOINT TRANSFER AGENTS Ben2508199 06/14/18 14,915.68 2050424 05/30/18 06414 VANTAGEPOINT TRANSFER AGENTS Ben2507040 05/31/18 BI-WEEKLY 401A PLAN 1,179.27 1,179.27 14,982.86 14,982.86 2050423 05/30/18 01095 VANTAGEPOINT TRANSFER AGENTS Ben2507038 05/31/18 BI-WEEKLY DEFERRED COMP PLAN 14,915.68 2050503 06/13/18 01095 VANTAGEPOINT TRANSFER AGENTS Ben2508197 06/14/18 BI-WEEKLY DEFERRED COMP PLAN Page 8 of 8