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05-24-17 Board Packet
1 OTAY WATER DISTRICT SPECIAL MEETING OF THE BOARD OF DIRECTORS DISTRICT BOARDROOM 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY May 24, 2017 3:00 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. 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 WORKSHOP 5. ADOPT RESOLUTION NO. 4336 TO APPROVE THE FY 2017-2018 OPERATING AND CAPITAL BUDGET; APPROVE FUND TRANSFERS FOR POTABLE, RECY- CLED, AND SEWER; ADOPT THE SALARY SCHEDULE; APPROVE THE SEWER RATES; ADOPT ORDINANCE NO. 564 AMENDING THE CODE OF ORDINANC- ES APPENDIX A WITH THE PROPOSED SEWER RATE CHANGES EFFECTIVE JANUARY 1, 2018; DIRECT STAFF TO DRAFT AND MAIL SEWER RATE IN- CREASE NOTICES TO SEWER CUSTOMERS; AND DIRECT STAFF TO DRAFT AND MAIL PROPOSITION 218 NOTICES FOR POTABLE AND RECYCLED WA- TER CUSTOMERS (KOEPPEN) RECESS TO CLOSED SESSION 6. CLOSED SESSION a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Ini- tiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: 1 CASE RETURN TO OPEN SESSION 2 7. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION 8. ADJOURNMENT All items appearing on this agenda, whether or not expressly listed for action, may be deliberated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the District’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available 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 participate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior to the meeting. Certification of Posting I certify that on May 19, 2017, 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 24 hours in advance of the special meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on May 19, 2017. /s/ Susan Cruz, District Secretary STAFF REPORT TYPE MEETING: Budget Workshop MEETING DATE: May 24, 2017 SUBMITTED BY: Kevin Koeppen, Finance Manager PROJECT: DIV. NO. All APPROVED BY: (Chief) Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Adopt Resolution No. 4336 to Approve the FY 2017-2018 Operating and Capital Budget; Approve Fund Transfers for Potable, Recycled and Sewer; Adopt the Salary Schedule; Approve Sewer Rates; and Adopt Ordinance No. 564 Amending the Code of Ordinances Appendix A with the Proposed Sewer Rate Changes; Direct Staff to Draft and Mail Sewer Rate Increase Notices; and Direct Staff to Draft and Mail Proposition 218 Notices for Potable and Recycled Water Customers GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Resolution No. 4336 to approve the FY 2017- 2018 Operating and Capital Budget including the following: a) Approve the fund transfers for potable, recycled and sewer (Attachment A). b) Adopt the Salary Schedule. c) Approve the sewer rates. d) Adopt Ordinance 564 amending Appendix A with the proposed sewer rate changes, effective January 1, 2018. e) Direct staff to draft and mail sewer rate increase notices to sewer customers. f) Direct staff to draft and mail Proposition 218 notices for potable and recycled water customers. 2 PURPOSE: To adopt Resolution No. 4336 to approve the FY 2017-2018 Operating and Capital Budget; approve fund transfers for potable, recycled, and sewer; adopt the Salary Schedule; approve sewer rates; and adopt Ordinance No. 564 amending the Code of Ordinances Appendix A with the proposed sewer rate changes; direct staff to draft and mail sewer rate increase notices; and direct staff to draft and mail Proposition 218 notices for potable and recycled water customers. BACKGROUND: Each year the District goes through a rate setting process with new challenges. The process begins in January and ends with the implementation of rates the following January. The effects of the drought and the governor’s mandates continue to impact the District. While the District is seeing a slight return in water volumes from the low experienced in 2016, the current and projected water sales volumes are well below 2015 levels. The District performed a Cost of Service Study for water rate structures and presented it to the Board on April 17, 2017. The purpose of a Cost of Service Study is to ensure the rate structure meets the constitutional requirements of Proposition 218. In addition, the Cost of Service Study considers changes in economic factors, price increases, water use patterns, infrastructure, and changes in other cost drivers. Staff has made every effort to present the most realistic set of factors and assumptions based on information received from various sources including: the wholesale water suppliers, the Metropolitan Water District of Southern California (MWD), the San Diego County Water Authority (CWA), and the City of San Diego (the City); vendors such as SDG&E; and an economic report prepared by The London Group. The information above was used in addition to other economic indicators affecting taxes and revenues such as inflation and interest rates. Staff has prepared the proposed Operating and Capital Budget with the proposed water and sewer rates. The water rates may be approved, pending the Proposition 218 hearing for water rates, while the sewer rates may be approved based on the prior 218 process. 3 DISCUSSION: Water Challenges The primary challenge for the District remains the reduced usage as a result of the Governor’s mandates and possible future reductions as a result of potential future mandates. On May 9, 2016 Governor Brown signed Executive Order B-37-16, Making Conservation a Way of Life, to continue to promote conservation during California’s multi-year drought. The Executive Order directed state agencies to transition from temporary emergency water restrictions to more permanent long- term water conservation measures. These measures included permanent monthly water use reporting, new urban water use targets, reducing system leaks, eliminating clearly wasteful practices, strengthening urban drought contingency plans and improving agricultural water management and drought plans. On May 18, 2016, the State Water Resources Control Board (SWRCB) replaced its state mandated conservation target method with a supply-based approach. This allowed water agencies to tailor drought responses to the unique situation in each service area and supporting agencies that have invested in drought-resilient supplies. In June 2016, the San Diego County Water Authority including the District, was able to show sufficient water supplies to meet demands and the conservation requirement was eliminated countywide. However, the State of California remained in a statewide drought and District customers were still exposed to drought messaging by the state and county. In February 2017, the SWRCB extended the conservation mandates only for water suppliers that did not have enough water reserves to withstand three more dry years. Under this mandate the District’s conservation requirement was reduced to zero percent. Since the state’s emergency mandates began in June 2015, the District’s customers have surpassed the state’s mandates even with the drought conditions being rescinded by an average of 18 percent reduction of use compared to 2013 totals. On April 7, 2017, the Governor lifted the drought emergency declaration, while maintaining water reporting requirements and prohibitions on wasteful practices. The Governor also released the state’s long-term plan to better prepare the state for future droughts and make conservation a California way of life. 4 On April 26, 2017, the SWRCB rescinded the conservation mandates but maintained water-use reporting requirements and prohibitions against wasteful practices. The District has consistently advocated for state policies that include supply development and water-use efficiency and will continue to work with CWA and other water agencies in San Diego County to advocate that the targets and measures in the Governor’s long-term framework support a balanced approach. Predicting changes in usage patterns due to legislative mandates, weather patterns, and growth are key challenges of the budget process. Based on the inquiries performed including, input from CWA and other local agencies, staff concluded that a significant portion of the conservation based reduction from FY 2015 and FY 2016 will likely be permanent. In FY 2017, the District has been experiencing a mild recovery in water sales volumes versus the declining volumes experienced in the previous two fiscal years. Potable Sales Volumes For fiscal year 2018, staff is budgeting potable water sales of 11.1 million units, which will be 3% above FY 2017 budgeted volumes and 1% above FY 2017 projected actual volume. Staff is estimating that the FY 2017 levels will continue into the next fiscal year, and there will also be an additional 1% increase related to growth in FY 2018. Recycled Sales Volumes For FY 2018, the recycled water sales of 1.6 million units will exceed FY 2017 budgeted and projected volumes by 5.0% and 3.5%, respectively. The 3.5% increase in recycled water volumes was based on an expectation that the rainfall levels experienced FY 2017 will not occur in FY 2018. FY 2017 rainfall of 11.9 inches was 34% above the median of the 10-year average of 8.9 inches. The National Weather service is forecasting drier than normal conditions for the Southwest in the upcoming winter months. Due to customers moving to drought tolerant landscaping during the drought, it is predicted a significant portion of the recent reductions will be permanent and that future water volume increases will come mainly from growth. The current 6-year rate model estimates growth will average approximately 1.2% annually from FY 2019 to FY 2023. These modest figures for drought recovery and growth were used to ensure adequate margins are 5 achieved to support the District’s financial position and provide stability in the event of future downturns in water usage due to drought or economic events. Sewer Challenges The focus on the sewer side is the funding of the Capital Improvement Program (CIP) costs, anticipated debt covenant requirements, and Metro sewer cost increases related to the City of San Diego’s Pure Water Program. The increase in the Metro sewer costs is currently the primary driver of the proposed rate increases as it: (1) increases the operating expenses, which reduces the projected debt ratio below the anticipated and required debt covenant levels, and (2) reduces the reserves available to fund CIP projects, which increases the necessary loan amount. The replacement and rehabilitation CIP costs total $15.9 million over the next six years. Staff is recommending the District obtain a $5.5 million State Revolving Fund (SRF) loan to fund a portion of the CIP. The SRF program includes a debt coverage covenant requirement of 110% that will be effective in FY 2021, which is one year after the project is completed. If the SRF does not have adequate funds to loan the District, traditional lending will be proposed, which will likely require a debt coverage ratio of 125%. The current proposed sewer rate increases result in a debt coverage ratio of 125% in FY 2021. There are additional items to note that would impact proposed sewer rate increases in future years. Budgeted Pure Water costs are estimates based on the most recent information provided by the City. The estimate includes assumptions regarding the allocation of Pure Water costs that have not been finalized and the City’s ability to obtain SRF loans and grant funding for the majority of the capital costs. Changes in the presumed assumptions could impact the proposed sewer rate increases for FY 2019 and FY 2020. On an annual basis, the City reconciles the sewer costs to sewer revenues and refunds the Metro member agencies for any excess revenue collected. The refunds from the City were not available at the time budgets were prepared. If future refunds are received, they would positively affect the budget by offsetting the impact of the Metro sewer cost increases and reducing the recommended level of the loan amount. 6 Strategic Planning and Internal Cost Cutting In addition to the budget and rate setting process, the District’s focus on strategic planning has played a positive role in the financial strength of the District. By managing staffing, automating processes, and implementing Best Management Practices, the District has become more efficient and cost effective. Operating Budget The proposed FY 2017-2018 budget covers CWA, and the City increases in water and sewer costs, as well as increases in power costs from SDG&E. This budget supports the Capital Budget and strategic objectives. The proposed budget presents no water rate increase for FY 2018, but does propose the implementation of changes to the water rate structure. The rate model projects 4.0% rate increases for water in fiscal years 2019 through 2023. These rate increases will maintain the District’s debt coverage ratios and reserves at or above targeted levels through 2023. For sewer customers, the rate model presents annual increases of 7.5% in fiscal years 2018 through 2020, and 2.0% increases for FY 2021 through FY 2023. When combined with the SRF loan, these increases will maintain the reserves and debt coverage at or above targeted levels through 2023. Water Debt Coverage and Credit Ratings The debt coverage ratio is the ratio of net revenues to debt service. The District historically has a “no growth” debt coverage target and bond covenant of 150% and 100%, respectively. The “no growth” debt coverage ratio excludes capacity fees from the net revenues used in the calculation. The District’s “no growth” debt coverage ratio declined to 133% in FY 2016 from 168% FY 2015. Staff is projecting a “no growth” debt coverage ratio of 166% in FY 2017, which meets the District target and the bond covenant. One of the FY 2018 budget objectives is that the District remains at or above the “no growth” debt coverage ratio target and covenant levels. 7 There is also a 125% “with growth” minimum debt coverage ratio, as defined in the bond covenants, which includes capacity fees omitted from the “no growth” calculation. The District achieved “with growth” bond covenant ratios of 199% in FY 2015 and 171% in FY 2016. Staff is projecting a “with growth” bond covenant debt ratio of 193% in FY 2017, which is above the minimum required by the District’s bond covenant. The District currently maintains a split AA/AA- credit rating, which is comprised of a ‘AA’ rating from Standard & Poor’s (S&P) and a ‘AA-’ rating from Fitch Ratings (Fitch). A credit rating is an overall rating that considers many factors and debt coverage is one of the main financial factors. These ratings are all related to the District’s water side of the business as no credit rating is issued for the District’s sewer system. In September 2008, the District received a rating upgrade from S&P to ‘AA’, from ‘AA-’, as part of their global rating recalibration for municipal agencies. In March 2012, Fitch lowered their credit rating for the District from ‘AA’ to ‘AA-’, based on lower-than-budgeted water revenues and a corresponding lower debt coverage ratio. In April 2016, S&P affirmed the Districts ‘AA’ rating with a stable outlook. The affirmed outlook was based on good historical coverage metrics, strong liquidity position, moderate leverage, and strong financial management policies and practices. S&P could take a positive rating action if the District is able to materially widen margins and provide stronger levels of coverage on a basis that S&P believes to be sustainable. They could take a negative action if water demand softens or rate increases are not approved as expected, leading to thinner margins and weaker coverage metrics, or if the District’s liquidity position is significantly drawn down. In February 2016, Fitch affirmed the District’s ‘AA-’ rating. The affirmed rating was based on the District’s willingness to raise rates in support of cost recovery, strong cash reserves, moderate leverage, and capital needs. This rating also recognized the anticipated declines in both water sales and margins due to the drought. The financial strength of the District’s sewer business is evaluated separately from the water business. While the District currently has no sewer related debt, staff is proposing a $5.5 million SRF loan. This loan is needed to meet the capital improvement needs of the District and will require a 110% coverage ratio. The City of San Diego’s pass-through of 8 Pure Water costs to the District adversely impacts the District’s ability to meet the 110% coverage ratio. The coverage requirement will becomes effective in 2020. The current six-year budget for Metro sewer expenses increased approximately $1.5 million, or an average of $250,000 per year, due to the City accelerating its Pure Water Program and passing through the associated costs to member agencies. The proposed rate increases from FY 2018 to 2020 are needed to achieve the 110% debt coverage covenant. If the SRF loan is not available and traditional debt is issued, the debt coverage covenant would likely be 125%. The current budget projects the debt coverage ratio for sewer will be 125% in 2020, which is above the debt covenant level required under either borrowing option. Financing Plan The District uses a comprehensive approach to financing. The Debt Policy provides guidance for debt issuance and refinancing. The Reserve Policy provides guidance on both fund transfers and reserve balances. With these policies, a six-year financing plan is formulated that identifies the timing and amounts of debt issuances, the level of rate increases, debt coverage ratios, reserve balances, and necessary transfers. Future debt issuances are highly dependent on the rate at which growth returns to the District and how management responds to these variables. Growth is expected to gradually return and provide funding for CIPs through capacity fees. In FY 2018, the CIP is supported by the transfers requested in Attachment A. With the proposed transfers and proposed rates, the District will be able to maintain all reserve levels at or above target levels in the coming fiscal years. Sewer Rates The proposed sewer rate increase is 7.5% for all customer classes. The impact of this increase on residential customers will be offset by a 16% reduction in winter average usage, resulting in a $0.56 monthly decrease for the typical residential customer. The rate model also projects 7.5% increases for sewer in fiscal years 2019 and 2020, followed by 2.0% increases from 2021 to 2023. The need to raise sewer rates is based on the requirement to achieve a debt coverage ratio that will meet the requirements associated with the planned debt. 9 Water Rates The proposed FY 2018 budget covers CWA’s increases in costs, supports the CIP plan, and improves the District’s financial position. The proposed budget presents no water rate increase for water customers in FY 2018, but does propose changes in the rate structure. The rate model projects 4.0% rate increases for water in fiscal years 2019 through 2023. Relative Position to Other Districts The District performs an annual county-wide survey of the water provider rates. For many years the District has remained in the lower half of this comparison. Depending on their relative dependence on CWA water, it is expected that all water providers in the county are facing the same rate pressures by purchasing water from CWA and MWD. The few water districts which have already commented on their rate increases are looking at implementing increases averaging approximately 6.0%. The District’s survey, shown in the attached presentation, illustrates the average District customer, using 12 units, will be charged the 4th lowest rate when compare to all 22 agencies in the county. The District also performs an annual survey comparing its sewer rates to other sewer providers in the county. The District’s survey, shown in the attached presentation, illustrates an average residential sewer customer will be charged the 5th lowest rate when compared to all 28 agencies in the county. Rate Implementation Sewer For FY 2018 the projected rate increase for sewer is 7.5%. The proposed rate increase is due to the estimated impact of the City of San Diego Pure Water costs on the District’s Metro fees, a reduction in winter averages, and a debt covenant requirement related to the state revolving fund loan, which will be effective in FY 2020. The typical sewer customer with a winter average of 9.5 units will see a $0.56 decrease in their monthly fees. Water Rate Implementation Staff prepared this budget using the rate structures proposed to the Board on April 17, 2017. The proposed rates being presented include the following changes to the rate structure: 10 The conservation tier for residential customers has been eliminated, reducing the number of residential tiers from 4 tiers to 3 tiers. The current system fee structure is based solely on meter size. The proposed structure bases the fee on both customer type and meter size. Irrigation, Commercial, and Public customer’s variable rate structures have been changed from a tiered rate structure to a unitary or flat rate structure. The following is a discussion of each customer class and an analysis demonstrating the impact to customers at various usage levels. Residential The elimination of the conservation tier will increase the average monthly bill for those users in the lowest water usage tiers. The tables below show the proposed changes in the usage, energy and fixed fees. Current Proposed Current Proposed < 5 unit ‐ $2.53 ‐ 6 ‐ 10 1 ‐ 10 $3.95 $3.05 11 ‐ 22 11 ‐ 22 $5.13 $5.44 over 23 unit over 23 unit $7.90 $7.03 Per Unit Per unit $0.04 $0.05 Water Usage Fee Tiers Rates Energy Fee Meter Size Current Proposed Current Proposed 0.75 $15.91 $17.38 $15.00 $15.45 1.00 $22.47 $24.56 $27.84 $28.68 1.50 $38.88 $42.49 $62.96 $64.85 2.00 $58.55 $64.00 $107.08 $110.30 Fixed Fees MWD & CWA Fixed Fees System Fee The table below summarizes the impact of the changes in the water rate structure, excluding energy fees, for residential customers at their respective usage levels. 11 Multi-Residential Staff has prepared this budget using the same tiered rate structure for multi-residential customers that is currently in place. The budget was prepared using a system fee based on customer type and meter size. The tables below show the proposed changes in the usage, energy and fixed fee rate structures. Current Proposed Current Proposed 0 ‐ 40 ‐ 4 $3.90 $2.85 5 ‐ 9 5 ‐ 9 $5.05 $5.17 over 10 unit over 10 unit $7.80 $6.35 Per Unit Per unit $0.04 $0.05 Water Usage Fee Energy Fee Meter Size Current Proposed Current Proposed 0.75 $15.91 $38.21 $15.00 $15.45 1.00 $22.47 $53.97 $27.84 $28.68 1.50 $38.88 $93.37 $62.96 $64.85 2.00 $58.55 $140.61 $107.08 $110.30 3.00 $111.04 $266.66 $227.75 $234.60 4.00 $170.10 $408.50 $364.72 $375.68 6.00 $334.18 $802.55 $746.59 $769.02 8.00 $531.05 $1,275.34 $1,205.65 $1,241.89 10.00 $760.72 $1,826.91 $1,735.39 $1,787.55 Fixed Fees MWD & CWA Fixed FeesSystem Fee The table below summarizes the fee impact per dwelling unit, excluding energy fees, for multi-residential customers. Average Monthly Usage Range (Units) Average Usage # of Customers Current Proposed Increase/ (Decrease) 0 - 5 4 6,456 $40.56 $44.35 $3.79 5.1 - 9 7 12,768 $52.50 $55.17 $2.67 9.1 - 20 13 20,542 $86.88 $82.01 ($4.87) 20.1 - 30 24 3,589 $149.65 $144.33 ($5.32) > 30 43 1,596 $298.46 $277.46 ($21.00) Average Monthly Fees 12 Commercial/Public For commercial/public customers, the budget was prepared using a unitary variable rate and a system fee based on customer type and meter size. The tables below show the proposed changes in the usage, energy and fixed fee rate structures. Current Proposed Current Proposed Unitary Rate $3.61 Tier 1 $4.17 Tier 2 $4.23 Tier 3 $4.30 Per unit Per unit $0.41 $0.41 Per Unit Per unit $0.04 $0.05 Water Usage Fee Government Fee Energy Fee Meter Size Current Proposed Current Proposed 0.75 $15.91 $35.99 $15.00 $15.45 1.00 $22.47 $50.83 $27.84 $28.68 1.50 $38.88 $87.95 $62.96 $64.85 2.00 $58.55 $132.45 $107.08 $110.30 3.00 $111.04 $251.19 $227.75 $234.60 4.00 $170.10 $384.79 $364.72 $375.68 6.00 $334.18 $755.97 $746.59 $769.02 8.00 $531.05 $1,201.32 $1,205.65 $1,241.89 10.00 $760.72 $1,720.86 $1,735.39 $1,787.55 Fixed Fees System Fee MWD & CWA The table below summarizes the impact, excluding energy fees and governmental fees, of these changes for commercial/public customers. Average Monthly Usage Range (Units) Average Usage # of Customers Current Proposed Increase/ (Decrease) 0 - 5 4 338 $20.31 $23.12 $2.81 5.1 - 9 7 177 $45.89 $48.56 $2.67 9.1 - 20 13 51 $92.60 $91.91 ($0.70) 20.1 - 30 22 9 $165.68 $152.46 ($10.00) Average Monthly Fees per Dwelling Unit 13 Potable Irrigation For potable irrigation customers the budget was prepared using a unitary variable rate and a system fee based on customer type and meter size. The tables below show the proposed changes in the usage, energy and fixed fee rate structures. Current Proposed Current Proposed Unitary Rate $5.27 Tier 1 $5.68 Tier 2 $5.74 Tier 3 $5.81 Per Unit Per unit $0.04 $0.05 Water Usage Fee Energy Fee Meter Size Current Proposed Current Proposed 0.75 $15.91 $30.40 $15.00 $15.45 1.00 $22.47 $42.93 $27.84 $28.68 1.50 $38.88 $74.28 $62.96 $64.85 2.00 $58.55 $111.85 $107.08 $110.30 3.00 $111.04 $212.13 $227.75 $234.60 4.00 $170.10 $324.98 $364.72 $375.68 6.00 $334.18 $638.44 $746.59 $769.02 8.00 $531.05 $1,014.56 $1,205.65 $1,241.89 10.00 $760.72 $1,453.33 $1,735.39 $1,787.55 System Fee MWD & CWA Fixed Fees Fixed Fees The table below summarizes the impact, excluding energy fees, of these changes for potable irrigation customers. Average Monthly Usage Range (Units) Average Usage # of Customers Current Proposed Increase/ (Decrease) 0 - 10 5 402 $93.63 $129.96 $36.33 10.1 - 75 29 680 $214.83 $245.64 $30.80 75.1 - 300 146 235 $772.72 $766.01 ($6.71) 300.1 - 1000 499 68 $2,437.51 $2,287.41 ($150.10) Average Monthly Fees Average Usage per Month (Units) Average Usage # of Customers Current Proposed Increase/ (Decrease) 0 - 10 5.0 89 $98.70 $123.98 $25.28 11 - 75 39 475 $313.40 $332.48 $19.08 76 - 300 149 491 $974.25 $956.37 ($17.88) 301 - 1000 422 75 $2,577.82 $2,435.86 ($141.96) Average Monthly Fees 14 Recycled Irrigation For recycled irrigation customers the budget was prepared using a unitary variable rate and a system fee based on customer type and meter size. The tables below show the proposed changes in the usage, energy and fixed fee rate structures. Current Proposed Current Proposed Unitary Rate $4.26 Tier 1$4.85 Tier 2$4.92 Tier 3$4.99 Per Unit Per unit $0.04 $0.05 Water Usage Fee Tiers Rates Energy Fee Meter Size Current Proposed 0.75 $15.91 $31.11 1.00 $22.47 $43.94 1.50 $38.88 $76.04 2.00 $58.55 $114.50 3.00 $111.04 $217.15 4.00 $170.10 $332.67 6.00 $334.18 $653.54 8.00 $531.05 $1,038.56 10.00 $760.72 $1,487.72 System Fee Fixed Fees The table below summarizes the impact, excluding energy fees, of these changes for recycled irrigation customers. Recycled Commercial For recycled commercial customers the budget was prepared using a unitary variable rate and a system fee based on customer type and meter size. The tables below show the proposed changes in the usage, energy and fixed fee rate structures. Average Usage per Month (Units)Average Usage # of Customers Current Proposed Increase/ (Decrease) 0 - 10 5 22 $55.78 $82.84 $27.06 10.1 - 75 39 189 $225.48 $236.86 $11.38 75.1 - 300 160 352 $821.94 $765.12 ($56.82) 300.1 - 1000 472 122 $2,376.58 $2,118.00 ($258.59) Average Monthly Fees 15 Current Proposed Current Proposed Unitary Rate $3.01 Tier 1$3.53 Tier 2$3.60 Tier 3$3.65 Per Unit Per unit $0.04 $0.05 Energy Fee Water Usage Fee Tiers Rates Meter Size Current Proposed 0.75 $15.91 $36.85 1.00 $22.47 $52.04 1.50 $38.88 $90.06 2.00 $58.55 $135.63 3.00 $111.04 $257.21 4.00 $170.10 $394.01 6.00 $334.18 $774.07 8.00 $531.05 $1,230.08 10.00 $760.72 $1,762.08 Fixed Fees System Fee The table below summarizes the impact, excluding energy fees, of these changes for recycled commercial customers. Water and Sewer Revenues Using the current projected volumes plus, a 1% growth factor for potable and a 3.5% growth factor for recycled, water sales are budgeted to be $77.0 million and $9.9 million, respectively. This is a 6.6% increase in potable water sales and a 10.8% increase in recycled water sales versus the FY 2017 budget. When compared to the FY 2017 projection, FY 2018 potable water sales are increasing $3.2 million or 4.3% and recycled water sales are increasing $0.7 million or 7.7%. The sewer budgeted revenues are expected to decrease approximately $50,000 or 1.7% compared to last year’s budget due to the 7.5% proposed rate increase offset by the declines in winter averages. Residential and multi-residential winter Average Usage per Month (Units) Average Usage # of Customers Current Proposed Increase/ (Decrease) 9950 9950 1 $36,139.50 $30,721.42 ($5,418.08) 11602 11602 1 $42,009.90 $36,685.61 ($5,324.30) Average Monthly Fees 16 averages declined 16% and 3%, respectively while commercial winter averages remained relatively unchanged. Other changes in the revenues include the following: Capacity fee revenues funding operating expenses are expected to increase $265,000 or 21.1%, due to increases in the planning area as major planning projects are completed. Property tax revenues are expected to increase $363,000 or 9.0%, due to increases in property valuations. When compared to the FY 2017 projection, the FY 2018 property tax revenue is increasing by approximately 3.8%. Non-operating revenues are expected to decrease $14,800 or 0.7%. Water Costs For FY 2018, potable and recycled water costs are budgeted to be $46.5 million and $3.7 million, respectively. Water costs represent 51.1% of the District’s Operating Budget and any changes in the wholesale water price has a significant impact on the overall operating budget. The net water cost is increasing $2.8 million. While no rate increase is being recommended for the District’s potable and recycled customers, increases in water costs from suppliers, CWA and MWD, are increasing the overall purchase cost of water by $1.7 million. The remaining $1.1 million increase is due to the increased water sales volumes. The City’s FY 2017 recycled water rate of $1.73/hcf is budgeted to continue through FY 2018. The $0.1 million increase in purchase costs is due primarily to the take-or-pay penalty due to purchase volumes not meeting the contractual minimums. Power Costs Power costs of $3.0 million for water and sewer are budgeted to increase $85,800 or 2.9% versus the FY 2017 budget. This is due primarily to an increase in the FY 2018 water volumes and a 2.5% anticipated price increase from SDG&E. Labor and Benefits The District has, through strategic planning, reduced the FTE count by 23% from 174.75 in FY 2007 to 135.0 in FY 2017, and has 17 budgeted to reduce the FTEs to 134 in FY 2018. The reduction in FTE’s has saved the District $36.3 million over the ten-year period. The reduction in FTEs and the transition of the employee group to be covered under the Public Employees Public Reform Act (PEPRA) will reduce long-term pension costs. Labor and benefit costs of $21.5 million are expected to increase, versus the FY 2017 budget, by $622,200 or 3.0%. These changes are due to the following: Increase in salaries for negotiated Memorandum of Understanding (MOU) COLA and in-range salary adjustments of $348,300. Increase in overtime, vacancy factor, vacation/sick, and workers compensation of $114,900. Increase in pension costs of $216,600. Increase in health costs of $37,000. Increase for staff advancements (promotions) of $39,200. Increase in temporary labor costs of $56,700, due to a temporary position in the lab. Decrease in staffing level of ($91,400), due to a reduction of 1 FTE. Decrease in OPEB, offset by employee contributions (on track with 2015 actuarial valuation) of ($57,000). Decrease due to increases in allocation to work orders ($42,100). Annual Salary Schedule While the General Manager has authority to set salaries pursuant to 2.01 of the Code of Ordinances, recent legislation, namely the California Code of Regulations (CCR) section 570.5, adopted and effective August 10, 2011, as well as a CalPERS circular letter clarifying section 570.5, require information regarding the compensation of public employees to be publicly available. Thus, in order to be in compliance with CCR 570.5, the District is required to have a publicly available Salary Schedule that “has been duly approved and adopted by the employer’s governing body in accordance with requirements of applicable public meeting laws.” As such, a copy of the Job Classification and Salary Schedule is included herein for Board approval (Exhibit B). Although District salaries are already made public as a part of our NeoGov recruitment system, this Salary Schedule will be retained for public inspection for the required five years 18 and posted to the District’s website per requirements of CalPERS. Please note, that making such information publicly available does not in any way interfere with or change the General Manager’s authority to set salaries pursuant to the authority granted to him. Accordingly, and consistent with such authority, the Board is requested to authorize the General Manager to update the Salary Schedule, when necessary, to reflect changes made within his authority. Administrative Expenses The administrative expenses budget of $5.5 million is increasing, versus the FY 2017 budget, by $335,600 or 6.5%, primarily due to the following: Increases in Insurance and Legal Expense of $311,000 or 37.7%, are primarily due to a $225,000 increase in legal expenses related to potential legal action pertaining to recycled water supplier rate challenges. Insurance expense is increasing $86,000 due to a $7,000 increase in the deductible for main breaks and a 10% or $38,000 increase in the premiums versus FY 2017. The main break deductible for FY 2018 will be $12,000 per break with an annual budget impact of $48,000. In FY 2018, the main break deductible was moved from the General Manager’s budget to the Insurance budget. The $28,000 net annual increase operating budget for this deductible is reflected in the operating budget as a $48,000 increase in the Insurance and Legal Expense and a $20,000 reduction in the General Manager’s budget. Increase in Equipment Expense of $74,900 due to software/solutions transitioning from CIP to ongoing maintenance and existing IT contracts being re-negotiated and renewed in fiscal year 2018. Increase in Travel and Memberships of $36,800 or 17.6% primarily due to a $25,000 membership fee for the Association of California Water Agencies as well as other increases in AWWA, CSDA, and the WateReuse Association. In addition, travel and mileage expenses have increased for the Board and the General Manager’s department. 19 Increase in Director’s Fees of $7,000 or 21.2% to meet the Board approved director fee amounts for attendance at various functions. Decrease in Services of ($85,400) or (4.1%), primarily due to shifting the funding for the leak detection program from the District to the Pio Pico grant. Increase in the overhead allocation of $4,900, which reduces the overall administrative expense as the level of allocation to CIP increases in coordination with an increase in the annual CIP budget. Materials and Maintenance The materials and maintenance budget of $3.6 million is increasing $189,400 or 5.5% due to the following: Increase in Metro O & M of $165,700 or 25.3%, due to the expected pass-through of the City of San Diego’s Pure Water costs. Increase in Contracted Services of $57,900 or 7.6%, due to costs such as: $32,000 for the anoxic mixer maintenance, $20,000 for the blower maintenance, $17,000 for a one-time expense for painting the warehouse, and $11,000 for the gunite or Layfield liner. These increases are offset by $20,000 re-allocated from contracted services to insurance expense and other reductions totaling $2,100. Increase in Infrastructure Equipment and Supplies of $37,800 or 6.0%, due to costs such as: $19,000 YSI Optical probe and controller. Increase in Laboratory Equipment and Supplies of $25,900 or 57.2%, due to funding for a new lab dishwasher and a muffle furnace. Increase in the Spring Valley Sewer Charge of $9,800 or 5.4%. Staff inflated the FY 2017 actual cost by 5%. Decrease in Fuel and Oil of ($46,000) or (19.0%), due to a reduction in the budgeted fuel and oil unit costs. 20 Decrease in Meters and Materials of ($34,500) or (21.7%), due to depletion of old inventory in FY 2017. Decrease in Other Materials and Supplies of ($26,500) or (14.5%), primarily due to shifting of the funding for the leak detection program from the District to the Pio Pico grant. Decrease in Chemicals of ($6,600) or (1.8%), primarily due to staff reducing budget to align with historical averages. Transfers The requested transfers serve the purpose of ensuring the reserves are funded at target levels, in accordance with the Reserve Policy. There are two types of transfers the District can make. The first is the use of operating revenues to fund reserves which are shown in the operating budget. The second type of transfer is fund to fund. Both types rebalance funds to target levels. The total fund to fund transfers requested in this staff report total $10,654,700. Capital Improvement Program (CIP) Budget As a component of the annual budget development process, the Engineering staff updates the CIP budget. This year, the total six-year CIP budget of $102.3 million is increasing by $11.3 million versus last year. Potable and sewer total CIP for the six-year CIP budget is $86.4 million and $15.9 million, respectively. This increase is a result of the addition of the meter replacement program to the six-year budget. The following process is used to prepare the CIP budget: CIP projects selected are based on the Water Facilities Master Plan (WFMP), the Urban Water Management Plan (UWMP), Sub Area Master Plan (SAMP), Integrated Water Resources Plan (IRP), Sewer System Management Plan (SSMP), and other focused or specific planning documents and reports. The CIP goes through an iterative process to meet the criteria of growth, service levels, supply targets, and system requirements. CIP target expenditures for the next six years are refined and used in the rate model. 21 The following general criteria are used to determine the reasonableness of a project before it is considered for inclusion within the CIP budget: Existing facility conditions. Operating system conditions. Water and sewer system deficiencies. Regulatory and permitting requirements. Developer driven requirements. Economic outlook. Growth projections. Water supply diversification goals. Board and management directives. This year, the CIP budget includes the following amounts by project category. Project details within each of the categories are located in Exhibit 1 under the Capital Budget tab. Capital Backbone $ 1.4 Replacement and Renewal 18.1 Capital Purchases/Developer Reimbursement .5 Total (millions) $20.0 In order to fund these projects, the Sewer Fund will need to borrow funds beginning in FY 2018. The District has identified an SRF loan as the most economic lending facility. An SRF loan is a low interest loan offered by the State Water Resources Control Board (SWRCB) for the construction of publicly-owned wastewater projects. FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer A six-year rate modeling effort is one of the ways the District can better inform its customers, minimize financial risks, reduce rate impacts, and establish fiscal strength. The recommended balanced operating budget totals $98.2 million and the recommended CIP budget totals $20.0 million. With budget approval, the District will move forward into FY 2018 with clear financial direction and with rates that will strengthen the District’s financial position, placing all reserves and coverages at or above target levels. While no water rate increases are recommended, staff is recommending the District implement the rate structure changes from the Cost of Service Study results, which were presented to 22 the Board on April 17, 2017. If approved through the 218 process, these changes will be effective for all water services billed beginning January 1, 2018, and may include water used as early as December 1, 2017, depending on the billing cycle. A sewer rate increase of 7.5% is recommended for sewer service billings beginning January 1, 2018. This budget, with the recommended transfers, provides sufficient funding to pay increased water costs; continues funding for the District’s administration, maintenance, and operations; and is consistent with the Strategic Plan and Reserve Policy. STRATEGIC OUTLOOK: The District ensures its continued financial health through long-term financial planning and debt planning. LEGAL IMPACT: None. Attachments: A) Fund Transfers B) Resolution No. 4336 Exhibit A - FY 2017-18 Preliminary Operating and Capital Budget Exhibit B - Job Classification and Salary Schedule C) Ordinance No. 564 Exhibit 1 – Appendix A Strike-through Exhibit 2 – Appendix A Proposed D) FY 2017-18 Budget Presentation E) The London Group Economic Report F) The London Moeder Economic Presentation Fund Transfers for the FY 2017-2018 Operating and Capital Budget Potable: Designated Expansion to Replacement $ 511,000 Designated Expansion to Betterment $1,146,000 General Fund to Replacement $4,986,600 Recycled: Designated Betterment to Expansion $ 53,800 Designated Betterment to Replacement $ 48,000 General Fund to Designated Expansion $1,762,400 Sewer: Designated Replacement to Betterment $ 156,800 General Fund to Designated Betterment $1,990,100 Attachment A Page 1 of 2 RESOLUTION NO. 4336 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT ADOPTING THE FISCAL YEAR 2017-2018 OPERATING AND CAPITAL BUDGET; AND SALARY SCHEDULE WHEREAS, the Otay Water District Board of Directors have been presented with a budget (Exhibit A) for the operation of the Otay Water District for Fiscal Year 2017-2018; and WHEREAS, the Fiscal Year 2017-2018 Operating and Capital Budget, has been reviewed and considered by the Board; WHEREAS, it is in the interest of the District to adopt a budget for said year; WHEREAS, in connection with the adoption of the budget, the Board is also being presented with the Salary Schedule (Exhibit B) for its consideration, in order to comply with California Code of Regulations Section 570.5, NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Board of Directors of the Otay Water District that the Operating and Capital Budget for the operation of the District, incorporated herein by reference, is hereby adopted as the District’s budget for Fiscal Year 2017-2018. BE IT FURTHER RESOLVED that the Board hereby approves and adopts the Salary Schedule included with the budget and, consistent with his authority over employee compensation under both State law and the District’s Code of Ordinances, authorizes the General Manager to update the Salary Schedule whenever necessary to reflect changes made within his authority. Attachment B Page 2 of 2 PASSED, APPROVED AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 24th day of May 2017, by the following vote: Ayes: Noes: Abstain: Absent: ________________________ President ATTEST: ____________________________ District Secretary FY 2016 FY 2017 FY 2017 FY 2018 11-Actual Projected Budget Budget $ % Revenues #Potable Water Sales 65,413,157$ 73,867,147$ 72,238,600$ 77,036,300$ 4,797,700$ 6.6% Recycled Water Sales 8,527,042 9,160,711 8,900,300 9,863,100 962,800 10.8% #Sewer Revenues 3,149,295 2,934,136 2,918,900 2,869,400 (49,500) (1.7%) #Meter Fees 78,568 71,381 66,200 103,100 36,900 55.7% #Capacity Fee Revenues 1,517,128 1,374,599 1,248,200 1,513,200 265,000 21.2% Tax Revenues 3,970,203 4,234,939 4,033,100 4,396,100 363,000 9.0% #Non-operating Revenues 2,434,865 2,529,874 2,179,300 2,164,500 (14,800) (0.7%) #Interest 124,502 96,708 156,900 302,500 145,600 92.8% Total Revenues 85,214,760 94,269,496 91,741,500 98,248,200 6,506,700 7.1% Expenditures #Potable Water Purchases 29,409,666 31,970,829 31,271,300 34,225,800 2,954,500 9.4% Recycled Water Purchases 2,642,437 3,688,974 3,615,900 3,716,700 100,800 2.8% #CWA - Infrastructure Access Charge 1,930,848 1,976,484 1,976,400 2,080,200 103,800 5.3% #CWA - Customer Service Charge 1,778,197 1,714,409 1,714,200 1,682,400 (31,800)(1.9%) CWA - Reliability Charge 950,052 1,847,044 1,848,000 1,908,000 60,000 3.2% #CWA - Emergency Storage Charge 4,681,673 4,579,649 4,579,800 4,486,800 (93,000)(2.0%) #MWD - Capacity Reservation Charge 883,203 836,280 988,800 734,400 (254,400)(25.7%) #MWD - Net RTS and Standby Charge 1,587,254 1,268,620 1,428,000 1,344,000 (84,000)(5.9%) Subtotal - Water Costs 43,863,330 47,882,288 47,422,400 50,178,300 2,755,900 5.8% #Power 2,697,915 2,919,416 2,938,000 3,023,800 85,800 2.9% #Labor and Benefits 20,337,890 20,753,334 20,899,900 21,522,100 622,200 3.0% #Administrative Expenses 4,510,379 4,495,730 5,150,100 5,485,700 335,600 6.5% #Materials and Maintenance 3,103,175 3,104,711 3,456,300 3,645,700 189,400 5.5% Subtotal - Operations Costs 30,649,359 31,273,191 32,444,300 33,677,300 1,233,000 3.8% D Transfer to General Fund Reserve - 2,854,300 2,854,300 - (2,854,300) (100.0%) #Expansion Reserve 2,695,800 4,093,600 4,093,600 3,274,600 (819,000) (20.0%) B Betterment Reserve 2,400,000 3,466,400 3,466,400 111,100 (3,355,300) (96.8%) ReReplacement Reserve 3,421,000 464,500 464,500 9,787,900 9,323,400 2007.2% TOOPEB Trust 1,006,000 961,000 961,000 998,000 37,000 3.9% Sewer Replacement 1,199,300 - - - - - New Supply Reserve 35,000 35,000 35,000 221,000 186,000 531.4% Subtotal - Reserve Funding 10,757,100 11,874,800 11,874,800 14,392,600 2,517,800 21.2% Total Expenditures 85,269,789 91,030,279 91,741,500 98,248,200 6,506,700 7.1% Excess Revenues (Expenditures)(55,029)$ 3,239,217$ -$ -$ -$ - Operating Budget Summary - General Fund Budget to Budget Variance 1 Potable Water Sales 77,036,300$ 78.5% Recycled Water Sales 9,863,100 10.0% Sewer Revenues 2,869,400 2.9% Meter Fees 103,100 0.1% Capacity Fee Revenues 1,513,200 1.6% Tax Revenues 4,396,100 4.5% Non-operating Revenues 2,164,500 2.1% Interest 302,500 0.3% 98,248,200 100.0% Potable Water Purchases 46,461,600 47.3% Recycled Water Purchases 3,716,700 3.8% Power 3,023,800 3.0% Labor and Benefits 21,522,100 21.9% Administrative Expenses 5,485,700 5.6% Materials & Maintenance 3,645,700 3.7% Reserve Funding 14,392,600 14.7% 98,248,200$ 100.0% FY 2018 Operating Revenues FY 2018 Operating Expenditures Operating Budget Summary - General Fund 2 Potable Recycled Sewer Total Revenues Water Sales 77,036,300$ -$ -$ 77,036,300$ Recycled Water Sales - 9,863,100 2,869,400 12,732,500 Meter Fees 100,500 2,600 - 103,100 Capacity Fee Revenues 1,513,200 - - 1,513,200 Tax Revenues 4,344,500 - 51,600 4,396,100 Non-operating Revenues 2,129,000 - 35,500 2,164,500 Interest 252,500 29,600 20,400 302,500 Total Revenues 85,376,000 9,895,300 2,976,900 98,248,200 Expenditures Water Purchases 34,225,800 3,716,700 - 37,942,500 CWA - Infrastructure Access Charge 2,080,200 - - 2,080,200 CWA - Customer Service Charge 1,682,400 - - 1,682,400 CWA - Reliability Charge 1,908,000 - - 1,908,000 CWA - Emergency Storage Charge 4,486,800 - - 4,486,800 MWD - Capacity Reservation Charge 734,400 - - 734,400 MWD - Net RTS and Standby Charges 1,344,000 - - 1,344,000 Subtotal - Water Costs 46,461,600 3,716,700 - 50,178,300 Power 2,305,700 584,600 133,500 3,023,800 Labor and Benefits 19,270,400 1,171,300 1,080,400 21,522,100 Administrative Expenses 4,653,400 557,100 275,200 5,485,700 Materials and Maintenance 1,977,000 327,900 1,340,800 3,645,700 Subtotal - Operations Costs 28,206,500 2,640,900 2,829,900 33,677,300 #Expansion Reserve - 3,274,600 - 3,274,600 B Betterment Reserve - - 111,100 111,100 R Replacement Reserve 9,787,900 - - 9,787,900 TOOPEB Trust 920,000 42,100 35,900 998,000 New Supply Reserve - 221,000 - 221,000 Subtotal - Reserve Funding 10,707,900 3,537,700 147,000 14,392,600 Total Expenditures 85,376,000 9,895,300 2,976,900 98,248,200 Excess Revenue (Expenditures)-$ -$ -$ -$ FY 2018 Operating Budget Summary by System 3 Intentionally Left Blank 4 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Revenues Water/Sewer Rates 91,681,300$ 96,317,000$ 101,278,800$ 106,694,500$ 112,468,100$ Meter Fees 104,800 108,400 110,800 114,400 118,400 Capacity Fee Revenues 1,520,800 1,536,000 1,551,400 1,566,900 1,582,600 Non-operating Revenues 2,189,400 2,009,800 2,031,300 2,059,400 2,088,000 Tax Revenues 4,477,200 4,559,800 4,645,400 4,734,400 4,825,200 Interest Income 278,600 337,800 377,400 445,600 495,500 Total Revenues 100,252,100 104,868,800 109,995,100 115,615,200 121,577,800 36,202,300$ 35,854,000$ 36,098,600$ 37,008,900$ FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Expenditures Water Cost 54,501,600 57,580,500 60,929,100 64,741,400 68,412,200 Power 3,160,900 3,305,900 3,464,400 3,641,500 3,832,000 Labor and Benefits 21,770,200 22,122,500 22,849,000 23,969,300 25,534,600 Administrative Expenses 5,372,700 5,544,400 5,811,200 5,919,000 6,094,000 Materials & Maintenance 3,799,700 4,268,500 4,258,200 4,065,300 4,230,300 Net Reserve Funding 11,647,000 12,047,000 12,683,200 13,278,700 13,474,700 Total Expenditures and Transfers 100,252,100 104,868,800 109,995,100 115,615,200 121,577,800 Excess Revenues (Expenditures)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ General Fund Forecast - FY 2019 Through FY 2023 This forecast incorporates both cost increases for expenditures and rate increases for revenues, as well as growth projections. Revenues Expenditures and Transfers $0 $20 $40 $60 $80 $100 $120 $140 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 10 0 10 5 11 0 11 6 12 2 $1 0 0 $1 0 5 $1 1 0 $1 1 6 $1 2 2 Revenues and Expenditures Forecast, in millions ($) Revenues Expenditures 5 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Fund Balance General Fund 22,162,300$ 23,216,000$ 24,347,400$ 25,603,100$ 27,048,200$ Betterment Fund 802,000 346,900 1,175,800 1,139,300 1,144,000 Replacement Fund 35,952,400 34,799,800 36,353,900 36,986,100 38,936,200 Expansion Fund 617,000 878,000 19,600 109,500 110,600 New Supply Fund 1,558,400 2,230,300 3,219,700 4,017,900 4,670,900 Debt Reserve 4,211,300 4,111,800 4,017,000 3,942,800 3,875,600 Total Fund Balance 65,303,400$ 65,582,800$ 69,133,400$ 71,798,700$ 75,785,500$ (185,164) (187,915) (190,987) (194,487) (198,187) Fund Balances - FY 2019 Through FY 2023 Fund Balances by Fund $0 $20 $40 $60 $80 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Fund Balances Forecast, in millions ($) General Fund Betterment Fund Replacement Fund Expansion Fund Debt Reserve New Supply Fund 6 FY 2016 FY 2018 11-Actual Projected Budget Budget $% Revenues ##Water Sales 65,413,157$ 73,867,147$ 72,238,600$ 77,036,300$ 4,797,700$ 6.6% ##Meter Fees 76,366 71,381 65,800 100,500 34,700 52.7% ##Capacity Fee Revenues 1,512,600 1,369,820 1,248,200 1,513,200 265,000 21.2% Tax Revenues 3,897,734 4,144,244 3,981,500 4,344,500 363,000 9.1% ##Non-operating Revenues 1,553,316 2,500,174 2,143,800 2,129,000 (14,800) (0.7%) ##Interest 122,772 95,364 144,300 252,500 108,200 75.0% Total Revenues 72,575,945 82,048,130 79,822,200 85,376,000 5,553,800 7.0% Expenditures Potable Water Purchases 29,409,666 31,970,829 31,271,300 34,225,800 2,954,500 9.4% ##CWA - Infrastructure Access Charge 1,930,848 1,976,484 1,976,400 2,080,200 103,800 5.3% ##CWA - Customer Service Charge 1,778,197 1,714,409 1,714,200 1,682,400 (31,800) (1.9%) ##CWA - Reliability Charge 950,052 1,847,044 1,848,000 1,908,000 60,000 3.2% ##CWA - Emergency Storage Charge 4,681,673 4,579,649 4,579,800 4,486,800 (93,000) (2.0%) ##MWD - Capacity Reservation Charge 883,203 836,280 988,800 734,400 (254,400) (25.7%) ##MWD-Net RTS and Standby Charges 1,587,254 1,268,620 1,428,000 1,344,000 (84,000) (5.9%) Subtotal - Water Costs 41,220,893 44,193,314 43,806,500 46,461,600 2,655,100 6.1% ##Power 2,017,258 2,222,499 2,194,700 2,305,700 111,000 5.1% ##Labor and Benefits 18,165,431 19,117,476 18,581,400 19,270,400 689,000 3.7% ##Administrative Expenses 3,903,470 3,960,383 4,589,800 4,653,400 63,600 1.4% ##Materials and Maintenance 1,676,689 1,765,268 2,108,600 1,977,000 (131,600) (6.2%) 11-Subtotal - Operations Costs 25,762,848 27,065,626 27,474,500 28,206,500 732,000 2.7% DS Transfer to General Fund Reserve - 1,286,400 1,286,400 - (1,286,400) (100.0%) ##Expansion Reserve - 3,638,000 3,638,000 - (3,638,000) (100.0%) Bet Betterment Reserve - 2,280,000 2,280,000 - (2,280,000) (100.0%) RepReplacement Reserve 2,493,900 464,500 464,500 9,787,900 9,323,400 2007.2% TO Transfer to OPEB 914,100 872,300 872,300 920,000 47,700 5.5% Sw Transfer to Sewer Replacement 1,199,300 - - - - - Subtotal - Reserve Funding 4,607,300 7,254,800 7,254,800 10,707,900 2,166,700 29.9% Total Expenditures 71,591,041 79,800,140 79,822,200 85,376,000 5,553,800 7.0% Excess Revenues (Expenditures)984,904$ 2,247,990$ -$ -$ -$ - Operating Budget Summary - Potable Budget to Budget VarianceFY 2017 7 FY 2016 FY 2018 Actual Projected Budget Budget $ % Water Sales 37,243,504$ 46,084,735$ 44,450,600$ 49,251,200$ 4,800,600$ 10.8% System Fees 13,391,005 12,233,620 12,204,600 12,917,600 713,000 5.8% Energy Fees 2,151,538 2,275,181 2,164,200 1,925,500 (238,700) -11.0% MWD and CWA Fixed Fees 11,850,407 12,477,757 12,535,200 12,030,400 (504,800) -4.0% Penalties 776,703 795,854 884,000 911,600 27,600 3.1%-$ -$ Total Water Sales 65,413,157$ 73,867,147$ 72,238,600$ 77,036,300$ 4,797,700$ 6.6% Water Sales 49,251,200$ 63.9% System Fees 12,917,600 16.8% Energy Fees 1,925,500 2.5% MWD and CWA Fixed Fees 12,030,400 15.6% Penalties 911,600 1.2% Total Water Sales 77,036,300$ 100.0% Water Sales: Water rates vary among classes of service and are charged per unit of water. A unit of water is equal to 100 cubic feet of water. System Fees: Each water service customer pays a monthly system charge for water system replacement, maintenance, and operation expenses. The charge is based on the size of the meter. Energy Fees: The energy pumping fee is $ .053 per 100 cubic feet of water for each 100 feet of lift above the elevation of 450 feet. All water customers are in one of 29 zones based on elevation. MWD and CWA Fixed Fees: These pass-through charges are calculated to recover the MWD's and CWA's fixed annual costs including the construction, operation and maintenance of aqueducts, and emergency storage projects. These fixed charges are based on the size of the meter. Penalties: Charges and penalties are imposed on customer accounts for late payments and returned checks. Budget to Budget Variance FY 2018 Classification of Water Sales FY 2017 Classification of Water Sales - Potable 8 Current Proposed Current Proposed Accounts Unit Sales Budget Residential 45,345 6,183,300 26,171,600$ Conservation Tier (< 5 hcf)2.53$ -$ 6 - 10 1 - 10 3.95 3.05 11 - 22 11 - 22 5.13 5.44 over 23 hcf over 23 hcf 7.90 7.03 Multi-Residential 809 1,496,600 6,348,200 0 - 4 0 - 4 3.90 2.85 5 - 9 5 - 9 5.05 5.17 over 10 hcf over 10 hcf 7.80 6.35 Public and Commercial 1 unit 3.61 1,453 1,813,800 7,134,000 Tier I - 4.17 - Tier II - 4.23 - Tier III - 4.30 - Agriculture, Landscaping, and Construction 1 unit 5.27 1,239 1,652,900 9,193,500 Tier I 5.68 - Tier II 5.74 - Tier III 5.81 - Total 48,846 11,146,600 48,847,300$ Government Fee 0.41 0.41 - - 403,900 Total Water Sales 48,846 11,146,600 49,251,200$ Units % Residential 6,183,300 55.5% Multi-Residential 1,496,600 13.4% Public and Commercial 1,813,800 16.3% Agricultural, Landscaping & 1,652,900 14.8% Total Water Sales 11,146,600 100.0% Water Sales Summary by Service Class - Potable FY 2018 FY 2018 Unit Sales by Service Class (1) Proposed rates for water billed beginning in January 2018. Water RatesTier Rate Structure (1)(1) 9 FY 2014 FY 2015 FY 2016 FY 2018 Projected Budget Budget Residential 8,050,828 7,248,930 5,832,549 6,122,032 6,064,600 6,183,300 Multi-Residential 1,536,902 1,482,502 1,417,211 1,481,753 1,449,400 1,496,600 Public and Commercial 2,056,075 2,049,294 1,827,965 1,795,781 1,860,400 1,813,800 Agricultural and Landscaping 1,931,856 1,795,230 1,221,929 1,380,558 1,278,200 1,394,600 Temporary and Fire Services 144,458 168,469 175,636 255,697 154,400 258,300 Total Unit Sales 13,720,119 12,744,425 10,475,290 11,035,821 10,807,000 11,146,600 FY 2014 FY 2015 FY 2016 FY 2018 Projected Budget Budget Residential 44,826 44,941 45,038 45,075 45,102 45,345 Multi-Residential 798 806 817 807 822 809 Public and Commercial 1,449 1,453 1,455 1,446 1,459 1,453 Agricultural and Landscaping 1,229 1,227 1,231 1,239 1,231 1,239 Temporary and Fire Services 846 881 884 915 882 915 Total Meter Count 49,148 49,308 49,425 49,482 49,496 49,761 Unit Sales History and Meter Count by Customer Class - Potable Unit Sales in thousands and Meter Count Trends FY 2017 FY 2017 Actual Actual 5,000 15,000 25,000 35,000 45,000 55,000 - 5,000 10,000 15,000 20,000 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected FY 2017 Budget FY 2018 Budget Potable Meters Potable Unit Sales Units Meters 10 FY 2017 FY 2018 FY 2017 FY 2018 Meter Size Count Count Current Proposed Budget Budget $% Residential 0.75 43,304 43,472 15.91$ 17.38$ 9,037,200$ 8,659,000$ (378,200)$ -4.2% 1.00 1,777 1,851 22.47 24.56 524,400 522,300 (2,100) -0.4% 1.50 17 18 38.88 42.49 8,700 8,800 100 1.1% 2.00 4 4 58.55 64.00 3,100 2,900 (200) -6.5% Sub-total 45,102 45,345 9,573,400 9,193,000 (380,400) -4.0% Multi-Residential 0.75 41 39 15.91 38.21 8,600.00 12,700.00 4,100 47.7% 1.00 185 174 22.47 53.97 54,600.00 79,800.00 25,200.00 46.2% 1.50 244 244 38.88 93.37 124,600.00 193,600.00 69,000.00 55.4% 2.00 230 233 58.55 140.61 176,900.00 278,400.00 101,500.00 57.4% 3.00 44 45 111.04 266.66 62,800.00 100,300.00 37,500.00 59.7% 4.00 69 64 170.10 408.50 148,800.00 222,200.00 73,400.00 49.3% 6.00 6 7 334.18 802.55 26,300.00 47,700.00 21,400.00 81.4% 8.00 3 3 531.05 1,275.34 20,900.00 32,500.00 11,600.00 55.5% 10.00 - - 760.72 1,826.91 - - - 0.0% Sub-total 822 809 623,500 967,200 343,700 452% Public and Commercial 0.75 329 327 15.91 35.99 68,700 101,800 33,100 48.2% 1.00 356 357 22.47 50.83 105,000 156,900 51,900 49.4% 1.50 300 302 38.88 87.95 153,000 229,000 76,000 49.7% 2.00 398 390 58.55 132.45 302,400 445,700 143,300 47.4% 3.00 34 34 111.04 251.19 49,600 73,900 24,300 49.0% 4.00 27 29 170.10 384.79 60,300 96,600 36,300 60.2% 6.00 10 9 334.18 755.97 43,900 58,900 15,000 34.2% 8.00 - - 531.05 1,201.32 - - - 10.00 5 5 760.72 1,720.86 50,000 74,400 24,400 48.8% Sub-total 1,459 1,453 832,900 1,237,200 404,300 48.5% Agriculture, Landscaping, and Construction 0.75 114 115 15.91 30.40 23,800 32,000 8,200 34.5% 1.00 277 283 22.47 42.93 81,700 111,000 29,300 35.9% 1.50 387 388 38.88 74.28 197,600 263,400 65,800 33.3% 2.00 465 464 58.55 111.85 357,600 474,400 116,800 32.7% 3.00 2 3 111.04 212.13 2,900 5,800 2,900 100.0% 4.00 101 118 170.10 324.98 225,600 350,500 124,900 55.4% 6.00 4 5 334.18 638.44 17,600 29,200 11,600 65.9% 8.00 - - 531.05 1,014.56 - - - 10.00 - - 760.72 1,453.33 - - - Sub-total 1,350 1,376 906,800 1,266,300 359,500 39.6% Fire Services Less than 3"763 778 20.77 20.77 208,100 193,900 (14,200) -6.8% More than 4"- - 27.98 27.98 - - - Sub-total 763 778 208,100 193,900 (14,200) -6.8% Turn Over Fees 10.00 10.00 60,000 60,000 - Total 49,496 49,761 12,204,700$ 12,917,600$ (20,900)$ -0.2% (1) Proposed rates for water billed beginning in January 2018. System Fees - Potable System Fees Budget to Budget Variance (1) 11 FY 2018 FY 2017 FY 2018 Meter Size Count Current Proposed Budget Budget $% 0.75 43,946 15.00$ 15.45$ 8,356,300$ 8,007,600$ (348,700)$ -4.2% 1.00 2,657 27.84 28.68 917,000 900,900 (16,100) -1.8% 1.50 947 62.96 64.85 755,600 725,200 (30,400) -4.0% 2.00 1,089 107.08 110.30 1,486,600 1,418,500 (68,100) -4.6% 3.00 82 227.75 234.60 229,300 224,900 (4,400) -1.9% 4.00 99 364.72 375.68 462,700 439,800 (22,900) -4.9% 6.00 18 746.59 769.02 171,100 163,700 (7,400) -4.3% 8.00 3 1,205.65 1,241.89 46,100 44,100 (2,000) -4.3% 10.00 5 1,735.39 1,787.55 110,500 105,700 (4,800) -4.3% Total 48,846 12,535,200$ 12,030,400$ (504,800)$ -4.0% (1) Construction Meters, Fire Services, and Recycled Meters are exempt from MWD and CWA Fixed Fees. (2) Proposed rates for water billed beginning in January 2018. Historical MWD and CWA Fixed Fees, in millions ($) Budget to Budget Variance MWD and CWA Fixed Fees (Pass-Through) - Potable MWD and CWA Fixed Fees $- $2 $4 $6 $8 $10 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected FY 2017 Budget FY 2018 Budget (1)(2) 12 Meter Size Meter Sales Installation Fee Meter Fee Total Fees Budget 0.75 270 107.70$ 226.96$ 334.66$ 90,400$ 1.00 1 107.70 292.87 400.57 400 1.50 3 107.70 476.03 583.73 1,800 2.00 3 107.70 682.10 789.80 2,400 3.00 2 648.46 2,125.70 2,774.16 5,500 4.00 - 648.46 3,692.00 4,340.46 - 6.00 - 1,024.29 6,377.10 7,401.39 - 8.00 - 1,570.66 7,967.71 9,538.37 - 10.00 - 1,570.66 11,459.05 13,029.71 - Total 279 100,500$ Meter Fees - Potable Meter Fees:Charges collected for new water service connections. Fees vary depending upon meter size and type of service. The costs associated with meter installations are included in the Operating Expenses section of the budget. These charges are funded by developers. Historical Meter Count FY 2018 - 15,000 30,000 45,000 60,000 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected FY 2017 Budget FY 2018 Budget 13 FY 2014 FY 2015 FY 2016 FY 2018 Projected Budget Budget Water Sales 46,856,253$ 44,025,774$ 37,243,504$ 46,084,735$ 44,450,600$ 49,251,200$ System Fees 11,152,291 12,380,370 13,391,005 12,233,620 12,204,600 12,917,600 Energy Fees 2,114,844 2,134,865 2,151,538 2,275,181 2,164,200 1,925,500 MWD and CWA Fixed Fees 10,309,983 10,846,411 11,850,407 12,477,757 12,535,200 12,030,400 Penalties 839,025 894,569 776,704 795,854 884,000 911,600 Total Potable Revenues 71,272,396$ 70,281,989$ 65,413,157$ 73,867,147$ 72,238,600$ 77,036,300$ Revenue History - Potable, in millions ($) Revenue History - Potable Actual FY 2017 $- $20 $40 $60 $80 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected FY 2017 Budget FY 2018 Budget Water Sales System Fees Energy Fees MWD & CWA Fixed Fees Penalties 14 FY 2018 FY 2018 Projected Budget Budget Projected Budget Budget $ % Potable Water Purchases (CWA): Rate Effective January 1,255.00$ 1,255.00$ 1,309.00$ 54$ 4.3% Budgeted Sales 25,334.8 24,809.2 25,588.9 30,448,642$ 29,940,200$ 32,730,500$ 2,790,300$ 9.3% District & Unbilled Usage**61.2 66.6 99.3 118,280 80,200 126,200 46,000 57.4% Water Loss 984.6 1,036.5 1,070.4 1,403,907 1,250,900 1,369,100 118,200 9.4% Total Variable Charges 26,380.6 25,912.3 26,758.6 31,970,829$ 31,271,300$ 34,225,800$ 2,954,500 9.4% CWA and MWD Fixed Charges: CWA - Infrastructure Access Charge 1,976,484$ 1,976,400$ 2,080,200$ 103,800$ 5.3% CWA - Customer Service Charge 1,714,409 1,714,200 1,682,400 (31,800) -1.9% CWA - Emergency Storage Charge 4,579,649 4,579,800 4,486,800 (93,000) -2.0% CWA - Reliability Fixed Charge 1,847,044 1,848,000 1,908,000 60,000 3.2% MWD - Capacity Reservation Charge 836,280 988,800 734,400 (254,400) -25.7% MWD - Readiness-to-Serve Charge 1,268,620 1,428,000 1,344,000 (84,000) -5.9% Total Fixed Charges 12,222,486$ 12,535,200$ 12,235,800$ (299,400)$ -2.4% Total Variable and Fixed Charges 44,193,315$ 43,806,500$ 46,461,600$ 2,655,100$ 6.1% Average Cost Per Acre-Foot 1,675$ 1,691$ 1,736$ ** Excludes potable supplement to recycled system. Water Purchases and Related Costs - Potable Budget to Budget Acre Feet Variance FY 2017 FY 2017 Purchase Costs - 8,000.0 16,000.0 24,000.0 32,000.0 40,000.0 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected FY 2017 Budget FY 2018 Budget Historical Potable Water Purchases, in acre-feet 15 FY 2014 FY 2015 FY 2016 FY 2018 Projected Budget Budget $ % Administrative Buildings 179,919$ 216,744$ 212,448$ 205,000$ 220,600$ 223,500$ 2,900$ 1.3% Potable Transmission 1,878,026 2,063,318 1,804,810 2,017,499 1,974,100 2,082,200 108,100 5.5% Total Power Costs 2,057,945$ 2,280,062$ 2,017,258$ 2,222,499$ 2,194,700$ 2,305,700$ 111,000$ 5.1% Power Costs - Potable Budget to Budget Variance Historical Power Costs, in thousands ($) Actual FY 2017 $0 $500 $1,000 $1,500 $2,000 $2,500 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected FY 2017 Budget FY 2018 Budget Administrative Buildings Potable Transmission 16 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget $ % Administrative Expenditures Directors' Fees 22,100$ 23,693$ 33,000$ 40,000$ 7,000$ 21.2% Travel and Memberships 164,590 126,845 208,600 245,400 36,800 17.6% Conservation and Outreach 150,060 168,911 177,400 161,600 (15,800) (8.9%) General Office Expense 236,868 214,569 265,500 266,700 1,200 0.5% Equipment 1,060,303 1,130,840 1,109,300 1,191,800 82,500 7.4% Fees 480,869 619,451 600,600 601,000 400 0.1% Services 1,526,302 1,366,454 1,952,500 1,814,800 (137,700) (7.1%) Training 68,007 112,070 126,000 122,300 (3,700) (2.9%) Utilities 26,445 14,703 14,900 14,900 - 0.0% Insurance and Legal 827,274 894,951 825,000 911,000 86,000 10.4% Miscellaneous Expense - 107 - 100 100 0.0% Bad Debt Expense 107,112 110,590 99,800 99,800 - 0.0% Subtotal before Overhead 4,669,930 4,783,183 5,412,600 5,469,400 56,800 1.0% Less: Overhead Allocation (766,460) (822,800) (822,800) (816,000) 6,800 - Total Expenditures 3,903,470$ 3,960,383$ 4,589,800$ 4,653,400$ 63,600$ 1.4% 4,403,925$ ######## 6,380,400$ Directors' Fees 40,000$ 0.7% Travel and Membership 245,400 4.5% Conservation and Outreach 161,600 3.0% General Office Expense 266,700 4.8% Equipment 1,191,800 21.8% Fees 601,000 11.0% Services 1,814,800 33.2% Training 122,300 2.2% Utilities 14,900 0.3% Insurance and Legal 911,000 16.7% Bad Debt Expense (1)99,900 1.8% Subtotal 5,469,400 100.0% Less: Overhead Allocation (816,000) Total Administrative Expenses 4,653,400$ (1)Includes Miscellaneous Expense Budget to Budget Variance FY 2018 Administrative Expenditures - Potable Administrative Expenditures - Potable 17 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget $ % Materials and Maintenance Fuel and Oil 129,898$ 141,671$ 207,500$ 183,000$ (24,500)$ (11.8%) Meters and Materials 172,175 156,518 156,700 117,200 (39,500) (25.2%) Fleet Parts and Equipment 115,288 115,083 124,800 124,800 - 0.0% Infrastructure Equipment & Supplies 339,849 403,475 445,700 411,000 (34,700) (7.8%) Chemicals 151,647 199,510 199,600 199,600 - 0.0% Safety Equipment 79,156 51,004 51,000 51,800 800 1.6% Laboratory Equipment and Supplies 31,458 36,302 36,300 58,500 22,200 61.2% Other Materials and Supplies 158,587 148,305 177,200 149,200 (28,000) (15.8%) Building and Grounds Materials 56,663 63,227 56,000 61,100 5,100 9.1% Contracted Services 441,968 450,171 653,800 620,800 (33,000) (5.0%) Total Expenditures 1,676,689$ 1,765,268$ 2,108,600$ 1,977,000$ (131,600)$ (6.2%) Fuel and Oil 183,000$ 9.3% Meters and Materials 117,200 5.9% Fleet Parts and Equipment 124,800 6.3% Infrastructure Equipment and Supplies 411,000 20.8% Chemicals 199,600 10.1% Safety Equipment 51,800 2.6% Laboratory Equipment and Supplies 58,500 3.0% Other Materials and Supplies 149,200 7.5% Building and Grounds Materials 61,100 3.1% Contracted Services 620,800 31.4% Total Expenditures 1,977,000$ 100.0% Budget to Budget Variance FY 2018 Materials and Maintenance Expenditures - Potable Materials and Maintenance Expenditures - Potable 18 FY 2016 FY 2018 31-Actual Projected Budget Budget $ % Revenues saWater Sales - #Recycled Water Sales 8,527,042$ 9,160,711$ 8,900,300$ 9,863,100$ 962,800$ 10.8% #Meter Fees 2,202 - 400 2,600 2,200 550.0% #Interest 207 161 8,300 29,600 21,300 256.6% Total Revenues 8,529,451 9,160,872 8,909,000 9,895,300 986,300 11.1% Expenditures Recycled Water Purchases 2,642,437 3,688,974 3,615,900 3,716,700 100,800 2.8% #Power 526,842 565,849 568,900 584,600 15,700 2.8% #Labor and Benefits 1,287,606 886,081 1,339,200 1,171,300 (167,900) (12.5%) #Administrative Expenses 382,368 319,117 331,200 557,100 225,900 68.2% #Materials and Maintenance 219,952 282,592 305,000 327,900 22,900 7.5% 11 Subtotal - Operations Costs 5,059,205 5,742,612 6,160,200 6,357,600 197,400 3.2% D Transfer to GF Reserve - 1,371,800 1,371,800 - (1,371,800) (100.0%) #Expansion Reserve 2,695,800 455,600 455,600 3,274,600 2,819,000 618.7% B Betterment Reserve 1,945,000 835,200 835,200 - (835,200) (100.0%) ReReplacement Reserve 328,000 - - - - - TOTransfer to OPEB 58,300 51,200 51,200 42,100 (9,100) (17.8%) N Transfer to New Supply Fund 35,000 35,000 35,000 221,000 186,000 531.4% Subtotal - Reserve Funding 5,062,100 2,748,800 2,748,800 3,537,700 788,900 28.7% Total Expenditures 10,121,305 8,491,412 8,909,000 9,895,300 986,300 11.1% (1,591,854)$ 669,460$ -$ -$ -$ - Excess Revenues/Expenditure Operating Budget Summary - Recycled Budget to Budget VarianceFY 2017 19 FY 2016 FY 2018 Actual Projected Budget Budget $% Water Sales 6,240,661$ 6,906,802$ 6,702,300$ 7,493,200$ 790,900$ 11.8% System Fees 471,962 433,491 432,800 589,100 156,300 36.1% Energy Fees 379,026 416,652 379,100 313,700 (65,400) -17.3% MWD and CWA Rebates 1,396,472 1,373,812 1,351,000 1,428,400 77,400 5.7% Penalties 38,921 29,955 35,100 38,700 3,600 10.3% -$ Total Recycled Water Sales 8,527,042$ 9,160,711$ 8,900,300$ 9,863,100$ 962,800$ 10.8% Water Sales 7,493,200$ 76.0% System Fees 589,100 6.0% Energy Fees 313,700 3.2% MWD and CWA Rebates 1,428,400 14.5% Penalties 38,700 0.3% 9,863,100$ 100.0% Water Sales: Water rates vary among classes of service and are charged per unit of water. A unit of water is equal to 100 cubic feet of water. System Fees: Each water service customer pays a monthly system charge for water system replacement, maintenance, and operation expenses. The charge is based on the size of the meter. Energy Fees: The energy pumping fee is $ .053 per 100 cubic feet of water for each 100 feet of lift above the elevation of 450 feet. All water customers are in one of 29 zones based on elevation. MWD and CWA Rebates: Incentive from MWD and CWA for providing recycled water. The District receives $200 from CWA and $185 from MWD for every acre-foot (AF) of recycled water sold. Penalties: Charges and penalties are imposed on customer accounts for late payments and returned checks. Budget to Budget Variance FY 2018 Classification of Water Sales Classification of Water Sales - Recycled FY 2017 20 Current Proposed Accounts Unit Sales Budget Recycled .75" and 1.0" Meter 1 unit 4.26$ 106 55,400 258,700$ 0 - 32 units 4.85$ 33 - 75 units 4.92 over 76 units 4.99 Recycled 1.5" and 2.0" Meter 1 unit 4.26 595 1,146,600 5,357,200 0 - 130 units 4.85 131 - 325 units 4.92 over 326 units 4.99 Recycled 3.0" and 4.0" Meter 1 unit 4.26 11 94,300 440,900 0 - 440 units 4.85 441 - 1,050 units 4.92 over 1,051 units 4.99 Recycled more than 6.0" Meter 1 unit 4.26 1 53,600 248,100 0 - 4,000 units 4.85 4,001 - 10,000 units 4.92 over 10,000 units 4.99 Recycled Temporary 3.0" and 4.0" Meter 1 unit 4.26 4 27,900 129,200 0 - 440 units 4.85 441 - 1,050 units 4.92 over 1,051 units 4.99 Recycled Commercial <10" Meter 1 unit 3.01 1 99,500 340,500 0 - 173 units 3.53 174 - 831 units 3.60 over 832 units 3.65 Recycled Commercial >10" Meter 1 unit 3.01 1 138,800 465,600 0 - 7,426 units 3.53 7,427 - 14,616 units 3.60 over 14,617 units 3.65 Total 719 1,616,100 7,240,200$ Government Fee 0.41 0.41 - - 253,000 Total Water Sales 719 1,616,100 7,493,200$ (1) Proposed rates for water billed beginning in January 2018. FY 2018 Water Sales Summary by Meter Size - Recycled Water Rates (1) 21 FY 2014 FY 2015 FY 2016 FY 2018 Projected Budget Budget Recycled .75" & 1.0" Meter 68,523 63,142 52,258 53,501 47,600 55,400 Recycled 1.5" & 2.0" Meter 1,474,879 1,365,116 1,067,391 1,107,776 1,044,700 1,146,600 Recycled 3.0" & 4.0" Meter 115,794 103,125 91,711 91,122 81,000 94,300 Recycled > 6.0" Meter 363,760 192,003 50,140 51,780 53,700 53,600 Recycled-Temp 3" & 4" Meter 18,592 - 56,376 26,920 40,000 27,900 Recycled-Temp > 6" Meter 26,782 - 39,471 84 19,300 - Recycled Commercial <10" Meter - 67,010 100,000 96,130 108,100 99,500 Recycled Commercial >10" Meter - 51,560 134,330 134,130 134,100 138,800 Total Unit Sales 2,068,330 1,841,956 1,591,677 1,561,443 1,528,500 1,616,100 FY 2014 FY 2015 FY 2016 FY 2018 Projected Budget Budget Recycled .75" & 1.0" Meter 100 101 101 106 102 106 Recycled 1.5" & 2.0" Meter 588 590 590 591 590 595 Recycled 3.0" & 4.0" Meter 11 11 11 11 11 11 Recycled > 6.0" Meter 1 1 1 1 1 1 Recycled-Temp 3" & 4" Meter 1 - 3 4 3 4 Recycled-Temp > 6" Meter 1 - 1 - 1 - Recycled Commercial <10" Meter - 1 1 1 1 1 Recycled Commercial >10" Meter - 1 1 1 1 1 Total Meter Count 702 705 709 715 710 719 Unit Sales History and Meter Count by Customer Class - Recycled Unit Sales in thousands ($) and Meter Count Trends Actual Actual FY 2017 FY 2017 100 300 500 700 100 500 900 1,300 1,700 2,100 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected FY 2017 Budget FY 2018 Budget Meter Count Recycled Unit Sales 22 FY 2018 FY 2017 FY 2018 Meter Size Meter Count Current Proposed Budget Budget $% Irrigation 0.75 3 15.91$ 31.11$ 400$ 800$ 400$ 100.0% 1.00 103 22.47 43.94 29,500 41,000 11,500 39.0% 1.50 399 38.88 76.04 201,700 275,100 73,400 36.4% 2.00 196 58.55 114.50 149,900 203,500 53,600 35.8% 3.00 4 111.04 217.15 5,800 7,900 2,100 36.2% 4.00 11 170.10 332.67 22,300 33,200 10,900 48.9% 6.00 1 334.18 653.54 6,600 5,900 (700) -10.6% 8.00 - 531.05 1,038.56 - - - - 10.00 - 760.72 1,487.72 - - - Total 717 416,200$ 567,400$ 151,200$ 36.3% Commercial 0.75 - 15.91$ 36.85$ - - - - 1.00 - 22.47 52.04 - - - - 1.50 - 38.88 90.06 - - - - 2.00 - 58.55 135.63 - - - - 3.00 - 111.04 257.21 - - - - 4.00 - 170.10 394.01 - - - - 6.00 1 334.18 774.07 6,600 6,600 - 0.0% 8.00 - 531.05 1,230.08 - - - - 10.00 1 760.72 1,762.08 10,000 15,100 5,100 51.0% Total 2 16,600 21,700 5,100 30.7% Total 719 432,800$ 589,100$ 156,300$ 36.1% System Fees - Recycled System Fees Budget to Budget Variance(1) 23 Meter Size Meter Sales Installation Fee Meter Fee Total Fees Budget 0.75 - 107.70$ 226.96$ 318.69$ -$ 1.00 - 107.70 292.87 381.45 - 1.50 2 107.70 476.03 555.87 1,100 2.00 2 107.70 682.10 752.11 1,500 3.00 - 648.46 2,125.70 2,641.76 - 4.00 - 648.46 3,692.00 4,133.31 - 6.00 - 1,024.29 6,377.10 7,048.13 - 8.00 - 1,570.66 7,967.71 9,083.12 - 10.00 - 1,570.66 11,459.05 12,407.83 - Total 4 2,600$ Meter Fees - Recycled Historical Meter Count Meter Fees:Charges collected for new water service connections. Fees vary depending upon meter size and type of service. The costs associated with meter installations are included in the Operating Expenses section of the budget. These charges are funded by developers. FY 2018 550 575 600 625 650 675 700 725 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected FY 2017 Budget FY 2018 Budget 24 FY 2014 FY 2015 FY 2016 FY 2018 Projected Budget Budget Water Sales 7,416,631$ 6,412,122$ 6,240,661$ 6,906,802$ 6,702,300$ 7,493,200$ System Fees 356,806 431,121 471,962 433,491 432,800 589,100 Energy Fees 383,513 369,302 379,026 416,652 379,100 313,700 MWD and CWA Rebates 1,828,134 1,611,764 1,396,472 1,373,812 1,351,000 1,428,400 Penalties 29,682 28,701 38,921 29,955 35,100 38,700 Total Recycled Revenues 10,014,766$ 8,853,010$ 8,527,042$ 9,160,711$ 8,900,300$ 9,863,100$ Revenue History - Recycled Revenue History - Recycled, in millions ($) Actual FY 2017 $- $2 $4 $6 $8 $10 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected FY 2017 Budget FY 2018 Budget Water Sales System Fees Energy Fees MWD and CWA Rebates Penalties 25 FY 2018 FY 2018 Projected Budget Budget Projected Budget Budget $ % Rate Per Acre Feet 1,004.98$ 756.00$ 756.00$ -$ 0.0% Recycled Water Purchases 2,829.4 2,459.6 2,660.7 2,471,845$ 1,859,300$ 2,011,600$ 152,300$ 8.2% Meter Fee $1,333.75 monthly 16,005 16,000 16,000 - 0.0% Take-or-pay contract (1)1,590.2 2,302.4 2,234.3 1,201,125 1,740,600 1,689,100 (51,500) -3.0% Total 4,419.6 4,762.0 4,895.0 3,688,974$ 3,615,900$ 3,716,700$ 100,800$ 2.8% Average Cost Per Acre-Foot (Effective Rate)1,303.81$ 1,470.12$ 1,396.87$ (1) This is the anticipated take-or-pay amount to be paid to the City of San Diego. The contract requires the purchase of a minimum volume of water. The District does not anticipate meeting the minimum therefore, a payment would be due to the City of San Diego. Water Purchases - Recycled HISTORICAL RECYCLED WATER PURCHASES, IN ACRE-FEET Variance Budget to BudgetFY 2017 Purchase Costs FY 2017 Acre Feet - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected FY 2017 Budget FY 2018 Budget 26 FY 2014 FY 2015 FY 2016 FY 2018 Projected Budget Budget $ % Total Power Cost 591,883$ 600,799$ 526,842$ 565,849$ 568,900$ 584,600$ 15,700$ 2.8% Budget to Budget Variance Historical Power Costs, in thousands ($) FY 2017 Power Costs - Recycled Actual $480 $500 $520 $540 $560 $580 $600 $620 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected FY 2017 Budget FY 2018 Budget 27 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget $ % Administrative Expenditures Equipment 2,286$ 1,000 3,300$ 1,300$ (2,000)$ (60.6%) Fees 24,347 25,041 25,500 26,300 800 3.1% Services 144,308 77,876 87,200 115,500 28,300 32.5% Insurance and Legal *- - - 225,000 225,000 100.0% Subtotal before Overhead 170,941 103,917 116,000 368,100 252,100 217.3% Add: Overhead Allocation 211,427 215,200 215,200 189,000 (26,200) (12.2%) Total Expenditures 382,368$ 319,117$ 331,200$ 557,100$ 225,900$ 68.2% Equipment 1,300$ 0.2% Fees 26,300 4.7% Services 115,500 20.8% Insurance and Legal 225,000 40.4% Overhead Allocation 189,000 33.9% Total Expenditures 557,100$ 100.0% * Legal expenses pertaining to the City of San Diego Recycled Water Rate Lawsuit. FY 2018 Administrative Expenditures - Recycled Administrative Expenditures - Recycled Budget to Budget Variance 28 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget $ % Materials and Maintenance Fuel and Oil 11,921$ 34,800$ 34,800$ 13,300$ (21,500)$ (61.8%) Meters and Materials 3,927 2,500 2,500 7,500 5,000 200.0% Infrastructure Equipment & Supplies 66,601 77,529 75,400 110,700 35,300 46.8% Chemicals 112,514 140,167 160,200 152,200 (8,000) (5.0%) Safety Equipment 1,999 639 1,500 1,500 - - Laboratory Equipment and Supplies 3,667 4,001 4,000 4,000 - - Other Materials and Supplies 2,519 3,402 5,000 6,500 1,500 30.0% Contracted Services 16,804 19,554 21,600 32,200 10,600 49.1% Total Expenditures 219,952$ 282,592$ 305,000$ 327,900$ 22,900$ 7.5% Fuel and Oil 13,300$ 4.1% Meters and Materials 7,500 2.3% Infrastructure Equipment & Supplies 110,700 33.8% Chemicals 152,200 46.3% Safety Equipment 1,500 0.5% Laboratory Equipment and Supplies 4,000 1.2% Other Materials and Supplies 6,500 2.0% Contracted Services 32,200 9.8% Total Expenditures 327,900$ 100.0% Materials and Maintenance Expenditures - Recycled Budget to Budget Variance FY 2018 Materials and Maintenance Expenditures - Recycled 29 Intentionally Left Blank 30 FY 2016 FY 2018 21-Actual Projected Budget Budget $ % Revenues #Sewer Revenues 3,149,295$ 2,934,136$ 2,918,900$ 2,869,400$ (49,500)$ (1.7%) #Capacity Fee Revenues 4,528 4,779 - - - - Tax Revenues 72,469 90,695 51,600 51,600 - - #Non-operating Revenues 881,549 29,700 35,500 35,500 - - #Interest 1,523 1,183 4,300 20,400 16,100 374.4% Total Revenue 4,109,364 3,060,494 3,010,300 2,976,900 (33,400) (1.1%) Expenditures #Power 153,815 131,068 174,400 133,500 (40,900) (23.5%) #Labor and Benefits 884,853 749,778 979,300 1,080,400 101,100 10.3% #Administrative Expenses 224,541 216,230 229,100 275,200 46,100 20.1% #Materials and Maintenance 1,206,534 1,056,851 1,042,700 1,340,800 298,100 28.6% 11 Subtotal - Operations Costs 2,469,743 2,153,927 2,425,500 2,829,900 404,400 16.7% D Transfer to General Fund Reserve - 196,100 196,100 - (196,100) (100.0%) B Betterment Reserve 455,000 351,200 351,200 111,100 (240,100) (68.4%) ReReplacement Reserve 599,100 - - - - - TOTransfer to OPEB 33,600 37,500 37,500 35,900 (1,600) (4.3%) Subtotal - Reserve Funding 1,087,700 584,800 584,800 147,000 (437,800) (74.9%) Total Expenditures 3,557,443 2,738,727 3,010,300 2,976,900 (33,400) (1.1%) 551,921$ 321,766$ -$ -$ -$ - Excess Revenue/(Expenditures) Operating Budget Summary - Sewer Budget to Budget VarianceFY 2017 31 FY 2018 FY 2017 FY 2018 Accounts Current Proposed(1)Budget Budget $% Residential 4,554 2.58$ 2.77$ 1,429,300$ 1,310,700$ (118,600)$ -8.3% Multi-Residential 50 2.58 2.77 188,600 195,600 7,000 3.7% Commercial Low Strength 45 2.80 2.77 48,400 56,800 8,400 17.4% Medium Strength 13 3.70 3.98 15,400 34,800 19,400 126.0% High Strength 7 5.90 6.34 30,200 32,600 2,400 7.9% Schools 6 2.58 2.77 84,600 89,600 5,000 5.9% Churches 4 2.58 2.77 10,400 11,000 600 5.8% Subtotal Commercial 75 189,000 224,800 35,800 18.9% Total Sewer Charges 4,679 1,806,900$ 1,731,100$ (75,800)$ -4.2% Single-Family 1,310,700$ 76.0% Multi-Family 195,600 11.0% Commercial 224,800 13.0% 1,731,100$ 100.0% (1)Proposed rates for sewer service beginning in January 2018. FY 2018 Charges Summary by Service Class Charges Summary by Service Class - Sewer Usage Fee Budget to Budget Variance 32 FY 2018 Current Proposed (1)FY 2017 FY 2018 Meter Size Accounts Rates Rates Budget Budget $% Residential 4,554 15.89$ 17.08$ 903,400$ 900,900$ (2,500)$ -0.3% Multi-Residential/Commercial 0.75 22 28.37 30.50 7,300 7,400 100 1.4% 1.00 5 41.80 44.94 2,900 2,600 (300) -10.3% 1.50 20 75.27 80.92 17,600 18,700 1,100 6.3% 2.00 63 115.46 124.12 85,300 90,500 5,200 6.1% 3.00 6 209.24 224.93 14,800 15,600 800 5.4% 4.00 6 343.23 368.97 24,200 25,700 1,500 6.2% 6.00 1 678.18 729.04 8,000 8,500 500 6.3% 8.00 - 1,080.14 1,161.15 - - - 10.00 2 1,549.07 1,665.25 18,200 38,600 20,400 112.1% Total System Fee 4,679 1,081,700$ 1,108,500$ 26,800$ 2.5% System Fees - Sewer Budget to Budget Variance (1) Proposed rates for sewer service beginning in January 2018. 33 FY 2014 FY 2015 FY 2016 FY 2018 Projected Budget Budget Sewer Charges 2,736,867$ 2,986,734$ 3,124,595$ 2,905,862$ 2,888,600$ 2,839,600$ Penalties 21,000 22,900 24,700 28,274 30,300 29,800 Total 2,757,867$ 3,009,634$ 3,149,295$ 2,934,136$ 2,918,900$ 2,869,400$ Revenue History - Sewer, in thousands ($) Actual FY 2017 Revenue History - Sewer $2,500 $2,600 $2,700 $2,800 $2,900 $3,000 $3,100 $3,200 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected FY 2017 Budget FY 2018 Budget Sewer Charges Penalties 34 FY 2014 FY 2015 FY 2016 FY 2018 Projected Budget Budget $ % Total Power Cost 159,018$ 167,475$ 153,815$ 131,068$ 174,400$ 133,500$ (40,900)$ -30.6% Historical Power Costs, in thousands ($) Budget to Budget Variance Actual FY 2017 Power Costs - Sewer $20 $60 $100 $140 $180 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected FY 2017 Budget FY 2018 Budget 35 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget $ % Administrative Expenditures Travel and Memberships -$ 11$ -$ -$ -$ 0.0% Equipment 86 14,598 16,500 10,900 (5,600) (33.9%) Fees 4,067 6,700 6,700 4,100 (2,600) (38.8%) Services 65,142 28,508 42,700 82,500 39,800 93.2% Bad Debt Expense 7,108 8,413 5,200 5,200 - 0.0% Total 76,403 58,230 71,100 102,700 31,600 44.4% Add: Overhead Allocation 148,138 158,000 158,000 172,500 14,500 9.2% Total Expenditures 224,541$ 216,230$ 229,100$ 275,200$ 46,100$ 20.1% Equipment 10,900$ 4.0% Fees 4,100 1.5% Services 82,500 30.0% Bad Debt Expense 5,200 1.9% Overhead Allocation 172,500 62.6% Total Expenditures 275,200$ 100.0% Budget to Budget Variance FY 2018 Administrative Expenditures - Sewer Administrative Expenditures - Sewer 36 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget $ % Materials and Maintenance Fleet Parts and Equipment 7,504$ 4,988 5,000 5,000$ -$ - Infrastructure Equipment & Supplies 99,019 86,780 105,600 142,800 37,200 35.2% Chemicals 4,519 4,500 4,500 5,900 1,400 31.1% Laboratory Equipment and Supplies 4,852 5,003 5,000 8,700 3,700 74.0% Other Materials and Supplies 123 100 100 100 - - Contracted Services 59,350 84,297 87,300 167,600 80,300 92.0% Subtotal Materials and Maintenance 175,367 185,667 207,500 330,100 122,600 59.1% Sewer Charges Metro O&M Costs 812,536 690,984 655,000 820,700 165,700 25.3% Spring Valley Sewer Charge 218,631 180,200 180,200 190,000 9,800 5.4% Subtotal Sewer Charges 1,031,167 871,184 835,200 1,010,700 175,500 21.0% Total Expenditures 1,206,534$ 1,056,851$ 1,042,700$ 1,340,800$ 298,100$ 28.6% Fleet Parts and Equipment 5,000$ 0.4% Infrastructure Equipment & Supplies 142,800 10.6% Chemicals 5,900 0.4% Laboratory Equipment & Supplies (1)8,800 0.6% Contracted Services 167,600 12.5% Metro O&M Costs 820,700 61.2% Spring Valley Sewer Charge 190,000 14.3% Total Expenditures 1,340,800$ 100.0% Includes Other Materials & Supplies. Materials and Maintenance Expenditures - Sewer Budget to Budget Variance FY 2018 Materials and Maintenance Expenditures - Sewer (1) 37 Intentionally Left Blank 38 FY 2016 FY 2018 Actual Projected Budget Budget $% Fee Revenues Capacity Fee Revenues 1,517,128$ 1,374,599$ 1,248,200$ 1,513,200$ 265,000$ 21.2% Subtotal Fee Revenues 1,517,128 1,374,599 1,248,200 1,513,200 265,000 21.2% Tax Revenues 1% General Tax 3,353,611 3,516,131 3,354,800 3,715,700 360,900 10.8% Availability Fees 616,591 718,808 678,300 680,400 2,100 0.3% Subtotal Tax Revenues 3,970,202 4,234,939 4,033,100 4,396,100 363,000 9.0% General Revenue 5,487,330 5,609,538 5,281,300 5,909,300 628,000 11.9% FY 2016 FY 2018 Actual Projected Budget Budget $% Property Rental 1,281,150 1,379,994 1,310,300 1,282,300 (28,000) -2.1% Sewer Billing Fees 381,550 384,656 383,100 394,600 11,500 3.0% Set-up Fee for Lease Site 9,000 4,500 - - - 0.0% Grants 173,290 - - 0.0% Revenue from Shared Facility 25,241 29,700 35,500 35,500 - 0.0% Miscellaneous 737,924 557,734 450,400 452,100 1,700 0.4% Non-Operating Revenue 2,434,865 2,529,874 2,179,300 2,164,500 (14,800) -0.7% Potable Recycled Sewer Total Capacity Fee Revenues 1,513,200 - - 1,513,200 1% General Tax 3,715,700 - - 3,715,700 Availability Fees 628,800 - 51,600 680,400 Property Rental 1,282,300 - - 1,282,300 Sewer Billing Fees 394,600 - - 394,600 Revenue from Shared Facility - - 35,500 35,500 Miscellaneous 452,100 - - 452,100 Total General and Non-Operating Revenue 7,986,700$ -$ 87,100$ 8,073,800$ (1) For General and Non-Operating Revenues, the Potable Fund serves as the District's General Fund for accounting purposes. FY 2018 General Revenues General and Non-Operating Revenues by Business(1) Budget to Budget Variance General Revenues(1) Budget to Budget Variance Non-Operating Revenues(1) FY 2017 FY 2017 39 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget $% General Expense Total labor and benefits (1)1,359,311$ 1,239,722$ 1,181,400$ 1,106,200$ (75,200)$ (6.4%) Administrative Expenditures Legal expenses (2)250,074$ 301,420$ 250,000$ 475,000$ 225,000 90.0% Insurance expenses 577,200 577,200 575,000 661,000 86,000 15.0% Total General Expense 2,186,585$ 2,118,342$ 2,006,400$ 2,242,200$ 235,800$ 11.8% General Expense Budget to Budget Variance (1)Benefits include District-wide labor and benefit costs not attributable to any one department, such as the effect of cost of living raises on accrued leave liabilities or the Other Post Employment Benefit (OPEB) costs. These costs are netted against the District's anticipated Vacancy Factor. The Vacancy Factor for FY 2017 and FY 2018 is $198,600 and $205,300, respectively. Additionally, the labor and benefits shown on this schedule are those related to operating costs and does not include CIP labor and benefit costs. (2) Included in legal expenses are the costs pertaining to the City of San Diego Recycled Water Rate Lawsuit. 40 Board of Directors 144,100$ 0.4% General Manager 1,994,400 6.3% General Expense 2,242,200 7.0% Administrative Services 6,528,200 20.5% Finance 5,668,800 17.8% Water Operations 11,950,900 37.5% Engineering 3,358,400 10.5% 31,887,000$ 100.0% Departmental Operating Budget Total FY 2018 Departmental Operating Budget $31,887,000 41 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget $ % Labor Costs 11,383,709$ 11,513,539$ 11,645,000$ 11,979,700$ 334,700$ 2.9% Benefits Pension 3,854,533 4,133,108 4,161,600 4,378,200 216,600 5.2% Employee Assistance Program 3,744 4,160 4,200 4,200 - 0.0% Workers' Compensation 251,014 285,079 265,900 320,400 54,500 20.5% Health/Dental/Life Insurance/OPEB 3,800,813 3,977,720 4,072,500 4,052,500 (20,000) -0.5% Social Security/Medicare 947,970 952,320 962,700 997,800 35,100 3.6% Salary Continuation Insurance 60,272 60,626 89,500 62,100 (27,400) -30.6% State Unemployment Insurance 11,375 - 30,000 20,000 (10,000) -33.3% Vacation/Sick/Holiday/Other Leave 2,326,667 2,346,987 2,262,900 2,343,800 80,900 3.6% Total Benefits 11,256,389 11,759,999 11,849,300 12,179,000 329,700 2.8% Total Labor and Benefits 22,640,098 23,273,539 23,494,300 24,158,700 664,400 2.8% Less: Non-Operating Labor and Benefits Labor Costs 960,168 1,068,286 1,060,800 1,072,600 11,800 1.1% Benefits Allocation 644,741 676,119 763,300 785,000 21,700 2.8% Total Non-Operating Labor and Benefits 1,604,910 1,744,404 1,824,100 1,857,600 33,500 1.8% Operating Labor & Benefits 21,035,189 21,529,134 21,670,200 22,301,100 630,900 2.9% Overhead Allocation (115% of labor costs) 1,104,194 1,228,500 1,219,900 1,233,500 13,600 1.1% Admin Overhead (36.85%)406,895 452,700 449,500 454,500 5,000 1.1% Personnel Overhead (63.15%)697,299 775,800 770,300 779,000 8,700 1.1% Net Operating Labor and Benefits 20,337,890$ 20,753,334$ 20,899,900$ 21,522,100$ 622,200$ 3.0% Labor and Benefits Budget to Budget Variance 04080120 Full - Time Equivalent (FTE) FY 2018 Budget FY 2017 FY 2016 138 135 134 42 Potable Recycled Sewer Developer Reimbursed- CIP Total Operating Labor Costs 10,054,100$ 446,000$ 407,000$ -$ 10,907,100$ Benefits 10,614,800 401,400 377,800 - 11,394,000 Overhead Allocation-Personnel (1,398,500) 323,900 295,600 - (779,000) Total Operating Labor and Benefits 19,270,400 1,171,300 1,080,400 - 21,522,100 CIP Labor Costs 524,900 118,700 76,300 352,700 1,072,600 Benefits 372,300 83,300 49,400 280,000 785,000 Overhead Allocation-Personnel 381,300 86,200 55,400 256,100 779,000 Total CIP Labor and Benefits 1,278,500 288,200 181,100 888,800 2,636,600 Total Labor and Benefits 20,548,900$ 1,459,500$ 1,261,500$ 888,800$ 24,158,700$ Potable-Operating 19,270,400$ 79.8% Potable-CIP 1,278,500 5.3% Sewer-Operating 1,080,400 4.5% Sewer-CIP 181,100 0.7% Recycle-Operating 1,171,300 4.8% Recycle-CIP 288,200 1.2% Develeper Reimbursed-CIP 888,800 3.7% 24,158,700$ 100.0% Labor and Benefits by Fund - Fiscal Year 2018 43 FY 2016 FY 2017 FY 2018 General Manager: General Manager 1 1 1 Assistant General Manager 1 1 1 District Secretary 1 1 1 Sr. Confidential Executive Secretary 1 1 1 Communications Officer 1 1 1 Communications Assistant 0 1 1 General Manager 5 6 6 Total - General Manager Department 5 6 6 FTE 5 6 6 Administrative Services: Chief, Administrative Services 0 1 1 Assistant Chief, Administrative Services 1 0 0 Confidential Executive Secretary 1 1 1 Confidential Secretary 1 1 1 Administrative Services 3 3 3 Human Resources: Human Resources Manager 1 1 1 Senior Human Resources Analyst 1 1 1 Human Resources Analyst 1 1 1 Human Resources 3 3 3 Purchasing: Purchasing and Facilities Manager 1 1 1 Senior Procurement & Contracting Analyst 0 0 1 Senior Buyer 1 1 0 Assistant Buyer 1 0 0 Senior Warehouse Worker 0 1 1 Warehouse/Delivery Worker 1 0 0 Facilities Maintenance Technician 2 2 2 Purchasing 6 5 5 Safety: Safety & Security Specialist 1 1 1 Safety 1 1 1 Position Count by Department 4444 FY 2016 FY 2017 FY 2018 Information Technology (IT): Chief Information Officer 1 0 0 IT Manager 1 1 1 GIS Manager 1 1 1 GIS Programmer/Analyst 1 1 1 GIS Analyst 1 1 1 GIS Technician 1 1 1 Network Engineer 1 1 1 Database Administrator 1 1 1 Data Systems Technician 1 1 1 System Support Analyst 1 1 1 Business System Analyst I and II 2 2 2 Network Analyst 1 0 0 Information Technology 13 11 11 Total Administrative Services Department 26 23 23 FTE 26 23 23 Controller and Budgetary Services: Chief Financial Officer 1 1 1 Executive Secretary 1 1 1 Secretary 1 1 1 Finance Manager, Controller and Budget 1 1 1 Senior Accountant 2 2 2 Accountant 1 1 1 Accounting Technician 1 1 1 Controller and Budgetary Services 8 8 8 Treasury and Accounting Services: Finance Manager, Treasury and Accounting 1 1 1 Senior Accountant 222 Accountant 221 Accounting Technician 1 1 1 Treasury and Accounting Services 6 6 5 Customer Service: Customer Service Manager 2 1 1 Customer Service Supervisor 0 1 1 Lead Customer Service Representative 2 1 1 Customer Service Representative I, II, III 6 6 6 Lead Customer Service Field Representative 1 1 1 Customer Service Field Representative I and II 2 2 2 Customer Service 13 12 12 45 FY 2016 FY 2017 FY 2018 Conservation: Sr. Water Conservation Specialist 1 1 0 Conservation 1 1 0 Meter Maintenance Meter Services Supervisor 0 0 1 Lead Cross Connection/Meter Maintenance Worker 1 1 0 Meter Maintenance Worker I & II 3 3 3 Meter Maintenance 4 4 4 Total Finance Department 32 31 29 FTE 32 31 29 Operations Management: Chief, Water Operations 1 1 1 Assistant Chief, Water Operations 1 1 1 Executive Secretary 1 1 1 Operations Management 3 3 3 Water System Operations: System Operations Manager 1 1 1 Water Systems Supervisor 1 1 1 Recycled Water Systems Supervisor 1 0 0 Lead Water Systems Operator 2 2 2 Water Systems Operator I, II, and III 8 8 8 Senior SCADA Instrumentation Technician 0 2 2 Sr. Disinfection Technician 2 2 2 Recycled Water Distribution Operator 4 0 0 Water System Operations 19 16 16 Utility Maintenance/Construction: Utility Maintenance Supervisor 222 Utility Crew Leader 3 3 3 Utility Workers I and II 8 8 8 Senior Utility/Equipment Operator 3 3 3 Valve Maintenance Worker 2 2 2 Pump Electricial Supervisor 1 1 1 Electrician I and II 2 2 2 Pump Mechanic I and II 2 2 2 Fleet Maintenance Supervisor 1 1 1 Equipment Mechanic I and II 3 3 3 Utility Maintenance/Construction 27 27 27 4646 FY 2016 FY 2017 FY 2018 Collection/Treatment/Reclamation Operations: Reclamation Plant Supervisor 1 1 1 Lead Reclamation Plant Operator 1 1 1 Reclamation Plant Operator I, II, III 2 2 2 Senior SCADA Instrumentation Technician 2 0 0 Laboratory Analyst 1 1 2 Collection/Treatment/Reclamation Operations 7 5 6 Total Operations Department 56 51 52 FTE 56 51 52 Engineering Management: Chief, Engineering 1 1 1 Executive Secretary 1 1 1 Secretary 1 1 1 Engineering Management 3 3 3 Engineering: Engineering Manager 2 2 2 Senior Civil Engineer 2 2 2 Associate Civil Engineer 1 1 1 Environmental Compliance Specialist 1 1 1 Permit Technicians 2 2 2 Senior Engineering Technician 222 Field Services Manager 1 1 1 Recycled Water Systems Supervisor 0 1 1 Recycled Water Distribution Operator 0 3 3 Inspection Supervisor 0 1 1 Lead Construction Inspector 1 0 0 Construction Inspectors I and II 2 3 3 Supervising Land Surveyor 1 1 1 Assistant Survey Technician 1 1 1 Engineering 16 21 21 Total Engineering Department 19 24 24 FTE 19 24 24 District Total Position Count 138 135 134 FTE 138 135 134 47 FY 2016 FY 2017 FY 2018 Lab Intern 0 1 0 Project Coordinator 0 0 1 Total Contract/Temporary Employees 0 1 1 General Manager 6.00 4.5% Administrative Services 23.00 17.2% Finance 29.00 21.6% Operations 52.00 38.8% Engineering 24.00 17.9% Total 134.00 100.0% Contract / Temporary Employees FY 2018 Position Count by Department 4848 FY 2016 FY 2017 FY 2017 FY 2018 Budget to Budget Actual Projected Budget Budget Variance Departmental Expenditures BBoard of Directors 94,910$ 104,791$ 120,300$ 144,100$ 23,800$ GGeneral Manager 1,613,499 1,745,282 2,083,700 1,994,400 (89,300) GGeneral Expense 2,186,585 2,134,673 2,006,400 2,242,200 235,800 AAdministrative Services 6,020,287 6,200,790 6,324,900 6,528,200 203,300 F Finance 5,603,691 5,427,226 5,512,500 5,668,800 156,300 WWater Operations 10,383,742 10,900,773 11,316,700 11,950,900 634,200 EEngineering 3,152,924 3,065,640 3,361,700 3,358,400 (3,300) T Total Departmental Expenditures 29,055,638 29,579,175 30,726,200 31,887,000 1,160,800 Less: Overhead Allocation (1,104,194) (1,225,400) (1,219,900) (1,233,500) (13,600) Net Departmental Expenditures 27,951,444 28,353,775 29,506,300 30,653,500 1,147,200 Non-Departmental Expenditures Water Purchases 43,863,330 47,882,288 47,422,400 50,178,300 2,755,900 Power 2,697,915 2,919,416 2,938,000 3,023,800 85,800 Transfer to General Fund Reserve - 2,854,300 2,854,300 - (2,854,300) Expansion Reserve 2,695,800 4,093,600 4,093,600 3,274,600 (819,000) Betterment Reserve 2,400,000 3,466,400 3,466,400 111,100 (3,355,300) Replacement Reserve 3,421,000 464,500 464,500 9,787,900 9,323,400 Transfer to Sewer Replacement 1,199,300 - - - - Transfer to OPEB 1,006,000 961,000 961,000 998,000 37,000 Transfer to New Supply Reserve 35,000 35,000 35,000 221,000 186,000 Total Non-Departmental Expenditures 57,318,345 62,676,504 62,235,200 67,594,700 5,359,500 Total Operating Expenditures 85,269,789$ 91,030,279$ 91,741,500$ 98,248,200$ 6,506,700$ FY 2018 Funding Source by Department, in Millions ($) Operating Expenditures by Department $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 Board of Directors General Manager Administrative Services Finance Water Operations Engineering General Expense Potable Recycled Sewer 49 FY 2016 FY 2017 FY 2017 FY 2018 Budget to Budget Actual Projected Budget Budget Variance Departmental Expenditures Labor and Benefits 21,035,189$ 21,529,134$ 21,670,200$ 22,301,100$ 630,900$ Director's Fees 22,100 23,693 33,000 40,000 7,000 Travel and Memberships 164,590 126,856 208,600 245,400 36,800 Conservation and Outreach 150,060 168,911 177,400 161,600 (15,800) General Office Expense 236,868 214,569 265,500 266,700 1,200 Equipment 1,062,675 1,146,438 1,129,100 1,204,000 74,900 Fees 1,336,557 1,546,143 1,457,800 1,767,400 309,600 Services 1,735,752 1,472,837 2,082,400 2,012,800 (69,600) Training 68,007 112,070 126,000 122,300 (3,700) Materials & Maintenance 2,072,008 2,233,527 2,621,100 2,635,000 13,900 Power and Utilities 26,445 14,703 14,900 14,900 - Sewer Charges 1,031,167 871,184 835,200 1,010,700 175,500 Miscellaneous Expense - 107 - 100 100 Bad Debt Expense 114,220 119,003 105,000 105,000 - Total Departmental Expenditures 29,055,638 29,579,175 30,726,200 31,887,000 1,160,800 Less: Overhead Allocation (1,104,194) (1,225,400) (1,219,900) (1,233,500) (13,600) Net Departmental Expenditures 27,951,444 28,353,775 29,506,300 30,653,500 1,147,200 Non-Departmental Expenditures Water Purchases 43,863,330 47,882,288 47,422,400 50,178,300 2,755,900 Power 2,697,915 2,919,416 2,938,000 3,023,800 85,800 Transfer to General Fund Reserve - 2,854,300 2,854,300 - (2,854,300) Expansion Reserve 2,695,800 4,093,600 4,093,600 3,274,600 (819,000) Betterment Reserve 2,400,000 3,466,400 3,466,400 111,100 (3,355,300) Replacement Reserve 3,421,000 464,500 464,500 9,787,900 9,323,400 Transfer to Sewer Replacement 1,199,300 - - - - Transfer to OPEB 1,006,000 961,000 961,000 998,000 37,000 Transfer to New Supply Fund 35,000 35,000 35,000 221,000 186,000 Total Non-Departmental Expenditures 57,318,345 62,676,504 62,235,200 67,594,700 5,359,500 Total Operating Expenditures 85,269,789$ 91,030,279$ 91,741,500$ 98,248,200$ 6,506,700$ Operating Expenditures by Object 50 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget $ % Administrative Expenditures Directors' Fees 22,100$ 23,693$ 33,000$ 40,000$ 7,000$ 21.2% Travel and Memberships 164,590 126,856 208,600 245,400 36,800 17.6% Conservation and Outreach 150,060 168,911 177,400 161,600 (15,800) (8.9%) General Office Expense 236,868 214,569 265,500 266,700 1,200 0.5% Equipment 1,062,675 1,146,438 1,129,100 1,204,000 74,900 6.6% Fees 509,283 651,192 632,800 631,400 (1,400) (0.2%) Services 1,735,752 1,472,837 2,082,400 2,012,800 (69,600) (3.3%) Training 68,007 112,070 126,000 122,300 (3,700) (2.9%) Utilities 26,445 14,703 14,900 14,900 - - Insurance and Legal 827,274 894,951 825,000 1,136,000 311,000 37.7% Miscellaneous Expense - 107 - 100 100 100.0% Bad Debt Expense 114,220 119,003 105,000 105,000 - - Subtotal before Overhead 4,917,274 4,945,330 5,599,700 5,940,200 340,500 6.1% Less: Overhead Allocation (406,895) (449,600) (449,600) (454,500) (4,900) - Total Expenditures 4,510,379$ 4,495,730$ 5,150,100$ 5,485,700$ 335,600$ 6.5% 4,702,612$ 5,605,400$ 7,076,200$ Directors' Fees 40,000$ 0.7% Travel and Membership 245,400 4.1% Conservation & Outreach 161,600 2.7% General Office Expense 266,700 4.5% Equipment 1,204,000 20.3% Fees 631,400 10.6% Services 2,012,800 33.9% Training 122,300 2.1% Utilities 14,900 0.3% General Expense 1,136,000 19.1% Bad Debt Expense (1)105,100 1.7% 5,940,200 100.0% Less: Overhead Allocation (454,500) Total Administrative Expenses 5,485,700$ (1)Includes Miscellaneous Expense Administrative Expenditures - Total Budget to Budget Variance FY 2018 Total Administrative Expenditures, in thousands ($) 51 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget $ % Materials and Maintenance Fuel and Oil 141,819$ 176,471$ 242,300$ 196,300$ (46,000)$ (19.0%) Meters and Materials 176,102 159,018 159,200 124,700 (34,500) (21.7%) Fleet Parts and Equipment 122,792 120,071 129,800 129,800 - 0.0% Infrastructure Equipment & Supplies 505,469 567,784 626,700 664,500 37,800 6.0% Chemicals 268,680 344,178 364,300 357,700 (6,600) (1.8%) Safety Equipment 81,155 51,643 52,500 53,300 800 1.5% Laboratory Equipment and Supplies 39,977 45,306 45,300 71,200 25,900 57.2% Other Materials and Supplies 161,229 151,807 182,300 155,800 (26,500) (14.5%) Building and Grounds Materials 56,663 63,227 56,000 61,100 5,100 9.1% Contracted Services 518,122 554,022 762,700 820,600 57,900 7.6% Subtotal Materials and Maintenance 2,072,008 2,233,527 2,621,100 2,635,000 13,900 0.5% Sewer Charges Metro O&M Costs 812,536 690,984 655,000 820,700 165,700 25.3% Spring Valley Sewer Charge 218,631 180,200 180,200 190,000 9,800 5.4% Subtotal Sewer Charges 1,031,167 871,184 835,200 1,010,700 175,500 21.0% Total Expenditures 3,103,175$ 3,104,711$ 3,456,300$ 3,645,700$ 189,400$ 5.5% Fuel and Oil 196,300$ 5.4% Meters and Materials 124,700 3.4% Fleet Parts and Equipment 129,800 3.6% Infrastructure Equipment and Supplies 664,500 18.2% Chemicals 357,700 9.8% Safety Equipment 53,300 1.4% Laboratory Equipment and Supplies 71,200 2.0% Other Materials and Supplies 155,800 4.3% Building and Grounds Materials 61,100 1.7% Contracted Services 820,600 22.5% Sewer Charges 1,010,700 27.7% Total Expenditures 3,645,700$ 100.0% Materials and Maintenance Expenditures - Total Budget to Budget Variance FY 2018 Materials and Maintenance Expenditures 52 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Board of Directors 94,910$ 104,791$ 120,300$ 144,100$ Total Expenses 94,910 104,791 120,300 144,100 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Benefits 67,338 71,869 71,800 81,800 Director's Fees 22,100 23,693 33,000 40,000 Travel and Memberships 5,472 8,944 15,500 22,300 Conservation and Outreach - 285 - - Total Expenses 94,910$ 104,791$ 120,300$ 144,100$ Board of Directors - Expenses Department Budget vs. Actual, in thousands ($) Object $0 $30 $60 $90 $120 2014 2015 2016 2017 2018 10 9 11 5 12 0 12 0 14 4 10 0 96 95 10 5 Budget Actual Projected 53 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 67,338$ 71,869$ 71,800$ 81,800$ Administrative Expenses Mileage 2,416 1,816 2,500 2,800 Travel Expenses 1,226 2,553 7,800 12,000 Conferences and Seminars 963 3,854 4,000 6,000 Business Meetings 867 720 1,200 1,500 Public Recognition Awards - 285 - - Director's Fees 22,100 23,693 33,000 40,000 Total Administrative Expenses 27,572 32,922 48,500 62,300 Total Expenses 94,910$ 104,791$ 120,300$ 144,100$ OTAY WATER DISTRICT DIVISION 1111 - BOARD OF DIRECTORS FISCAL YEAR 2018 BUDGET 54 FY 2016 FY 2017 FY 2017 FY 2018 Actual (1)Projected (1)Budget (1)Budget (1) General Manager 1,277,007$ 1,168,155$ 1,384,800$ 1,419,000$ Assistant General Manager 336,492 343,149 352,800 368,800 Conservation (1)326,148 233,978 346,100 206,600 Total Expenses 1,939,647 1,745,282 2,083,700 1,994,400 -$ FY 2016 FY 2017 FY 2017 FY 2018 Actual (1)Projected (1)Budget (1)Budget (1) Labor and Benefits 1,338,259 1,390,163 1,486,600 1,373,200 Travel and Memberships 52,096 27,292 60,600 101,600 Conservation and Outreach 150,060 168,626 177,400 161,600 General Office Expense 1,243 1,897 1,900 6,200 Equipment 4,896 - 3,000 3,200 Fees 49,181 78,500 81,000 58,000 Services 312,684 57,796 153,200 189,000 Materials & Maintenance 31,123 20,354 120,000 100,000 Miscellaneous 105 107 - 100 Total Expenses 1,939,647$ 1,745,282$ 2,083,700$ 1,994,400$ -$ -$ -$ -$ (1) In FY 2018, the Water Conservation Division was moved to the General Manager's department. Prior year budget and actuals have been adjusted for comparative purposes. General Manager - Expenses Department Budget vs. Actual, in thousands ($) Object $1,000 $1,300 $1,600 $1,900 2014 2015 2016 2017 2018 1, 9 1 2 1, 9 8 5 2, 0 8 4 2, 0 8 4 1, 9 9 4 1, 5 7 5 1, 6 7 3 1, 9 4 0 1, 7 4 5 Budget Actual Projected 55 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 867,077$ 999,323$ 1,000,100$ 1,008,100$ Administrative Expenses Mileage 3,304 1,426 3,000 4,500 Travel Expenses 2,698 612 5,000 8,000 Conferences and Seminars 3,707 1,528 5,000 7,000 Business Meetings 10,625 5,141 10,000 14,200 Membership and Dues 28,459 12,628 28,000 58,800 Public Recognition Awards 7,914 11,430 6,000 12,500 Books, Periodicals and Subscriptions 769 1,343 1,200 1,500 Office Supplies 474 554 - 4,000 Postage - - 500 500 Maintenance and Parts 4,896 - 3,000 3,200 Regulatory Agencies Fees 49,181 78,500 81,000 58,000 Outside Services 266,675 34,662 122,000 137,100 General Training - 547 - 1,500 Miscellaneous 105 107 - 100 Total Administrative Expenses 378,807 148,477 264,700 310,900 Materials and Maintenance Expenses Contracted Services 31,123 20,354 120,000 100,000 Total Materials and Maintenance 31,123 20,354 120,000 100,000 Total Expenses 1,277,007$ 1,168,155$ 1,384,800$ 1,419,000$ OTAY WATER DISTRICT DIVISION 1211 - GENERAL MANAGER FISCAL YEAR 2018 BUDGET 56 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 336,302$ 342,792$ 349,100$ 365,100$ Administrative Expenses Travel Expenses - - 1,500 1,500 Conferences and Seminars - 357 2,000 2,000 Business Meetings 190 - 200 200 Total Administrative Expenses 190 357 3,700 3,700 Total Expenses 336,492$ 343,149$ 352,800$ 368,800$ OTAY WATER DISTRICT DIVISION 2111 - ASSISTANT GENERAL MANAGER FISCAL YEAR 2018 BUDGET 57 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 134,880$ 48,047$ 137,400$ -$ Administrative Expenses Mileage - - 100 - Travel Expenses - 1,200 1,200 1,200 Conferences and Seminars 75 800 800 800 Business Meetings - 200 200 200 Membership and Dues 3,038 3,400 3,600 3,200 Incentives 12,781 17,996 32,200 12,200 Public Recognition Awards 8,643 15,000 15,000 12,700 Conservation Garden 120,722 124,200 124,200 124,200 Books, Periodicals and Subscriptions - - 200 200 Outside Services 46,009 23,135 31,200 51,900 Total Administrative Expenses 191,268 185,931 208,700 206,600 Total Expenses 326,148$ 233,978$ 346,100$ 206,600$ OTAY WATER DISTRICT DIVISION 2343 - WATER CONSERVATION FISCAL YEAR 2018 BUDGET 58 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Administrative Chief 850,853$ 556,228$ 555,800$ 576,400$ Human Resources 661,366 717,003 824,900 815,700 Purchasing and Facilities 1,311,242 1,316,219 1,321,600 1,386,400 Safety and Security 303,123 368,015 361,300 364,800 IT Services 1,999,749 2,282,330 2,276,000 2,391,700 Geographic Information System (GIS) 893,954 960,995 985,300 993,200 Total Expenses 6,020,287 6,200,790 6,324,900 6,528,200 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Labor and Benefits 4,050,829 4,091,698 4,074,300 4,223,100 Travel and Memberships 41,086 27,591 52,100 45,500 General Office Expense 76,620 66,973 94,000 91,900 Equipment 1,024,550 1,085,294 1,064,800 1,142,200 Fees 977 - - - Services 353,922 441,814 552,000 507,400 Training 53,299 95,077 103,000 104,500 Materials & Maintenance 392,559 377,641 369,800 398,700 Power and Utilities 26,445 14,703 14,900 14,900 Total Expenses 6,020,287$ 6,200,790$ 6,324,900$ 6,528,200$ -$ -$ -$ -$ Budget vs. Actual, in thousands ($) Administrative Services - Expenses Department Object $5,600 $5,800 $6,000 $6,200 $6,400 $6,600 2014 2015 2016 2017 2018 6, 2 0 5 6, 3 6 9 6, 3 2 5 6, 3 2 5 6, 5 2 8 5, 9 3 7 6, 3 3 9 6, 0 2 0 6, 2 0 1 Budget Actual Projected 59 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 846,039$ 549,776$ 544,200$ 568,700$ Administrative Expenses Mileage 64 112 600 300 Travel Expenses 2,857 2,000 2,000 1,000 Conferences and Seminars 1,084 4,000 6,000 4,000 Business Meetings 94 - 1,200 600 Membership and Dues 715 340 800 800 Required Training - - 1,000 1,000 Total Administrative Expenses 4,814 6,452 11,600 7,700 Total Expenses 850,853$ 556,228$ 555,800$ 576,400$ OTAY WATER DISTRICT DIVISION 2211 - ADMINISTRATIVE AND IT CHIEF FISCAL YEAR 2018 BUDGET 60 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 610,902$ 628,226$ 621,100$ 630,700$ Administrative Expenses Mileage 80 120 200 200 Travel Expenses 2,039 355 2,400 2,400 Conferences and Seminars 2,091 696 2,000 2,000 Business Meetings 1,340 288 2,000 1,500 Membership and Dues 744 519 700 1,200 Books, Periodicals and Subscriptions 770 115 1,000 1,200 Outside Services 5,325 54 112,000 90,000 Temporary Employment Services - 31,200 10,000 10,000 Recruitment Expense 5,199 4,305 14,000 14,000 Tuition Reimbursement 12,535 7,953 15,000 15,000 General Training - 20,672 22,000 25,000 Employee Programs 20,341 22,500 22,500 22,500 Total Administrative Expenses 50,464 88,777 203,800 185,000 Total Expenses 661,366$ 717,003$ 824,900$ 815,700$ OTAY WATER DISTRICT DIVISION 2221 - HUMAN RESOURCES FISCAL YEAR 2018 BUDGET 61 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 710,598$ 735,556$ 724,800$ 771,700$ Administrative Expenses Mileage 17 - - - Travel Expenses 1,068 200 1,000 1,000 Conferences and Seminars 800 800 800 600 Business Meetings 307 400 400 300 Membership and Dues 509 954 700 1,100 Office Supplies 24,978 25,800 25,800 38,300 Postage 27,255 28,081 38,000 31,500 Printing Expenses 22,348 12,811 27,400 19,300 Maintenance and Parts 40,811 37,199 33,200 24,500 Rent and Leases 1,228 767 1,200 1,200 Office Furniture 7,831 5,000 5,000 5,000 Small Tools and Equipment 28,389 22,600 22,600 19,700 Regulatory Agencies Fees 977 - - - Outside Services 58,454 60,500 60,500 63,400 Uniforms 43,741 42,000 42,000 44,000 General Training 2,598 4,200 4,500 3,000 Required Certification - 60 - - Sewer 4,303 4,303 4,500 4,500 Trash Services 22,142 10,400 10,400 10,400 Total Administrative Expenses 287,756 256,076 278,000 267,800 Materials and Maintenance Expenses Meters and Materials - 288 - - Building Ground and Materials 55,548 60,500 55,000 60,100 Contracted Services 257,339 263,800 263,800 286,800 Total Materials and Maintenance 312,887 324,588 318,800 346,900 Total Expenses 1,311,241$ 1,316,219$ 1,321,600$ 1,386,400$ OTAY WATER DISTRICT DIVISION 2231 - PURCHASING FISCAL YEAR 2018 BUDGET 62 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 156,662$ 170,531$ 172,200$ 175,700$ Administrative Expenses Mileage 78 - - - Travel Expenses - - 300 200 Conferences & Seminars 323 195 300 300 Business Meetings 391 - 500 600 Membership and Dues 5,315 565 500 700 Books, Periodicals and Subscriptions 884 165 500 500 Outside Services 7,517 50,134 49,500 45,000 Security Services 23,556 41,742 44,000 39,000 Uniforms - 3,648 - - Health Exams 17,537 16,484 16,500 25,000 General Training 899 4,066 - - Required Training 10,289 27,432 26,000 26,000 Total Administrative Expenses 66,789 144,431 138,100 137,300 Materials and Maintenance Expenses Safety Equipment 79,672 51,004 51,000 51,800 Building Ground & Materials - 2,049 - - Total Materials and Maintenance 79,672 53,053 51,000 51,800 Total Expenses 303,123$ 368,015$ 361,300$ 364,800$ OTAY WATER DISTRICT DIVISION 2241 - SAFETY & SECURITY FISCAL YEAR 2018 BUDGET 63 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 1,054,637$ 1,301,306$ 1,305,100$ 1,349,200$ Administrative Expenses Mileage 27 616 200 300 Travel Expenses 4,427 5,164 1,000 8,000 Conferences and Seminars 9,397 7,789 17,500 10,500 Business Meetings 313 - 300 100 Membership and Dues 343 701 300 700 Books, Periodicals and Subscriptions - - 500 300 Communication 263,388 336,308 318,500 330,000 Technology Hardware and Software 511,074 470,597 472,600 549,100 Outside Services 156,143 159,850 160,000 143,500 Total Administrative Expenses 945,112 981,024 970,900 1,042,500 Total Expenses 1,999,749$ 2,282,330$ 2,276,000$ 2,391,700$ OTAY WATER DISTRICT DIVISION 2421 - IT OPERATIONS FISCAL YEAR 2018 BUDGET 64 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 671,991$ 706,304$ 706,900$ 727,100$ Administrative Expenses Mileage 292 210 300 300 Travel Expenses 2,900 922 3,500 3,000 Conferences and Seminars 3,077 645 6,000 3,000 Business Meetings 102 - 300 300 Membership and Dues 292 - 300 500 Books, Periodicals and Subscriptions 385 - 800 800 Tech Hardware and Software 171,828 212,823 211,700 212,700 Outside Services 36,450 31,896 43,500 33,500 General Training 6,637 8,194 12,000 12,000 Total Administrative Expenses 221,963 254,691 278,400 266,100 Total Expenses 893,954$ 960,995$ 985,300$ 993,200$ OTAY WATER DISTRICT DIVISION 2431 - GEOGRAPHIC INFORMATION SYSTEM FISCAL YEAR 2018 BUDGET 65 Intentionally Left Blank 66 FY 2016 FY 2017 FY 2017 FY 2018 Actual (1)Projected Budget (1)Budget Finance Chief 547,874$ 576,588$ 563,700$ 579,200$ Controller and Budgetary Services 832,787 888,893 911,800 950,700 Treasury and Accounting Services 1,372,201 1,363,963 1,410,500 1,336,800 Customer Service 1,868,278 1,916,532 1,938,900 1,983,200 Meter Shop 656,403 681,250 687,600 818,900 Total Expenses 5,277,543 5,427,226 5,512,500 5,668,800 FY 2016 FY 2017 FY 2017 FY 2018 Actual (1)Projected Budget (1)Budget Labor and Benefits 4,180,710 4,451,848 4,516,800 4,657,400 Travel and Memberships 11,571 10,534 19,700 17,300 General Office Expense 151,896 144,265 167,600 167,500 Fees 355,925 385,290 363,900 387,300 Services 96,450 147,311 159,200 186,800 Training 180 410 500 700 Materials & Maintenance 182,696 168,564 179,800 146,800 Bad Debt Expense 114,115 119,003 105,000 105,000 Total Expenses 5,093,543$ 5,427,226$ 5,512,500$ 5,668,800$ 184,000$ -$ -$ -$ (1) In FY 2018, the Water Conservation Division was moved to the General Manager's department. Prior year budget and actuals have been adjusted for comparative purposes. Finance - Expenses Department Budget vs. Actual, in thousands ($) Object $2,500 $4,000 $5,500 2014 2015 2016 2017 2018 5, 3 9 6 5, 3 9 4 5, 5 1 3 5, 5 1 3 5, 6 6 9 5, 4 6 3 5, 2 1 1 5, 0 9 4 5, 4 2 7 Budget Actual Projected 67 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 528,846$ 556,154$ 544,900$ 558,400$ Administrative Expenses Mileage 130 - 200 200 Travel Expenses 604 - 100 100 Conferences and Seminars 2,505 700 1,700 1,700 Business Meetings 126 - 100 100 Membership and Dues 3,238 2,000 2,500 2,600 Books, Periodicals and Subscriptions 378 348 500 400 Postage - - 100 100 Outside Services 12,047 17,387 13,600 15,600 Total Administrative Expenses 19,028 20,434 18,800 20,800 Total Expenses 547,874$ 576,588$ 563,700$ 579,200$ OTAY WATER DISTRICT DIVISION 2311 - FINANCE CHIEF FISCAL YEAR 2018 BUDGET 68 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 826,582$ 839,021$ 853,700$ 896,600$ Administrative Expenses Mileage 154 134 300 300 Travel Expenses - - 400 400 Conferences and Seminars 1,555 975 2,600 1,500 Business Meetings 20 - 200 200 Membership and Dues 573 1,092 1,000 1,400 Office Supplies 1,066 304 1,100 1,100 Outside Services 2,837 47,367 52,500 27,700 Temporary Employment Services - - - 21,500 Total Administrative Expenses 6,205 49,872 58,100 54,100 Total Expenses 832,787$ 888,893$ 911,800$ 950,700$ OTAY WATER DISTRICT DIVISION 2321 - CONTROLLER & BUDGETARY SERVICES FISCAL YEAR 2018 BUDGET 69 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 972,267$ 974,413$ 1,035,600$ 910,400$ Administrative Expenses Mileage 185 10 100 100 Travel Expenses 766 - 500 100 Conferences and Seminars 1,209 75 1,000 700 Business Meetings 65 - - - Membership and Dues 245 270 300 200 Books, Periodicals and Subscriptions - - 200 200 Printing Expenses 492 156 300 300 Accounting Fees 26,823 30,023 29,500 30,800 Bank Fees 329,102 355,267 334,400 356,500 Outside Services 40,920 3,750 8,600 37,500 Uniforms 127 - - - Total Administrative Expenses 399,934 389,551 374,900 426,400 Total Expenses 1,372,201$ 1,363,963$ 1,410,500$ 1,336,800$ OTAY WATER DISTRICT DIVISION 2331 - TREASURY & ACCOUNTING SERVICES FISCAL YEAR 2018 BUDGET 70 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 1,515,599$ 1,572,325$ 1,578,600$ 1,622,900$ Administrative Expenses Mileage 72 140 200 200 Travel Expenses 467 1,350 3,100 3,100 Conferences and Seminars 1,537 1,300 1,500 1,500 Business Meetings - 148 100 100 Books, Periodicals and Subscriptions 21 - 100 100 Postage 149,939 143,458 165,300 165,300 Outside Services 86,528 78,808 84,500 84,500 General Training - - 500 500 Bad Debt 114,115 119,003 105,000 105,000 Total Administrative Expenses 352,679 344,207 360,300 360,300 Total Expenses 1,868,278$ 1,916,532$ 1,938,900$ 1,983,200$ OTAY WATER DISTRICT DIVISION 2341 - CUSTOMER SERVICE FISCAL YEAR 2018 BUDGET 71 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 472,296$ 509,935$ 504,000$ 669,100$ Administrative Expenses Mileage - 70 100 100 Travel Expenses 432 1,100 1,500 1,500 Conferences and Seminars 469 1,040 1,200 1,200 Business Meetings 180 - - - Membership and Dues 150 130 1,000 - Required Certification 180 410 - 200 Total Administrative Expenses 1,411 2,750 3,800 3,000 Materials & Maintenance Expenses Meters and Materials 166,275 151,200 151,200 116,700 Infrastructure Equipment and Supplies 4,674 5,000 5,000 5,000 Other Materials and Maintenance 10,847 11,364 18,600 20,100 Contracted Services 900 1,000 5,000 5,000 Total Materials and Maintenance 182,696 168,564 179,800 146,800 Total Expenses 656,403$ 681,250$ 687,600$ 818,900$ OTAY WATER DISTRICT DIVISION 2342 - METER SHOP FISCAL YEAR 2018 BUDGET 72 FY 2016 FY 2017 FY 2017 FY 2018 Actual (2)Projected Budget (2)Budget Water Operations Chief (1)438,881$ 466,030$ 461,600$ 472,800$ Water Systems (1)5,182,548 5,393,435 5,512,300 6,082,400 Construction Maintenance (1)4,762,313 5,041,308 5,342,800 5,395,700 Total Expenses 10,383,742 10,900,773 11,316,700 11,950,900 FY 2016 FY 2017 FY 2017 FY 2018 Actual (2)Projected Budget (2)Budget Labor and Benefits (1)7,428,812 7,774,124 7,821,700 8,260,600 Travel and Memberships 35,709 40,120 42,400 42,400 General Office Expense 666 300 300 300 Equipment 33,104 61,144 61,300 58,600 Fees 74,347 149,899 149,900 147,500 Services 309,794 327,946 445,400 432,300 Training 4,873 9,088 9,000 9,000 Materials & Maintenance 1,465,270 1,666,967 1,951,500 1,989,500 Sewer Charges 1,031,167 871,184 835,200 1,010,700 Total Expenses 10,383,742$ 10,900,773$ 11,316,700$ 11,950,900$ -$ -$ -$ -$ (1) Excludes CIP labor and benefits.-$ -$ -$ Water Operations - Expenses Department (2) In FY 2017, the Recycled Division's responsibilities have been reorganized between the Operations and Engineering Departments. Prior year budget and actuals have been adjusted for comparative purposes. Budget vs. Actual, in thousands ($) Object $- $4,000 $8,000 $12,000 2014 2015 2016 2017 2018 10 , 9 1 3 10 , 9 2 0 11 , 3 1 7 11 , 3 1 7 11 , 9 5 1 10 , 3 1 5 9, 9 9 1 10 , 3 8 4 10 , 9 0 1 Budget Actual Projected 73 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 421,605$ 440,330$ 435,900$ 447,100$ Administrative Expenses Mileage 154 100 100 100 Travel Expenses 2,249 3,000 3,000 3,000 Conferences and Seminars 2,848 4,000 4,000 4,000 Business Meetings - 300 300 300 Membership and Dues 2,738 5,000 5,000 5,000 Books, Periodicals and Subscriptions 666 300 300 300 Outside Services 3,748 4,000 4,000 4,000 General Training 2,535 5,000 5,000 5,000 Required Certification 2,338 4,000 4,000 4,000 Total Administrative Expenses 17,276 25,700 25,700 25,700 Total Expenses 438,881$ 466,030$ 461,600$ 472,800$ OTAY WATER DISTRICT DIVISION 3211 - WATER OPERATIONS CHIEF FISCAL YEAR 2018 BUDGET 74 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 212,623$ 229,841$ 234,200$ 246,800$ Administrative Expenses Rent and Leases 25,799 26,100 26,100 27,300 Regulatory Agencies Fees 56,368 142,700 142,700 140,300 Total Administrative Expenses 82,167 168,800 168,800 167,600 Total Expenses 294,790$ 398,641$ 403,000$ 414,400$ OTAY WATER DISTRICT DIVISION 3221 - WATER SYSTEM OPERATIONS FISCAL YEAR 2018 BUDGET 75 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 1,867,976$ 1,934,521$ 1,926,300$ 1,994,700$ Administrative Expenses Outside Services 174,130 171,483 256,800 234,200 Total Administrative Expenses 174,130 171,483 256,800 234,200 Materials and Maintenance Expenses Infrastructure Equipment & Supplies 100,030 102,099 102,100 95,000 Chemicals 237,076 322,064 322,200 322,200 Other Materials and Maintenance 118 500 500 500 Contracted Services - 1,000 1,000 1,000 Total Materials and Maintenance 337,319 425,663 425,800 418,700 Total Expenses 2,379,425$ 2,531,667$ 2,608,900$ 2,647,600$ OTAY WATER DISTRICT DIVISION 3225 - WATER SYSTEM FISCAL YEAR 2018 BUDGET (1) In FY 2017, the Recycled Division's responsibilities have been reorganized between the Operations and Engineering Departments. Prior year budget and actuals have been adjusted for comparative purposes. (1)(1) 76 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 356,378$ 286,107$ 325,200$ 345,300$ Administrative Expenses Rent and Leases - 1,000 1,000 1,000 Outside Services 15,278 24,500 24,500 14,000 Total Administrative Expenses 15,278 25,500 25,500 15,000 Materials and Maintenance Expenses Infrastructure Equip and Supplies 23,505 30,000 30,000 30,000 Other Materials and Maintenance - 200 200 200 Total Materials and Maintenance 23,505 30,200 30,200 30,200 Total Expenses 395,161$ 341,807$ 380,900$ 390,500$ OTAY WATER DISTRICT DIVISION 3227 - SCADA FISCAL YEAR 2018 BUDGET 77 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 248,962$ 262,765$ 261,300$ 278,800$ Total Expenses 248,962$ 262,765$ 261,300$ 278,800$ OTAY WATER DISTRICT DIVISION 3231 - UTILITY SERVICES FISCAL YEAR 2018 BUDGET 78 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 2,189,647$ 2,357,798$ 2,403,200$ 2,515,400$ Administrative Expenses Rent and Leases 421 8,506 1,800 3,300 Required Certification - 88 - - Total Administrative Expenses 421 8,594 1,800 3,300 Materials and Maintenance Expenses Fuel and Oil - - - - Meters and Materials 9,827 7,530 8,000 8,000 Fleet Parts and Equipment 323 1,475 - - Landscaping Materials - - - - Infrastructure Equipment and Supplies 135,310 189,055 236,000 204,000 Other Materials and Maintenance 149,972 139,543 163,000 135,000 Contracted Services 168,454 169,017 274,000 238,000 Total Materials and Maintenance 463,886 506,621 681,000 585,000 Total Expenses 2,653,954$ 2,873,013$ 3,086,000$ 3,103,700$ OTAY WATER DISTRICT DIVISION 3232 - UTILITY MAINTENANCE FISCAL YEAR 2018 BUDGET 79 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 562,745$ 598,869$ 593,100$ 612,400$ Administrative Expenses Mileage 27,720 27,720 30,000 30,000 Communication 877 4,687 3,500 5,500 Technology Hardware and Software 2,407 1,753 2,400 2,600 Hazardous Waste Disposal 17,979 7,199 7,200 7,200 Outside Services 21,829 13,244 21,300 21,300 Total Administrative Expenses 70,812 54,603 64,400 66,600 Materials and Maintenance Expenses Fuel and Oil 129,898 141,671 207,500 183,000 Fleet Parts and Equipment 122,469 118,596 129,800 129,800 Infrastructure Equipment and Supplies 46,196 41,398 23,500 12,500 Other Materials and Maintenance 17 200 - - Building Ground & Materials 1,115 288 - - Total Materials and Maintenance 299,695 302,153 360,800 325,300 Total Expenses 933,252$ 955,625$ 1,018,300$ 1,004,300$ OTAY WATER DISTRICT DIVISION 3233 - FLEET MAINTENANCE FISCAL YEAR 2018 BUDGET 80 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 744,974$ 765,348$ 752,100$ 775,400$ Administrative Expenses Rent and Leases 3,600 5,000 10,500 8,500 Outside Services 57,026 52,435 57,000 47,000 Total Administrative Expenses 60,626 57,435 67,500 55,500 Materials and Maintenance Expenses Infrastructure Equipment and Supplies 120,517 126,732 156,600 177,000 Other Materials and Maintenance 28 - - - Building Ground and Materials - 390 1,000 1,000 Total Materials and Maintenance 120,545 127,122 157,600 178,000 Total Expenses 926,145$ 949,905$ 977,200$ 1,008,900$ OTAY WATER DISTRICT DIVISION 3236 - PUMP & ELECTRICAL FISCAL YEAR 2018 BUDGET 81 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor & Benefits -$ -$ -$ -$ Sewer Charges Metro O&M Costs 812,536 690,984 655,000 820,700 Spring Valley O&M Costs 218,631 180,200 180,200 190,000 Total Sewer Charges 1,031,167 871,184 835,200 1,010,700 Total Expenses 1,031,167$ 871,184$ 835,200$ 1,010,700$ OTAY WATER DISTRICT DIVISION 3241 - COLLECTION/TREATMENT/RECYCLE OPERATIONS FISCAL YEAR 2018 BUDGET 82 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 169,261$ 199,248$ 201,500$ 323,600$ Administrative Expenses Outside Services 59,328 62,285 73,000 105,300 Total Administrative Expenses 59,328 62,285 73,000 105,300 Materials and Maintenance Expenses Laboratory Equipment and Supplies 39,977 45,306 45,300 71,200 Total Materials and Maintenance 39,977 45,306 45,300 71,200 Total Expenses 268,566$ 306,839$ 319,800$ 500,100$ DIVISION 3243 - LABORATORY FISCAL YEAR 2018 BUDGET 83 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 654,641$ 699,297$ 688,900$ 721,100$ Administrative Expenses Rent and Leases - 14,098 16,000 10,400 Outside Services - - - 6,500 Temporary Employment Services 4,655 - 8,800 - Total Administrative Expenses 4,655 14,098 24,800 16,900 Materials and Maintenance Expenses Fuel and Oil 11,921 34,800 34,800 13,300 Infrastructure Equipment and Supplies 75,124 73,500 73,500 141,000 Chemicals 31,604 22,114 42,100 35,500 Safety Equipment 1,388 639 1,500 1,500 Contracted Services 60,306 98,851 98,900 189,800 Total Materials and Maintenance 180,343 229,903 250,800 381,100 Total Expenses 839,639$ 943,298$ 964,500$ 1,119,100$ OTAY WATER DISTRICT DIVISION 3244 - RECLAMATION PLANT FISCAL YEAR 2018 BUDGET 84 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Engineering Chief (1)440,056$ 588,450$ 594,100$ 587,300$ Engineering Services (1)825,865 526,221 721,200 752,200 Public Services (1)1,708,742 1,669,635 1,753,300 1,722,700 Environmental Services (1)178,261 281,334 293,100 296,200 Total Expenses 3,152,924 3,065,640 3,361,700 3,358,400 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Labor and Benefits (1)2,475,049 2,509,711 2,517,600 2,598,800 Travel and Memberships 15,545 12,375 18,300 16,300 General Office Expense 6,443 1,134 1,700 800 Equipment 486 - - - Fees 28,853 37,503 38,000 38,600 Services 616,893 497,970 772,600 697,300 Training 9,655 6,948 13,500 6,600 Total Expenses 3,152,924$ 3,065,640$ 3,361,700$ 3,358,400$ -$ -$ -$ -$ (1) Excludes CIP labor and benefits. Engineering - Expenses Department Budget vs. Actual, in thousands ($) Object 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2014 2015 2016 2017 2018 2,0 2 6 3, 1 3 3 3, 3 6 2 3, 3 6 2 3, 3 5 8 1, 8 2 8 2, 8 5 4 3, 1 5 3 3, 0 6 6 Budget Actual Projected 85 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 405,297$ 558,946$ 551,600$ 562,000$ Administrative Expenses Mileage 207 295 300 300 Travel Expenses 6,372 4,670 10,000 7,500 Conferences and Seminars 2,829 4,159 3,500 5,000 Business Meetings 2,283 548 2,000 1,000 Membership and Dues 3,854 2,703 2,500 2,500 Books, Periodicals and Subscriptions 6,443 1,134 1,700 800 Regulatory Agencies Fees - 57 - - Outside Services 3,191 8,991 9,000 1,600 General Training 8,104 5,877 11,200 5,300 Required Certification 1,476 1,071 2,300 1,300 Total Administrative Expenses 34,759 29,504 42,500 25,300 Total Expenses 440,056$ 588,450$ 594,100$ 587,300$ OTAY WATER DISTRICT DIVISION 3311 - ENGINEERING CHIEF FISCAL YEAR 2018 BUDGET 86 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 428,076$ 388,432$ 370,200$ 417,200$ Administrative Expenses Outside Services 397,789 137,790 351,000 335,000 Total Administrative Expenses 397,789 137,790 351,000 335,000 Total Expenses 825,865$ 526,221$ 721,200$ 752,200$ OTAY WATER DISTRICT DIVISION 3321 - ENGINEERING SERVICES FISCAL YEAR 2018 BUDGET 87 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor and Benefits 394,703$ 368,742$ 392,000$ 429,100$ Total Expenses 394,703$ 368,742$ 392,000$ 429,100$ OTAY WATER DISTRICT DIVISION 3421 - PUBLIC SERVICES FISCAL YEAR 2018 BUDGET 88 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor & Benefits 1,165,570$ 1,111,110$ 1,130,700$ 1,094,300$ Administrative Expenses Small Tools & Equipment 486 - - - Regulatory Agencies Fees 6,813 7,541 8,000 8,600 Outside Services 141,095 182,243 222,600 190,700 Required Certification 75 - - - Total Administrative Expenses 148,469 189,784 230,600 199,300 Materials & Maintenance Expenses Infrastructure Equipment & Supplies 113 - - - Other Materials & Maintenance 247 - - - Total Materials & Maintenenance Expens 360 - - - Total Expenses 1,314,399$ 1,300,893$ 1,361,300$ 1,293,600$ OTAY WATER DISTRICT DIVISION 3431 - FIELD SERVICES FISCAL YEAR 2018 BUDGET (1) In FY 2017, the Recycled Division's responsibilities have been re-organized between the Operations and Engineering Departments. Prior year budget and actuals have been adjusted for comparative purposes. (1)(1)(1) 89 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor & Benefits 81,403$ 82,482$ 73,100$ 96,200$ Administrative Expenses Regulatory Agencies Fees 22,040 29,905 30,000 30,000 Outside Services 74,818 168,947 190,000 170,000 Total Administrative Expenses 96,858 198,852 220,000 200,000 Total Expenses 178,261$ 281,334$ 293,100$ 296,200$ OTAY WATER DISTRICT DIVISION 3451 - ENVIRONMENTAL SERVICES FISCAL YEAR 2018 BUDGET 90 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget General Expense (1)2,186,585$ 2,134,673$ 2,006,400$ 2,242,200$ Total Expenses 2,186,585 2,134,673 2,006,400 2,242,200 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Labor and Benefits (1)1,359,311 1,239,722 1,181,400 1,106,200 Insurance expenses 577,200 593,531 575,000 661,000 Legal expenses 250,074 301,420 250,000 475,000 Total Expenses 2,186,585$ 2,134,673$ 2,006,400$ 2,242,200$ (1)Benefits include District-wide labor and benefit costs not attributable to any one department, such as the effect of cost of living raises on accrued leave liabilities or the Other Post Employment Benefit (OPEB) costs. These costs are netted against the District's anticipated Vacancy Factor. The Vacancy Factor for FY 2017 and FY 2018 is $198,600 and $205,300, respectively. Additionally, the labor and benefits shown on this schedule are those related to operating costs and does not include CIP labor and benefit costs. General Expense The expenditures in this section are general operating costs not associated with an individual department. The expenditures include: legal costs, insurance premiums, changes in accrued employee leave balances and miscellaneous interest. These expenditures represent 7.0% of the total Department Budget. Department Budget vs. Actual, in thousands ($) Object $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 2014 2015 2016 2017 2018 2, 1 5 0 2, 3 3 2 2, 0 0 6 2, 0 0 6 2, 2 4 2 2, 2 1 4 2, 3 0 9 2, 1 8 7 2, 1 3 5 Budget Actual Projected 91 FY 2016 FY 2017 FY 2017 FY 2018 Actual Projected Budget Budget Total Labor & Benefits 2,102,742$ 1,239,722$ 1,181,400$ 1,106,200$ Administrative Expenses General Insurance 577,200 593,531 575,000 661,000 Legal Expense 250,074 301,420 250,000 475,000 Total Admin Expenses 827,274 894,951 825,000 1,136,000 Total Expenses 2,930,016$ 2,134,673$ 2,006,400$ 2,242,200$ OTAY WATER DISTRICT DIVISION 1311 - GENERAL EXPENSE (INCLUDES LEGAL) FISCAL YEAR 2018 BUDGET 92 CIP No Description FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Total P2040 Res - 1655-1 Reservoir 0.5 MG $ 20 $ 50 $ 1,175 $ 1,610 $ 20 $ 20 $ 2,895 P2267 36-Inch Main Pumpouts and Air/Vacuum Ventilation Installations 10 10 - - - - 20 P2382 Safety and Security Improvements 150 325 - - - - 475 P2405 PL - 624/340 PRS, Paseo Ranchero and Otay Valley Road 5 5 5 50 500 85 650 P2451 Otay Mesa Desalination Conveyance and Disinfection System 50 100 100 100 100 100 550 P2453 SR-11 Utility Relocations 50 50 700 1,000 452 100 2,352 P2460 I.D. 7 Trestle and Pipeline Demolition 5 40 530 20 - - 595 P2485 SCADA - Infrastructure and Communications Replacement 181 185 85 24 - - 475 P2494 Multiple Species Conservation Plan 30 - - - - - 30 P2500 Padre Dam - Otay Interconnection Dehesa Valley 60 5 5 5 5 60 140 P2504 Regulatory Site Access Road and Pipeline Relocation 20 50 50 1 1 10 132 P2516 PL - 12-Inch, 640 Zone, Jamacha Road - Darby/Osage - - 75 100 725 - 900 P2520 Motorola Mobile Radio Upgrade 30 - - - - - 30 P2521 Large Meter Vault Upgrade Program 25 25 100 100 50 - 300 P2547 District Administration Vehicle Charging Stations 20 30 - - - - 50 P2553 Heritage Road Bridge Replacement and Utility Relocation 50 100 100 250 755 150 1,405 P2568 Technology Business Processes Improvement - Enterprise Content Management System 36 - - - - - 36 P2571 Datacenter Network- Data, Storage, and Infrastructure Enhancements - 100 100 - - - 200 P2572 Enterprise Resource Planning (ERP) Replacement - - - 250 250 - 500 P2584 Res - 657-1 and 657-2 Reservoir Demolitions - - - - - 35 35 P2608 PL - 8-inch, 850 Zone, Coronado Ave, Chestnut/Apple 10 40 290 10 - - 350 P2611 Quarry Road Bridge Replacement and Utility Relocation 5 10 60 425 450 50 1,000 P2612 PL - 12-inch, 711 Zone, Pas de Luz/Telegraph Canyon Rd 5 10 85 390 10 - 500 P2613 PL - 12-inch, 520 Zone, Rancho San Diego Towne Center Loop 10 35 100 5 - - 150 P2614 485-1 Reservoir Interior/Exterior Coating - - - - 10 885 895 P2617 Lobby Security Enhancements 75 - - - - - 75 P2619 PS - Temporary Lower Otay Pump Station Redundancy 20 80 485 50 - - 635 P2620 Radio and Emergency Communication System 20 - - - - - 20 P2623 Central Area to Otay Mesa Interconnection Pipelines Combination Air/Vacuum Valve Replacements 20 120 120 10 - - 270 R2077 RecPL - 24-Inch, 860 Zone, Alta Road - Alta Gate/Airway 20 20 - - - - 40 R2079 RecPL - 6-Inch, 450 Zone, Otay Valley Road - Otay Valley/Entertainment 10 10 10 120 - - 150 R2110 RecPS - 944-1 Optimization and Pressure Zone Modifications 20 45 - - - - 65 R2116 RecPL - 14-Inch, 927 Zone, Force Main Improvements 200 400 - - - - 600 R2118 Steele Canyon Sewer PS Large Solids Handling Improvements 50 3 - - - - 53 R2120 RWCWRF Filtered Water Storage Tank Improvements 25 20 400 5 - - 450 R2123 Repurpose Otay Mesa Recycled Water Lines 5 5 5 150 150 35 350 R2125 RecPRS - 927/680 PRS Improvements, Otay Lakes Road 50 145 5 - - - 200 Six-year CIP Projects by Category ($1,000s) The 2018 Fiscal Year CIP Budget contains 103 projects. The costs for the work planned for Fiscal Year 2018 are $20.2 million. Of the 87 projects planned for Fiscal Year 2018, three are designated as reimbursable projects with an estimated cost of $550,000. These reimbursable projects are built by a developer and reimbursed by the District. Capital Facility Projects 93 Six-year CIP Projects by Category ($1,000s) CIP No Description FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Total S2012 San Diego County Sanitation District Outfall and RSD Outfall Replacement 20 200 250 300 350 400 1,520 S2027 Rancho San Diego Pump Station Rehabilitation 5 5 5 444 - - 459 S2033 Sewer System Rehabilitation 10 10 - - - - 20 S2043 RWCWRF Sludge Handling System 30 - - - - 5 35 S2047 Asset Management - Info Master Sewer Implementation 30 28 - - - - 58 S2061 RWCWRF Aeration Controls Consolidation & Optimization Upgrades (S) 30 10 150 - - - 190 43 Total Capital Facility Projects 1,412 2,271 4,990 5,419 3,828 1,935 19,855 P2083 PS - 870-2 Pump Station Replacement 4,000 10,550 1,850 50 50 - 16,500 P2174 PS - 1090-1 Pump Station Replacement (400 gpm) 1 150 200 1,100 1,000 45 2,496 P2400 PL - 20-Inch Pipeline Replacement, 711 Zone, Otay Lakes Road - at Santa Paula - - 150 350 1,780 - 2,280 P2493 624-2 Reservoir Interior/Exterior Coating 5 5 5 - - - 15 P2507 East Palomar Street Utility Relocation 5 5 - - - - 10 P2508 Pipeline Cathodic Protection Replacement Program 100 1 1 248 - - 350 P2518 803-3 Reservoir Interior/Exterior Coating 5 5 - - - - 10 P2529 711-2 Reservoir Interior & Exterior Coating 5 5 - - - - 10 P2530 711-1 Reservoir Interior & Exterior Coating 5 5 - - - - 10 P2531 944-1 Reservoir Interior & Exterior Coating 5 5 - - - - 10 P2532 944-2 Reservoir Interior & Exterior Coating 5 10 - - - - 15 P2533 1200-1 Reservoir Interior & Exterior Coating 10 745 5 45 - - 805 P2534 978-1 Reservoir Interior & Exterior Coating 10 5 5 5 - - 25 P2535 458-2 Reservoir Interior & Exterior Coating & Upgrades 5 5 - - - - 10 P2539 South Bay Bus Rapid Transit (BRT) Utility Relocations 5 40 100 50 - - 195 P2542 850-3 Reservoir Interior Coating 5 5 - - - - 10 P2543 850-1 Reservoir Interior/Exterior Coating 5 695 125 5 40 - 870 P2544 850-2 Reservoir Interior/Exterior Coating 700 5 5 20 - - 730 P2545 980-1 Reservoir Interior Exterior Coating 5 5 - - - - 10 P2546 980-2 Reservoir Interior/Exterior Coating 1,100 340 5 5 - - 1,450 P2555 Administration and Operations Parking Lot Improvements 265 215 - - - - 480 P2557 520 Res Recirculation Pipeline Chemical Supply and Analyzer Feed Replacement Project 35 5 - - - - 40 P2559 Pressure Vessel Repair and Replacement Program 30 45 100 100 100 100 475 P2561 Res - 711-3 Reservoir Cover/Liner Replacement 1 10 84 1,690 10 - 1,795 P2562 Res - 571-1 Reservoir Cover/Liner Replacement 2,700 145 5 - - - 2,850 P2563 Res - 870-1 Reservoir Cover/Liner Replacement 1 5 10 90 892 - 998 P2565 803-2 Reservoir Interior/Exterior Coating & Upgrades - 20 820 5 5 90 940 P2566 520-2 Reservoir Interior/Exterior Coating & Upgrades - - 10 1,240 150 100 1,500 P2567 1004-2 Reservoir Interior/Exterior Coating & Upgrades - - - 20 780 105 905 P2573 PL - 12-Inch Pipeline Replacement, 803 Zone, Hillsdale Road 1,600 610 - - - - 2,210 P2574 PL - 12-Inch Pipeline Replacement, 978 Zone, Vista Vereda 450 2,000 30 - - - 2,480 P2578 PS - 711-2 (PS 711-1 Replacement and Expansion) - 14,000 gpm - - - 350 3,200 6,450 10,000 P2593 458-1 Reservoir Interior/Exterior Coating & Upgrades - - - 10 730 100 840 Replacement/Renewal Projects Capital Facility Projects, continued 94 Six-year CIP Projects by Category ($1,000s) CIP No Description FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Total P2594 Large Meter Replacement 150 95 - - - - 245 P2604 AMR Change Out 1,510 1,745 1,475 1,095 1,290 1,190 8,305 P2605 458/340 PRS Replacement, 1571 Melrose Ave 1 50 189 10 - - 250 P2606 803-2 Reservoir Repair/Replacement of Caulking and Tree Removal 1 55 19 - - - 75 P2607 Douglas Ave SWA and OWD Interconnection Upgrade 10 30 10 - - - 50 P2609 PL - 8-inch, 1004 Zone, Eucalyptus St, Coronado/Date/La Mesa - 10 65 315 10 - 400 P2610 Valve Replacement Program - Phase 1 30 60 60 - - - 150 P2615 PL - 12-Inch Pipeline Replacement, 803 PZ, Vista Grande - 20 130 1,030 20 - 1,200 P2616 PL - 12-Inch Pipeline Replacement, 978 Zone, Pence Dr/Vista Sierra Dr 20 180 2,280 20 - - 2,500 R2121 Res - 944-1 Reservoir Cover/Liner Replacement 1 1 33 1,347 - - 1,382 R2139 RWCWRF - Filter Troughs Replacement 30 - - - - - 30 R2143 AMR Change Out 350 75 25 5 10 10 475 S2024 Campo Road Sewer Main Replacement 4,250 4,250 50 - - - 8,550 S2044 Trenchless Sewer Rehabilitation 75 5 - - - - 80 S2045 Fuerte Drive Sewer Relocation 50 130 - - - - 180 S2046 RWCWRF - Aeration Panels Replacement 50 100 200 - - - 350 S2048 Hillsdale Road Sewer Repairs 400 270 - - - - 670 S2049 Calavo Basin Sewer Rehabilitation - Phase 2 19 130 845 5 - - 999 S2050 Rancho San Diego Basin Sewer Rehabilitation - Phase 2 - - 20 180 550 500 1,250 S2051 RWCWRF - Headworks Improvements 50 100 - - - - 150 S2053 RWCWRF - Sedimentation Basins Weirs Replacement 60 - - - - - 60 S2054 Calavo Basin Sewer Rehabilitation - Phase 3 - - - 20 180 1,090 1,290 55 Total Replacements and Renewal Projects 18,120 22,947 8,911 9,410 10,797 9,780 79,965 Capital Purchase Projects P2282 Vehicle Capital Purchases 363 240 187 236 253 250 1,529 P2286 Field Equipment Capital Purchases 72 50 55 60 60 63 360 2 Total Capital Purchase 435 290 242 296 313 313 1,889 Developer Reimbursement Projects . P2430 PL - 20-inch, 980 Zone, Proctor Valley Road – Village 14 Phase 1 5 5 5 5 5 10 35 P2595 PL - 16-inch, 624 Zone, Village 3N - Heritage Road, Main - - - - - 150 150 R2084 RecPL - 20-Inch, 680 Zone, Village 2 - Heritage/La Media 40 315 10 - - - 365 3 Total Reimbursement Projects 45 320 15 5 5 160 550 Summary CIP No Description FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Total 87 Total - FY 2018 Projects 20,012 25,708 13,003 12,785 7,133 3,333 81,974 16 Total - FY 2019 through FY 2023 Projects - 120 1,155 2,345 7,810 8,855 20,285 103 Grand Totals $ 20,012 $ 25,828 $ 14,158 $ 15,130 $ 14,943 $ 12,188 $ 102,259 Replacement/Renewal Projects, continued 95 Quantity Description Amount Vehicles 11/2 Ton Pickup for inspection services 39,000$ 1 1/2 Ton Pickup for inspection services 40,000 1Compact Pickup for meter maintenance 29,800 1 One ton cab and chassis for meter maintenance 49,500 13/4 Ton Pickup Truck for meter maintenance 48,200 11/2 Ton Pickup for water systems operators 39,000 1 1/2 Ton Pickup for water systems operators 39,000 11/2 Ton Pickup for water systems operators 39,000 1 1/2 Ton Pickup for water systems operators 39,000 Total vehicles 362,500 Field Equipment 1Purchase a trailer and convert it to a water tanker trailer 12,000 1Purchase of highline trailer 30,000 1Purchase a trailer and convert to a water tanker trailer 30,000 Total field equipment 72,000 Total 434,500$ Summary by Project P2282 Vehicles 362,500 P2286 Field equipment 72,000 Total 434,500$ Capital purchases are non-recurring operating expense items for District-wide use that cost more than $10,000 each and have an estimated useful life of two years or more. The capital purchase projects include vehicles, office equipment and furniture, field equipment and APCD engine replacements and retrofits. FY 2018 Capital Purchases 96 P2040Res - 1655-1 Reservoir 0.5 MG Kevin Cameron 8/19/1992 5 22 3 $3,400,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for construction of a 0.5 million gallon reservoir and approximately 1,500 feet of 12-inch pipeline to connect to the existing system at Prisilla Drive. These improvements are located within the Rancho Jamul Estates area. JUSTIFICATION OF PROJECT: The project will increase both system reliability and service capabilities, and provide adequate fire protection for the Rancho Jamul Estates area within the 1655 Pressure Zone. The existing system is currently served with a hydropneumatic pump station. COMMENTS: In early 2000, the project was designed to 90%, and due to the economy, the project was put on hold. The overall budget was increased to account for the spending done prior to FY 2015. The project budget increased $1.2 Million after receiving a preliminary cost estimate from a concrete tank manufacturer and updating cost estimates from the estimate done in 2000. The concrete tank will have to be a Type I due to location and steep grades. Also, added updated costs for Reservoir security items. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Expansion 100 %0 %0 %0 %100 % TOTAL:100 %0 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $20 $50 $1,175 $1,610 $20 $20 $3,400 PRIOR YEARS: TOTAL $505 OTAY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM 97 P2040 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2015 9/30/2018 10/1/2018 2/7/2020 $160 $870 PROJECT PHASE: 2/10/2020 6/30/2023 $2,370 PROJECT LOCATION:OWD Map Book:310 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 98 P2083PS - 870-2 Pump Station Replacement Jeff Marchioro 5/17/1995 P2451 2 22 1 $18,750,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the construction of a new pump station to replace the existing Low Head and High Head Pump Stations. JUSTIFICATION OF PROJECT: The two existing Pump Stations have reached the end of their useful lives. COMMENTS: Increased overall CIP budget from $17M to $18.75M for FY2018 budget cycle to add reservoir recirculation system piping modification, updated Carollo construction cost estimate, and construction contract allowances. Additionally, wetlands mitigation was determined to be required. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $4,000 $10,550 $1,850 $50 $50 $0 $18,750 PRIOR YEARS: TOTAL $2,250 OTAY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM 99 P2083 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2013 9/1/2013 9/1/2013 5/1/2017 $700 $1,550 PROJECT PHASE: 5/1/2017 5/1/2022 $16,500 PROJECT LOCATION:OWD Map Book:055 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $5,000 $5,000 $10,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:5/4/2017Steve Beppler 100 P2174PS - 1090-1 Pump Station Replacement (400 gpm) Jeff Marchioro 5/23/2016 P2176 5 22 2 $2,500,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the construction of a new Pump Station to replace the existing Pump Station. Improve Pump Station to include fire pump (1,500 gpm) and closed zone capability to eliminate the need for redundant 1090 Pressure Zone Reservoir (CIP P2176). JUSTIFICATION OF PROJECT: The existing Pump Station, originally constructed in 1962, has reached the end of its useful life. COMMENTS: Overall budget increased to match 2015 Water Facilities Master Plan Update. Implementation delayed to match prioritization with other projects. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $1 $150 $200 $1,100 $1,000 $45 $2,500 PRIOR YEARS: TOTAL $4 101 P2174 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 4/30/2019 5/1/2019 4/30/2020 $150 $300 PROJECT PHASE: 5/1/2020 6/30/2023 $2,050 PROJECT LOCATION:OWD Map Book:320 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 102 P226736-Inch Main Pumpouts and Air/Vacuum Ventilation Installations Jeff Marchioro 6/3/1996 3 22 2 $700,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the installation of ventilation equipment on the existing pumpout and air/vacuum vaults on the 36-inch transmission main from the San Diego County Water Authority Otay FCF No. 11 to the Regulatory Site. This project also includes upsizing the existing 2-inch air/vacuum valves to 6-inch. JUSTIFICATION OF PROJECT: The vault openings do not stay in place when refilling because they lack ventilation. By installing vents in these vaults, the lids will stay in place, thus eliminating a safety hazard. Draining and filling the 36-inch main at higher flow rates is required to return the system to service in shorter periods of time. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 22 0 %100 %0 %0 %100 % TOTAL:0 %100 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $10 $10 $0 $0 $0 $0 $700 PRIOR YEARS: TOTAL $680 103 P2267 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 4/1/2015 9/7/2016 $0 $60 PROJECT PHASE: 9/7/2016 6/30/2018 $640 PROJECT LOCATION:OWD Map Book:198 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:2/17/2017Jeff Marchioro 104 P2282Vehicle Capital Purchases Doug Rahders 6/3/1996 0 District Wide 1 $5,491,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the capital purchase of various vehicles for daily Otay Water District functions. JUSTIFICATION OF PROJECT: Replacements or newly acquired vehicles will be used for operational and administrative functions throughout the entire Otay Water District. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $363 $240 $187 $236 $253 $250 $5,175 PRIOR YEARS: TOTAL $3,646 105 P2282 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 12/1/2000 6/30/2028 $5,491 $0 PROJECT PHASE: $0 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 106 P2286Field Equipment Capital Purchases Doug Rahders 6/3/1996 0 District Wide 1 $1,746,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for capital purchases of various pieces of field equipment used for daily Otay Water District functions. JUSTIFICATION OF PROJECT: Replacements or new acquisitions of field equipment will be used for operational functions throughout the entire Otay Water District. COMMENTS: Budget increased from $1,634,000 to $1,746,000 to include purchases through FY2023. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $72 $50 $55 $60 $60 $63 $1,746 PRIOR YEARS: TOTAL $1,386 OTAY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM 107 P2286 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/1996 6/30/2023 $1,746 $0 PROJECT PHASE: $0 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 108 P2382Safety and Security Improvements Kent Payne 6/5/2002 0 District Wide 1 $3,251,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the installation and replacement of the physical security burglar alarm systems to Digital Monitoring Systems (DMP) and associated security components at 23 District facilities. This is to ready sites for enterprise security and access control management software "ENTRE." JUSTIFICATION OF PROJECT: This project is to improve the security of the Otay Water District facilities by installing and upgrading the hardware and software required to provide access control management, intrusion detection and response, and to ready the facilities for future evaluation of video camera verification systems. Although existing facilities are relatively safe and secure, the federal government has recommended that security to water systems be improved. COMMENTS: Increased budget for FY 2019 by $175K to reflect addition of security improvements at RWCWRF for new laser scan security system with cameras and alarms. FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $150 $325 $0 $0 $0 $0 $3,251 PRIOR YEARS: TOTAL $2,776 109 P2382 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2002 6/30/2019 9/1/2003 6/30/2019 $62 $231 PROJECT PHASE: 1/1/2004 6/30/2019 $2,958 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 110 P2400PL - 20-Inch Pipeline Replacement, 711 Zone, Otay Lakes Road - at Santa Paula Jeff Marchioro 1 22 2 $2,280,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is to replace 3,700 feet of 16-inch asbestos concrete water main in Otay Lakes Road at Santa Paula. JUSTIFICATION OF PROJECT: The existing water main bottlenecks from 20-inch down to 16-inch. The existing 16-inch pipe causes high head loss at peak flow. COMMENTS: Overall budget increased in FY 2018 to match 2015 Water Facilities Master Plan (WFMP) Update. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %69 %0 %69 % Betterment ID 22 0 %31 %0 %0 %31 % TOTAL:0 %31 %69 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $0 $150 $350 $1,780 $0 $2,280 PRIOR YEARS: TOTAL $0 111 P2400 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2019 6/30/2020 7/1/2020 6/30/2021 $150 $350 PROJECT PHASE: 7/1/2021 6/30/2022 $1,780 PROJECT LOCATION:OWD Map Book:130 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 112 P2405PL - 624/340 PRS, Paseo Ranchero and Otay Valley Road Kevin Cameron 5/23/2016 2 22 2 $650,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the construction of approximately 1,200 feet of 12-inch pipeline in the 340 Pressure Zone in Otay Valley Road and the 16-inch pipeline in Otay Valley Road. Construction of a pressure reducing station between the 624/340 Pressure Zone near the intersection of Otay Valley Road/Main Street and Heritage Road. JUSTIFICATION OF PROJECT: This will provide a redundant service connection to the 340 Pressure Zone. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 22 0 %100 %0 %0 %100 % TOTAL:0 %100 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $5 $5 $50 $500 $85 $650 PRIOR YEARS: TOTAL $0 113 P2405 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2016 6/30/2017 7/1/2017 10/31/2021 $5 $100 PROJECT PHASE: 11/1/2021 6/30/2023 $545 PROJECT LOCATION:OWD Map Book:51 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 114 P2430PL - 20-inch, 980 Zone, Proctor Valley Road ±Village 14 Phase 1 Kevin Cameron 5/23/2005 5 22 2 $2,040,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Construction of approximately 12,400 feet of pipeline oversize from 16-inch to 20-inch pipeline within the 980 Pressure Zone in Proctor Valley Road. Project to be constructed by developer, with reimbursement at actual cost of oversize portion per Board policy. JUSTIFICATION OF PROJECT: Project is an identified CIP in the Water Facilities Master Plan. COMMENTS: Reimbursements will be phased with the construction of Proctor Valley Road. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Expansion 100 %0 %0 %0 %100 % TOTAL:100 %0 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $5 $5 $5 $5 $10 $35 PRIOR YEARS: TOTAL $0 115 P2430 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 1/1/2018 6/30/2023 7/1/2023 6/30/2024 $40 $100 PROJECT PHASE: 7/1/2024 6/30/2026 $1,900 PROJECT LOCATION:OWD Map Book:146 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 116 P2451Otay Mesa Desalination Conveyance and Disinfection System Bob Kennedy 5/23/2006 P2083 2 22 2 $30,000,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: The Otay Water District could potentially receive a potable water supply source from the planned Rosarito Desalination Facility via a conveyance system, pumping facilities, and disinfection system. JUSTIFICATION OF PROJECT: The concept could provide for an independent water source to the Otay Water District. COMMENTS: Original Budget amount approved 5/23/2006 for $1,000,000. Budget increase approved 6/25/2008 to $5,000,000. On 5/21/2009, the Budget was increased to $30,000,000 ($1,000,000 for UV Treatment, $9,000,000 for Pump Station, and $20,000,000 for Conveyance Pipeline). FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 22 0 %69 %0 %0 %69 % New Water Supply Fee Projects 0 %0 %0 %31 %31 % TOTAL:0 %69 %0 %31 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $50 $100 $100 $100 $100 $100 $4,300 PRIOR YEARS: TOTAL $3,750 117 P2451 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2006 6/30/2024 7/1/2024 6/30/2026 $4,100 $4,000 PROJECT PHASE: 7/1/2026 6/30/2029 $21,900 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 118 P2453 SR-11 Utility Relocations Jeff Marchioro 5/23/2006 2 22 1 $4,000,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for all utility relocations required due to construction of the SR-11 on the Otay Mesa. Facility relocations vary in size from 8-inch to 24-inch. Both the potable and recycled water systems are impacted. JUSTIFICATION OF PROJECT: Caltrans will construct the SR-11, which will result in utility conflicts with existing Otay Water District facilities at various locations. In most cases, the Otay Water District does have prior and superior rights. The facilities must be relocated prior to Caltrans' construction of the SR-11. The cost of the facilities relocations that have prior rights will be reimbursed by Caltrans. COMMENTS: Timing of projects adjusted in FY 2017 budget, no change to overall project cost. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $50 $50 $700 $1,000 $452 $100 $4,000 PRIOR YEARS: TOTAL $1,648 119 P2453 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2006 6/1/2016 7/1/2009 6/30/2022 $50 $500 PROJECT PHASE: 1/8/2014 6/30/2023 $3,450 PROJECT LOCATION:OWD Map Book:5 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 120 P2460I.D. 7 Trestle and Pipeline Demolition Stephen Beppler 1 22 2 $600,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the steel trestle demolition and removal of a pipeline. The 1960's steel trestle 24-inch pipeline crossing of Otay River was replaced by the Central Area and Otay Mesa Interconnection pipeline in 2001. The trestle also carries a high pressure gas line that supplies the 870-1 Pump Station that prevented the trestle from being demolished previously. SDG&E is proposing to abandon this gas line in 2017 and replacing it with a feed from the south. JUSTIFICATION OF PROJECT: The existing pipeline is no longer in service and should be removed to address liability concerns. The Central Area - Otay Mesa Interconnection Pipeline supplies water to the Otay Mesa System. COMMENTS: FY 2017 scope is to identify the project constraints that will drive the demolition costs, including environmental factors, access limitations, and demolition alternatives. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $40 $530 $20 $0 $0 $600 PRIOR YEARS: TOTAL $5 121 P2460 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2016 1/31/2017 2/1/2017 8/31/2019 $25 $25 PROJECT PHASE: 9/1/2019 6/30/2021 $550 PROJECT LOCATION:OWD Map Book:71 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 122 P2485SCADA - Infrastructure and Communications Replacement Michael Kerr 5/21/2009 0 District Wide 1 $2,328,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project will replace the existing SCADA software and radio communication system and install fuel level transmitters on all diesel fuel tanks. A battery backup system will be installed at remote SCADA/radio sites without emergency power generators. JUSTIFICATION OF PROJECT: Beginning in 2012, the vendor no longer upgrades or supports the existing system. The radio equipment needs replacement to allow for increased bandwidth capability to increase security systems functionality. The fuel level transmitters on all diesel fuel tanks and remote SCADA monitoring will provide supervisors with real-time fuel levels to monitor available runtime on stand-by engines during extended power outages. The battery backup system will provide continuous communications and SCADA monitoring and control for 3 days if the District lost power at sites without emergency power generators. COMMENTS: Going into FY 2018 and beyond, the anticipated expenditures are for the following: Work also includes completing the installation of new UPS and cooling system for the support of the District¶s SCADA technology infrastructure - $120K Staff also are including sites that were unanticipated during initial recommended list of sites in support of the SCADA systems data and security communications services. Staff identified 3 sites that required extensive work (power panel, conduits, circuits, and cabinet installation) - $55K Emergency Operations Center ±$22K Replacement of PLC¶s (facility-wide) throughout FY 2021:FY 2018 ($85K)FY 2019 ($84K)FY 2020 ($85K)FY 2021 ($24K) FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $181 $185 $85 $24 $0 $0 $2,328 PRIOR YEARS: TOTAL $1,853 123 P2485 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: $0 $0 PROJECT PHASE: 7/1/2009 6/30/2021 $2,328 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 124 P2493624-2 Reservoir Interior/Exterior Coating Kevin Cameron 5/21/2009 4 22 1 $1,580,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 624-2 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the most recent reservoir assessment report dated August 8, 2008, the 624-2 Reservoir interior coating is in relatively poor condition and is in need of replacement. Based on the FY 2012 Corrosion Report for Reservoir Coatings, the exterior was scheduled to be replaced in FY 2013. COMMENTS: Project budget reduced $30K in FY 2018 budget. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $5 $5 $0 $0 $0 $1,580 PRIOR YEARS: TOTAL $1,565 125 P2493 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2009 8/1/2010 9/1/2010 12/31/2013 $5 $95 PROJECT PHASE: 1/8/2014 6/30/2017 $1,480 PROJECT LOCATION:OWD Map Book:130 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 126 P2494Multiple Species Conservation Plan Lisa Coburn-Boyd 5/21/2009 P2495 0 District Wide 1 $950,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is to develop a plan to streamline the environmental permitting processes for the Capital Improvement Program projects to be constructed. JUSTIFICATION OF PROJECT: The project will save time and money when compared to environmental permitting each Capital Improvement Program project individually. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Expansion 100 %0 %0 %0 %100 % TOTAL:100 %0 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $30 $0 $0 $0 $0 $0 $950 PRIOR YEARS: TOTAL $920 127 P2494 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2009 6/30/2018 $950 $0 PROJECT PHASE: $0 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:2/16/2017Lisa Coburn-Boyd 128 P2500Padre Dam - Otay Interconnection Dehesa Valley Stephen Beppler 5 22 1 $240,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Add an interconnection of the potable water system with Padre Dam MWD to provide a redundant supply to the District's most northeastern areas in the event of an emergency. The facility will include a meter, vault, telemetry, and other interconnection appurtenances. JUSTIFICATION OF PROJECT: Adds a redundant water supply to the District in the event of an emergency. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 22 0 %69 %0 %0 %69 % Expansion 31 %0 %0 %0 %31 % TOTAL:31 %69 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $60 $5 $5 $5 $5 $60 $140 PRIOR YEARS: TOTAL $0 129 P2500 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2022 7/1/2017 6/30/2022 $10 $60 PROJECT PHASE: 7/1/2022 6/30/2025 $170 PROJECT LOCATION:OWD Map Book:381 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 130 P2504Regulatory Site Access Road and Pipeline Relocation Kevin Cameron 5/17/2010 P2466 5 22 1 $900,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is to improve the existing access road from the proposed sheriff substation site to the Regulatory Reservoir Site. JUSTIFICATION OF PROJECT: Improving the existing access road will provide for increased safety and all weather permanent access to the Regulatory Reservoir Site. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %50 %0 %50 % Betterment ID 22 0 %50 %0 %0 %50 % TOTAL:0 %50 %50 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $20 $50 $50 $1 $1 $10 $462 PRIOR YEARS: TOTAL $330 OTAY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM 131 P2504 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2010 9/1/2010 10/1/2010 12/31/2017 $85 $275 PROJECT PHASE: 1/1/2018 6/30/2025 $540 PROJECT LOCATION:OWD Map Book:331 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/28/2017Bob Kennedy 132 P2507East Palomar Street Utility Relocation Kevin Cameron 5/17/2010 2 22 2 $735,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the utility relocations due to construction improvements to I-805 near East Palomar Street. Both the existing potable and recycled water systems will be impacted. JUSTIFICATION OF PROJECT: Caltrans will be making improvements to I-805 that will result in conflicts with existing pipelines. Project funds reimbursement to Caltrans. COMMENTS: Project budget reduced $150K in FY 2018. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $5 $0 $0 $0 $0 $735 PRIOR YEARS: TOTAL $725 133 P2507 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2010 12/1/2010 1/1/2011 12/1/2012 $5 $245 PROJECT PHASE: 1/1/2013 6/30/2017 $485 PROJECT LOCATION:OWD Map Book:80 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 134 P2508Pipeline Cathodic Protection Replacement Program Jeff Marchioro 5/17/2010 0 District Wide 1 $725,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the replacement and repairs of existing cathodic protection systems on various pipelines. JUSTIFICATION OF PROJECT: The ongoing cathodic protection program efforts have identified various pipelines for anode replacement, cathodic test station repairs, installation of isolation kits, and repair of existing anode beds. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $100 $1 $1 $248 $0 $0 $725 PRIOR YEARS: TOTAL $375 135 P2508 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2010 6/30/2016 7/1/2014 6/30/2018 $50 $100 PROJECT PHASE: 10/1/2014 6/30/2021 $575 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:2/27/2017Jeff Marchioro 136 P2516PL - 12-Inch, 640 Zone, Jamacha Road - Darby/Osage Jeff Marchioro 5/23/2016 3 22 3 $900,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for construction of approximately 1,250 feet of 12-inch pipeline in Jamacha Road and Osage Drive in the 640 Pressure Zone. JUSTIFICATION OF PROJECT: The existing pipelines are located in easements in the side yards of homes. The pipelines are a risk and liability to the District if they were to fail. COMMENTS: Overall project budget increased in FY 2018 to match 2015 Water Facilities Master Plan. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $0 $75 $100 $725 $0 $900 PRIOR YEARS: TOTAL $0 137 P2516 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2019 6/30/2020 7/1/2020 6/30/2021 $75 $100 PROJECT PHASE: 7/1/2021 6/30/2022 $725 PROJECT LOCATION:OWD Map Book:301 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 138 P2518803-3 Reservoir Interior/Exterior Coating Kevin Cameron 5/15/2012 5 22 2 $685,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project provides funding for the interior and exterior coating of the 803-3 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the 2010 Cathodic Assessment Report, the 803-3 Reservoir interior and exterior coatings are in relatively poor condition and are in need of replacement. COMMENTS: Project complete. Project to be suspended until warranty inspection in 2017. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $5 $0 $0 $0 $0 $685 PRIOR YEARS: TOTAL $675 139 P2518 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2011 9/1/2012 10/1/2012 12/1/2013 $10 $65 PROJECT PHASE: 1/1/2013 7/31/2018 $610 PROJECT LOCATION:OWD Map Book:370 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 140 P2520Motorola Mobile Radio Upgrade Jose Martinez 5/16/2011 0 District Wide 1 $120,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for Motorola radio upgrades which involves three components: radio repeater upgrade, portable and base unit upgrades, and vehicle mobile radio upgrades. JUSTIFICATION OF PROJECT: The existing Motorola radio equipment is an essential part of the District's Emergency Response Program. A recent assessment of the radio equipment has determined that the equipment has reached the end of its useful life and needs upgrades. COMMENTS: The remaining work includes adding some additional VHF radios at pump stations that are not able to have a copper telephone (red phone) as well as augment the EOC and some management with RCS 800 MHZ radios. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $30 $0 $0 $0 $0 $0 $120 PRIOR YEARS: TOTAL $90 141 P2520 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: $0 $0 PROJECT PHASE: 8/1/2011 6/30/2018 $120 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 142 P2521Large Meter Vault Upgrade Program Andrea Carey 5/16/2011 0 District Wide 1 $620,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the retrofit and upgrade of approximately 50 large meter vaults to either above ground conditions or eliminate the confined space depth. JUSTIFICATION OF PROJECT: The existing large meters are installed in below grade vaults which create increased costs and safety issues due to confined space requirements. Some of the existing below grade systems are subject to flooding and create corrosive environments. COMMENTS: This is a re-activation of a previous CIP that incurred about $220K in costs through FY 2014. Current scope of work cost is $400K over 4 years, starting in FY 2017. Staff will be looking at vaults again to see if additional meters can be brought above ground or retrofits done to eliminate the confined space requirement. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 22 0 %100 %0 %0 %100 % TOTAL:0 %100 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $25 $25 $100 $100 $50 $0 $620 PRIOR YEARS: TOTAL $320 143 P2521 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: $220 $0 PROJECT PHASE: 8/1/2016 6/30/2022 $400 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 144 P2529711-2 Reservoir Interior & Exterior Coating Kevin Cameron 6/3/2015 P2530 1 22 2 $820,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 711-2 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the 2011 Cathodic Assessment Report, the 711-2 Reservoir interior and exterior coatings are in relatively poor condition and are in need of replacement. COMMENTS: Budget decreased from $840K to $820K in FY 2018. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $5 $0 $0 $0 $0 $820 PRIOR YEARS: TOTAL $810 145 P2529 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 6/1/2015 8/31/2015 9/1/2015 12/31/2015 $10 $65 PROJECT PHASE: 1/1/2016 12/31/2018 $745 PROJECT LOCATION:OWD Map Book:131 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 146 P2530711-1 Reservoir Interior & Exterior Coating Kevin Cameron 6/3/2015 P2529 1 22 2 $980,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 711-1 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the 2011 Cathodic Assessment Report, the 711-1 Reservoir interior and exterior coatings are in relatively poor condition and are in need of replacement. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $5 $0 $0 $0 $0 $980 PRIOR YEARS: TOTAL $970 147 P2530 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 6/1/2015 8/31/2015 9/1/2015 12/31/2015 $10 $65 PROJECT PHASE: 1/1/2016 12/31/2018 $905 PROJECT LOCATION:OWD Map Book:131 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:3/24/2017Bob Kennedy 148 P2531944-1 Reservoir Interior & Exterior Coating Kevin Cameron 5/19/2014 P2532 5 22 1 $345,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 944-1 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the 2011 Cathodic Assessment Report, the 944-1 Reservoir interior and exterior coatings are in relatively poor condition and are in need of replacement. COMMENTS: Budget decreased from $410K to $345K in FY 2018. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $5 $0 $0 $0 $0 $345 PRIOR YEARS: TOTAL $335 149 P2531 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 5/1/2014 6/30/2014 7/1/2014 12/30/2014 $10 $30 PROJECT PHASE: 12/31/2014 6/29/2018 $305 PROJECT LOCATION:OWD Map Book:322 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 150 P2532944-2 Reservoir Interior & Exterior Coating Kevin Cameron 5/19/2014 P2531 5 22 2 $960,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 944-2 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the 2011 Cathodic Assessment Report, the 944-2 Reservoir interior and exterior coatings are in relatively poor condition and are in need of replacement. COMMENTS: Budget decreased from $1.05M to $960K in FY 2018. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $10 $0 $0 $0 $0 $960 PRIOR YEARS: TOTAL $945 151 P2532 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 5/1/2014 6/30/2014 7/1/2014 10/31/2014 $10 $45 PROJECT PHASE: 12/31/2014 6/29/2018 $905 PROJECT LOCATION:OWD Map Book:322 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 152 P25331200-1 Reservoir Interior & Exterior Coating Kevin Cameron 6/3/2015 5 22 2 $810,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 1200-1 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the 2011 Cathodic Assessment Report, the 1200-1 Reservoir interior and exterior coatings are in relatively poor condition and are in need of replacement. COMMENTS: Budget increased from $565K to $810K in FY 2018 to reflect latest bid results and include structural improvements required on many tanks recently recoated. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $10 $745 $5 $45 $0 $0 $810 PRIOR YEARS: TOTAL $5 153 P2533 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 6/1/2016 7/31/2017 8/3/2017 3/2/2018 $20 $60 PROJECT PHASE: 3/5/2018 6/30/2020 $730 PROJECT LOCATION:OWD Map Book:369 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 154 P2534978-1 Reservoir Interior & Exterior Coating Kevin Cameron 6/3/2015 5 22 2 $650,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 978-1 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the 2011 Cathodic Assessment Report, the 978-1 Reservoir interior and exterior coatings are in relatively poor condition and are in need of replacement. COMMENTS: Budget decreased from $715K to $650K in FY 2018. The tank was built in 1959. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $10 $5 $5 $5 $0 $0 $650 PRIOR YEARS: TOTAL $625 155 P2534 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 6/2/2016 7/29/2016 8/1/2016 10/5/2016 $10 $60 PROJECT PHASE: 10/6/2016 9/30/2017 $580 PROJECT LOCATION:OWD Map Book:378 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 156 P2535458-2 Reservoir Interior & Exterior Coating & Upgrades Kevin Cameron 5/15/2012 2 22 2 $810,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 458-2 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the 2011 Cathodic Assessment Report, the 458-2 Reservoir interior coating is in relatively poor condition and is in need of replacement. The exterior coating on the roof is failing and in need of replacement. COMMENTS: Budget decreased from $885K to $810K in FY 2018. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $5 $0 $0 $0 $0 $810 PRIOR YEARS: TOTAL $800 157 P2535 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 6/1/2013 9/30/2013 10/1/2013 12/31/2014 $10 $65 PROJECT PHASE: 1/1/2015 6/29/2018 $735 PROJECT LOCATION:OWD Map Book:66 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 158 P2539South Bay Bus Rapid Transit (BRT) Utility Relocations Kevin Cameron 5/19/2014 1 22 1 $1,090,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for all utility relocations required due to construction of South Bay BRT. Facility relocations vary in size and they impact both the potable and recycled water systems. JUSTIFICATION OF PROJECT: Project improvements will affect the locations of some OWD facilities in streets in Chula Vista. Engineering/staff time will be needed to review the design drawings and identify any OWD facilities which will need relocation or vertical adjustment. A construction budget is also needed for the work in relocating and adjusting these facilities. COMMENTS: Budget increased from $940K to $1.09M in FY 2018 to reflect actual costs encountered to date and remaining work to be completed. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $40 $100 $50 $0 $0 $1,090 PRIOR YEARS: TOTAL $895 159 P2539 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2013 6/30/2014 7/1/2014 4/30/2016 $40 $80 PROJECT PHASE: 5/1/2016 6/30/2021 $970 PROJECT LOCATION:OWD Map Book:80-82, 97-99, 113 & 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 160 P2542850-3 Reservoir Interior Coating Kevin Cameron 5/19/2014 5 22 2 $540,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior coating of the 850-3 Reservoir. JUSTIFICATION OF PROJECT: The interior coating is in poor condition and in need of replacement. COMMENTS: Budget decreased from $630K to $540K in FY 2018. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $5 $0 $0 $0 $0 $540 PRIOR YEARS: TOTAL $530 161 P2542 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 6/30/2013 7/31/2014 8/1/2014 4/30/2015 $20 $60 PROJECT PHASE: 5/1/2015 12/29/2017 $460 PROJECT LOCATION:OWD Map Book:355 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 162 P2543850-1 Reservoir Interior/Exterior Coating Kevin Cameron 6/3/2015 3 22 2 $875,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 850-1 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the current Cathodic Assessment Report, the interior and exterior coatings on the 850-1 Reservoir are nearing the end of their useful life and are in need of replacement. COMMENTS: Budget increased from $575K to $875K in FY 2018 to reflect recent bid prices and anticipated structural repairs that have been encountered on many of the tanks recently recoated. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $695 $125 $5 $40 $0 $875 PRIOR YEARS: TOTAL $5 163 P2543 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 1/2/2017 7/28/2017 7/31/2017 10/31/2017 $20 $65 PROJECT PHASE: 11/1/2017 12/31/2020 $790 PROJECT LOCATION:OWD Map Book:304 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 164 P2544850-2 Reservoir Interior/Exterior Coating Kevin Cameron 6/3/2015 3 22 1 $980,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 850-2 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the current Cathodic Assessment Report, the interior and exterior coatings on the 850-2 Reservoir are nearing the end of their useful life and are in need of replacement. COMMENTS: Budget decreased from $1.07M to $980K in FY 2018 to reflect bid results, and keep enough budget for unanticipated structural repairs encountered on many tanks recently recoated. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $700 $5 $5 $20 $0 $0 $980 PRIOR YEARS: TOTAL $250 165 P2544 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 4/1/2016 7/29/2016 8/1/2016 10/5/2016 $20 $65 PROJECT PHASE: 10/6/2016 12/31/2019 $895 PROJECT LOCATION:OWD Map Book:317 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 166 P2545980-1 Reservoir Interior Exterior Coating Kevin Cameron 6/3/2015 P2546 5 22 2 $1,190,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 980-1 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the 2013 Cathodic Assessment Report, the 980-1 Reservoir interior and exterior coatings are nearing the end of their useful life and are in need of replacement. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $5 $0 $0 $0 $0 $1,190 PRIOR YEARS: TOTAL $1,180 167 P2545 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 1/1/2015 6/30/2015 7/1/2015 2/29/2016 $10 $85 PROJECT PHASE: 3/1/2016 12/31/2016 $1,095 PROJECT LOCATION:OWD Map Book:172 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:3/24/2017Bob Kennedy 168 P2546980-2 Reservoir Interior/Exterior Coating Kevin Cameron 6/3/2015 P2545 5 22 2 $1,450,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 980-2 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the current Cathodic Assessment Report, the interior and exterior coatings on the 980-2 Reservoir are nearing the end of their useful life and are in need of replacement. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $1,100 $340 $5 $5 $0 $0 $1,450 PRIOR YEARS: TOTAL $0 169 P2546 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 1/1/2018 6/30/2018 7/1/2018 10/3/2018 $20 $60 PROJECT PHASE: 10/4/2018 6/30/2021 $1,370 PROJECT LOCATION:OWD Map Book:172 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:3/24/2017Bob Kennedy 170 P2547District Administration Vehicle Charging Stations Kevin Cameron 5/19/2014 3 22 1 $125,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the construction of four (4) electric vehicle charging stations at the lower Administration parking lot. JUSTIFICATION OF PROJECT: Alternative fueled vehicles are becoming more common, with electric only vehicles making up a significant portion of these. To support the needs of these vehicles and their limited driving range, the District proposes installing vehicle charging stations to allow employees to consider using for their commute. COMMENTS: $1K Permit$81K Engineer's Estimate$14K Design Fee$29K Staff time, inspection and contingency FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Expansion 31 %0 %0 %0 %31 % Betterment ID 22 0 %69 %0 %0 %69 % TOTAL:31 %69 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $20 $30 $0 $0 $0 $0 $125 PRIOR YEARS: TOTAL $75 171 P2547 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2014 6/30/2015 7/1/2015 12/31/2016 $10 $15 PROJECT PHASE: 1/1/2017 9/30/2017 $100 PROJECT LOCATION:OWD Map Book:318 2018 2019 2020 2021 2022 2023 Total $200 $200 $200 $200 $200 $200 $1,200 $500 $500 $500 $500 $500 $500 $3,000 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 172 P2553Heritage Road Bridge Replacement and Utility Relocation Kevin Cameron 6/3/2015 2 22 2 $1,430,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: The existing 16-Inch potable water pipeline to Sleep-Train Amphitheatre and Aquatica SeaWorld¶s Waterpark was built under the Otay River. The City of Chula Vista is planning to replace the Heritage Road Bridge (Project No. STM-364). The District has requested the City reserve room in the bridge for a 16-inch steel pipeline for potable water use and an 8-inch pipeline for future recycled water use. In addition to the bridge crossing, approximately 1,600 linear feet of 16-inch potable water pipeline is required. An existing 16-inch ACP pipeline in Otay River will be abandoned or converted to recycled water use. JUSTIFICATION OF PROJECT: A new bridge crossing of the Otay River at Heritage Road provides an opportunity for the District to relocate a pipeline out of the river into a more secure location and also provides an economical way to build a recycled water pipeline to these commercial customers. COMMENTS: Budget increased from $1.2M to $1.43M to reflect latest projected costs and scope of work. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $50 $100 $100 $250 $755 $150 $1,430 PRIOR YEARS: TOTAL $25 173 P2553 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2014 12/30/2016 1/2/2017 3/7/2020 $50 $385 PROJECT PHASE: 3/8/2020 6/30/2023 $995 PROJECT LOCATION:OWD Map Book:50 & 51 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/12/2017Bob Kennedy 174 P2555Administration and Operations Parking Lot Improvements Kevin Cameron 6/3/2015 3 22 2 $775,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for AC pavement repairs, slurry seal, re-striping and update area lighting improvements to existing Administration and Operations parking lots. JUSTIFICATION OF PROJECT: Parking lot needs to be re-striped and AC pavement needs to be resealed. Area lighting will be updated to more energy efficient fixtures. COMMENTS: Increased FY 2018 budget by $225,000 for repaving, striping, motorized gate, and canopies for the operations yard. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $265 $215 $0 $0 $0 $0 $775 PRIOR YEARS: TOTAL $295 175 P2555 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2015 12/31/2015 1/1/2016 12/31/2016 $20 $75 PROJECT PHASE: 1/1/2017 6/30/2019 $680 PROJECT LOCATION:OWD Map Book:318 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 176 P2557520 Res Recirculation Pipeline Chemical Supply and Analyzer Feed Replacement Project Stephen Beppler 6/3/2015 5 22 1 $100,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the existing chemical feed lines that are cast/black iron and need to be replaced with new dual wall CPVC chemical feed lines. Other miscellaneous improvements needed. Length approximately 150 feet. JUSTIFICATION OF PROJECT: The existing chemical feed lines for the 520 Reservoir are experiencing deterioration and not designed to current code for providing chemical containment. COMMENTS: Planning and start of design in FY 2016. Complete design and construction of replacement ammonia feed lines proposed in FY 2019. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $35 $5 $0 $0 $0 $0 $100 PRIOR YEARS: TOTAL $60 177 P2557 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2015 6/30/2016 4/1/2016 12/30/2016 $5 $25 PROJECT PHASE: 1/2/2017 6/30/2019 $70 PROJECT LOCATION:OWD Map Book:343 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 178 P2559Pressure Vessel Repair and Replacement Program Jeff Marchioro 6/3/2015 0 District Wide 2 $650,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project will repair, coat, and/or replace entirely the pressure vessel interiors and exteriors and appurtenances for the District's potable and recycled water distribution systems including five (5) hydropneumatic and eight (8) surge tanks of various ages. Pressure vessel interiors and exteriors and appurtenances will be repaired, coated, and/or replaced entirely. Permanent or portable stairs or ladders will be provided as well. JUSTIFICATION OF PROJECT: Pressure vessels are a key component of thirteen (13) existing District pump stations. Routine inspection by qualified professionals, and follow up repair and/or replacement, are needed to extend the life expectancy of each pressure vessel and associated pump station facility. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $30 $45 $100 $100 $100 $100 $650 PRIOR YEARS: TOTAL $175 179 P2559 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2015 12/31/2016 1/1/2016 12/31/2022 $10 $50 PROJECT PHASE: 3/1/2016 6/30/2023 $590 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:3/24/2017Bob Kennedy 180 P2561Res - 711-3 Reservoir Cover/Liner Replacement Jeff Marchioro 6/3/2015 5 22 2 $1,800,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the replacement of the existing membrane floating cover and liner with new membrane system. JUSTIFICATION OF PROJECT: The existing membrane floating cover and liner have reached the end of their useful lives and require replacement to meet regulatory requirements. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $1 $10 $84 $1,690 $10 $0 $1,800 PRIOR YEARS: TOTAL $5 181 P2561 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2015 9/30/2018 10/1/2018 6/30/2020 $10 $90 PROJECT PHASE: 7/1/2020 6/30/2021 $1,700 PROJECT LOCATION:OWD Map Book:159 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 182 P2562Res - 571-1 Reservoir Cover/Liner Replacement Jeff Marchioro 6/3/2015 P2083 2 22 1 $2,900,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the replacement of the existing membrane floating cover and liner with new membrane system. JUSTIFICATION OF PROJECT: The existing membrane floating cover and liner have reached the end of their useful lives and require replacement to meet regulatory requirements. COMMENTS: Project budget revised from $2.6M to $2.9M during FY2018 budget process to reflect actual bid results. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $2,700 $145 $5 $0 $0 $0 $2,900 PRIOR YEARS: TOTAL $50 OTAY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM 183 P2562 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2015 8/31/2016 9/1/2016 7/31/2017 $10 $40 PROJECT PHASE: 8/1/2017 6/30/2020 $2,850 PROJECT LOCATION:OWD Map Book:55 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/26/2017Steve Beppler 184 P2563Res - 870-1 Reservoir Cover/Liner Replacement Jeff Marchioro 6/3/2015 2 22 3 $1,000,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the replacement of the existing membrane floating cover and liner with a new membrane system. JUSTIFICATION OF PROJECT: The existing membrane floating cover and liner have reached the end of their useful lives and require replacement to meet regulatory requirements. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $1 $5 $10 $90 $892 $0 $1,000 PRIOR YEARS: TOTAL $2 185 P2563 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2015 4/30/2019 5/1/2019 9/30/2020 $10 $100 PROJECT PHASE: 10/1/2020 6/30/2021 $890 PROJECT LOCATION:OWD Map Book:55 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:3/24/2017Bob Kennedy 186 P2565803-2 Reservoir Interior/Exterior Coating & Upgrades Kevin Cameron 6/3/2015 5 22 2 $940,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 803-2 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the 2013 Cathodic Assessment Report, the 803-2 Reservoir interior and exterior coatings are near the end of their useful life and in need of replacement. COMMENTS: Budget increased in FY 2018 from $725K to $940K to reflect recent bid prices and anticipated structural repairs that have been encountered on many of the tanks recently recoated. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $20 $820 $5 $5 $90 $940 PRIOR YEARS: TOTAL $0 187 P2565 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 1/1/2019 6/30/2019 7/1/2019 10/2/2019 $20 $70 PROJECT PHASE: 10/3/2019 6/30/2022 $850 PROJECT LOCATION:OWD Map Book:357 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 188 P2566520-2 Reservoir Interior/Exterior Coating & Upgrades Kevin Cameron 6/3/2015 5 22 3 $1,500,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 520-2 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the 2013 Cathodic Assessment Report, the 520-2 Reservoir interior and exterior coatings are at the end of their useful life and in need of replacement. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $0 $10 $1,240 $150 $100 $1,500 PRIOR YEARS: TOTAL $0 189 P2566 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 1/3/2020 6/30/2020 7/1/2020 10/7/2020 $20 $70 PROJECT PHASE: 10/8/2020 6/30/2022 $1,410 PROJECT LOCATION:OWD Map Book:343 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:3/24/2017Bob Kennedy 190 P25671004-2 Reservoir Interior/Exterior Coating & Upgrades Kevin Cameron 6/3/2015 3 22 3 $905,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 1004-2 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the 2013 Cathodic Assessment Report, the 1004-2 Reservoir interior and exterior coatings are at the end of their useful life and in need of replacement. COMMENTS: Budget increased from $565K to $905K in FY 2018 to reflect recent bid prices and anticipated structural repairs that have been encountered on many of the tanks recently recoated. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $20 $780 $105 $905 PRIOR YEARS: TOTAL $0 191 P2567 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 1/4/2021 6/30/2021 7/1/2021 10/5/2021 $20 $60 PROJECT PHASE: 10/6/2021 6/30/2022 $825 PROJECT LOCATION:OWD Map Book:316 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 192 P2568Technology Business Processes Improvement - Enterprise Content Management System Michael Kerr 6/3/2015 0 District Wide 1 $245,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is to advance business processes and operational efficiencies through effective implementation of information technology with assistance from integrated workflow tools, document management solutions, and standardization. JUSTIFICATION OF PROJECT: FY 2018 - Complete Enterprise Content Management and Document Management Solution. The District's current content management solution requires adaptation and new features in keeping abreast with current technologies to include content strategies and a standard taxonomy. The current solution also does not integrate well with SharePoint, the District's current Intranet back-end technology solution, and other possible integration solutions. - $36K COMMENTS: 2/2/2017±With the newly Board approved purchase of a replacement of the District¶s ECMS (Enterprise Content Management. System) staff identified a new technology to compliment the system. Staff received information that will enable the District to capture, arrange, and store any document type into the new EMCS. The new technology will also be able to recognize OCR (Optical Character Recognition), focusing on facilitating the conversion of captured documents into searchable files. This new module did not exist during staff¶s discovery of a new ECMS solution. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $36 $0 $0 $0 $0 $0 $245 PRIOR YEARS: TOTAL $209 193 P2568 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: $0 $0 PROJECT PHASE: 7/1/2015 6/30/2018 $245 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 194 P2571Datacenter Network- Data, Storage, and Infrastructure Enhancements Michael Kerr 6/3/2015 0 District Wide 2 $200,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the replacement and enhancement of the infrastructure components for the Data Center Network. JUSTIFICATION OF PROJECT: Data Center Network infrastructure is reaching the end of its service life. This project plans for enhancement and replacement. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $100 $100 $0 $0 $0 $200 PRIOR YEARS: TOTAL $0 195 P2571 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: $0 $0 PROJECT PHASE: 7/1/2018 6/30/2020 $200 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:3/24/2017Bob Kennedy 196 P2572Enterprise Resource Planning (ERP) Replacement Michael Kerr 6/3/2015 0 District Wide 3 $500,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the replacement of the Enterprise Resource Planning system. JUSTIFICATION OF PROJECT: Based on preliminary road maps from the current vendor, staff anticipates that the current ERP system, Eden, will become inflexible and constricted with new systems on the horizon. Staff is presently identifying key core business processes in achieving improvements in productivity and quality. Staff also anticipates that the outcome of the workshops will recognize that Eden will lack the necessary functionality, business agility, flexibility, and technology necessary for the District's overall growth. COMMENTS: Staff will start the discovery process in FY 2020 to identify possible alternatives for a new system. Given the history of the current solution, Eden, staff anticipates that FY 2021 will be appropriate for a replacement. In FY 2021, the District will have been utilizing Eden Financials for over 15 years. In the interim, staff will conduct research based on the District¶s current technology infrastructure for best fit for conversion of historical data, proper workflow and security, and templates for utility billing and invoicing. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $250 $250 $0 $500 PRIOR YEARS: TOTAL $0 197 P2572 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: $0 $0 PROJECT PHASE: 7/1/2020 6/30/2022 $500 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:3/24/2017Bob Kennedy 198 P2573PL - 12-Inch Pipeline Replacement, 803 Zone, Hillsdale Road Stephen Beppler 5/23/2016 P2574 5 22 1 $2,450,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the replacement of approximately 4,000 feet of 12-inch potable water main within the 803 Pressure Zones in Hillsdale Road. The County has a CIP to repave Hillsdale Road after the pipeline replacement project is complete. JUSTIFICATION OF PROJECT: This project will replace thin wall, 1959 era, steel pipe originally constructed under as-built number 01-03. Two of the original four miles of thin wall steel pipe have been already replaced through separate CIP and developer projects. The remaining 2.1 miles of pipe has developed several water main breaks, including catastrophic failures due to semi-localized coating failures and severe corrosion of the thin wall steel can. COMMENTS: Design to be completed in FY 2017 and constructed in FY 2018. Construction of S2048 to be completed at the same time. Revision to water main alignment and updated cost opinion increased the project budget from $1.75M to $2.45M to also reflect jump in bid prices experienced in early 2017. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $1,600 $610 $0 $0 $0 $0 $2,450 PRIOR YEARS: TOTAL $240 OTAY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM 199 P2573 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2016 10/15/2016 10/1/2016 6/30/2017 $90 $150 PROJECT PHASE: 7/1/2017 3/1/2019 $2,210 PROJECT LOCATION:OWD Map Book:356 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/26/2017Steve Beppler 200 P2574PL - 12-Inch Pipeline Replacement, 978 Zone, Vista Vereda Stephen Beppler 5/23/2016 P2573 5 22 2 $2,500,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the replacement of approximately 0.5 miles of 12-inch potable water main within the 978 Pressure Zones in Vista Vereda and easements on private property. Replacement length of water lines could potentially increase to 4,500 feet to relocate lines outside of hard to access easements. JUSTIFICATION OF PROJECT: This project will replace thin wall, 1959-60 era, steel pipe originally constructed under as-built number 01-03. Two of the original four miles of thin wall steel pipe have been already replaced through separate CIP and developer projects. COMMENTS: Budget decreased from $2.75M to $2.5M. Changed scope of work to just include the water line along Vista Vereda from Vista Grande to Hidden Mesa Trail. Created separate CIPs for 1960s era steel water lines in Vista Grande and Pence Dr. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $450 $2,000 $30 $0 $0 $0 $2,500 PRIOR YEARS: TOTAL $20 201 P2574 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2016 4/30/2017 5/1/2017 12/31/2017 $20 $180 PROJECT PHASE: 1/1/2018 6/30/2020 $2,300 PROJECT LOCATION:OWD Map Book:368, 369, 378 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 202 P2578PS - 711-2 (PS 711-1 Replacement and Expansion) - 14,000 gpm Jeff Marchioro 5/23/2016 P2473 1 22 2 $10,000,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the construction of a new Pump Station to replace the existing Pump Station. JUSTIFICATION OF PROJECT: The existing Pump Station was derated in 2010 to resolve vibration and cavitation issues. COMMENTS: Overall project budget increased to match 2015 Water Facilities Master Plan Update. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %69 %0 %69 % Betterment ID 22 0 %31 %0 %0 %31 % TOTAL:0 %31 %69 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $350 $3,200 $6,450 $10,000 PRIOR YEARS: TOTAL $0 203 P2578 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2020 9/30/2020 10/1/2020 9/30/2021 $100 $900 PROJECT PHASE: 10/1/2021 6/30/2023 $9,000 PROJECT LOCATION:OWD Map Book:114 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 204 P2584Res - 657-1 and 657-2 Reservoir Demolitions Jeff Marchioro 5/23/2016 3 22 2 $720,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is to incorporate the existing 657 Pressure Zone into the 640 Pressure Zone, abandon and demolish the two (2) 657 Reservoirs, and modify associated 657 Zone Pressure Reducing Stations. JUSTIFICATION OF PROJECT: Eliminating the existing 657 Pressure Zone will simplify operations, reduce operating cost, and improve reliability. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $35 $35 PRIOR YEARS: TOTAL $0 205 P2584 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2022 12/31/2022 1/1/2023 6/30/2024 $35 $35 PROJECT PHASE: 7/1/2024 6/30/2025 $650 PROJECT LOCATION:OWD Map Book:303 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 206 P2593458-1 Reservoir Interior/Exterior Coating & Upgrades Kevin Cameron 5/23/2016 2 22 2 $840,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 458-1 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the 2013 Cathodic Assessment Report, the 458-1 Reservoir interior and exterior coatings are at the end of their useful life and in need of replacement. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $10 $730 $100 $840 PRIOR YEARS: TOTAL $0 207 P2593 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 2/1/2021 6/30/2021 7/1/2021 10/29/2021 $10 $50 PROJECT PHASE: 11/1/2021 6/30/2022 $780 PROJECT LOCATION:OWD Map Book:66 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:3/27/2017Bob Kennedy 208 P2594Large Meter Replacement Andrea Carey 0 22 1 $485,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the replacement of water meters 3-inch or larger. JUSTIFICATION OF PROJECT: Of the 219 large meters in the ground, 105 are no longer repairable and must be replaced. Staff anticipates 97 of these meters will need to replaced in the next three years. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $150 $95 $0 $0 $0 $0 $485 PRIOR YEARS: TOTAL $240 209 P2594 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2016 6/1/2019 $0 $0 PROJECT PHASE: 7/1/2016 6/30/2019 $485 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 210 P2604AMR Change Out Andrea Carey 1/7/2017 0 22 1 $9,605,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Change-out of existing Master Meter 3G registers to Master Meter Allegro register and complete meter change-out of District's highest users of 3/4-2". In addition, implement cellular reading technology for District's temporary meters. JUSTIFICATION OF PROJECT: Current technology is failing at a high percentage at year 11. Final FY 2017 budget approved was $1.35M. Total program budget is estimated at $10.1M (recycled (R2143) and potable), projected to be spent over 6 years. Also, implement cellular reading technology for District's temporary meters and any large users requesting hourly data on a regular basis. Will pilot cell technology in FY 2018 with 20 endpoints and, if all works well, implement to all temp meters in FY 2019. The temporary cellular technology cost is estimated to be $75,000. COMMENTS: In FY 2025, program will resume replacing all meters and registers. Plan to expand the program to a 10 year change-out program for registers and 20 year program for meters (with exception of high users which will have full meter change-out every 10 years) at that time. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $1,510 $1,745 $1,475 $1,095 $1,290 $1,190 $9,605 PRIOR YEARS: TOTAL $1,300 211 P2604 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 1/1/2017 6/30/2023 $0 $0 PROJECT PHASE: 1/1/2017 6/30/2023 $9,605,000 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 212 P2605458/340 PRS Replacement, 1571 Melrose Ave Jeff Marchioro 2 22 2 $250,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Replace existing Pressure Reducing Station (PRS) with new facility. JUSTIFICATION OF PROJECT: Existing PRS is old with excessive leaking and vault flooding issues. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $1 $50 $189 $10 $0 $0 $250 PRIOR YEARS: TOTAL $0 213 P2605 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2018 7/1/2018 6/30/2019 $15 $50 PROJECT PHASE: 7/1/2019 6/30/2021 $185 PROJECT LOCATION:OWD Map Book:065 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 214 P2606803-2 Reservoir Repair/Replacement of Caulking and Tree Removal Jeff Marchioro 5 22 1 $75,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Repair or replacement of caulking reservoir and remove trees from tank property. JUSTIFICATION OF PROJECT: Roots from trees are penetrating the tank at the base caulking. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $1 $55 $19 $0 $0 $0 $75 PRIOR YEARS: TOTAL $0 215 P2606 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2018 7/1/2017 6/30/2018 $2 $8 PROJECT PHASE: 7/1/2018 6/30/2020 $65 PROJECT LOCATION:OWD Map Book:357 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 216 P2607Douglas Ave SWA and OWD Interconnection Upgrade Stephen Beppler 2 22 1 $50,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Replace existing 3-inch PRV at interconnection between Sweetwater Authority (SWA) and Otay with a new 8-inch PRV. Interconnection is a one-way feed from Otay to SWA so SWA will cover a majority of the costs. JUSTIFICATION OF PROJECT: SWA requested this replacement and upgrade in PRV size to better supply their system in the event of an emergency. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $10 $30 $10 $0 $0 $0 $50 PRIOR YEARS: TOTAL $0 217 P2607 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2018 7/1/2017 6/30/2018 $3 $7 PROJECT PHASE: 7/1/2018 6/30/2020 $40 PROJECT LOCATION:OWD Map Book:095 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 218 P2608PL - 8-inch, 850 Zone, Coronado Ave, Chestnut/Apple Kevin Cameron 3 22 2 $350,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Fire flows on this section of water line are below recommended rates. Preferred alternative to resolve this is to replace existing water line with about 1,300 feet of a higher pressure rated 8-inch pipeline and provide individual residential PRVs. JUSTIFICATION OF PROJECT: Existing water line is on the 657 Pressure Zone (PZ) and does not provide adequate fire protection. Moving this portion of the water system to a higher pressure zone will resolve this issue. COMMENTS: Issue discovered during modeling of moving the 657 PZ to the 640 PZ. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 22 0 %50 %0 %0 %50 % Replacement 0 %0 %50 %0 %50 % TOTAL:0 %50 %50 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $10 $40 $290 $10 $0 $0 $350 PRIOR YEARS: TOTAL $0 219 P2608 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2018 7/1/2018 6/30/2019 $10 $40 PROJECT PHASE: 7/1/2019 6/30/2021 $300 PROJECT LOCATION:OWD Map Book:303 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 220 P2609PL - 8-inch, 1004 Zone, Eucalyptus St, Coronado/Date/La Mesa Kevin Cameron 3 22 2 $400,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Replace existing water line through easement along Eucalyptus Street with 1,600 feet of new 8-inch water line along Coronado Avenue, Date Street, and La Mesa Avenue. JUSTIFICATION OF PROJECT: Existing water line through easement along Eucalyptus Street is inaccessible, old, and has experienced leaks. Without this water line, fire flows in the area are below recommended rates. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $10 $65 $315 $10 $0 $400 PRIOR YEARS: TOTAL $0 221 P2609 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2018 6/30/2019 7/1/2019 6/30/2020 $10 $65 PROJECT PHASE: 7/1/2020 6/30/2022 $325 PROJECT LOCATION:OWD Map Book:317 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 222 P2610Valve Replacement Program - Phase 1 Kevin Cameron 0 22 1 $150,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Replacement of non-functioning isolation valves on the potable water system. Phase 1 is expected to replace up to 20 valves. JUSTIFICATION OF PROJECT: Working isolation valves are vital to the efficient operation of the water system. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $30 $60 $60 $0 $0 $0 $150 PRIOR YEARS: TOTAL $0 223 P2610 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2018 7/1/2017 6/30/2019 $5 $10 PROJECT PHASE: 7/1/2017 6/30/2020 $135 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/25/2017Jolene Fielding 224 P2611Quarry Road Bridge Replacement and Utility Relocation Kevin Cameron 3 22 2 $1,000,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Replace existing water main crossing with new bridge construction. JUSTIFICATION OF PROJECT: New bridge construction requires replacement of the water main. COMMENTS: FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $10 $60 $425 $450 $50 $1,000 PRIOR YEARS: TOTAL $0 225 P2611 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2019 7/1/2019 6/30/2020 $5 $70 PROJECT PHASE: 7/1/2020 12/31/2022 $925 PROJECT LOCATION:OWD Map Book:197 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 226 P2612PL - 12-inch, 711 Zone, Pas de Luz/Telegraph Canyon Rd Kevin Cameron 4 22 2 $500,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Replacement of existing 12-inch water line located in a steep slope easement with a new water line located within right-of-way. JUSTIFICATION OF PROJECT: COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $10 $85 $390 $10 $0 $500 PRIOR YEARS: TOTAL $0 227 P2612 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2018 7/1/2018 6/30/2019 $5 $95 PROJECT PHASE: 7/1/2019 12/31/2021 $400 PROJECT LOCATION:OWD Map Book:096 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 228 P2613PL - 12-inch, 520 Zone, Rancho San Diego Towne Center Loop Kevin Cameron 5 22 2 $150,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Provide a second feed to the Rancho San Diego Towne Center Shopping Center from Jamacha Road. JUSTIFICATION OF PROJECT: Single feed for this large complex does not provide desired redundancy. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 22 0 %100 %0 %0 %100 % TOTAL:0 %100 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $10 $35 $100 $5 $0 $0 $150 PRIOR YEARS: TOTAL $0 229 P2613 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2018 7/1/2018 6/30/2019 $10 $35 PROJECT PHASE: 7/1/2019 6/30/2020 $105 PROJECT LOCATION:OWD Map Book:331 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 230 P2614485-1 Reservoir Interior/Exterior Coating Kevin Cameron 4 22 3 $895,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the interior and exterior coating of the 485-1 Reservoir. In addition, an assessment of the facility will be accomplished to assure compliance to all applicable codes and OSHA standards. JUSTIFICATION OF PROJECT: Based upon the current Cathodic Assessment Report, the interior and exterior coatings on the 485-1 Reservoir are nearing the end of their useful life and are in need of replacement. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $10 $885 $895 PRIOR YEARS: TOTAL $0 231 P2614 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2021 12/31/2021 1/1/2022 6/30/2022 $2 $8 PROJECT PHASE: 7/1/2022 6/30/2023 $885 PROJECT LOCATION:OWD Map Book:112 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/12/2017Bob Kennedy 232 P2615PL - 12-Inch Pipeline Replacement, 803 PZ, Vista Grande Stephen Beppler 5 22 2 $1,200,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the replacement of approximately 0.5 miles of 12-inch and 14-inch potable water main within the 803 Pressure Zones in Vista Grande. JUSTIFICATION OF PROJECT: This project will replace thin wall, 1959-60 era, steel pipe originally constructed under as-built number 01-03. Two of the original four miles of thin wall steel pipe have been already replaced through separate CIP and developer projects. The remaining 2.1 miles of pipe has developed several water main breaks including catastrophic failures due to semi-localized coating failures and severe corrosion of the thin wall steel can. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $20 $130 $1,030 $20 $0 $1,200 PRIOR YEARS: TOTAL $0 233 P2615 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2018 6/30/2019 7/1/2019 6/30/2020 $20 $130 PROJECT PHASE: 7/1/2020 6/30/2021 $1,050 PROJECT LOCATION:OWD Map Book:368 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 234 P2616PL - 12-Inch Pipeline Replacement, 978 Zone, Pence Dr/Vista Sierra Dr Stephen Beppler 5 22 2 $2,500,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the replacement of approximately 0.4 miles of 14-inch potable water main within the 978 Pressure Zones in Pence Drive, Vista Sierra Drive and easements on private property east of Vista Grande. Replacement length of water lines could potentially increase to 5,000 feet to relocate lines outside of easements. JUSTIFICATION OF PROJECT: This project will replace thin wall, 1959-60 era, steel pipe originally constructed under as-built number 01-03. Two of the original four miles of thin wall steel pipe have been already replaced through separate CIP and developer projects. The remaining 2.1 miles of pipe has developed several water main breaks including catastrophic failures due to semi-localized coating failures and severe corrosion of the thin wall steel can. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $20 $180 $2,280 $20 $0 $0 $2,500 PRIOR YEARS: TOTAL $0 235 P2616 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2018 7/1/2018 6/30/2019 $20 $180 PROJECT PHASE: 7/1/2019 6/30/2021 $2,300 PROJECT LOCATION:OWD Map Book:378 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 236 P2617Lobby Security Enhancements Kent Payne 3 22 1 $75,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Redesign and install new customer service counter with enhanced security features; reconfigure the public service desk to include security enhancements along with an enlarged and secured adjoining conference room; replace finance and engineering double doors with new secured glass doors. JUSTIFICATION OF PROJECT: This project will add security features to the District¶s public lobby in the form of bullet resistant barriers, glass and work areas with sufficient protection to allow staff to retreat to a safe location should a dangerous encounter present itself. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $75 $0 $0 $0 $0 $0 $75 PRIOR YEARS: TOTAL $0 237 P2617 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2018 7/1/2017 6/30/2018 $5 $5 PROJECT PHASE: 7/1/2017 6/30/2018 $65 PROJECT LOCATION:OWD Map Book:318 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/12/2017Bob Kennedy 238 P2619PS - Temporary Lower Otay Pump Station Redundancy Jeff Marchioro 1 22 1 $635,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Add a second pump to LOPS to provide system redundancy to this vital station. Project involves site work, yard piping, replacement of a 30-inch flow meter and adjoining piping due to internal deterioration, instrumentation, and controls additions along with security improvements. JUSTIFICATION OF PROJECT: LOPS is the sole water supply to the south potable water system during annual SDCWA aqueduct shutdowns and needs to have redundancies and remote access controls to ensure reliable operation. COMMENTS: Scope of work from CIP P2579 included in CIP P2619. CIP P2579 will be closed to avoid duplication. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 22 0 %100 %0 %0 %100 % TOTAL:0 %100 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $20 $80 $485 $50 $0 $0 $635 PRIOR YEARS: TOTAL $0 239 P2619 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2018 7/1/2018 6/30/2019 $20 $80 PROJECT PHASE: 7/1/2019 6/30/2021 $535 PROJECT LOCATION:OWD Map Book:070 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 240 P2620Radio and Emergency Communication System Michael Kerr P2520 0 District Wide 2 $20,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project will be to conduct an assessment of the District's critical communications and information systems infrastructure and evaluate the technical feasibility of the creation of a back-up communications systems that complements existing communications resources (Metro-E) and next generation and advanced communications technologies. Where CIP P2520 made updates to the existing radio system that is dated and has a limited remaining life of about 6 years, this CIP will evaluate the latest generation of radio communications for replacement of the existing system. JUSTIFICATION OF PROJECT: In the event of a natural disaster and unavailable power and data coverage, staff requests this initial report conducted for potential solutions for back-up emergency communications systems. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $20 $0 $0 $0 $0 $0 $20 PRIOR YEARS: TOTAL $0 241 P2620 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 8/1/2017 10/5/2017 $0 $20 PROJECT PHASE: $0 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/12/2017Bob Kennedy 242 P2623Central Area to Otay Mesa Interconnection Pipelines Combination Air/Vacuum Valve Replacements Jeff Marchioro P2083 2 22 2 $270,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Replace approximately sixty (60) existing 4-inch combination air/vacuum valves with surge type (slow closing) combination air/vacuum valves on the Central Area to Otay Mesa Interconnection Pipelines. Replace existing valve enclosures as needed. JUSTIFICATION OF PROJECT: A transient surge analysis for the new 870-2 Pump Station project identified existing combination air/vacuum valves which need to be replaced with surge type (slow closing) valves. Existing air/vacuum valve enclosures will need to be replaced since some are severely corroded and others are too short for the taller replacement valves. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $20 $120 $120 $10 $0 $0 $270 PRIOR YEARS: TOTAL $0 243 P2623 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 9/30/2017 10/1/2017 6/30/2018 $5 $15 PROJECT PHASE: 7/1/2018 6/30/2020 $250 PROJECT LOCATION:OWD Map Book:055 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 244 R2077RecPL - 24-Inch, 860 Zone, Alta Road - Alta Gate/Airway Stephen Beppler 5/23/2006 R2048, R2058, R2087 2 22 4 $2,852,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for construction of approximately 9,300 feet of 24-inch pipeline within the 860 Pressure Zone in Alta Road from the Alta Gate location to Airway Road. Portions of this project are being built by developers through reimbursement agreements. The balance of this project will be constructed as part of the Otay Mesa recycled water system. JUSTIFICATION OF PROJECT: This project will provide transmission capacity for development of Otay Mesa and link the planned 860-1 Reservoir with the recycled water transmission system in Otay Mesa. Funding opportunity is the United States Bureau of Reclamation Water Reclamation and Reuse Program, Title XVI of P.L. 102-575. COMMENTS: Temporary moratorium enacted for Otay Mesa recycled water in July 2014 will be revisited in the future. In the meanwhile, putting a hold on all recycled water projects in Otay Mesa. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Expansion 100 %0 %0 %0 %100 % TOTAL:100 %0 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $20 $20 $0 $0 $0 $0 $2,852 PRIOR YEARS: TOTAL $2,812 OTAY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM 245 R2077 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2001 12/1/2009 1/1/2010 6/30/2019 $164 $451 PROJECT PHASE: 7/1/2019 12/31/2024 $2,237 PROJECT LOCATION:OWD Map Book:39 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:5/5/2017Bob Kennedy 246 R2079RecPL - 6-Inch, 450 Zone, Otay Valley Road - Otay Valley/Entertainment Stephen Beppler R2028 1 22 2 $150,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is to construct the pipeline across the river and the pressure reducing station to reduce the pressure from the 680 Pressure Zone to a new 450 Pressure Zone to serve the amphitheater and water park. JUSTIFICATION OF PROJECT: The City is replacing the Heritage Road Bridge south of Main Street. Village 3 will construct recycled water to the intersection of Heritage Road and Main Street. COMMENTS: The pipeline is estimated to cost $450K and a pressure reducing station $200K. Current CIP does not reflect this work; will be updated upon acceptance of new Master Plan. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Expansion 100 %0 %0 %0 %100 % TOTAL:100 %0 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $10 $10 $10 $120 $0 $0 $150 PRIOR YEARS: TOTAL $0 247 R2079 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2016 6/30/2017 7/1/2017 12/31/2018 $10 $20 PROJECT PHASE: 1/1/2019 6/30/2021 $120 PROJECT LOCATION:OWD Map Book:51 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 248 R2084RecPL - 20-Inch, 680 Zone, Village 2 - Heritage/La Media Stephen Beppler 6/2/2004 R2083, R2085 1 22 2 $365,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for construction of approximately 2,000 feet of 20-inch pipeline within the 680 Pressure Zone in Village 2 in Santa Victoria Road from Santa Carolina Road to Santa Alexia Avenue. JUSTIFICATION OF PROJECT: This project will provide transmission capacity for the recycled water supply pumped from the 680-1 Pump Station to the 680 and higher pressure zones. Significant energy savings will occur due to lower total dynamic head requirements for the 680-1 Pump Station. Funding opportunity is the United States Bureau of Reclamation Water Reclamation and Reuse Program, Title XVI of P.L. 102-575. COMMENTS: This is a developer driven project. A reimbursement agreement is expected to be considered by the Board in FY 2017. Developer budget is 2,000 LF at a cost of $150 per foot for a total of $300K.Inspection and staff budget is $65K.This CIP budget was reduced from $970K to $365K for the FY 2017 CIP budget. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Expansion 100 %0 %0 %0 %100 % TOTAL:100 %0 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $40 $315 $10 $0 $0 $0 $365 PRIOR YEARS: TOTAL $0 249 R2084 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2004 6/30/2017 7/1/2017 6/30/2018 $10 $40 PROJECT PHASE: 7/1/2018 6/30/2020 $315 PROJECT LOCATION:OWD Map Book:82 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $1,900 $1,900 $1,900 $5,700 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 250 R2110RecPS - 944-1 Optimization and Pressure Zone Modifications Jeff Marchioro R2091 1 22 1 $200,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is to improve the control strategy to increase pumping capacity and streamline operation of the pump station. As a result of this effort, replacement of five (5) service saddles on Clubhouse Drive will need to be replaced with higher pressure class saddles. Add a sump pump to an existing pressure reducing station vault located east of the intersection of Otay Lakes Road and Hunte Parkway. JUSTIFICATION OF PROJECT: Revising the control strategy will increase pumping capacity and improve the District's ability to operate the pump station during off-peak hours when electricity rates are low. Retrofitting the Pressure Reducing Station (PRS) vault with a sump pump will prolong the life expectancy of existing pressure reducing station components. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 22 0 %100 %0 %0 %100 % TOTAL:0 %100 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $20 $45 $0 $0 $0 $0 $200 PRIOR YEARS: TOTAL $135 251 R2110 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2013 10/1/2013 10/1/2013 9/30/2015 $60 $25 PROJECT PHASE: 9/30/2015 6/30/2019 $115 PROJECT LOCATION:OWD Map Book:115 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 252 R2116RecPL - 14-Inch, 927 Zone, Force Main Improvements Jeff Marchioro 3 22 1 $2,500,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the repair of the existing 16,000 L.F. 14-Inch force main, built in 1978, and the replacement of fifteen (15) blow-offs. JUSTIFICATION OF PROJECT: Active leaks and significant localized corrosion have been spot repaired. Additional spot repairs and replacement of the existing blow-offs are needed to extend the remaining useful life of the facility. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 22 0 %100 %0 %0 %100 % TOTAL:0 %100 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $200 $400 $0 $0 $0 $0 $2,500 PRIOR YEARS: TOTAL $1,900 253 R2116 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2014 3/31/2017 1/1/2015 6/30/2017 $500 $200 PROJECT PHASE: 1/1/2015 6/30/2020 $1,800 PROJECT LOCATION:OWD Map Book:186, 200, 304, 318, 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:3/16/2017Bob Kennedy 254 R2118Steele Canyon Sewer PS Large Solids Handling Improvements Stephen Beppler 6/3/2015 3 22 1 $75,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for installation of measures in the Steele Bridge Sewer Pump Station wet well to protect the sewage pumps from assorted debris. The existing pumps have been requiring a high frequency of repairs and replacement of parts due to rags, construction materials, and other non-typical wastewater solids entering the pump station. Assessment of installing either a new chopper pump or bar screen to handle these types of materials is needed. JUSTIFICATION OF PROJECT: The prevention of large debris from reaching the existing pumps will result in reduced maintenance repairs and extend the life of the sewage pumps. Based upon the current frequency and cost of maintenance of the sewage pumps, the proposed improvement should pay for itself within a few years. Improvements may trigger safety upgrades to also be included. COMMENTS: Design completed in FY 2017 with construction in FY 2018 to coincide with next scheduled treatment plant shutdown. CIP is based upon recommendations from RWCWRF Master Plan (Item 3.1). FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 18 0 %100 %0 %0 %100 % TOTAL:0 %100 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $50 $3 $0 $0 $0 $0 $75 PRIOR YEARS: TOTAL $22 255 R2118 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2015 7/31/2015 8/3/2015 9/30/2015 $2 $18 PROJECT PHASE: 10/1/2015 6/30/2019 $55 PROJECT LOCATION:OWD Map Book:331 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 256 R2120RWCWRF Filtered Water Storage Tank Improvements Stephen Beppler 6/3/2015 R2096 3 22 1 $500,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is to seal and recoat the interior and exterior of steel tank walls and concrete floor. Construct improvements to facilitate operation and maintenance activities and compliance with all applicable codes and OSHA standards. Salvage or replace and improve existing floating cover while incorporating a support structure to permit tank entry below the cover when the tank is drained. JUSTIFICATION OF PROJECT: HDR Engineering Inspection and Condition Assessment Report dated May 2015 recommends structural improvements, replacement of the exterior coatings, and replacement of the cathodic protection system. This improvement was included in the Ralph W. Chapman Water Reclamation Facility (RWCWRF) Master Plan (Item 7.9). The report prepared by HDR in 2015 stated that the interior coating has exceeded its life cycle due to deterioration. The report also states that the exterior coating is in fair condition and as one of their recommendations it can be power washed and scrubbed with a mild biodegradable cleaner to remove all of the chalking. A spot paint can then be applied on the exterior. COMMENTS: Construction delayed until FY 2019 in response to other priorities at the plant. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 22 0 %100 %0 %0 %100 % TOTAL:0 %100 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $25 $20 $400 $5 $0 $0 $500 PRIOR YEARS: TOTAL $50 257 R2120 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2015 2/1/2016 2/2/2016 6/30/2017 $10 $40 PROJECT PHASE: 7/1/2017 6/30/2020 $450 PROJECT LOCATION:OWD Map Book:319 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 258 R2121Res - 944-1 Reservoir Cover/Liner Replacement Jeff Marchioro 6/3/2015 5 22 2 $1,400,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the replacement of the existing membrane floating cover and liner with a new membrane system. JUSTIFICATION OF PROJECT: The existing membrane floating cover and liner have reached the end of their useful lives and require replacement to meet regulatory requirements. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $1 $1 $33 $1,347 $0 $0 $1,400 PRIOR YEARS: TOTAL $18 259 R2121 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2015 6/30/2016 7/1/2016 9/30/2020 $10 $100 PROJECT PHASE: 10/1/2020 6/30/2021 $1,290 PROJECT LOCATION:OWD Map Book:172 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:3/24/2017Bob Kennedy 260 R2123Repurpose Otay Mesa Recycled Water Lines Stephen Beppler 5/23/2016 2 22 2 $350,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project will access the alternative use potential for the Otay Mesa recycled waterlines utilizing hydraulic modeling. JUSTIFICATION OF PROJECT: Determining alternative uses for these waterlines will allow for these assets to be used rather than lie dormant. With the moratorium on extending recycled water to Otay Mesa, the recycled waterlines already installed throughout the area will be evaluated for potential uses. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 22 0 %100 %0 %0 %100 % TOTAL:0 %100 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $5 $5 $150 $150 $35 $350 PRIOR YEARS: TOTAL $0 261 R2123 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2016 6/30/2017 $35 $0 PROJECT PHASE: 7/1/2017 6/30/2023 $315 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 262 R2125RecPRS - 927/680 PRS Improvements, Otay Lakes Road Stephen Beppler 1 22 2 $200,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Add equipment and controls to allow for the operation of the 927/680 Pressure Reducing Station (PRS) to function in coordination with the 944-1 Recycled Water Pump Station (RWPS). JUSTIFICATION OF PROJECT: Storage in the 680 Recycled Water Pressure Zone (PZ) is limited while the 927 PZ has excess storage. During peak electrical periods when the distribution pumps are not typically operated, the proposed improvements will allow for high water demands to be supplied from the 927 PZ storage. The controls would prevent the PRV from opening when the 944-1 RWPS is in operation. COMMENTS: New CIP based upon 2015 Water Facilities Master Plan update. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 22 0 %100 %0 %0 %100 % TOTAL:0 %100 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $50 $145 $5 $0 $0 $0 $200 PRIOR YEARS: TOTAL $0 263 R2125 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 12/31/2017 1/1/2018 12/31/2018 $15 $35 PROJECT PHASE: 1/1/2019 6/30/2020 $150 PROJECT LOCATION:OWD Map Book:130 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 264 R2139RWCWRF - Filter Troughs Replacement Stephen Beppler 3 22 2 $30,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Replace existing fiberglass reinforced plastic (FRP) weir troughs that supply flow to the filters as well as bypass the filters during plant operations that do not meet discharge requirements. JUSTIFICATION OF PROJECT: Existing FRP weir troughs are from original 1992 construction and are at the end of their useful life. Fibers are exposed and can become waterlogged with trough breakage a risk. Weight is causing trough to sag, resulting in leakage and disproportional feed through the filters. COMMENTS: CIP is based upon recommendations from Ralph W. Chapman Water Reclamation Facility (RWCWRF) Master Plan (Item 7.5). FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $30 $0 $0 $0 $0 $0 $30 PRIOR YEARS: TOTAL $0 265 R2139 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2018 7/1/2017 6/30/2018 $1 $4 PROJECT PHASE: 7/1/2017 6/30/2018 $25 PROJECT LOCATION:OWD Map Book:319 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 266 R2143AMR Change Out Andrea Carey 1/7/2017 0 22 1 $525,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: Change-out of existing Master Meter 3G registers to Master Meter Allegro register and complete meter change-out of District's highest users of 3/4-2". JUSTIFICATION OF PROJECT: Current technology is failing at a high percentage at year 11. Final FY 2017 budget approved was $1.35M. Total program budget is estimated at $10.1M (recycled and potable (P2604)), projected to be spent over 6 years. COMMENTS: In FY 2025, program will resume replacing all meters and registers. Plan to expand the program to a 10 year change-out program for registers and 20 year program for meters (with exception of high users which will have full meter change-out every 10 years) at that time. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $350 $75 $25 $5 $10 $10 $525 PRIOR YEARS: TOTAL $50 267 R2143 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: $0 $0 PROJECT PHASE: 1/7/2017 6/30/2023 $525 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 268 S2012 San Diego County Sanitation District Outfall and RSD Outfall Replacement Stephen Beppler 6/4/2003 3 18 1 $3,550,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the Otay Water District proportionate share of the San Diego County Sanitation District total costs for replacement of various system components of the existing Spring Valley and Rancho San Diego Outfall Systems, per terms of an existing agreement with the County of San Diego Sanitation District. The reimbursement also includes a proportionate share of operating and maintenance costs. JUSTIFICATION OF PROJECT: Various components of the San Diego County Sanitation District Spring Valley Outfall and the Rancho San Diego Outfall are in very bad condition and are in need of repair and/or replacement. COMMENTS: FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $20 $200 $250 $300 $350 $400 $2,540 PRIOR YEARS: TOTAL $1,020 269 S2012 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: $0 $0 PROJECT PHASE: 7/1/2003 6/30/2025 $3,550 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 270 S2024Campo Road Sewer Main Replacement Stephen Beppler 5/17/2010 3 18 1 $10,100,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is to upgrade the sewer main capacity of approximately 11,050 feet of existing 10-inch PVC sewer main, 450 feet of 10-inch reinforced polymer mortar pipe sewer main, and 50 feet of 15-inch sewer main. The project location begins at the south end of Avocado Blvd, through the Rancho San Diego Village Shopping Center, paralleling the SR-94/Campo Road in the adjacent open space. JUSTIFICATION OF PROJECT: The existing sewer main is under-sized and must be replaced to increase capacity. Portions of the sewer main are located in areas of sensitive habitat making it difficult to access for maintenance. COMMENTS: Project design completed in FY 2016. Easement costs increased from $150K to $350K Construction costs increased with delay from easement acquisition, apparent low bid is $7.82M, with additional costs for administration, inspection, and construction management bringing the project total estimate to $10.1M. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 18 0 %50 %0 %0 %50 % Replacement 0 %0 %50 %0 %50 % TOTAL:0 %50 %50 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $4,250 $4,250 $50 $0 $0 $0 $10,100 PRIOR YEARS: TOTAL $1,550 271 S2024 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2010 12/31/2014 1/1/2015 6/30/2016 $160 $1,390 PROJECT PHASE: 7/1/2016 6/30/2018 $8,550 PROJECT LOCATION:OWD Map Book:330 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/6/2017Bob Kennedy 272 S2027Rancho San Diego Pump Station Rehabilitation Stephen Beppler 5/16/2011 3 18 1 $3,500,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project provides funding for the rehabilitation of the Rancho San Diego Pump Station located near Singer Lane. The project is being designed and constructed by the County of San Diego, with the District sharing the costs. The County invoices the District once a year. JUSTIFICATION OF PROJECT: The existing sewer pump station is over 20 years old and the pumps have reached the end of their useful lives. The pump station also needs improvements to bring the station up to current OSHA requirements. COMMENTS: Project design is complete and construction is in progress. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $5 $5 $5 $444 $0 $0 $3,500 PRIOR YEARS: TOTAL $3,041 273 S2027 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2011 7/1/2013 7/1/2013 9/30/2016 $50 $500 PROJECT PHASE: 10/1/2016 6/30/2021 $2,950 PROJECT LOCATION:OWD Map Book:331 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/18/2017Bob Kennedy 274 S2033Sewer System Rehabilitation Stephen Beppler 5/16/2011 5 18 1 $3,000,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for sewer system rehabilitation efforts that have been identified. These efforts involve replacement of approximately 13,000 linear-feet of failing or damaged pipe segments, separated pipe joints, etc. JUSTIFICATION OF PROJECT: The closed circuit television sewer assessment program process has assisted in the identification of sewer mains containing sags, which has allowed debris to form, and/or are damaged and in need of repair. COMMENTS: Project to be closed after FY 2018. Construction of the Rancho San Diego (RSD) Basin Phase 1 project will remain under this project. FY 2019 costs are to cover warranty period of RSD Phase 1. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $10 $10 $0 $0 $0 $0 $3,000 PRIOR YEARS: TOTAL $2,980 275 S2033 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2011 1/1/2016 3/1/2013 1/1/2017 $225 $775 PROJECT PHASE: 6/30/2014 6/30/2017 $2,000 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 276 S2043RWCWRF Sludge Handling System Stephen Beppler 5/14/2013 R2096 3 18 3 $1,500,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for a Sludge Handling System at the Ralph W. Chapman Water Recycling Facility (RWCWRF) to reduce the amount of solids the District sends to Metro. JUSTIFICATION OF PROJECT: The District currently sends all sludge produced at RWCWRF to Metro for treatment. The District's Wastewater Management Plan provided a preliminary estimate of the cost of handling sludge at the RWCWRF that is close to the cost Metro charges the District for treatment of solids. COMMENTS: City of San Diego is in the process of determining future sewer rates related to the implementation of the Pure Water Program. Once these rates are established, the feasibility of handling solids at the RWCWRF can be fully assessed. This CIP is as indicated in the RWCWRF Master Plan under item 11.2. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 18 0 %100 %0 %0 %100 % TOTAL:0 %100 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $30 $0 $0 $0 $0 $5 $76 PRIOR YEARS: TOTAL $41 277 S2043 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2013 6/30/2023 7/1/2023 6/30/2024 $75 $200 PROJECT PHASE: 7/1/2024 6/30/2026 $1,225 PROJECT LOCATION:OWD Map Book:319 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 278 S2044Trenchless Sewer Rehabilitation Stephen Beppler 5/23/2016 5 18 1 $550,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is to repair sewer damage by trenchless repair methods at over 50 identified sewer sites. The planning and design for this project was begun under S2033 and is now separated out into its own project entity. JUSTIFICATION OF PROJECT: The closed circuit television sewer assessment program process has assisted in the identification of sewer mains containing sags, which has allowed debris to form, and/or are damaged and need to be repaired. COMMENTS: Project to be bid and constructed in FY 2017. Budget reduced from $650K to $550K to reflect bid results. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $75 $5 $0 $0 $0 $0 $550 PRIOR YEARS: TOTAL $470 279 S2044 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2016 2/28/2017 $0 $50 PROJECT PHASE: 3/1/2017 6/30/2019 $500 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 280 S2045Fuerte Drive Sewer Relocation Stephen Beppler 5/23/2016 5 18 1 $200,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the relocation of the Fuerte Drive Sewer Main. The County of San Diego is realigning a portion of Fuerte Drive in an area where the District has identified sewer Site 34 for rehabilitation. This design will be accelerated to enable the work to be completed in coordination with the County road work. JUSTIFICATION OF PROJECT: The closed circuit television sewer assessment program process has assisted in the identification of sewer mains containing sags, which has allowed debris to form, and/or are damaged and need to be repaired. COMMENTS: Planning work started under the S2033 project. County has delayed construction until FY 2018. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $50 $130 $0 $0 $0 $0 $200 PRIOR YEARS: TOTAL $20 281 S2045 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2016 7/29/2016 8/1/2016 7/31/2017 $5 $65 PROJECT PHASE: 8/3/2017 6/30/2019 $130 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 282 S2046RWCWRF - Aeration Panels Replacement Stephen Beppler 3 18 1 $450,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the replacement of 39 aeration panels. The existing aeration diffuser panels installed in the aeration basins are no longer being produced by the manufacturer and have failed in less than half the expected life indicated from the manufacturer's literature. Options include manufacturer's retrofit with their currently offered panels or explore other alternative manufacturers. Depending upon the replacement aeration system selected, completion of the aeration header loop may also be included to provide better air distribution at equal pressure. CIP is based upon recommendations from Ralph W. Chapman Water Reclamation Facility (RWCWRF) Master Plan (Items 5.1 and 5.3). JUSTIFICATION OF PROJECT: Failures of existing aeration diffuser panels required replacement immediately. Ultimate replacement of the system is required within the expected life of the replacement diffusers - within four years. COMMENTS: A study of aeration systems and their costs will be performed during FY 2018 and a decision made on the replacement system. If possible, recommend panel replacement be performed in a two-step process to enable assessment of the new system. Retrofit of one basin at first as this will allow for assessment of the operation of the new panels prior to implementing in all basins. If the replacement system and existing system are not compatible, than all three basins will need to be replaced at once. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $50 $100 $200 $0 $0 $0 $450 PRIOR YEARS: TOTAL $100 283 S2046 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2016 12/31/2017 11/1/2016 6/30/2018 $20 $80 PROJECT PHASE: 10/1/2016 6/30/2020 $350 PROJECT LOCATION:OWD Map Book:319 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 284 S2047Asset Management - Info Master Sewer Implementation Ming Zhao 5/23/2016 5 18 2 $58,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the purchase and implementation of sewer asset management decision making software, Info Master Sewer. JUSTIFICATION OF PROJECT: Allows for asset management of sewer system. COMMENTS: This was originally part of the P2486 Asset Management CIP. As this portion is for sewer, a separate CIP was created to reflect the different funding resource. The overall CIP amount does not change. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 18 0 %100 %0 %0 %100 % TOTAL:0 %100 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $30 $28 $0 $0 $0 $0 $58 PRIOR YEARS: TOTAL $0 285 S2047 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2019 $58 $0 PROJECT PHASE: $0 PROJECT LOCATION:OWD Map Book: 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 286 S2048Hillsdale Road Sewer Repairs Stephen Beppler 5/23/2016 5 18 1 $720,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is to repair two (2) areas of sewer mains, Sites 790 and 878, will be designed and constructed in coordination with the proposed waterline improvements in Hillsdale Road. This work was originally included in S2033. JUSTIFICATION OF PROJECT: The closed circuit television sewer assessment program process has assisted in the identification of sewer mains containing sags, which has allowed debris to form, and/or are damaged and need to be repaired. COMMENTS: Coordination with the waterline project is necessary. Budget increased for FY 2018 from $500K to $720K to reflect updated project cost estimate, additional MH repair, and jump in recent bids in early 2017. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $400 $270 $0 $0 $0 $0 $720 PRIOR YEARS: TOTAL $50 OTAY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM 287 S2048 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2016 6/30/2017 $0 $50 PROJECT PHASE: 7/1/2017 6/30/2019 $670 PROJECT LOCATION:OWD Map Book:356 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/26/2017Steve Beppler 288 S2049Calavo Basin Sewer Rehabilitation - Phase 2 Stephen Beppler 5/23/2016 5 18 2 $1,000,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for repairs to the gravity sanitary sewer system to repair areas with potential for sewer backups and spills. This project addresses the following nine (9) sewer sites, primarily in the Calavo area: 25, 27, 56, 65, 78, 230, 310, 452, and 1460. JUSTIFICATION OF PROJECT: The closed circuit television sewer assessment program process has assisted in the identification of sewer mains containing sags, which has allowed debris to accumulate, and/or are damaged and need to be repaired. COMMENTS: This project is taken from S2033 and is the next highest priority areas after the Rancho San Diego Phase 1 project for open cut repairs. Construction to be after completion of Campo Road Sewer project. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $19 $130 $845 $5 $0 $0 $1,000 PRIOR YEARS: TOTAL $1 289 S2049 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2016 6/30/2018 7/1/2018 6/30/2019 $20 $130 PROJECT PHASE: 7/1/2019 6/30/2021 $850 PROJECT LOCATION:OWD Map Book:353, 354, 365 & 366 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 290 S2050Rancho San Diego Basin Sewer Rehabilitation - Phase 2 Stephen Beppler 5/23/2016 5 18 2 $1,300,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the repairs to gravity sanitary sewer system to repair areas with potential for sewer backups and spills. This project addresses the following eight (8) sewer sites: 705, 724, 735, 747, 750, 772, 775, and 847. JUSTIFICATION OF PROJECT: The closed circuit television sewer assessment program process has assisted in the identification of sewer mains containing sags, which has allowed debris to form, and/or are damaged and need to be repaired. COMMENTS: This project is taken from S2033 and is the next highest priority area for open cut repairs after the Calavo Phase 2 project. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $0 $20 $180 $550 $500 $1,250 PRIOR YEARS: TOTAL $0 291 S2050 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2019 6/30/2020 7/1/2020 6/30/2021 $20 $180 PROJECT PHASE: 7/1/2021 6/30/2024 $1,100 PROJECT LOCATION:OWD Map Book:355, 356, 357, 368, 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 292 S2051RWCWRF - Headworks Improvements Stephen Beppler 5/23/2016 3 18 1 $150,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the refurbishment of the treatment plant headworks, notably the rotary screen concrete channel. JUSTIFICATION OF PROJECT: Existing channel wall is greatly deteriorated by H2S and supports the rotary screen. Repair will fix channel ventilation which contributed to the wall deterioration. CIP is based upon recommendations from Ralph W. Chapman Water Reclamation Facility (RWCWRF) Master Plan (Item 4.1). COMMENTS: Alternative channel wall and support structure for the rotary screen is required. Design to performed in FY 2018. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $50 $100 $0 $0 $0 $0 $150 PRIOR YEARS: TOTAL $0 293 S2051 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 12/31/2017 1/1/2018 6/30/2018 $20 $30 PROJECT PHASE: 7/1/2018 6/30/2019 $100 PROJECT LOCATION:OWD Map Book:319 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/25/2017Jolene Fielding 294 S2053RWCWRF - Sedimentation Basins Weirs Replacement Stephen Beppler 5/23/2016 3 18 1 $60,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is to replace on each of the three (3) sedimentation basins the effluent weirs. Additional items identified in the Ralph W. Chapman Water Reclamation Facility (RWCWRF) Master Plan for scum weir actuators, and sludge collector drives will be evaluated at a later date and added as necessary including installing new motor actuated valves on the solids collection piping to complete the automation of this system. JUSTIFICATION OF PROJECT: The fiberglass reinforced plastic (FRP) effluent weirs installed in 1992, are at the end of their useful life and need replacement, with the weirs having exposed fibers that increases their chance of failure. CIP is based upon recommendations from RWCWRF Master Plan (Item 6.1). COMMENTS: Project will be done in one year, replacing elements of one basin at a time. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $60 $0 $0 $0 $0 $0 $60 PRIOR YEARS: TOTAL $0 295 S2053 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2019 7/1/2017 6/30/2019 $2 $3 PROJECT PHASE: 7/1/2017 6/30/2019 $55 PROJECT LOCATION:OWD Map Book:319 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/24/2017Jolene Fielding 296 S2054Calavo Basin Sewer Rehabilitation - Phase 3 Stephen Beppler 5/23/2016 5 18 2 $1,300,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project is for the repairs to gravity sanitary sewer system to repair areas with potential for sewer backups and spills. This project addresses the following nine sewer sites in the Calavo area: 5.1, 93, 126, 150.1, 150.2, 186, 200, 436, and 1000. JUSTIFICATION OF PROJECT: The closed circuit television sewer assessment program process has assisted in the identification of sewer mains containing sags, which has allowed debris to form, and/or are damaged and need to be repaired. COMMENTS: This project is taken from S2033 and is the next highest priority areas after the Rancho San Diego Phase 2 project for open cut repairs. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Replacement 0 %0 %100 %0 %100 % TOTAL:0 %0 %100 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $20 $180 $1,090 $1,290 PRIOR YEARS: TOTAL $0 297 S2054 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2020 11/30/2020 12/1/2020 10/31/2021 $20 $180 PROJECT PHASE: 11/1/2021 6/30/2023 $1,100 PROJECT LOCATION:OWD Map Book:353, 354, 365, 366 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/19/2017Jolene Fielding 298 S2061RWCWRF Aeration Controls Consolidation & Optimization Upgrades (S) Stephen Beppler R2119 3 18 1 $190,000 PROJECT MANAGER: ORIGINAL APPROVED DATE: RELATED CIP PROJECTS: PROJECT TITLE:CIP Number: DIRECTOR DIVISION: I.D. LOCATION: PRIORITY: BUDGET AMOUNT: DESCRIPTION OF PROJECT: This project will consolidate the aeration controls for the biological treatment process of the Ralph W. Chapman Water Reclamation Facility (RWCWRF) to fully integrate the aeration system controls and allow for automated adjustments. Also included are studies for plant optimization and long-term cost effectiveness of the facility considering proposed Pure Water/Point Loma Secondary Equivalency on sewer rates. JUSTIFICATION OF PROJECT: Implementation of the Aeration Controls Consolidation task will eliminate operational risks that include: - dealing with shock loads on the plant that upset the biological process. Plant can take a week to recover, which results in returning some or all flows to Metro during this recovery time. These events can occur 2-3 times a year. - allow for automatic adjustment of air flow level. Plant can't automatically adjust air levels that need twice daily manual entry at this time, weekends see reductions in nitrogen removal that can lead to a permit violation. COMMENTS: Budget set at $190K to reflect identified scope of work from the Treatment Plant Master Plan under 5.2 Aeration Controls Consolidation ($157,800) [Note that 12.1 Automation/SCADA Upgrades that are not operational costs are covered in CIP P2485 and that 13.7 Security Improvements are covered in CIP P2382], plus $30K for proposed optimization planning studies. Recycled CIP R2119 to be closed out at end of FY 2017. FUNDING SOURCE:Expansion Betterment Replacement New Water Supply Total Betterment ID 18 0 %100 %0 %0 %100 % Replacement 0 %0 %0 %0 %0 % TOTAL:0 %100 %0 %0 %100 % FUND DETAILS: EXPENDITURE SCHEDULE (X $1,000): FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 Total $30 $10 $150 $0 $0 $0 $190 PRIOR YEARS: TOTAL $0 299 S2061 PROJECT SCHEDULE: PLANNING: DESIGN: CIP Number: ESTIMATED START DATE ESTIMATED FINISHED DATE ESTIMATED COST (X $1,000): CONSTRUCTION: 7/1/2017 6/30/2019 7/1/2017 12/31/2019 $30 $30 PROJECT PHASE: 1/1/2020 6/30/2020 $130 PROJECT LOCATION:OWD Map Book:319 2018 2019 2020 2021 2022 2023 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PROJECTED INCREMENTAL OPERATING EXPENDITURES SCHEDULE ($): MAINT: ENERGY: CHEMICAL: Submitted By:Date:4/20/2017Jolene Fielding 300 OTAY WATER DISTRICT Job Classification and Salary Schedule Effective July 1, 2017 Position Exempt (E) Non-Exempt (NE) Salary Grade Min Hourly Mid Max Min Monthly Mid Max Min Annually Mid Max Accountant NE 25 $35.5577 $40.0025 $44.4472 $6,163.33 $6,933.77 $7,704.18 $73,960.31 $83,205.07 $92,449.99 Accounting Technician NE 20 $27.8605 $31.3430 $34.8255 $4,829.15 $5,432.79 $6,036.42 $57,949.76 $65,193.35 $72,436.98 Assistant Chief E 38 $67.0496 $75.4306 $83.8117 $11,621.93 $13,074.64 $14,527.36 $139,463.16 $156,895.70 $174,328.22 Assistant Civil Engineer I NE 25 $35.5577 $40.0025 $44.4472 $6,163.33 $6,933.77 $7,704.18 $73,960.31 $83,205.07 $92,449.99 Assistant Civil Engineer II E 27 $39.2025 $44.1027 $49.0029 $6,795.10 $7,644.47 $8,493.84 $81,541.24 $91,733.56 $101,926.12 Assistant General Manager E 43 $85.5741 $96.2708 $106.9674 $14,832.84 $16,686.94 $18,541.02 $177,994.14 $200,243.07 $222,492.00 Assistant Survey Technician NE 19 $26.5339 $29.8505 $33.1671 $4,599.21 $5,174.09 $5,748.96 $55,190.42 $62,088.99 $68,987.62 Associate Civil Engineer E 32 $50.0335 $56.2875 $62.5416 $8,672.47 $9,756.50 $10,840.54 $104,069.59 $117,078.04 $130,086.42 Business Systems Analyst I E 25 $35.5577 $40.0025 $44.4472 $6,163.33 $6,933.77 $7,704.18 $73,960.31 $83,205.07 $92,449.99 Business Systems Analyst II E 29 $43.2209 $48.6232 $54.0258 $7,491.62 $8,428.02 $9,364.47 $89,899.13 $101,136.26 $112,373.54 Chief Financial Officer E 40 $73.9222 $83.1623 $92.4299 $12,813.18 $14,414.80 $16,021.18 $153,758.05 $172,977.50 $192,253.96 Chief, Administrative Services E 40 $73.9222 $83.1623 $92.4299 $12,813.18 $14,414.80 $16,021.18 $153,758.05 $172,977.50 $192,253.96 Chief, Engineering E 40 $73.9222 $83.1623 $92.4299 $12,813.18 $14,414.80 $16,021.18 $153,758.05 $172,977.50 $192,253.96 Chief, Water Operations E 40 $73.9222 $83.1623 $92.4299 $12,813.18 $14,414.80 $16,021.18 $153,758.05 $172,977.50 $192,253.96 Communications Assistant NE 22 $30.7163 $34.5557 $38.3952 $5,324.16 $5,989.65 $6,655.17 $63,889.71 $71,875.63 $79,861.78 Communications Officer E 30 $45.3817 $51.0544 $56.7271 $7,866.16 $8,849.43 $9,832.70 $94,394.02 $106,193.16 $117,992.21 Confidential Executive Secretary NE 22 $30.7163 $34.5557 $38.3952 $5,324.16 $5,989.65 $6,655.17 $63,889.71 $71,875.63 $79,861.78 Confidential Secretary NE 18 $25.2704 $28.4290 $31.5877 $4,380.20 $4,927.69 $5,475.20 $52,562.29 $59,132.36 $65,702.48 Construction Inspector I NE 22 $30.7163 $34.5557 $38.3952 $5,324.16 $5,989.65 $6,655.17 $63,889.71 $71,875.63 $79,861.78 Construction Inspector II NE 24 $33.8645 $38.0976 $42.3305 $5,869.85 $6,603.58 $7,337.29 $70,438.27 $79,243.00 $88,047.61 Customer Service Field Representative I NE 16 $22.9209 $25.7860 $28.6511 $3,972.96 $4,469.57 $4,966.19 $47,675.53 $53,634.71 $59,594.09 Customer Service Field Representative II NE 18 $25.2704 $28.4290 $31.5877 $4,380.20 $4,927.69 $5,475.20 $52,562.29 $59,132.36 $65,702.48 Customer Service Manager E 33 $52.5351 $59.1019 $65.6686 $9,106.08 $10,244.33 $11,382.56 $109,273.11 $122,931.79 $136,590.70 Customer Service Representative I NE 16 $22.9209 $25.7860 $28.6511 $3,972.96 $4,469.57 $4,966.19 $47,675.53 $53,634.71 $59,594.09 Customer Service Representative II NE 18 $25.2704 $28.4290 $31.5877 $4,380.20 $4,927.69 $5,475.20 $52,562.29 $59,132.36 $65,702.48 Customer Service Supervisor E 27 $39.2025 $44.1027 $49.0029 $6,795.10 $7,644.47 $8,493.84 $81,541.24 $91,733.56 $101,926.12 Data Systems Technician NE 20 $27.8605 $31.3430 $34.8255 $4,829.15 $5,432.79 $6,036.42 $57,949.76 $65,193.35 $72,436.98 Database Administrator E 32 $50.0335 $56.2875 $62.5416 $8,672.47 $9,756.50 $10,840.54 $104,069.59 $117,078.04 $130,086.42 Disinfection Technician NE 23 $32.2520 $36.2834 $40.3149 $5,590.35 $6,289.12 $6,987.92 $67,084.13 $75,469.60 $83,854.87 District Secretary E 29 $43.2209 $48.6232 $54.0258 $7,491.62 $8,428.02 $9,364.47 $89,899.13 $101,136.26 $112,373.54 Electrician I NE 22 $30.7163 $34.5557 $38.3952 $5,324.16 $5,989.65 $6,655.17 $63,889.71 $71,875.63 $79,861.78 Electrician II NE 24 $33.8645 $38.0976 $42.3305 $5,869.85 $6,603.58 $7,337.29 $70,438.27 $79,243.00 $88,047.61 Engineering Manager E 37 $63.8568 $71.8387 $79.8206 $11,068.51 $12,452.04 $13,835.57 $132,822.05 $149,424.47 $166,026.91 Engineering Technician NE 22 $30.7163 $34.5557 $38.3952 $5,324.16 $5,989.65 $6,655.17 $63,889.71 $71,875.63 $79,861.78 Environmental Compliance Specialist E 28 $41.1627 $46.3078 $51.4531 $7,134.87 $8,026.69 $8,918.54 $85,618.26 $96,320.32 $107,022.42 Equipment Mechanic I NE 18 $25.2704 $28.4290 $31.5877 $4,380.20 $4,927.69 $5,475.20 $52,562.29 $59,132.36 $65,702.48 Equipment Mechanic II NE 21 $29.2536 $32.9101 $36.5667 $5,070.62 $5,704.42 $6,338.23 $60,847.33 $68,453.16 $76,058.85 Executive Secretary NE 22 $30.7163 $34.5557 $38.3952 $5,324.16 $5,989.65 $6,655.17 $63,889.71 $71,875.63 $79,861.78 Facilities Maintenance Technician NE 19 $26.5339 $29.8505 $33.1671 $4,599.21 $5,174.09 $5,748.96 $55,190.42 $62,088.99 $68,987.62 Field Services Manager E 33 $52.5351 $59.1019 $65.6686 $9,106.08 $10,244.33 $11,382.56 $109,273.11 $122,931.79 $136,590.70 Finance Manager, Controller & Budget E 35 $57.9200 $65.1597 $72.3997 $10,039.47 $11,294.35 $12,549.28 $120,473.59 $135,532.30 $150,591.24 Finance Manager, Treasury & Accounting E 35 $57.9200 $65.1597 $72.3997 $10,039.47 $11,294.35 $12,549.28 $120,473.59 $135,532.30 $150,591.24 Fleet Maintenance Supervisor E 28 $41.1627 $46.3078 $51.4531 $7,134.87 $8,026.69 $8,918.54 $85,618.26 $96,320.32 $107,022.42 Board Approved – May 24, 2017; Resolution No. 4336 OTAY WATER DISTRICT Job Classification and Salary Schedule Effective July 1, 2017 Position Exempt (E) Non-Exempt (NE) Salary Grade Min Hourly Mid Max Min Monthly Mid Max Min Annually Mid Max General Manager*E N/A $234,095.20 GIS Analyst E 25 $35.5577 $40.0025 $44.4472 $6,163.33 $6,933.77 $7,704.18 $73,960.31 $83,205.07 $92,449.99 GIS Manager E 34 $55.1618 $62.0571 $68.9521 $9,561.38 $10,756.56 $11,951.70 $114,736.58 $129,078.53 $143,420.26 GIS Programmer Analyst E 27 $39.2025 $44.1027 $49.0029 $6,795.10 $7,644.47 $8,493.84 $81,541.24 $91,733.56 $101,926.12 GIS Technician NE 22 $30.7163 $34.5557 $38.3952 $5,324.16 $5,989.65 $6,655.17 $63,889.71 $71,875.63 $79,861.78 Human Resources Analyst E 25 $35.5577 $40.0025 $44.4472 $6,163.33 $6,933.77 $7,704.18 $73,960.31 $83,205.07 $92,449.99 Human Resources Manager E 35 $57.9200 $65.1597 $72.3997 $10,039.47 $11,294.35 $12,549.28 $120,473.59 $135,532.30 $150,591.24 Information Technology Manager E 34 $55.1618 $62.0571 $68.9521 $9,561.38 $10,756.56 $11,951.70 $114,736.58 $129,078.53 $143,420.26 Inspection Supervisor E 28 $41.1627 $46.3078 $51.4531 $7,134.87 $8,026.69 $8,918.54 $85,618.26 $96,320.32 $107,022.42 Laboratory Analyst NE 26 $37.3358 $42.0026 $46.6696 $6,471.54 $7,280.45 $8,089.40 $77,658.35 $87,365.37 $97,072.48 Lead Customer Service Field Representative NE 21 $29.2536 $32.9101 $36.5667 $5,070.62 $5,704.42 $6,338.23 $60,847.33 $68,453.16 $76,058.85 Lead Customer Service Representative NE 21 $29.2536 $32.9101 $36.5667 $5,070.62 $5,704.42 $6,338.23 $60,847.33 $68,453.16 $76,058.85 Lead Reclamation Plant Operator NE 26 $37.3358 $42.0026 $46.6696 $6,471.54 $7,280.45 $8,089.40 $77,658.35 $87,365.37 $97,072.48 Lead Water Systems Operator NE 26 $37.3358 $42.0026 $46.6696 $6,471.54 $7,280.45 $8,089.40 $77,658.35 $87,365.37 $97,072.48 Meter Maintenance Worker I NE 18 $25.2704 $28.4290 $31.5877 $4,380.20 $4,927.69 $5,475.20 $52,562.29 $59,132.36 $65,702.48 Meter Maintenance Worker II NE 21 $29.2536 $32.9101 $36.5667 $5,070.62 $5,704.42 $6,338.23 $60,847.33 $68,453.16 $76,058.85 Meter Services Supervisor E 28 $41.1627 $46.3078 $51.4531 $7,134.87 $8,026.69 $8,918.54 $85,618.26 $96,320.32 $107,022.42 Network Engineer E 31 $47.6509 $53.6071 $59.5634 $8,259.49 $9,291.90 $10,324.32 $99,113.81 $111,502.79 $123,891.84 Permit Technician NE 20 $27.8605 $31.3430 $34.8255 $4,829.15 $5,432.79 $6,036.42 $57,949.76 $65,193.35 $72,436.98 Project Coordinator (Temporary)E 23 $32.2520 $36.2834 $40.3149 $5,590.35 $6,289.12 $6,987.92 $67,084.13 $75,469.60 $83,854.87 Pump Mechanic I NE 19 $26.5339 $29.8505 $33.1671 $4,599.21 $5,174.09 $5,748.96 $55,190.42 $62,088.99 $68,987.62 Pump Mechanic II NE 22 $30.7163 $34.5557 $38.3952 $5,324.16 $5,989.65 $6,655.17 $63,889.71 $71,875.63 $79,861.78 Pump/Electrical Supervisor E 28 $41.1627 $46.3078 $51.4531 $7,134.87 $8,026.69 $8,918.54 $85,618.26 $96,320.32 $107,022.42 Purchasing & Facilities Manager E 34 $55.1618 $62.0571 $68.9521 $9,561.38 $10,756.56 $11,951.70 $114,736.58 $129,078.53 $143,420.26 Reclamation Plant Operator I NE 19 $26.5339 $29.8505 $33.1671 $4,599.21 $5,174.09 $5,748.96 $55,190.42 $62,088.99 $68,987.62 Reclamation Plant Operator II NE 21 $29.2536 $32.9101 $36.5667 $5,070.62 $5,704.42 $6,338.23 $60,847.33 $68,453.16 $76,058.85 Reclamation Plant Operator III NE 23 $32.2520 $36.2834 $40.3149 $5,590.35 $6,289.12 $6,987.92 $67,084.13 $75,469.60 $83,854.87 Reclamation Plant Supervisor E 30 $45.3817 $51.0544 $56.7271 $7,866.16 $8,849.43 $9,832.70 $94,394.02 $106,193.16 $117,992.21 Recycled Water Distribution Operator I NE 19 $26.5339 $29.8505 $33.1671 $4,599.21 $5,174.09 $5,748.96 $55,190.42 $62,088.99 $68,987.62 Recycled Water Distribution Operator II NE 21 $29.2536 $32.9101 $36.5667 $5,070.62 $5,704.42 $6,338.23 $60,847.33 $68,453.16 $76,058.85 Recycled Water Distribution Operator III NE 23 $32.2520 $36.2834 $40.3149 $5,590.35 $6,289.12 $6,987.92 $67,084.13 $75,469.60 $83,854.87 Recycled Water Program Supervisor E 28 $41.1627 $46.3078 $51.4531 $7,134.87 $8,026.69 $8,918.54 $85,618.26 $96,320.32 $107,022.42 Recycled Water Specialist NE 23 $32.2520 $36.2834 $40.3149 $5,590.35 $6,289.12 $6,987.92 $67,084.13 $75,469.60 $83,854.87 Safety and Security Specialist E 30 $45.3817 $51.0544 $56.7271 $7,866.16 $8,849.43 $9,832.70 $94,394.02 $106,193.16 $117,992.21 SCADA/Instrumentation Technician NE 25 $35.5577 $40.0025 $44.4472 $6,163.33 $6,933.77 $7,704.18 $73,960.31 $83,205.07 $92,449.99 Secretary NE 18 $25.2704 $28.4290 $31.5877 $4,380.20 $4,927.69 $5,475.20 $52,562.29 $59,132.36 $65,702.48 Senior Accountant E 28 $41.1627 $46.3078 $51.4531 $7,134.87 $8,026.69 $8,918.54 $85,618.26 $96,320.32 $107,022.42 Senior Civil Engineer E 34 $55.1618 $62.0571 $68.9521 $9,561.38 $10,756.56 $11,951.70 $114,736.58 $129,078.53 $143,420.26 Senior Confidential Executive Secretary E 24 $33.8645 $38.0976 $42.3305 $5,869.85 $6,603.58 $7,337.29 $70,438.27 $79,243.00 $88,047.61 Senior Disinfection Technician NE 24 $33.8645 $38.0976 $42.3305 $5,869.85 $6,603.58 $7,337.29 $70,438.27 $79,243.00 $88,047.61 Senior Engineering Technician NE 24 $33.8645 $38.0976 $42.3305 $5,869.85 $6,603.58 $7,337.29 $70,438.27 $79,243.00 $88,047.61 Senior Human Resources Analyst E 30 $45.3817 $51.0544 $56.7271 $7,866.16 $8,849.43 $9,832.70 $94,394.02 $106,193.16 $117,992.21 Senior Procurement and Contracting Analyst E 26 $37.3358 $42.0026 $46.6696 $6,471.54 $7,280.45 $8,089.40 $77,658.35 $87,365.37 $97,072.48 Board Approved – May 24, 2017; Resolution No. 4336 OTAY WATER DISTRICT Job Classification and Salary Schedule Effective July 1, 2017 Position Exempt (E) Non-Exempt (NE) Salary Grade Min Hourly Mid Max Min Monthly Mid Max Min Annually Mid Max Senior SCADA/Instrumentation Technician NE 28 $41.1627 $46.3078 $51.4531 $7,134.87 $8,026.69 $8,918.54 $85,618.26 $96,320.32 $107,022.42 Senior Utility/Equipment Operator NE 22 $30.7163 $34.5557 $38.3952 $5,324.16 $5,989.65 $6,655.17 $63,889.71 $71,875.63 $79,861.78 Senior Warehouse Worker NE 20 $27.8605 $31.3430 $34.8255 $4,829.15 $5,432.79 $6,036.42 $57,949.76 $65,193.35 $72,436.98 Supervising Land Surveyor E 29 $43.2209 $48.6232 $54.0258 $7,491.62 $8,428.02 $9,364.47 $89,899.13 $101,136.26 $112,373.54 Survey Technician NE 25 $35.5577 $40.0025 $44.4472 $6,163.33 $6,933.77 $7,704.18 $73,960.31 $83,205.07 $92,449.99 System Operations Manager E 36 $60.8161 $68.4177 $76.0197 $10,541.46 $11,859.07 $13,176.75 $126,497.25 $142,308.93 $158,120.84 System Suppport Analyst E 29 $43.2209 $48.6232 $54.0258 $7,491.62 $8,428.02 $9,364.47 $89,899.13 $101,136.26 $112,373.54 Utility Crew Leader NE 24 $33.8645 $38.0976 $42.3305 $5,869.85 $6,603.58 $7,337.29 $70,438.27 $79,243.00 $88,047.61 Utility Maintenance Supervisor E 28 $41.1627 $46.3078 $51.4531 $7,134.87 $8,026.69 $8,918.54 $85,618.26 $96,320.32 $107,022.42 Utility Services Manager E 35 $57.9200 $65.1597 $72.3997 $10,039.47 $11,294.35 $12,549.28 $120,473.59 $135,532.30 $150,591.24 Utility Worker I NE 18 $25.2704 $28.4290 $31.5877 $4,380.20 $4,927.69 $5,475.20 $52,562.29 $59,132.36 $65,702.48 Utility Worker II NE 20 $27.8605 $31.3430 $34.8255 $4,829.15 $5,432.79 $6,036.42 $57,949.76 $65,193.35 $72,436.98 Valve Maintenance Worker NE 18 $25.2704 $28.4290 $31.5877 $4,380.20 $4,927.69 $5,475.20 $52,562.29 $59,132.36 $65,702.48 Water Systems Operator I NE 20 $27.8605 $31.3430 $34.8255 $4,829.15 $5,432.79 $6,036.42 $57,949.76 $65,193.35 $72,436.98 Water Systems Operator II NE 22 $30.7163 $34.5557 $38.3952 $5,324.16 $5,989.65 $6,655.17 $63,889.71 $71,875.63 $79,861.78 Water Systems Operator III NE 23 $32.2520 $36.2834 $40.3149 $5,590.35 $6,289.12 $6,987.92 $67,084.13 $75,469.60 $83,854.87 Water Systems Supervisor E 30 $45.3817 $51.0544 $56.7271 $7,866.16 $8,849.43 $9,832.70 $94,394.02 $106,193.16 $117,992.21 * Salary is determined by the Board Board Approved – May 24, 2017; Resolution No. 4336 1 ORDINANCE NO. 564 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING APPENDIX A OF THE DISTRICT’S CODE OF ORDINANCES BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances Appendix A be amended as per Exhibit 1 to this ordinance. NOW, THEREFORE, BE IT RESOLVED that the new proposed Appendix A (Exhibit 2) of the Code of Ordinances shall become effective January 1, 2018. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 24th day of May 2017, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: __________________________ District Secretary Attachment C Section # Code # Fee Description Meter Size 9 9.04 A.1. District Annexation Processing Fee $776.20 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4" $1,907.32 1" $4,768.30 1-1/2" $9,536.60 2" $15,258.56 3" $30,517.12 4 $47,683.00 6" $95,366.00 8" $152,585.60 10" $219,341.80 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,095.31 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Third Notification (hand delivered) $45.00 - Reconnection $50.00 - Reconnection (if test performed with technician present) $150.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers) Annually $10.00 25 25.03 A. Set-up Fees for Accounts $10.00 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (1)Meter Size System Charge MWD & CWA Fixed Charge Total Fixed Charge 3/4" $15.91 $15.00 $30.91 1" $22.47 $27.84 $50.31 Otay Water District Appendix A Charges (1) All Water used in December and billed in January 2017. Exhibit 1 Section # Code # Fee Description Meter Size Charges 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (continued)(1)1-1/2" $38.88 $62.96 $101.84 2" $58.55 $107.08 $165.63 3" $111.04 $227.75 $338.79 4" $170.10 $364.72 $534.82 6" $334.18 $746.59 $1,080.77 8" $531.05 $1,205.65 $1,736.70 10" $760.72 $1,735.39 $2,496.11 25 25.03 E.1.(b) Domestic Residential Water Rates (1)Unit Charge (The Conservation Tier discount applies Conservation Tier 0 - 5 $2.53 toward the first five units of water when 6-10 $3.95 overall consumption is ten units or less.) 11-22 $5.13 23 or more $7.90 25 25.03 E.2.(b) Multiple Residential Water Rates - Per Dwelling Unit (1) 0-4 $3.90 5-9 $5.05 10 or more $7.80 25 25.03 E.3.(b) Business and Publicly-Owned Water Rates (1)under 10" 0-185 $4.17 186-1,400 $4.23 1,401 or more $4.30 10" & larger 0-7,426 $4.17 7,427-14,616 $4.23 14,617 or more $4.30 25 25.03 E.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)1" & smaller 0-54 $5.68 55-199 $5.74 200 or more $5.81 1.5" & 2" 0-144 $5.68 145-355 $5.74 356 or more $5.81 3" & larger 0-550 $5.68 551-1,200 $5.74 1,201 or more $5.81 (1) All Water used in December and billed in January 2017. Section # Code # Fee Description Meter Size Charges 25 25.03 E.5.(c)Recycled Water (1)3/4" - 1" 0-32 $4.85 (Landscape Irrigation and Certain 33-75 $4.92 Non-Irrigation Purposes Rates) 76 or more $4.99 1.5" & 2" 0-130 $4.85 131-325 $4.92 326 or more $4.99 3" & 4" 0-440 $4.85 441-1,050 $4.92 1,051 or more $4.99 6" & larger 0-4,000 $4.85 4,001-10,000 $4.92 10,001 or more $4.99 25 25.03 E.6.(c)Recycled Commercial (1)under 10" 0-173 $3.53 174-831 $3.60 832 or more $3.65 10" & larger 0-7,426 $3.53 7,427-14,616 $3.60 14,617 or more $3.65 25 25.03 E.7.(b) Potable Temporary and Construction Water Service Rates (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.8.(b) Recycled Temporary and Construction Water Service Rates (1)3/4" - 1" 0-32 $9.70 33-75 $9.84 76 or more $9.98 (1) All Water used in December and billed in January 2017. Section # Code # Fee Description Meter Size Charges 25 25.03 E.8.(b) Recycled Temporary and Construction Water Service Rates (continued) (1)1.5" & 2" 0-130 $9.70 131-325 $9.84 326 or more $9.98 3" & 4" 0-440 $9.70 441-1,050 $9.84 1,051 or more $9.98 6" & larger 0-4,000 $9.70 4,001-10,000 $9.84 10,001 or more $9.98 25 25.03 E.10.(b) Tank Trucks Water Rates (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 E.11.(d) Water Rate for Service Outside District Boundaries (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 (1) All Water used in December and billed in January 2017. Section # Code # Fee Description Meter Size Charges 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.13.(c) Fire Service Monthly Charge 3" or less $20.77 more than 4" $27.98 25 25.03 E.14.(b) Additional Water Service for Property Not Subject to District Taxes per unit $0.41 25 25.03 E.15.(b) Interim Service Water Rate in Improvement District 7 (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 F.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.044 25 25.04 A. Deposits for Non-Property Owners 3/4" $75.00 1" $150.00 1-1/2" $200.00 (1) All Water used in December and billed in January 2017. Section # Code # Fee Description Meter Size Charges 25 25.04 A.Deposits for Non-Property Owner (continued)2" $360.00 3" $800.00 4" $1,350.00 6" $3,300.00 8" $4,400.00 10" $5,500.00 28 28.01 B.1. Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4" $8,590.34 1" $21,475.85 1-1/2" $42,951.70 2" $68,722.72 3" $137,445.44 4 $214,758.50 6" $429,517.00 8" $687,227.20 10" $987,889.10 - TRIAD 3/4" $6,444.91 1" $16,112.28 1 -1/2" $32,224.55 2" $51,559.28 3" $103,118.56 4 $161,122.75 6" $322,245.50 8" $515,592.80 10" $741,164.65 28 28.01 B.2. New Water Supply Fee - All IDs including Triad 3/4" $1,064.11 1" $2,660.28 1-1/2" $5,320.55 2" $8,512.88 3" $17,025.76 4" $26,602.75 6" $53,205.50 8" $85,128.80 10" $122,372.65 Section # Code # Fee Description Meter Size Charges 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation) 3/4" x 7.5" $226.96 $107.70 $334.66 $91.43 3/4" x 9" $241.65 $107.70 $349.35 $91.43 1" $292.87 $107.70 $400.57 $91.43 1.5" $476.03 $107.70 $583.73 $207.28 2" $682.10 $107.70 $789.80 $207.28 3" $2,125.70 $648.46 $2,774.16 $3,697.56 4" $3,692.00 $648.46 $4,340.46 $3,697.56 6" $6,377.10 $1,024.29 $7,401.39 $3,697.56 8" $7,967.71 $1,570.66 $9,538.37 $5,304.41 10" $11,459.05 $1,570.66 $13,029.71 $5,304.41 - Potable/Recycled Irrigation 3/4" x 7.5" $226.96 $107.70 $334.66 $233.02 3/4" x 9" $241.65 $107.70 $349.35 $233.02 1" $292.87 $107.70 $400.57 $233.02 1.5" $476.03 $107.70 $583.73 $233.02 2" $682.10 $107.70 $789.80 $233.02 3" $1,471.20 $648.46 $2,119.66 $3,697.56 4" $2,864.20 $648.46 $3,512.66 $3,697.56 6" $5,156.49 $1,024.29 $6,180.78 $3,697.56 8" $6,869.37 $1,570.66 $8,440.03 $5,304.41 10" $9,748.16 $1,570.66 $11,318.82 $5,304.41 - Combined Fire and Domestic 4" $8,783.61 $648.46 $9,432.07 $3,697.56 6" $11,690.22 $1,024.29 $12,714.51 $3,697.56 8" $16,996.73 $1,570.66 $18,567.39 $5,304.41 10" $23,194.92 $1,570.66 $24,765.58 $5,304.41 31 31.02 D.1. Requirement of Temporary Meter for Service minimum/per day $25.00 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4" $156.85 1" $184.78 1-1/2" $379.62 2" $2,046.00 4" $1,986.00 6" $2,465.00 Section # Code # Fee Description Meter Size Charges 31 31.03 A.1. Requirement of Deposit for Temporary Meters (continued) - Construction Trailer Temporary Meter 2" $2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2" $850.00 31 31.03 A.4. Temporary Meter Install & Removal 3/4" - 4" (on hydrant) $150.00 4" - 6" $806.00 8" - 10" Actual Cost 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 4" (on hydrant) $150.00 4" - 6" $806.00 8" - 10" Actual Cost 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1" $25.00 1-1/2" & 2 " $50.00 3" & Larger $125.00 34 34.01 D.2. Returned Check Charges $25.00 34 34.02 B. Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1.(d) Delinquency Tag $15.00 34 34.02 G.3. Meter "Turn-On" Charge $50.00 53 53.03 A.1. Sewer Capacity Fee per EDU for parcels within a Sewer ID $4,402.76 53 53.03 A.2. Sewer Capacity Fee per EDU for parcels not within a Sewer ID $6,886.04 53 53.03 B.1. Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2. Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $10.00 (2) Sewer billed beginning January 1, 2017. Section # Code # Fee Description Meter Size Charges 53 53.10 Residential Sewer Usage Fee (2) Rate multiplied by winter average units $2.58 53 53.10 Residential Sewer System Fee (2)5/8", 3/4" & larger $15.89 53 53.10 A. Residential Sewer Without Consumption History (2)5/8", 3/4" & larger $40.01 53 53.10 B. Multi-Residential Usage Fee - Sewer Without Consumption History (2) $24.12 53 53.10 B.2.Multi-Residential Usage Fee - Sewer (2) Rate multiplied by winter average units $2.58 53 53.10 B. 2.Multi-Residential System Fee - Sewer (2).75"$28.37 1"$41.80 1.5"$75.27 2"$115.46 3"$209.24 4"$343.23 6"$678.18 8" $1,080.14 10"$1,549.07 53 53.11 Commercial and Institutional Sewer Strength Factors Low Strength 1 Medium Strength 2 High Strength 4 53 53.11 Monthly Usage Fee for Commercial and Institutional Sewer (2) Rate multiplied by Low Strength $2.58 annual avg.Medium Strength $3.70 units High Strength $5.90 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2).75"$28.37 1"$41.80 1.5"$75.27 2"$115.46 3"$209.24 (2) Sewer billed beginning January 1, 2017. Section # Code # Fee Description Meter Size Charges 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2) (continued)4"$343.23 6"$678.18 8" $1,080.14 10"$1,549.07 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2" $200.00 - Broken Curbstop or Tabs 3/4" - 1" Actual Cost - If Customer uses Jumper 3/4" - 1" Actual Cost - Broken Lock/Locking Device 3/4" - 1" $68.00 - Broken Curbstop or Tabs 1.5" - 2" Actual Cost - To Pull and Reset Meter 3" Actual Cost - To Pull and Reset Meter 4" Actual Cost - To Pull and Reset Meter 6" Actual Cost - To Pull and Reset Meter 8" Actual Cost - To Pull and Reset Meter 10" Actual Cost 72 72.05 D. A.Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Will not exceed per each day the violation is identified or continues. Section # Code # Fee Description Meter Size Charges State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5 Copies of Identifiable Public Records $0.10/page Cassette Tape Duplication $2.00/tape Yearly Subscription Service for Agendas and Ratified Minutes Yearly Subscription Service for Board Packet and Ratified Minutes Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 4, 14, & 18 Per acre I.D. 4, 14, & 18 Per $1000 of assessed value for I.D. 27 $20.00/year or $0.50/meeting $100.00/year for first copy and $200.00/year for each copy thereafter Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 1, 5, & Outside an I.D. Per acre in I.D. 2,3,7,9,10,19,20,22,25, & 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Section # Code # Fee Description Meter Size 9 9.04 A.1. District Annexation Processing Fee $776.20 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4" $1,907.32 1" $4,768.30 1-1/2" $9,536.60 2" $15,258.56 3" $30,517.12 4 $47,683.00 6" $95,366.00 8" $152,585.60 10" $219,341.80 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,095.31 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Third Notification (hand delivered) $45.00 - Reconnection $50.00 - Reconnection (if test performed with technician present) $150.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers) Annually $10.00 25 25.03 A. Set-up Fees for Accounts $10.00 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (1)Meter Size System Charge MWD & CWA Fixed Charge Total Fixed Charge 3/4" $15.91 $15.00 $30.91 1" $22.47 $27.84 $50.31 Otay Water District Appendix A Charges (1) All Water used in December and billed in January 2017. Exhibit 2 Section # Code # Fee Description Meter Size Charges 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (continued)(1)1-1/2" $38.88 $62.96 $101.84 2" $58.55 $107.08 $165.63 3" $111.04 $227.75 $338.79 4" $170.10 $364.72 $534.82 6" $334.18 $746.59 $1,080.77 8" $531.05 $1,205.65 $1,736.70 10" $760.72 $1,735.39 $2,496.11 25 25.03 E.1.(b) Domestic Residential Water Rates (1)Unit Charge (The Conservation Tier discount applies Conservation Tier 0 - 5 $2.53 toward the first five units of water when 6-10 $3.95 overall consumption is ten units or less.) 11-22 $5.13 23 or more $7.90 25 25.03 E.2.(b) Multiple Residential Water Rates - Per Dwelling Unit (1) 0-4 $3.90 5-9 $5.05 10 or more $7.80 25 25.03 E.3.(b) Business and Publicly-Owned Water Rates (1)under 10" 0-185 $4.17 186-1,400 $4.23 1,401 or more $4.30 10" & larger 0-7,426 $4.17 7,427-14,616 $4.23 14,617 or more $4.30 25 25.03 E.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)1" & smaller 0-54 $5.68 55-199 $5.74 200 or more $5.81 1.5" & 2" 0-144 $5.68 145-355 $5.74 356 or more $5.81 3" & larger 0-550 $5.68 551-1,200 $5.74 1,201 or more $5.81 (1) All Water used in December and billed in January 2017. Section # Code # Fee Description Meter Size Charges 25 25.03 E.5.(c)Recycled Water (1)3/4" - 1" 0-32 $4.85 (Landscape Irrigation and Certain 33-75 $4.92 Non-Irrigation Purposes Rates) 76 or more $4.99 1.5" & 2" 0-130 $4.85 131-325 $4.92 326 or more $4.99 3" & 4" 0-440 $4.85 441-1,050 $4.92 1,051 or more $4.99 6" & larger 0-4,000 $4.85 4,001-10,000 $4.92 10,001 or more $4.99 25 25.03 E.6.(c)Recycled Commercial (1)under 10" 0-173 $3.53 174-831 $3.60 832 or more $3.65 10" & larger 0-7,426 $3.53 7,427-14,616 $3.60 14,617 or more $3.65 25 25.03 E.7.(b) Potable Temporary and Construction Water Service Rates (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.8.(b) Recycled Temporary and Construction Water Service Rates (1)3/4" - 1" 0-32 $9.70 33-75 $9.84 76 or more $9.98 (1) All Water used in December and billed in January 2017. Section # Code # Fee Description Meter Size Charges 25 25.03 E.8.(b) Recycled Temporary and Construction Water Service Rates (continued) (1)1.5" & 2" 0-130 $9.70 131-325 $9.84 326 or more $9.98 3" & 4" 0-440 $9.70 441-1,050 $9.84 1,051 or more $9.98 6" & larger 0-4,000 $9.70 4,001-10,000 $9.84 10,001 or more $9.98 25 25.03 E.10.(b) Tank Trucks Water Rates (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 E.11.(d) Water Rate for Service Outside District Boundaries (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (1)1" & smaller 0-54 $11.36 (1) All Water used in December and billed in January 2017. Section # Code # Fee Description Meter Size Charges 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 E.13.(c) Fire Service Monthly Charge 3" or less $20.77 more than 4" $27.98 25 25.03 E.14.(b) Additional Water Service for Property Not Subject to District Taxes per unit $0.41 25 25.03 E.15.(b) Interim Service Water Rate in Improvement District 7 (1)1" & smaller 0-54 $11.36 55-199 $11.48 200 or more $11.62 1.5" & 2" 0-144 $11.36 145-355 $11.48 356 or more $11.62 3" & larger 0-550 $11.36 551-1,200 $11.48 1,201 or more $11.62 25 25.03 F.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.044 25 25.04 A. Deposits for Non-Property Owners 3/4" $75.00 1" $150.00 1-1/2" $200.00 (1) All Water used in December and billed in January 2017. Section # Code # Fee Description Meter Size Charges 25 25.04 A.Deposits for Non-Property Owner (continued)2" $360.00 3" $800.00 4" $1,350.00 6" $3,300.00 8" $4,400.00 10" $5,500.00 28 28.01 B.1. Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4" $8,590.34 1" $21,475.85 1-1/2" $42,951.70 2" $68,722.72 3" $137,445.44 4 $214,758.50 6" $429,517.00 8" $687,227.20 10" $987,889.10 - TRIAD 3/4" $6,444.91 1" $16,112.28 1 -1/2" $32,224.55 2" $51,559.28 3" $103,118.56 4 $161,122.75 6" $322,245.50 8" $515,592.80 10" $741,164.65 28 28.01 B.2. New Water Supply Fee - All IDs including Triad 3/4" $1,064.11 1" $2,660.28 1-1/2" $5,320.55 2" $8,512.88 3" $17,025.76 4" $26,602.75 6" $53,205.50 8" $85,128.80 10" $122,372.65 Section # Code # Fee Description Meter Size Charges 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation) 3/4" x 7.5" $226.96 $107.70 $334.66 $91.43 3/4" x 9" $241.65 $107.70 $349.35 $91.43 1" $292.87 $107.70 $400.57 $91.43 1.5" $476.03 $107.70 $583.73 $207.28 2" $682.10 $107.70 $789.80 $207.28 3" $2,125.70 $648.46 $2,774.16 $3,697.56 4" $3,692.00 $648.46 $4,340.46 $3,697.56 6" $6,377.10 $1,024.29 $7,401.39 $3,697.56 8" $7,967.71 $1,570.66 $9,538.37 $5,304.41 10" $11,459.05 $1,570.66 $13,029.71 $5,304.41 - Potable/Recycled Irrigation 3/4" x 7.5" $226.96 $107.70 $334.66 $233.02 3/4" x 9" $241.65 $107.70 $349.35 $233.02 1" $292.87 $107.70 $400.57 $233.02 1.5" $476.03 $107.70 $583.73 $233.02 2" $682.10 $107.70 $789.80 $233.02 3" $1,471.20 $648.46 $2,119.66 $3,697.56 4" $2,864.20 $648.46 $3,512.66 $3,697.56 6" $5,156.49 $1,024.29 $6,180.78 $3,697.56 8" $6,869.37 $1,570.66 $8,440.03 $5,304.41 10" $9,748.16 $1,570.66 $11,318.82 $5,304.41 - Combined Fire and Domestic 4" $8,783.61 $648.46 $9,432.07 $3,697.56 6" $11,690.22 $1,024.29 $12,714.51 $3,697.56 8" $16,996.73 $1,570.66 $18,567.39 $5,304.41 10" $23,194.92 $1,570.66 $24,765.58 $5,304.41 31 31.02 D.1. Requirement of Temporary Meter for Service minimum/per day $25.00 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4" $156.85 1" $184.78 1-1/2" $379.62 2" $2,046.00 4" $1,986.00 6" $2,465.00 Section # Code # Fee Description Meter Size Charges 31 31.03 A.1. Requirement of Deposit for Temporary Meters (continued) - Construction Trailer Temporary Meter 2" $2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2" $850.00 31 31.03 A.4. Temporary Meter Install & Removal 3/4" - 4" (on hydrant) $150.00 4" - 6" $806.00 8" - 10" Actual Cost 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 4" (on hydrant) $150.00 4" - 6" $806.00 8" - 10" Actual Cost 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1" $25.00 1-1/2" & 2 " $50.00 3" & Larger $125.00 34 34.01 D.2. Returned Check Charges $25.00 34 34.02 B. Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1.(d) Delinquency Tag $15.00 34 34.02 G.3. Meter "Turn-On" Charge $50.00 53 53.03 A.1. Sewer Capacity Fee per EDU for parcels within a Sewer ID $4,402.76 53 53.03 A.2. Sewer Capacity Fee per EDU for parcels not within a Sewer ID $6,886.04 53 53.03 B.1. Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2. Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $10.00 (2) Sewer billed beginning January 1, 2017. Section # Code # Fee Description Meter Size Charges 53 53.10 Residential Sewer Usage Fee (2) Rate multiplied by winter average units $2.77 53 53.10 Residential Sewer System Fee (2)5/8", 3/4" & larger $17.08 53 53.10 A. Residential Sewer Without Consumption History (2)5/8", 3/4" & larger $39.45 53 53.10 B. Multi-Residential Usage Fee - Sewer Without Consumption History (2) $22.37 53 53.10 B.2.Multi-Residential Usage Fee - Sewer (2) Rate multiplied by winter average units $2.77 53 53.10 B.2.Multi-Residential System Fee - Sewer (2).75" $30.50 1" $44.94 1.5" $80.92 2" $124.12 3" $224.93 4" $368.97 6" $729.04 8" $1,161.15 10" $1,665.25 53 53.11 Commercial and Institutional Sewer Strength Factors Low Strength 1 Medium Strength 2 High Strength 4 53 53.11 Monthly Usage Fee for Commercial and Institutional Sewer (2)Rate multiplied by Low Strength $2.77 annual avg.Medium Strength $3.98 units High Strength $6.34 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2).75" $30.50 1" $44.94 1.5" $80.92 2" $124.12 3" $224.93 (2) Sewer billed beginning January 1, 2018. Section # Code # Fee Description Meter Size Charges 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2) (continued)4" $368.97 6" $729.04 8" $1,161.15 10" $1,665.25 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2" $200.00 - Broken Curbstop or Tabs 3/4" - 1" Actual Cost - If Customer uses Jumper 3/4" - 1" Actual Cost - Broken Lock/Locking Device 3/4" - 1" $68.00 - Broken Curbstop or Tabs 1.5" - 2" Actual Cost - To Pull and Reset Meter 3" Actual Cost - To Pull and Reset Meter 4" Actual Cost - To Pull and Reset Meter 6" Actual Cost - To Pull and Reset Meter 8" Actual Cost - To Pull and Reset Meter 10" Actual Cost 72 72.05 D. A.Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00(2) Sewer billed beginning January 1, 2018. Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Will not exceed per each day the violation is identified or continues. Section # Code # Fee Description Meter Size Charges State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5 Copies of Identifiable Public Records $0.10/page Cassette Tape Duplication $2.00/tape Yearly Subscription Service for Agendas and Ratified Minutes Yearly Subscription Service for Board Packet and Ratified Minutes Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 4, 14, & 18 Per acre I.D. 4, 14, & 18 Per $1000 of assessed value for I.D. 27 $20.00/year or $0.50/meeting $100.00/year for first copy and $200.00/year for each copy thereafter Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 1, 5, & Outside an I.D. Per acre in I.D. 2,3,7,9,10,19,20,22,25, & 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Otay Water District FY 2018 Budget Workshop May 24, 2017 Attachment D Workshop Agenda ►Introduction and Objectives (Joe Beachem) ►Challenges and Strengths (Mark Watton) ►Economic Overview (Gary London, The London Group) ►Strategic Plan Initiatives (Adolfo Segura) ►Budget Highlights (Joe Beachem) ►Capital Improvement Budget (Rod Posada) ►Balanced Operating Budget (Kevin Koeppen) ►Staffing Highlights (Adolfo Segura) ►Materials and Maintenance (Jose Martinez) ►Administrative Costs (Kevin Koeppen) ►Conclusion (Kevin Koeppen)2 Workshop Objectives ►Review FY 2017 - 2018 Strategic Plan ►Present a $98.2 million Operating Budget and $20.0 million CIP Budget ►Request approval of annual fund transfers ►Request adoption of the Salary Schedule pursuant to CA Code of Regulations 570.5 ►Request approval of a 7.5% sewer rate increase effective January 1, 2018 (typical residential bill will decrease $0.56 per month) ►Adopt Ordinance 564 amending Appendix A with the proposed sewer rate changes to be effective January 1, 2018 ►Direct staff to draft and mail sewer rate increase notices ►Direct staff to draft and mail the Proposition 218 notices for recommended water rate structure changes 3 Challenges & Strengths (Mark Watton) 4 Challenge #1 – Governor Mandates ►May 2015 - State Water Board adopted California Code of Regulations, title 23, section 866 and re-adopted sections 863, 864, and 865 (20% conservation target) ►February 2016 - State Water Board extended mandatory conservation measures (12% conservation target) ►January 2017 – State Water Board extended mandatory conservation measures (0% conservation target) ►April 2017 –State Water Board rescinded the conservation mandate ►FY 2018 – Water volumes projected to remain 12% below 2015 levels 5 Challenge #2 – Water Volumes (AF) 41 , 9 0 9 38 , 0 4 5 34 , 9 7 1 31 , 1 7 5 29 , 8 6 1 30 , 5 4 3 31 , 8 8 4 33 , 4 0 9 30 , 2 5 7 25 , 5 0 1 26 , 2 7 6 25 , 9 1 3 26 , 7 5 9 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2017 FY2018 Ac r e F e e t Historic Potable Water Purchase Levels Projection 6 Budget Budget FY 2018 – Water volumes projected to remain 12% below 2015 levels Challenge #3 - Water Dependency 7 10 0 % 95 % 75 % 10 0 % 10 0 % 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FY2013 FY2014 FY2015 FY2016 FY2017 FY2018* Provider Percentage of Annual Rate Increases *N o R a t e I n c r e a s e On average 94% of District historical rate increases are due to supplier cost increases. * While no rate increase is budgeted for FY2018, water supply costs will increase by a net $1.7 million due to supplier rate increases. Strengths ►Strategic Planning Process ►Efficiency Gains (Since 2007) ►23% headcount reduction ►37% increase in customers per FTE ►Bond Rating ►S&P ‘AA’ rating ►Sound Financial Management ►Reserve, debt and investment policies ►External economist assisting with growth projections 8 Economic Overview (Gary London, The London Group) 9 Strategic Plan (Adolfo Segura) 10 Overview Strategic Plan FY15 – FY18: The District is currently executing a four-year strategic plan designed to track key organizational project objectives, and essential day-to-day performance measures. During FY17, staff continued to execute the completion of targeted projects and evaluate the potential to further streamline work- group processes and elevate performance metrics, if warranted. Additional improvements to our Asset Management program will also be addressed via a recently developed multi-year strategic SCADA roadmap and a planned update to our decision analysis CIP management framework. The District’s Strategic Plan was developed with the Balanced Scorecard (BSC) strategic planning and management methodology, which emphasizes alignment of business activities to the vision and strategy of the organization with goals and measures in four basic areas: financial, customer, business processes, and learning and growth. Balanced Scorecard Strategies and Goals Customer Financial Business Processes Learning & Growth 13 Manage the financial issues that are critical to the District 1. Improve financial information and systems 2. Maintain District financial strength Maximize efficiency and effectiveness 1. Actively manage water supply as well as support for water and sewer services 2. Identify and evaluate improvements to enterprise and departmental business processes Provide leadership and management expertise 1. Reinforce a results-oriented and accountable culture 2. Focus on achieving a lean and flexible workforce Deliver high quality services to meet and increase confidence of the customer 1. Increase customer confidence in the District 2. Improve and expand communications 3. Provide effective water services $ Strategic Plan Timeline FY 2015 Implement Next Generation Productivity Systems FY 2016 Focus on Process Improvements Using New System Data FY 2017 Evolving Culture and Fine Tuning Metrics FY 2018 Continued Evolution of Programs in Place 13 Mission To provide high value water and wastewater services to the customers of the Otay Water District, in a professional, effective and efficient manner. Mission 14 A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service. VisionVision 15 TEAMWORKTEAMWORK We promote mutual trust by sharing information, knowledge, and ideas to reach our common goals. EMPLOYEESEMPLOYEES We see each individual as unique and important. We value diversity and open communication to promote fairness, dignity, and respect. INTEGRITYINTEGRITY We commit ourselves to doing the right thing. Ethical behavior, trustworthiness, and accountability are the District’s foundation. EXCELLENCEEXCELLENCE We strive to provide the highest quality and value in all that we do. CUSTOMERSCUSTOMERS We take pride that our commitment to customer-centric service is our highest priority. Statement of Values 17 Objectives and Measures by Department 19 1. Regularly produce and evaluate communication tools and explore the effective use of new media options 2. Optimize the SCADA Program 3. Evaluate and Enhance the District’s Water Conservation Programs and Services 4. Optimize the Asset Management Program 5. Enhance District's enterprise facilities physical security 6. Enhance District's enterprise confined space program 7. Advance business processes and efficiencies through implementation of technology 8. Evaluate implementation of an on-line performance management system 9. Negotiate a successor Memorandum of Understanding for represented employees for FY2018 10. Enhance District's emergency response program 11. Evaluate opportunities to combine or transfer similar work functions 12. Evaluate training and development programs for new and existing Supervisors/Managers Administrative Services Objectives Administrative Services Measures 1.Enterprise System Availability 2. Employee Turnover Rate 3. Training Hours per Employee 4. Safety Training Program 5. Injury Incident Rate 20 21 1. Evaluate City of San Diego Pure Water Program planning/implementation 2. Address dependency of imported water 3. Sewer system business evaluation 4. Evaluate the viability of implementing an indirect potable reuse program 5. Evaluate efficiencies for delivering capital assets 6. Streamline work processes in four strategic areas 7. Revise business practices by modifying the master recycled water permit 8. Implement a habitat conservation plan that will streamline O&M within District easements Engineering Objectives 22 Engineering Measures 1. CIP project expenditures vs. budget 2. Construction change order incidence (without allowances) 3. Mark-out accuracy 4. Project closeout time 5. Annual recycled water site inspections 6. Recycled water shutdown testing Finance Objectives 1. Enhance communications with customers 2. Implement a cost benefit program 3. Strengthen internal audit program 4. Improve and streamline meter related processes 23 Finance Measures 1. Answer Rate 2. O&M Cost per Account 3. Billing Accuracy 4. Overtime Percentage 5. Sewer Rate Ranking 6. Water Rate Ranking 7. Debt Coverage Ratio 8. Reserve Levels 9. Accounts per FTE 10. Distribution System Loss 11. Percent of Customers Paying Bills Electronically 24 Operations Objectives 1. Evaluate requirements for future emergency communications system 2. Electric power and fuel management practices 3. Optimize operations non-inventory management 4. Leak detection and repair program 5. Pressure vessel maintenance program 6. Operations workflow process evaluation 7. Streamline input of operations data 25 Operations Measures 1. Technical Quality Complaint (AWWA) 2. Planned Potable Water Maintenance Ratio in Dollars 3. Planned Recycled Water Maintenance Ratio in Dollars 4. Planned Wastewater Maintenance Ratio in Dollars 5. Direct Cost of Treatment per MGD 6. O&M Cost per MG Processed of Wastewater 7. Leak Detection Program 8. Percent of PMs Completed-Fleet Maintenance 9. Percentage of PMs Completed-Reclamation Plant 10.Percentage of PMs Completed-Pump/Electric Section 11. System Valve Exercising Program 12. Potable Water Distribution System Integrity 13. Potable Water Compliance Rate (AWWA) 14. Collection System Integrity (AWWA) 15. Recycled Water System Integrity 16. Sewer Overflow Rate (AWWA) 17. Emergency Facility Power Testing 18. Tank Inspection and Cleaning 19. Main Flushing and Fire Hydrant Maintenance 20. Critical Valve Exercising 26 Continue to evolve key processes and programs with the goal of improving efficiencies, organizational performance, and customer service. Next Steps Budget Highlights (Joe Beachem) 28 Rate Model and Budget Process 29 6-Year Rate Model Year-end Balances Operating Budget Input 6-Year CIP Budget Input MWD/CWA & City Sewer Rates Strategic Plan Assumptions Interest Rates Inflation Growth Sales Targets Debt Coverage Reserve Levels Operating Budget CIP Budget Water & Sewer Rates Governor’s Mandate Budget Objectives (Fiscal Year 2018) 30 ►Maintain the debt coverage target of 150% for water ►Obtain a debt coverage ratio of 125% for sewer by 2020 ►Fund the $98.2 million Operating Budget ►Minimize rate impacts of supplier cost increases ►Rate setting built on reasonable projections ►Fund the $102.3 million 6-year capital budget ►Maintain reserves at or above target ►Maintain water and sewer rate positions relative to other agencies in the region Debt Coverage Ratios - Water 31 236%243% 272% 323% 296% 279% 195% 170%178%184%188%193% 125% 100% 150% 200% 250% 300% 350% 2018 2019 2020 2021 2022 2023 Debt Ratio with Growth Debt Ratio without Growth Minimum Debt Ratio Debt Ratio with Growth Debt Ratio without Growth Minimum Debt Ratio Debt Coverage Ratios – Sewer 32 125% 144% 279% 250% 120% 1 1.2 1.4 1.6 1.8 2 2.2 2.4 2.6 2.8 3 2018 2019 2020 2021 2022 2023 Debt Ratio Minimum Debt Ratio Increase in debt coverage in 2022 is due to a reduction in Metro costs as the cash funding for the first phase of pure water winds down.Debt Ratio* Minimum Debt Ratio * There is no proposed growth for sewer; therefore, the “with growth” and “without growth” debt ratio are the same Inter-Fund Transfers 33 Potable Designated Expansion to Designated Replacement $ 511,000 Designated Expansion to Designated Betterment 1,146,000 General Fund to Designated Replacement 4,986,600 Recycled Designated Betterment to Designated Expansion 53,800 Designated Betterment to Designated Replacement 48,000 General Fund to Designated Expansion 1,762,400 Sewer Designated Replacement to Designated Betterment 156,800 General Fund to Designated Betterment 1,990,100 Total Transfers $ 10,654,700 Net Operating Revenues Transfers 34 Water Sewer Total Expansion Reserve 3,274,600 - 3,274,600 Betterment Reserve - 111,100 111,100 Replacement Reserve 9,787,900 - 9,787,900 Transfer to OPEB 962,100 35,900 998,000 Transfer to New Supply Fund 221,000 - 221,000 Total Reserve Funding $ 14,345,600 $ 147,000 $14,392,600 Operating Budget Highlights Items holding down rates ►FY2018 potable sales volume increasing 3.1% versus FY2017 budget (1.0% versus FY2017 projection) ►FY2018 recycled sales volume increasing 5.7% versus FY2017 budget (3.5% versus FY2017 projection) ►Property tax revenue increasing $363,000 ►Pio Pico funding of $210,000 ►Full-time equivalents (FTEs) decrease from 135 to 134 35 Operating Budget Highlights Items putting upward pressure on rates ►CWA rate related increases of $1.7 million or 3.9% ►Salary and benefit costs increase of $622,200 or 3.0% ►Increase in legal fees of $225,000 or 90% ►Increase in Metro sewer costs of $165,700 or 25.3% ►Increase in insurance costs of $86,000 or 15.0% ►Increase in 6-year CIP of $12.5 million to $102.3 million 36 Potable and Recycled Budget Highlights ►0.0% proposed average rate increase ►Average residential customer monthly volume increased from 11 units to 12 units ►Implementation of Cost of Service study rate structure recommendations ►Average residential customer using 12 units will see a $6.02 decrease in their monthly bill ►$86.4 million CIP over six years ►No anticipated new debt issuances in the six-year rate model ►Reserves and debt coverage on target 37 Sewer Budget Highlights ►7.5% proposed rate increase ►Residential winter averages decreased 16% ►Typical residential customer will see a $0.56 decrease in their monthly bill beginning January 1, 2018 ►Increase in Metro sewer costs of $165,700 or 25.3% for FY2018 and $1.5 million over the next six years ►$15.9 million CIP over six years ►Sewer will seek $5.5 million State Revolving Fund loan ►Reserves on target 38 Last Year vs. This Year - Water 39 Projected Water Rate Increase 2017 2018 2019 2020 2021 2022 2023 FY17 5.0% 5.0% 3.8% 3.7% 3.7% 3.7% FY18 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% Debt Coverage Ratio (No Growth) 2017 2018 2019 2020 2021 2022 2023 FY17 160% 168% 171% 171% 174% 173% FY18 195% 170% 178% 184% 188% 193% Last Year vs. This Year - Sewer 40 Projected Sewer Rate Increase 2017 2018 2019 2020 2021 2022 2023 FY17 3% 3% 3% 3% 2% 2% FY18 7.5% 7.5% 7.5% 2.0% 2.0% 2.0% Debt Coverage Ratio (No Growth) 2017 2018 2019 2020 2021 2022 2023 FY17 N/A N/A N/A 375% 377% 368% FY18 125% 144% 279% 250% 41 * At the time of the survey in May 2017, the member agency’s FY 2018 rate was unavailable. The estimated increase is equal to the District’s FY 2018 average rate increase. Survey of Member Agency Water Rates Based on 12 Unit Water Use and 3/4" Residential Meter Size Water bill effective January 2018 42 (1) Flat sewer rate (2) Water consumption based sewer rate (3)At the time of the survey in May 2017, the member agency's FY 2018 rate was unavailable. The estimated increase is equal to the District's FY 2018 average. Sewer Rate Comparison - San Diego County Based on winter average water usage and 3/4 Residential meter size for sewer bill January 2018 Capital Improvement Program FY 2018-2023 (Rod Posada) 43 Growth Projections1 44 FISCAL YEARS 2018 2019 2020 2021 2022 2023 Single-Family Dwelling Units 266 477 591 863 656 566 Condominium Units 311 494 500 597 586 442 Apartment Units 175 252 723 834 838 300 Non-Residential2 (Permit valuation in millions of dollars) $16 $16 $28 $28 $28 $28 1Source: The London Group Realty Advisors Report March 2017 (all dwelling units reflected above do not have a one-to-one ratio with an EDU and are converted to EDUs for budget purposes). 2 Source: The London Group Realty Advisors Report March 2017 Office, Retail, Industrial, and Hotels in the Otay Water District Service Area. Meter Sales and Growth 45 - 200 400 600 800 1,000 1,200 1,400 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ED U ' s Fiscal Years Equivalent Dwelling Units (EDU's) - Actual and Estimated Actual Estimated 342 EDU’s (Budgeted FY 2017) 325 EDU’s (Estimated FY 2017) 370 EDU’s (Budgeted FY 2018) CIP Budget Guidelines Growth to remain relatively flat for FY 2018 New development with multi-family in greater proportion to single-family dwellings In preparing the budgets for the individual CIP projects, the Engineering Department used current construction and bidding data to adjust costs for each project Reprioritized projects based on District’s planning documents and Water Supply Assessment and Verification reports 46 CIP Six-Year Budget Look Forward ($ Millions) 47 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Totals $ 20.0 $ 25.8 $ 14.2 $ 15.1 $ 15.0 $ 12.2 Six-Year Total: $102.3 FY 2018 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Totals $ 11.9* $ 20.0 $ 22.9 $ 11.4 $ 13.0 $ 11.8 Six-Year Total: $ 91.0 *Budget increased in FY 2017 Third Quarter to support Automated Meter Reading replacement project. High Profile CIP Projects Fiscal Year 2018 ($ Millions) 48 870-2 PS and 571-1 Reservoir Improvements $ 6.7 Campo Road Sewer Replacement 4.3 Hillsdale Road Water & Sewer Replacement 2.0 AMR Change Out 1.8 980-2 Reservoir Interior/Exterior Coating 1.1 850-2 Reservoir Interior/Exterior Coating 0.7 Total Expenditure Projection $ 16.6 % of Total FY2018 Budget 83% High Profile CIP Projects Fiscal Year 2018 – 2023 CIP ($ Millions) 49 870-2 PS and 571-1 Reservoir Improvements $ 19.4 Reservoir Improvements 13.2 711-2 PS (711-1 PS Replacement) 10.0 AMR Change Out 8.7 Campo Road Sewer Replacement 8.6 Hillsdale Area Waterline Replacements 8.4 Total Expenditure Projection $ 68.3 BALANCED OPERATING BUDGET (Kevin Koeppen) 50 FY 2018 Operating Budget 51 ►Budget Process ►Budget Details ►Revenues and Expense Highlights ►Conclusion Budget Process 52 ►Strategic plan objectives set the overall direction for the budgeting effort ►Each department submits budget requests assessing actual needs of the District ►Review of all Operating and CIP Budget requests with Chiefs, Assistant General Manager, and General Manager ►Review and incorporate reasonable assumptions on sales, growth, interest rates, and price inflators ►Evaluate cost-saving measures and make adjustments where prudent ►Recommend rates that support strategic plan initiatives, CIP, and operational needs Sales Projections ►Potable sales projections for FY 2018 are based on FY 2017 projections plus 1% growth ►Recycled sales projections for FY 2018 are based on FY 2017 projections plus 3.5% growth ►Growth rates for FY 2018 through FY 2023 were developed using The London Group Realty Advisors’ input 53 12,511 13,189 13,720 12,744 10,475 10,807 11,036 11,147 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2017 FY2018 Budget Projected Budget Potable Water Sales with 1% Increase from FY 2017 Projection Potable Water Sales 54 Unit Sales (in thousands) Actual Potable Sales Revenues 55 ►Sales dollar increase of $4,797,700 or 6.6% due to volume increases FY 2016 FY 2017 FY 2018 Budget to Budget Variance Actual Budget Budget $ % Water Sales $ 37,243,504 $ 44,450,600 $ 49,251,200 $ 4,800,600 10.8% System Fees 13,391,005 12,204,600 12,917,600 713,000 5.8% Energy Fees 2,151,538 2,164,200 1,925,500 (238,700) (11.0%) MWD and CWA Fixed Fees 11,850,407 12,535,200 12,030,400 (504,800) (4.0%) Penalties 776,703 884,000 911,600 27,600 3.1% Total Water Sales $ 65,413,157 $ 72,238,600 $ 77,036,300 $ 4,797,700 6.6% Potable Rate Implementation – Cost of Service Recommended rate structure to be effective for billings beginning January 1, 2018: Reduce residential tiers from 4 to 3 by eliminating the conservation tier Commercial, public, and irrigation customers will change from a tiered variable rate to a unitary variable rate System fees to be based on customer class and meter size 218 Notice mailing July/August timeframe 218 Hearing September/October timeframe 56 51218 Units Units Units Current Rates: Variable Bill $13.32 $51.66 $83.39 Fixed Bill 30.91 30.91 30.91 Total Current 44.23 82.57 114.30 Proposed Rates: Variable Bill 16.07 43.72 77.52 Fixed Bill 32.83 32.83 32.83 Total Proposed 48.90 76.55 110.35 Increase(Decrease) $4.68 ($6.02) ($3.95) Average Monthly Bill 1,676 1,653 1,879 2,068 1,842 1,592 1,529 1,561 1,616 - 500 1,000 1,500 2,000 2,500 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2017 FY2018 Actual Budget Projected Budget Recycled Water Sales with 3.5% Increase from FY 2017 Projection Recycled Water Sales 57 Unit Sales (in thousands) Recycled Sales Revenues 58 ►Recycled sales dollar increase of $962,800 or 10.8% due to volume increases FY 2016 FY 2017 FY 2018 Budget to Budget Variance Actual Budget Budget $ % Water Sales $ 6,240,661 $ 6,702,300 $ 7,493,200 $ 790,900 11.8% System Fees 471,962 432,800 589,100 156,300 36.1% Energy Fees 379,026 379,100 313,700 (65,400) (17.3%) MWD and CWA Rebates 1,396,472 1,351,000 1,428,400 77,400 5.7% Penalties 38,921 35,100 38,700 3,600 10.3% Total Recycled Water Sales $ 8,527,042 $ 8,900,300 $ 9,863,100 $ 962,800 10.8% Sewer 5-year Summary FY 2018 vs. FY 2017: $404,400 increase in operating expenses 16% decline in residential winter average Results: 7.5% rate increases from 2018 to 2020 $0.56 decrease in the typical residential monthly sewer bill in FY2018 $5.5 million proposed State Revolving Fund loan 59 Sewer Revenues ►Sewer revenues decrease of ($49,500) or (1.7%) 60 Actual Budget Budget Budget to Budget Variance FY 2016 FY 2017 FY 2018 $% Sewer Charges $ 3,124,595 $ 2,888,600 $ 2,839,600 $ (49,000) (1.7%) Penalties 24,700 30,300 29,800 (500) (1.7%) Total $ 3,149,295 $ 2,918,900 $ 2,869,400 $ (49,500) (1.7%) Other Revenues ►Tax revenues increase of $363,000 or 9.0% ►Capacity fee revenues increase of $265,000 or 21.2% ►Non-operating revenue decrease of ($14,800) or (.7%) 61 Water Supply Costs 62 FY 2018 vs. FY 2017 Budget Increase of $2.8 million or 5.8% Changes in Supply Costs Due to: Increases(Decreases) in Volume: Potable Water 1.0$ Recycled Water 0.1 Increases in Supplier Variable Fees: Potable Water 1.9 Recycled Water ‐ Increases (Decreases) in Supplier Fixed Fees: CWA & MWD (0.2) Total Water Cost Increase 2.8$ $1.7 million Power Costs 63 ►Power Cost increase of $85,800 or 2.9% ►Water demand increase of 3.1% for potable and 5.7% for recycled ►In FY2017 the rate per kilowatt hour has increased 8% ►The District anticipates another 2.5% increase in the rate for FY 2018 ►72 Staffing Highlights (Adolfo Segura) 64 Staffing Highlights 65 ►Process ►The Senior Team and Section Managers continuously analyze workload requirements, opportunities for automation, and areas where we can effectively share or reallocate resources ►Results ►Reduction of FTE’s from 135 to 134 Staffing Reductions Reduction of 40.75 FTE or 23% Fiscal Year 66 17 4 . 7 5 17 2 . 7 5 16 8 . 7 5 16 6 15 9 15 6 14 8 14 3 14 0 13 8 13 5 13 4 120 130 140 150 160 170 180 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Employee Count Cumulative Savings Due to Staffing Reductions 67 Fiscal Year $358,000 $843,900 $1,166,300 $1,862,900 $2,340,500 $3,395,900 $4,213,800 $4,799,200 $5,155,700 $5,916,700 $6,257,500 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 FY 18 Cumulative Net Savings = $36,310,400 (including all outside labor services) Efficiencies 68 Fiscal Year 30 1 30 6 31 4 32 1 33 6 34 4 36 6 38 0 38 9 39 6 40 6 41 2 250 270 290 310 330 350 370 390 410 430 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Customers per FTE 37% Increase Labor Costs Overall Increase of $622,200 or 3.0% Increases in Salary and Benefits: ►Negotiated salary increases per MOU for COLA and in-range salary adjustments of $348,400 or 3.0% ►Overtime, vacancy factor, vacation/sick, temp labor, and workers’ compensation of $136,500 or 7.3% ►Pension costs of $216,600 or 5.2% ►Health costs of $37,000 or 1.3% ►Staff advancements (Promotions) of $39,200 or 0.3% ►Other benefits such as Social Security and Medicare of $35,100 or 3.6%69 Labor Costs Decreases in Salary and Benefits: ►Decrease in staffing level of ($91,400) or (.8%) ►Decrease in OPEB of ($57,000) or (4.6%) ►Decrease due to greater CIP allocation ($42,100) or (1.6%) 70 Materials & Maintenance Costs (Jose Martinez) 71 Materials & Maintenance Costs Overall increase of $189,400 or 5.5% Increases in the following categories: ►Metro O&M charges of $165,700 or 25.3% ►Contracted services of $57,900 or 7.6% ►Infrastructure equipment & supplies of $37,800 or 6.0% ►Laboratory equipment & supplies of $25,900 or 57.2% ►Spring Valley sewer charges of $9,800 or $5.4% ►Building & grounds materials of $5,100 or 9.1% 72 Materials & Maintenance Costs (continued) Offset by decreases in the following categories: ►Fuel & oil of ($46,000) or (19.0%) ►Meters and materials of ($34,500) or (21.7%) ►Other materials & supplies of ($26,500) or (14.5%) ►Chemicals of ($6,600) or (1.8%) 73 Fuel Consumption 74 40% Decrease 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Ga l l o n s Fuel Consumption Gas Diesel TOTAL Fiscal Year 115 120 125 130 135 140 145 150 155 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Ve h i c l e s & E q u i p m e n t Total Vehicle and Equipment Composition Vehicles and Equipment 75 19% Decrease Fiscal Year Recycled Water DEH Charges 76 $40,900 $31,900 $17,900 $10,900 $8,000 $6,000 $6,300 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 2011 2012 2013 2014 2015 2016 2017 Recycled Inspection Fees 84% Decrease Fiscal Year 0 1 2 3 4 5 6 7 2011 2012 2013 2014 2015 2016 2017 Wa t e r L o s s P e r c e n t a g e Historical Water Loss 77 36% Decrease Fiscal Year $- $500.00 $1,000.00 $1,500.00 $2,000.00 $2,500.00 2010 2011 2012 2013 2014 2015 2016 2017 Cost per Patch Paving 78 54% Decrease Fiscal Year Administrative Costs (Kevin Koeppen) 79 Administrative Costs Overall Increase $335,600 or 6.5% Due to increases in the following: Increase in legal expenses of $225,000 or 90.0% Increase in Insurance costs of $86,000 or 15.0% Increase in equipment of $74,900 or 6.6% Increase in travel and meetings of $36,800 or 17.6% Increase in directors fees of $7,000 or 21.2% 80 Administrative Costs (continued) ►Offset by decreases in the following: Decrease in outside services (maintenance contracts, professional consultants, etc.) of ($85,400) or (4.1%) Decrease in training and fees of ($5,100) or (3.1%) 81 Budget Summary 82 Potable Recycled Sewer Total Revenues Water Sales $77,036,300 $9,863,100 $ - $86,899,400 Sewer Revenues - - 2,869,400 2,869,400 Other Revenues 8,339,700 32,200 107,500 8,479,400 Total Revenues $85,376,000 $9,895,300 $2,976,900 $98,248,200 Expenditures Water Purchases $46,461,600 $3,716,700 $ - $50,178,300 Power 2,305,700 584,600 133,500 3,023,800 Labor and Benefits 19,270,400 1,171,300 1,080,400 21,522,100 Administrative Expenses 4,653,400 557,100 275,200 5,485,700 Materials & Maintenance 1,977,000 327,900 1,340,800 3,645,700 Reserve Funding 10,707,900 3,537,700 147,000 14,392,600 Total Expenditures $85,376,000 $9,895,400 $2,976,900 $98,248,200 ►Balanced budget which meets the water and sewer needs of our customers and supports the Strategic Plan Conclusion - Requesting that the Board: Adopt Resolution No. 4336 to approve the FY 2017-2018 Operating and Capital Budget Approve fund transfers for potable, recycled, and sewer Approve the sewer rate changes and adopt Ordinance No. 564 to amend Appendix A with the proposed 7.5% sewer rate increase on all billings that begin in calendar year 2018 Adopt the Salary Schedule pursuant to CA Code of Regulations 570.5 (CalPERS enforced) Provide direction to draft and mail sewer rate increase notices ►Provide direction to draft and mail Proposition 218 hearing notices for recommended water rate structure changes 83 QUESTIONS? 84 San Diego: 825 10th Ave | San Diego, CA 92101 | (619) 269-4010 Carlsbad: 2792 Gateway Road #104 | Carlsbad, CA 92009 | (619) 269-4012 www.londongroup.com THE LONDON GROUP Realty Advisors Economic Outlook Update Otay Water District San Diego County Prepared For: Otay Water District March 2017 The London Group Realty Advisors © 2017 Report Prepared by: Gary London, President Nathan Moeder, Principal Robert Martinez, Senior Analyst Otay Water District Page 2 of 50 Table of Contents INTRODUCTION .......................................................................................................... 3 SECTION 1: SUMMARY OF FINDINGS ......................................................................... 4 SECTION 2: STATE OF THE NATIONAL ECONOMY .................................................... 5 The Price of Oil ........................................................................................................................... 6 Employment Gains ...................................................................................................................... 7 Unemployment Rate .................................................................................................................... 8 First Time Unemployment Claims .............................................................................................. 9 Car/Truck Sales ......................................................................................................................... 10 Construction Industry ................................................................................................................ 11 SECTION 3: SAN DIEGO COUNTY’S ECONOMY .......................................................13 San Diego County Employment Gains ..................................................................................... 14 Sales Tax Revenue Change ....................................................................................................... 16 Population Change .................................................................................................................... 17 Residential Construction – Historic .......................................................................................... 21 Residential Construction – Projected San Diego County .......................................................... 22 Residential Resale Market ......................................................................................................... 24 Commercial Real Estate Construction ...................................................................................... 26 SECTION 4: FUTURE OF SOUTH COUNTY ................................................................28 Population Changes ................................................................................................................... 28 Residential Building Permits – Chula Vista .............................................................................. 30 Residential Resale Market - South County ............................................................................... 31 Commercial Property in South County ..................................................................................... 33 Commercial Sector Growth- OWD Area .................................................................................. 34 Employment Projections ........................................................................................................... 38 SECTION 5: OTAY WATER DISTRICT OVERVIEW ...................................................39 Housing Unit Projections .......................................................................................................... 39 Housing Units Under Construction & Planned ......................................................................... 41 Commercial Construction ......................................................................................................... 43 APPENDIX .............................................................................................................44 COMPANY PROFILE .................................................................................................49 CONTACT INFORMATION .........................................................................................50 Otay Water District Page 3 of 50 INTRODUCTION The London Group Realty Advisors has undertaken and now completed an update of the Economic Outlook Study for both San Diego County and the area served by the Otay Water District (“OWD”). Our initial study was completed for the District in 2011, with updates completed annually. In this report, we concentrate on the changing economic health in the Nation, California and San Diego County and the projected residential and commercial development within the County and the OWD service area. In last year’s report, we noted evidence of strong future development in the OWD service area. We have now updated this information to 2017 in order to project outward to 2023. This report is segmented into six sections: ➢ Section 1: Summary of Findings ➢ Section 2: State of the National Economy ➢ Section 3: San Diego County’s Economy ➢ Section 4: Future of South County ➢ Section 5: The Otay Water District Research for this project was completed in March 2017. Conclusions and recommendations are strictly those of The London Group Realty Advisors. Users of this information should recognize that assumptions and projections contained in this report will vary from the actual experience in the marketplace. Therefore, The London Group Realty Advisors is not responsible for the actions taken or any limitations, financial or otherwise of property owners, investors, developers, lenders, public agencies, operators or tenants. Otay Water District Page 4 of 50 SECTION 1: SUMMARY OF FINDINGS The following summarizes our conclusions and projections as to the growth of San Diego County and, within it, the Otay Water District service area: San Diego County’s economy continues to experience solid growth. The unemployment rate dropped to 4.2% in December and is lower than the national and state rates of 4.5% and 5.0%, respectively. San Diego’s economy is expected to continue to outpace the state and national economies. San Diego County added 28,900 jobs in 2016 - a 2% increase. 2017 is expected to post another year of solid job gains with an additional dip in the unemployment rate. The County is expected to add another 25,000 to 30,000 jobs annually for the foreseeable future. With the exception of manufacturing, all of the region’s sectors experienced year-over- year growth. Leading the way was Financial Activities sector which increased by 3.2 percent or 2,200 jobs. San Diego County’s population will continue to grow in the near-term future by more than 25,000 persons annually. Most of that growth will result from natural household formations (more births than deaths). In-migration from outside San Diego County will heighten as the economy gains jobs. Housing construction is forecasted to average 10,000 to 11,000 units annually during each of the next six years, with as much as 21% of that growth in the OWD service area. Affordability will be a concern countywide as upward pressure on mortgage rates (which decreases the maximum amount that a buyer can borrow) coupled with a supply constrained market will ultimately drive prices up, but at slower rates than in recent years. As much as 70% of the new housing in the OWD service area will be attached, both for-sale and rental. The preponderance of attached housing (combined with mandated conservation efforts) will inevitably result in substantially less water usage per household. Commercial development in the OWD service area is expected to increase as office and retail space ramps up in the Millenia masterplan. San Diego County is expected to continue to be one of the Nation’s leading economies and will likely outpace the Nation in ongoing economic growth. San Diego County will continue to have an expanding economy, although the expectation is that the current pace will slow somewhat but will be largely dependent on job and wage growth, interest rate changes and inflation. Otay Water District Page 5 of 50 SECTION 2: STATE OF THE NATIONAL ECONOMY • The U.S. economy is in the midst of one of the longest periods of economic expansion in U.S. history with eight consecuitive years of expansion. The recovery is now complete and incomes are beginning to rise. However, the labor market is tightening and the cost of living in urban areas continues to be challenging. • In 2016, annual GDP growth failed to reach the 3% mark for the 11th consecuitive year. the U.S. grew just 1.6%, compared to 2.6% in 2015. It was the weakest growth rate since 2011. The last time the U.S. topped 3% growth was in 2005. The slowdown in GDP can be mostly attributed to a nationwide slowdown in construction, principally new home development. As a real estate developer, it is possible that economic policies under President Trump will increase GDP, the full effects would not be felt until 2018 at earliest. • Despite the slow GDP growth, the unemployment rate fell from a peak of 10% in October 2009 to 4.8% percent in January 2017. • Job gains in the last six months have ranged from a low of 124,000 in October to a high of 249,000 a month earlier with an average monthly pace of approximately 183,000 jobs. In typical economic growth, new jobs are created at a pace of 250,000 to 300,000 monthly. • First time unemployment claims typically range from 275,000 to 300,000 per week during normal economic growth. In 2014 these claims dipped below the 300,000 mark for the first time since prior to 2004. Through the first month of 2017, the average unemployement claims was 248,500, which is 12% lower for the same month in 2016. • High-cost barriers have been placed on residential construction, especially on the West Coast and in the Northeast. This dampens the potential positive impact that a technology hub (like Silicon Valley) can have on economic growth compared to the growth that could have been experienced if the surrounding region allowed for adequate construction and growth. Historically, cities have fed off of local booming industries, allowing for community affluence. However, local laws against adequate density and development are preventing population growth in high-productivity cities. Instead of benefiting from growth, working-class renters and potential home purchasers are often priced out of the market. Otay Water District Page 6 of 50 The Price of Oil Although far from the $100 per barrel cost experienced in 2011 through August 2014, the current price of oil is up 50% in the last 12 months and 114% since January of 2000. This increase is felt throughout the economy as it clearly affects the prices of virtually all goods and services and is largely beyond the control of the United States. California tends to be in a more precarious position because of higher gas taxes and the oligopoly in the supply line. Theoretically, the high price of oil should force an increase in mass transit unit use, but in San Diego County, that will not be the case as our places of employment are too widely spread and our transit service is insufficient to get people to work in a reasonable time period. In places like New York and Chicago, downtowns account for 30% to 40% of the jobs and therefore mass transit works. In San Diego, downtown accounts for less than 6% of the countywide jobs. There are several economic indicators we track that provide an indication of the economic health of the Nation, the most important of which are new job formations, the unemployment rate, first time unemployment claims, car/truck sales, and, of course, construction. The following sections detail each factor: $0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $ p e r B a r r e l Monthly Average Crude Oil Brent Spot Price (per Barrel) Jan 1988 -Jan 2017 Source: United States Energy Information Administration Otay Water District Page 7 of 50 Employment Gains In April of 2014, the national economy recovered all of the 8.7 million jobs lost between the start of the recession in December 2007 and early 2010. Since January of 2008, the U.S. has added approximately 7.1 million jobs. Since January of 2016, the U.S. has added an average of approximately 195,250 jobs per month. However, factoring in population growth, the U.S. is still some distance away from a pre-recession job market. 127,000 129,000 131,000 133,000 135,000 137,000 139,000 141,000 143,000 145,000 147,000 01/02 01/03 01/04 01/05 01/06 01/07 01/08 01/09 01/10 01/11 01/12 01/13 01/14 01/15 01/16 01/17 Th o u s a n d s United States Payroll Employment Seasonally Adjusted Monthly 2002 -January 2017p* Source:Bureau of Labor Statistics* Dec.2016 and Jan. 2017 numbers are preliminary Otay Water District Page 8 of 50 Unemployment Rate The unemployment rate continues to decrease and has remained at or below 5.0% for 17 consecutive months. Some of that decline relates to persons who have dropped out of the employment market because they were unable to find jobs. The re-entry of those who departed the job market, as the employment picture continues to improve, may ultimately lead to a short-term increase in the nation’s rate of unemployment before it drops again. 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% United States Unemployment Rate Seasonally Adjusted Monthly 2005 -January 2017 Source: Bureau of Labor Statistics Otay Water District Page 9 of 50 First Time Unemployment Claims Weekly first time unemployment claims are an index of layoffs. In early 2009, annual claims pushed past the 600,000 level and have since moved downward to 248,000. They have hovered around the 250,000 mark for several months. This decline in unemployment claims is a positive sign for the labor market, however, as previously described, job creation remains just enough to account for increased population but below the level of sustainable job growth. 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000 700,000 United States Initial Claimants for Unemployment Insurance Seasonally Adjusted Weekly Jan 2004 -Jan 2017 Source: United States Department of Labor Otay Water District Page 10 of 50 Car/Truck Sales In the United States, more than 16 million vehicles were sold annually between 2005 and 2007. By 2009, that figure had declined to slightly more than 10 million vehicles. In 2016, light vehicle sales in the U.S. surpassed the 16 million mark for the third consecutive year. The U.S. automobile market posted a total of 17.47 million sales in 2016, up 0.3%. For the “big three” domestic manufactures, Fiat/Chrysler, General Motors and Ford all posted negative sales growth in 2016 of less than 4%. 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 United States Light Vehicle Sales 2005 -2016 Source: National Automobile Dealers Association, Automotive News Data Center Otay Water District Page 11 of 50 Construction Industry The residential construction industry overall experienced improvement in the last year. Residential permit activity continues to experience strong year-over-year growth. Total permits issued in 2012 were 33% above the previous year with activity in 2013 increasing another 19%. Total permits continued to increase in 2014 albeit at a slower rate (6%), while 2015 experienced an increase of 12%. The pace slowed dramatically in 2016 with a total increase of 1%. Multifamily permits fell 9% in 2016. We expect that the demand for single-family housing will remain strong, as indicated by continually increasing sale prices. In the multifamily sector, we anticipate slow growth, if any. Year Total Single-Family Multi-Family 2000 1,592,267 1,198,067 394,200 2001 1,636,676 1,235,550 401,126 2002 1,747,678 1,332,620 415,058 2003 1,889,214 1,460,887 428,327 2004 2,070,000 1,613,400 456,600 2005 2,155,300 1,682,000 473,300 2006 1,838,900 1,378,200 460,700 2007 1,398,500 979,900 418,600 2008 905,400 575,600 329,800 2009 582,900 441,100 141,800 2010 604,600 447,300 157,300 2011 624,100 418,500 205,600 2012 829,700 518,700 311,000 2013 990,900 620,800 370,100 2014 1,052,200 640,300 411,900 2015 1,182,605 695,998 486,607 2016 1,190,167 745,525 444,642 Peak to Trough -73.0%-73.8%-70.0% Trough to Current 104.2%69.0%213.6% Source: United States Census Bureau Residential Building Permits United States 2000 - 2016 Otay Water District Page 12 of 50 Note, however, that apartment construction has a far lower economic multiplier than “for-sale” housing. The primary reasons are that apartment units are generally substantially smaller than “for- sale” units and therefore have far fewer dollars expended for labor and materials and secondarily, renters rarely expend funds on such items as landscaping, pools, interior furnishings and amenity upgrades. Summary: While the labor market has recovered significantly and employment has returned to pre-recession levels, there is still debate regarding the health of the U.S. economy. Although the major effects of the recession are in our past, the economy still faces a variety of significant challenges. Weakening infrastructure, wage stagnation, rising pension and medical costs, as well as government budget deficits, are all issues that continue to inhibit the US economy. Otay Water District Page 13 of 50 SECTION 3: SAN DIEGO COUNTY’S ECONOMY Since the recovery, all metropolitan areas have not shared equally in economic gains. Most metropolitan areas, particularly in the midwest and northeast, will likely continue to stagnate. For this report, we analyzed the job gains/losses for the 38 largest metropolitan areas in the Nation for the past year. In terms of percentage gains, San Diego County was ranked No. 19 (down from #15 in 2015) in terms of percent change in payroll employment, adding 2.0% over the past year. Metropolitan Area State Rank 2015 2016 Change % Change Orlando-Kissimmee-Sanford Florida 1 1,191 1,241 50 4.2% Seattle-Tacoma-Bellevue Washington 2 1,922 1,987 65 3.4% San Jose-Sunnyvale-Santa Clara California 3 1,069 1,105 36 3.4% Dallas-Fort Worth-Arlington Texas 4 3,484 3,597 114 3.3% Denver-Aurora-Lakewood Colorado 5 1,416 1,460 45 3.2% Sacramento--Roseville--Arden-Arcade California 6 929 959 29 3.2% Riverside-San Bernardino-Ontario California 7 1,390 1,431 41 2.9% Atlanta-Sandy Springs-Roswell Georgia 8 2,644 2,715 71 2.7% Las Vegas-Henderson-Paradise Nevada 9 928 953 25 2.7% Nashville-Davidson--Murfreesboro--Franklin Tennessee 10 940 965 24 2.6% St. Louis(2)Missouri 11 1,359 1,392 34 2.5% Miami-Fort Lauderdale-West Palm Beach Florida 12 2,573 2,634 61 2.4% Tampa-St. Petersburg-Clearwater Florida 13 1,282 1,311 28 2.2% Portland-Vancouver-Hillsboro Oregon 14 1,135 1,160 25 2.2% San Antonio-New Braunfels Texas 15 995 1,017 22 2.2% Washington-Arlington-Alexandria District of Columbia 16 3,222 3,289 67 2.1% Boston-Cambridge-Nashua Massachusetts 17 2,681 2,734 53 2.0% San Francisco-Oakland-Hayward California 18 2,313 2,360 47 2.0% San Diego-Carlsbad California 19 1,412 1,441 29 2.0% Cincinnati Ohio 20 1,072 1,094 22 2.0% *Excludes MSA's with annual employment of less than 750,000 Source: Bureau of Labor Statistics Top Twenty United States Metropolitan Areas By Percentage Change in Employment December 2015 - December 2016 Employment 2015-2016 Otay Water District Page 14 of 50 San Diego County Employment Gains The unemployment rate has subsided in San Diego County, after reaching 11.1% in July 2010. The most recent figures indicate an unemployment rate of approximately 4.2%. The unemployment rate reported by the Bureau of Labor Statistics is a civilian unemployment rate and excludes the persons in uniform. As military (in uniform) employment is 110,000 in this County, that total should be added to the employment base for analytical purposes. Thus, the actual unemployment rate in the County is significantly less than the reported figure. This past year, San Diego County gained 28,900 payroll jobs. Payroll jobs are those that receive a W-2. It does not include self-employed persons or the military. Military (in uniform) employment in the County has been stable over the past year at 110,000. Annual job growth in San Diego County was strongest in the Financial Activities sector followed closely by the Health Care & Social Assistance and the Leisure & Hospitaility sectors. Manufacturing jobs declined 1.5% in 2016 with construction jobs increasing at a paltry 0.6%. This follows four years of strong construction job growth. -4.0%-2.0%0.0%2.0%4.0%6.0%8.0%10.0% Health Care & Social Assistance Leisure & Hospitality Professional & Business Services Financial Activities Retail Trade Service Providing Manufacturing Construction San Diego County Annual Job Growth 2011 -2016 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Source: State of California Employment Development Department Otay Water District Page 15 of 50 In the public sector, Local, State and Federal government employment all experienced at least 2% growth, the first time all three compenents of government employment increase at least 2% since 2005-2006. -3.0%-2.0%-1.0%0.0%1.0%2.0%3.0%4.0%5.0% Federal (excluding DOD) State Local San Diego County Annual Government Job Growth 2010 -2016 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Source: State of California Employment Development Department Otay Water District Page 16 of 50 Sales Tax Revenue Change Tracking sales tax revenues is a traditional way of looking at economic health. In 2016 California sales taxes were up 2.4% while San Diego’s sales tax revenue increased 3.0%. Quarter 2015 2016 % Change 2015 2016 % Change 1st $1,477,841,261 $1,525,326,173 3.2%$127,249,819 $129,801,657 2.0% 2nd $1,625,356,954 $1,648,017,988 1.4%$138,471,040 $142,779,098 3.1% 3rd $1,622,041,372 $1,656,836,905 2.1%$139,541,812 $142,494,302 2.1% 4th $1,704,366,234 $1,755,857,382 3.0%$143,717,482 $150,328,812 4.6% Total $6,429,605,821 $6,586,038,448 2.4%$548,980,153 $565,403,869 3.0% Annual Change 2015-2016 $156,432,627 $16,423,716 % Change 2.4%3.0% Source: The London Group Realty Advisors, HdL Sales Tax Point of Sale California San Diego Co. San Diego County & State of California Otay Water District Page 17 of 50 Population Change The San Diego County population continues to grow at a pace of approximately 30,000 persons annually, some 86% of which is the result of natural household formation (more births than deaths). In the past few years, relatively little of the County’s population growth was the result of people moving to San Diego, but that will change as the economy continues to add jobs at its current pace. Note that Chula Vista’s population gain has far outstripped that of both the County and the State. Area 2000 2016 #%Annual Avg. Chula Vista 173,543 265,070 91,527 52.7%5,720 SD County 2,828,374 3,300,891 472,517 16.7%29,532 California 34,000,835 39,354,432 5,353,597 15.7%334,600 Population Change Chula Vista, San Diego County and California 2000 - 2016 Change 2000-2016 Source: California Department of Finance Otay Water District Page 18 of 50 SANDAG projects that in the 2020 to 2050 timeframe, the County population gain will average approximately 21,000 persons annually. It also projects that the average household added in that 30-year period will have 2.6 persons, resulting in an annual demand for approximately 8,000 new housing units. San Diego County Population Housing Units Pop/Hsg Units 2020 3,435,713 1,249,684 2.7 2030 3,741,666 1,348,802 2.8 2040 3,937,281 1,434,653 2.7 2050 4,068,759 1,491,935 2.7 Total Change 633,046 242,251 2.6 Annual Average Change 21,102 8,075 2.6 Source: The London Group Realty Advisors, SANDAG Series 13 San Diego County 2020 - 2050 Population And Housing Projections Otay Water District Page 19 of 50 Since 2000, the County added 141,149 housing units to the region. Approximately 44% of the growth was condominiums and apartments. We expect that ratio will change substantially in the coming years, following the SANDAG projection of 67% multifamily for the 2012 to 2020 period. The modest increase in apartments and, concurrently, the significant increase in condominiums, is the result of the substantial number of condominium conversions in the 2003 to 2006 period. We anticipate that Countywide persons per household will average 2.0 persons per rental household and 3.0 per condominium household. We are unable to project the ratio between condominiums and rental properties as they will change over time as condominiums become the dominant for-sale product. In the next few years, it is likely that most of the condominiums built in the OWD service area will be low-density townhomes and multi-plexes that will attract the family market. The vertical condominium product, which dominates the downtown San Diego and Mission Valley areas, are most likely not going to be a major component of the OWD service area during the next six years. As South County has become largely Hispanic, it is also important to note that the Hispanic birth rate has been declining in the County for the past 20 years – a trend we anticipate will continue in the future, and contributes to our long-term projections for fewer persons per household. Additionally, the median and average household income is greater in the OWD service area than in the County as a whole. This is the result of the correlation between the home prices and income ratios. Property Type 2000 2016 Single Family 494,486 564,771 4,393 70,285 14.2% Condominium 137,087 183,976 2,931 46,889 34.2% Apartment 327,229 342,662 965 15,433 4.7% Mobile Home 15,703 24,245 534 8,542 54.4% Total 974,505 1,115,654 8,822 141,149 14.5% Source: San Diego County Assessor Comparison of Housing Inventory San Diego County 2000 - 2016 Annual Change Total Change % Change Otay Water District Page 20 of 50 S.D. County OWD 1990 - 2000 Growth 12.6%44.2% 2000 - 2010 Growth 10.0%49.6% 2010 - 2017 Growth 8.2%13.8% Persons / Household 2.76 3.32 Non-Hispanic White 27.8%8.5% Hispanic 33.9%44.6% Asian 11.9%17.2% Other 14.3%15.2% Median Age 36.1 36.0 % > 4 Yr Degree 35.8%34.6% Average Household Income $96,930 $107,876 Median Household Income $69,508 $89,837 Source: The London Gourp Realty Advisors, Neilsen San Diego County & Otay Water District Demographic Overview Otay Water District Page 21 of 50 Residential Construction – Historic During the 2004 to 2009 timeframe, residential permits averaged 9,137 annually. In the six years since then, the total units permitted averaged 7,174 annually. Overall, in the past 13 years, the average units permitted have been 8,080. This 13-year average is nearly 80,000 units below the 185,000 units (see Population Changes) that SANDAG projects for the County in the 2020 to 2040 period. In the 2004 to 2010 timeframe, most of the units permitted were for-sale housing, with relatively few in the rental sector. However, in recent years the apartment sector is comprising the majority of multifamily permits. Year SF MF Total 2004 9,122 6,465 15,587 2005 7,576 6,730 14,306 2006 4,743 4,448 9,191 2007 3,422 4,013 7,435 2008 2,361 2,996 5,357 2009 1,778 1,168 2,946 2010 2,270 1,224 3,494 2011 2,245 3,125 5,370 2012 2,197 3,469 5,666 2013 2,565 5,699 8,264 2014 2,487 4,388 6,875 2015 3,222 6,661 9,883 2016 2,341 8,328 10,669 Avg. 2004 - 2015 3,564 4,516 8,080 Change 2004 - 2010 -75.1%-81.1%-77.6% 2010 - 2016 3.1%580.4%205.4% Source: The London Group Realty Advisors, Real Estate Center at Texas A&M Residential Building Permits San Diego County 2004 - 2016 Otay Water District Page 22 of 50 Residential Construction – Projected San Diego County In this section, we project single family and multifamily housing production in San Diego County for fiscal years (“FY”) 2016-2023. The OWD’s fiscal year is July 1 through June 30. Permit statistics for 2004 to 2016 are shown in calendar years. Residential Construction Projection FY 2016-2023 Based on our knowledge of forthcoming projects, we have prepared projections for San Diego County for FY 2016-2023. The projection anticipates that Countywide single family production will remain at near current levels through FY 2016-2018 with routine increases in the FY 2018-2023 period. During the next six years, approximately two-thirds of all units permitted will be multifamily, most of them rental apartments. Downtown San Diego will account for several thousand units in the next six years, mostly rentals. We anticipate that condominium production downtown will heighten again in the 2017 to 2023 timeframe. It is important to note that these projections are for permits, not completions. We hesitate to project completions because in the multifamily sector completions have varying construction periods depending on product type. The projections are based on numerous factors, including the economic growth experience following recent recessions, our knowledge of the timing of land being processed for new development, the development capabilities of the residential development community, potential for attracting financing and the time required to gain project approvals in the County. Otay Water District Page 23 of 50 Calendar Year SF MF (1)Total 2004 9,122 6,465 15,587 2005 7,576 6,730 14,306 2006 4,743 4,448 9,191 2007 3,422 4,013 7,435 2008 2,361 2,996 5,357 2009 1,778 1,168 2,946 2010 2,270 1,224 3,494 2011 2,245 3,125 5,370 2012 2,197 3,469 5,666 2013 2,565 5,699 8,264 2014 2,487 4,388 6,875 2015 3,222 6,661 9,883 2016 2,341 8,328 10,669 Projections in fiscal years:SF MF (1)Total 2016-2017 3,000 7,000 10,000 2017-2018 3,000 7,000 10,000 2018-2019 3,500 7,300 10,800 2019-2020 3,500 7,300 10,800 2020-2021 3,700 7,300 11,000 2021-2022 3,700 7,500 11,200 2022-2023 3,700 7,500 11,200 Avg. CY 2004 - 2016 3,564 4,516 8,080 Avg. FY 2016 - 2023 3,443 7,271 10,714 CY 2004 - 2016 Avg. % of Total 44.1%55.9%100.0% FY 2016 - 2023 Avg. % of Total 32.1%67.9%100.0% (1) Both For-Sale and For-Rent Source: The London Group Realty Advisors, Real Estate Center at Texas A&M Projections: Residential Building Permits San Diego County 2004 - 2023 Otay Water District Page 24 of 50 Residential Resale Market The residential resale market in the County experienced a significant amount of distressed activity from 2007 through 2012. The level of distressed activity has diminished greatly since the 2008 peak, bringing it more in line with typical activity. However, the 1,194 foreclosures (trustee sales) in 2016 are significantly above the boom years of 2001 through 2005 when foreclosures averaged less than 700 annually.. 0% 10% 20% 30% 40% 50% 60% 70% 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 San Diego County Trustee Sales 1991 -2016 Notices of Default Trustee Sales Notices To Sale (%) Source: InnoVest Resource Management Otay Water District Page 25 of 50 In the last six months, resale activity countywide has averaged 2,939 sales per month. Prices continue to accelerate including the 12-month period from January 2016 to January 2017. Single family homes have increased 5.6% to a median of $559,500 and condominiums have increased 7.6% in that same timeframe with a current median of $378,750. $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 1,000 2,000 3,000 4,000 5,000 6,000 7,000 We i g h t e d A v e r a g e P r i c e Sa l e s C o u n t San Diego County Resale Market Monthly 1999 -Jan. 2017 Weighted Average Median Price Total Sales Source: San Diego Association of Realtors Otay Water District Page 26 of 50 Commercial Real Estate Construction Commercial construction decreased significantly across all sectors in 2016. Retail construction leads the commercial sector for the second consecutive year despite a 34% decline in permit valuation in 2016. The table that follows displays projections for construction permit volume for the office, retail, industrial and hotel sectors of the commercial real estate industry in San Diego County. $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Office, Retail and Industrial Permit Valuations (In $ Millions) San Diego County 2003 -2016 Office Retail Industrial Source:California Homebuilding Foundation Otay Water District Page 27 of 50 Year Office Retail Industrial Hotel Total CY 2002 $122.5 $138.0 $128.0 $97.2 $485.7 CY 2003 $109.9 $184.2 $131.0 $21.6 $446.7 CY 2004 $236.8 $132.0 $117.1 $40.0 $526.0 CY 2005 $266.6 $131.5 $170.3 $69.2 $637.5 CY 2006 $192.0 $152.5 $153.5 $198.2 $696.2 CY 2007 $320.4 $108.4 $118.4 $43.0 $590.2 CY 2008 $151.0 $111.9 $57.1 $40.8 $360.9 CY 2009 $22.6 $21.2 $25.7 $3.8 $73.2 CY 2010 $21.6 $32.0 $7.9 $14.6 $76.1 CY 2011 $90.3 $40.6 $3.6 $53.0 $187.5 CY 2012 $133.7 $33.3 $22.8 $31.6 $221.3 CY 2013 $169.3 $61.8 $20.8 $42.6 $294.5 CY 2014 $249.3 $201.4 $9.2 $126.2 $586.2 CY 2015 $85.3 $193.2 $77.4 $82.2 $438.0 CY 2016 $51.3 $126.6 $18.4 $95.7 $292.0 FY 2016-2017 $75.0 $125.0 $30.0 $75.0 $305.0 FY 2017-2018 $75.0 $100.0 $30.0 $65.0 $270.0 FY 2018-2019 $100.0 $80.0 $30.0 $60.0 $270.0 FY 2019-2020 $100.0 $80.0 $30.0 $60.0 $270.0 FY 2020-2021 $100.0 $70.0 $30.0 $50.0 $250.0 FY 2021-2022 $100.0 $70.0 $30.0 $50.0 $250.0 FY 2022-2023 $100.0 $70.0 $30.0 $50.0 $250.0 AVERAGE CY 2002-2007 $208.0 $141.1 $136.4 $78.2 $563.7 CY 2013-2016 $138.8 $145.7 $31.4 $86.7 $402.7 FY 2016-2019 $83.3 $101.7 $30.0 $66.7 $281.7 FY 2019-2023 $100.0 $72.5 $30.0 $52.5 $255.0 Source: The London Group Realty Advisors, California Homebuilding Foundation Non-Residential Permit Valuations (Projections) (In $ Millions) San Diego County 2002-2023p Otay Water District Page 28 of 50 SECTION 4: FUTURE OF SOUTH COUNTY In this section, we discuss the future population of South County and the demands for the services of the Otay Water District. Population Changes The boundaries of the Otay Water District do not conform directly with the SANDAG area designations, but SRAs (subregional areas) 20, 22 and 30 include most of the District. Based on SANDAG’s projections, the three SRAs combined will add approximately 94,000 people between 2020 and 2050. It is projecting an average population per household of almost 3.4 persons per household, resulting in a demand for roughly 27,700 housing units, an average of 924 annually in that 30-year period. Area Population Housing Units Pop/Hsg Units Chula Vista/Otay Mesa 2020 354,685 101,632 3.5 2030 416,026 118,515 3.5 2040 440,804 126,782 3.5 2050 448,539 129,362 3.5 Total Change 93,854 27,730 3.4 Annual Average Change 3,128 924 3.4 San Diego County 2020 3,435,713 1,249,684 2.7 2030 3,741,666 1,348,802 2.8 2040 3,937,281 1,434,653 2.7 2050 4,068,759 1,491,935 2.7 Total Change 633,046 242,251 2.6 Annual Average Change 21,102 8,075 2.6 CV/OM as % of SD CO. 2020 10.3%8.1% 2030 11.1%8.8% 2040 11.2%8.8% 2050 11.0%8.7% Source: The London Group Realty Advisors, SANDAG Series 13 Population And Housing Projections Chula Vista/Otay Mesa And San Diego County 2020 - 2050 Otay Water District Page 29 of 50 In the Series 13 SANDAG report, it projects that 67% of new construction in the 2012-2020 period will be multifamily (both condominium and rental) and 33% single family. However, the population per household will likely be substantially less in the multifamily sector than in the single family sector. Most of the multifamily development to date in the OWD service area has been lower density condominiums. Should that trend continue, then the 3.3 ratio would probably continue. Nielsen estimates that within the Otay Water District boundaries, current households contain an average of 3.32 persons. While South County is becoming increasingly Hispanic, it is also important to note that the Hispanic birth rate has been declining in the County for the past 20 years – a trend we anticipate will continue into the future. S.D. County OWD 1990 - 2000 Growth 12.6%44.2% 2000 - 2010 Growth 10.0%49.6% 2010 - 2017 Growth 8.2%13.8% Persons / Household 2.76 3.32 Non-Hispanic White 27.8%8.5% Hispanic 33.9%44.6% Asian 11.9%17.2% Other 14.3%15.2% Median Age 36.1 36.0 % > 4 Yr Degree 35.8%34.6% Average Household Income $96,930 $107,876 Median Household Income $69,508 $89,837 Source: The London Gourp Realty Advisors, Neilsen San Diego County & Otay Water District Demographic Overview Otay Water District Page 30 of 50 Residential Building Permits – Chula Vista Residential building permit activity in Chula Vista reached a peak in 2004 at 3,294 permits. Permit activity bottomed at 275 in 2009. It has only gradually recovered, fostered by a shortage of developable lots and a slow recovery response. It is also important to note that the majority of permits continue to be multifamily units. 2,013 837 796 316 102 150 296 394 304 269 156 89 86 1,281 817 384 264 223 125 221 334 495 361 319 600 964 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Residential Units Permitted City of Chula Vista 2004 -2016 Multifamily Single Family Source: The London Group Realty Advisors, City of Chula Vista Otay Water District Page 31 of 50 Residential Resale Market - South County The South County market had been among the most seriously affected by the distressed sale situation. Home prices in South County fell precipitously after the 2007 peak, bottoming in 2009, and are nearing 2007 peak pricing. Foreclosures have gradually receded and are stable at less than 10 units per month, well below the 2009 peak. We anticipate that distressed sales will maintain this minimal level over the next few years. 0 20 40 60 80 100 120 140 160 180 200 Otay Water District Area Foreclosures Monthly Jan 2006 -Feb 2017 Source: Infosparks Otay Water District Page 32 of 50 The South County resale market remains strong with closings in the 6,000 to 7,000 range since 2008. Average sales prices have increased substantially since bottoming in 2009. Since then, prices have risen more than $310,000 and at the end of 2016 were approximately $708,738, which is only 6% below the 2007 peak. Year # Closings Avg. Sales Price 2005 7,527 $693,476 2006 5,501 $716,132 2007 4,283 $753,418 2008 6,206 $487,876 2009 7,668 $398,174 2010 6,761 $434,590 2011 6,392 $448,495 2012 7,056 $481,564 2013 6,893 $571,068 2014 6,200 $629,632 2015 6,597 $686,183 2016 6,857 $708,738 Source: The London Group Realty Advisors, Sandicor South San Diego County Annual Residential Sales 2005 - 2016 Otay Water District Page 33 of 50 Commercial Property in South County South County is currently experiencing one of the lowest vacancy rates in San Diego County in the office sectors. The retail and industrial sectors are in line with the County average while the office sector is below the County average. Vacancy rates in the retail and office sectors have improved in South County in the past 12 months with an increase in vacant footage in the industrial sector. Property Type Sq.Ft. Vacant Vacancy Rate Sq.Ft. Vacant Vacancy Rate Retail 675,215 3.6%5,112,910 3.8% Office 650,901 6.0%11,369,744 10.0% Industrial 1,926,182 6.2%9,759,615 5.1% Source: The London Group Realty Advisors, CoStar Vacancy Rates Commercial Real Estate San Diego County and South County Year End 2016 South County S D County Otay Water District Page 34 of 50 Commercial Sector Growth- OWD Area In the Otay Water District area, there are 3,939,190 square feet of commercial development in the planning stages and under construction. Industrial space has the most overall future leasable space with an estimated 1,774,032 square feet, of which 123,456 square feet is currently under construction. There are also 840 total hotel rooms in five planned hotel projects with 283 rooms in two projects that are currently under construction. Type Under Construction (S.F.) Planned (S.F.)Total (S.F.) General Retail 0 213,917 213,917 General Retail (Strip Center)0 53,000 53,000 General Retail (Community Center)13,144 0 13,144 General Retail (Neighborhood Center)0 150,997 150,997 Subtotal Retail 13,144 417,914 431,058 Industrial 123,456 1,650,576 1,774,032 Office 0 1,734,100 1,734,100 Total 136,600 3,802,590 3,939,190 Type Under Construction (Rooms) Planned (Rooms) Total (Rooms) Hotels 283 557 840 Source: The London Group Realty Advisors, CoStar Under Construction and Planned Commercial Development Otay Water District Area Otay Water District Page 35 of 50 Delivery expectations for these commercial properties range from completions that are expected this year through 2020. There is a substantial amount of space with an unknown delivery date. It should also be noted that delivery expectations, particularly for industrial space is typically contingent on the identication of a lessee prior to construction. This makes these “build-to-suit” type projects difficult to determine delivery timing, and rather represents a maximum potential. The following table provides a summary of expected delivery followed by a table with details by building. Expected Delivery Year Industrial (S.F.)Office (S.F.)Retail (S.F.)Total (S.F.)Hotels (Rooms) 2017 123,456 0 13,144 136,600 283 2018 356,910 318,000 145,230 820,140 2019 0 712,100 20,000 732,100 2020 0 395,000 26,767 421,767 152 2018-2021 185,000 0 0 185,000 200 2030 0 0 0 0 Unknown 1,108,666 309,000 225,917 1,643,583 205 Total 1,774,032 1,734,100 431,058 3,939,190 840 Source: The London Group Realty Advisors, CoStar Under Construction and Planned Commercial Development Otay Water District Area Otay Water District Page 36 of 50 Type/ Center Under Construction (S.F.) Expected Delivery Planned (S.F.) Expected Delivery General Retail Sunroad Otay Plaza 10,000 n/a Millenia Ave 6,000 2018 1545 Gold Medal Way 15,000 2018 (blank)182,917 n/a General Retail (Community Center) Village Walk at Eastlake 13,144 2017 General Retail (Neighborhood Center) Millenia Town Center 104,230 2018 Millenia Town Center (Phase II)26,767 2020 V3 Town Center 20,000 2019 General Retail (Strip Center) Otay Crossroads 23,500 n/a Plaza Escaya 20,000 2018 Transborder Plaza 9,500 n/a Industrial Britannia Commerce Center 250,230 2018 Britannia Industrial Park 33,855 n/a Brown Field Technology Park 730,127 n/a Frontera Business Park 182,910 2018 IPT Otay Logistics Park 268,454 n/a Siempre Viva Business Pk 79,050 2017 Continental Commerce Center 44,406 2017 V3 Industrial 185,000 2018/21 Office Eastlake Corporate Center 120,000 n/a V3 Office Site 189,000 n/a Think.Discover.Invent. Phase 1 318,000 2018 Think.Discover.Invent. Phase 2 712,100 2019 Think.Discover.Invent. Phase 3 395,000 2020 Total Retail/Industrial/Office 136,600 3,802,590 Hotel Hampton Inn & Homewood Suites Hotel 205 Rooms n/a Ayres Hotel 135 Rooms 2017 Residence Inn 148 Rooms 2017 Courtyard by Marriott 152 Rooms 2020 Village 13 Resort Village 200 Rooms 2030 Total Hotel Rooms 283 Rooms 557 Rooms Source: The London Group Realty Advisors, CoStar Expected Deliveries Commercial Development Otay Water District Area Otay Water District Page 37 of 50 The types of industries targeted, particularly in the office and industrial sectors, is academic, life science, research and development, technology, logistics and warehousing. The Millenia Office campus’ and the industrial uses near Brown Field are the largest developments that intend to target these industries. The Tijuana International Airport Cross Border Terminal, the transformation of the Brown Field airport, the completion of SR-905, and the enlargement of the San Ysidro and Otay Mesa ports of entry position industrial and office uses that will be attractive to international businesses with an emphasis on cross border relationships. The largest impediment to the development of commercial projects in the OWD area is the high cost of development itself. This includes the strict regulations, particularly regarding environmental and habitat mitigation (i.e., CEQA), and the cost of land, the cost of construction and the length and cost of entitlements. Each of these factors increase the total cost of the project and therefore increase rents that must be charged to users. Regardless, this is a very active commercial market with many “build-to-suit” projects that are seeking an end user and little actual supply. Local brokers indicate that a modification or elimination of NAFTA would have a minimal effect on the commercial market. Business in Tijuana would feel the effects more than would be felt on the U.S. side of the border. The exception would be businesses that support Mexican manufacturing, but the commercial space occupied by these types of tenants would likely be quickly filled. Although the San Diego-Tijuana region benefited from the implementation of NAFTA, there were a significant number of jobs, particularly in manufacturing, that moved across the border. If NAFTA were to be eliminated, which we do not anticipate, those manufacturing jobs would be mostly eliminated in Tijuana. Those jobs would likely not return to the South County, instead opting for less expensive space in the Imperial Valley. However, advances in automation are having a more profound effect on manufacturing jobs currently than the threat of NAFTA’s elimination. San Diego is currently thriving on innovation and design in areas that include aerospace, shipbuilding, life sciences, information technology and education and health services. These sectors will likely see an increase in occupied space in the South County in the future. Otay Water District Page 38 of 50 Employment Projections In the SANDAG series 13 report, it estimated a 2012 job base of 69,215 civilian jobs in the Otay Water District area. The same report forecasts civilian jobs in the area to increase 44% (30,615 jobs) by 2030. The distribution of these jobs is detailed in the following chart: Construction jobs are forecast to increase at the highest rate at a 278%. Professional and Business Services is forecast to increase 154% with Finance and Real Estate increasing 138%. Self- employed jobs are expected to increase 44%. Outside of Government jobs, Retail Trade jobs are expected to account for the largest percentage of jobs overall followed by Professional and Buisness Services. -11% 278% 63% 138% 17% 59% 54% 7% 23% 154% 22% 44% 3% 11% -50%0%50%100%150%200%250%300% 0 5,000 10,000 15,000 20,000 25,000 Agriculture and Mining Construction Education and Healthcare Finance and Real Estate Government Information Systems Liesure and Hospitality Manufacturing Office Services Professional and Business Services Retail Trade Self-Employed Transporation, Warehousing, and Utilities Wholesale Trade Otay Water District Employment by Sector 2012 (est.) -2030 (forecast) 2012 2030 The London Group Realty Advisors, SANDAG Otay Water District Page 39 of 50 SECTION 5: OTAY WATER DISTRICT OVERVIEW Housing Unit Projections Upon build-out eastern Chula Vista will have developed more than 55,000 housing units, beginning with projects like Rancho del Rey and Eastlake in the 1980’s. Since then, nearly 31,000 units have been built. Exhibit A in the Appendix details active for-sale development in eastern Chula Vista. Exhibit B in the Appendix details apartments projects that are under construction or in planning. Exhibit C in the Appendix details for-sale developments in the planning stages. Currently, the only new active residential projects under development are found in Village 2 and in Millenia. Another 16,700 units are in active planning, most of which are located in Otay Ranch. To date, 37% of the builtout/nearly completed units are single family. That ratio will change substantially in the years ahead as most of the remaining land is zoned for multifamily development. For those projects in active development and planning, multifamily constitutes approximately 73% of development, as summarized in the following table. Exhibit D in the Appendix provides more detail on current and future development. Based on our analysis of future land supply and consumer demand, we have projected residential construction for San Diego County and the OWD service area. In the fiscal year period between 2016 and 2023, the average annual total residential units are projected to be 1,398. Community Single Family Multi-Family Total % Multi- Family % of Development Built Out 19,603 11,340 30,943 37%55.9% Active Development 1,286 6,401 7,687 83%13.9% In Plannng 5,263 11,470 16,733 69%30.2% Total Residential Development 26,152 29,211 55,363 53%100.0% Built Out 19,603 11,340 30,943 36.6% Active Development & In Planning 6,549 17,871 24,420 73.2% Source: The London Group Realty Advisors Eastern Chula Vista as of March 2017 No. Units Residential Development Progress Otay Water District Page 40 of 50 This past September, the City of Chula Vista released their projections for the next five years for eastern Chula Vista. The average number of residential permits in Chula Vista for that five-year period is 1,430 units compared to our projection of 1,288 units for the same time period. The City of Chula Vista’s projections are highlighted in yellow. FISCAL YEAR 2016- 2017 2017- 2018 2018- 2019 2019- 2020 2020- 2021 2021- 2022 2022- 2023 2016-2023 Avg. TOTAL 2016-2023 OWD SERVICE AREA Single Family 35 275 475 600 875 650 550 494 3,460 Condominiums (1)129 475 500 500 600 600 450 465 3,254 Apartments (including senior)0 175 250 725 825 800 300 439 3,075 TOTAL - OWD 164 925 1,225 1,825 2,300 2,050 1,300 1,398 9,789 Eastern Chula Vista Forecast by City of Chula Vista 2,084 1,572 1,693 1,017 786 n/a n/a n/a n/a SAN DIEGO COUNTY Single Family 3,000 3,000 3,500 3,500 3,700 3,700 3,700 3,340 20,400 Condominiums (1)1,750 1,750 2,190 3,285 3,650 3,750 3,750 2,525 16,375 Apartments (including senior)5,250 5,250 5,110 4,015 3,650 3,750 3,750 4,655 27,025 TOTAL - SD CO.10,000 10,000 10,800 10,800 11,000 11,200 11,200 10,520 63,800 CV/OM AS % OF COUNTY Single Family 1%9%14%17%24%18%15%15%17% Condominiums (1)7%27%23%15%16%16%12%18%20% Apartments (including senior)0%3%5%18%23%21%8%9%11% TOTAL 2%9%11%17%21%18%12%13%15% (1) Townhomes, Garden, Mid-Rise and High-Rise Condominiums (Estimated) Source: The London Group Realty Advisors Projected New Residential Construction (Units Under Construction) Otay Water District Service Area Fiscal Years 2016 - 2023 Otay Water District Page 41 of 50 Housing Units Under Construction & Planned Our projections in the previous section are based on our market research and inventory of projects in the following categories: • Units now under construction • Units in near-term planning • Units in initial planning stages Units Under Construction Units under construction are a combination of single family, condominium and rental units. All of these units will be complete within the next two years. The sales pace of single family and condominium homes are based on the 2016 experience, but could vary depending on sales and delivery schedules. Units in Near-Term Planning In this category are units that are in the latter phases of the planning process. This includes units that have tentative maps and units that are in the advanced planning stages, but do not yet have tentative maps. Units in Initial Planning Stages Units in the initial planning stages are typically in the remaining villages of the Otay Ranch and include Villages 3, 8, 9, 10 and 13. All have a known number of total units, but the timing of the production of lots and improved land is based on the demand of the marketplace. Toward that end, we have projected what we consider a reasonable pace of development for these projects. Most of these villages contain a mix of single family and multifamily land uses, as well as commercial space. A summary of the projected residential production is shown in the previous table. A detailed table follows. Projected Total For Sale and Rental Units Otay Water District Service Area FY 2016 - 2023 Project FY 2016-2017FY 2017-2018FY 2018-2019FY 2019-2020FY 2020-2021FY 2021-2022FY 2022-2023 Total Total Single-Family Units 35 266 477 591 863 656 566 3,454 Total Condominium 129 479 494 500 597 586 442 3,227 Total Rental 0 175 252 723 834 838 300 3,122 Total Units 164 920 1,223 1,814 2,294 2,080 1,308 9,803 % Multi-Family 79%71%61%67%62%68%57%65% Source: The London Group Realty Advisors Otay Water District Page 42 of 50 Projected Residential Unit Deliveries Units under Construction and in Active Planning Otay Water District Service Areas FY 2016 - 2023 Project FY 2016-2017FY 2017-2018FY 2018-2019FY 2019-2020FY 2020-2021FY 2021-2022FY 2022-2023 Total RESIDENTIAL Multi-Family (Rental and Condominiums) Under Construction Rental Apartments Under Construction* Total 0 0 0 0 0 0 0 0 Condominiums Under Construction 129 168 0 0 0 0 0 297 Total Multi-Family Under Construction 129 168 0 0 0 0 0 297 In Planning Rental Apartments In Planning Village 2 -Baldwin & Sons 170 379 330 879 Village 3 North (Home Fed)25 102 100 227 Millenia 150 150 175 200 200 875 Village 8 East (Home Fed)50 51 100 201 Village 8 West (Home Fed)75 100 100 275 Village 9 (Home Fed)100 100 100 300 Freeway Commercial (PA 12)278 30 308 Village 13 Resort Village- (Baldwin & Sons)57 57 Total 0 175 252 723 834 838 300 3,122 Condominiums in Planning Village 2 R-28 21 75 96 Village 2 (Baldwin & Sons)50 100 150 150 75 75 600 Village 3 North (Home Fed)79 100 179 Millenia 150 150 175 200 200 875 Village 8 East (Home Fed)50 51 100 201 Village 8 West (Home Fed)60 60 67 187 Village 9 (Home Fed)100 100 200 Freeway Commercial (PA 12)90 90 75 37 292 Salt Creek Golf Course Resort Condominiums 100 100 100 300 Total 0 311 494 500 597 586 442 2,930 Total Multi-Family in Planning 0 486 746 1,223 1,431 1,424 742 6,052 Total Multi-Family (Under Construction and in Planning)129 654 746 1,223 1,431 1,424 742 6,349 Single Family Single Family Under Construction 35 0 0 0 0 0 0 35 Single Family in Planning Village 2 Cornerstone 40 65 65 57 227 Village 2 Cantemar- Pacific Coast Communities 26 67 93 Village 2 (Baldwin & Sons)14 51 146 120 85 33 449 Village 2 (Home Fed)30 32 62 Village 3 North (Home Fed)150 200 200 200 63 813 Village 8 East (Home Fed)130 131 150 411 Village 8 West (Home Fed)50 50 50 150 Village 9 (Home Fed)50 75 75 200 Village 13 (Baldwin & Sons)78 150 190 190 190 798 Sweetwater Place 22 50 50 122 Fuerte Ranch Estates 12 12 12 36 Bella Lago (Shea)36 16 52 Lyons Valley Road 6 6 Total 0 266 477 591 863 656 566 3,419 Total Single Family 35 266 477 591 863 656 566 3,454 Total Single Family and Multi-Family 164 920 1,223 1,814 2,294 2,080 1,308 9,803 *Does not include under construction projects that have already purchased meters Source: The London Group Realty Advisors, City of Chula Vista Otay Water District Page 43 of 50 Commercial Construction Commercial construction in the Otay Water District area will be modest during the next six years with the Think.Discover.Invent. office complex in Millenia the largest of the known projects. On balance, the Otay Water District will continue to experience modest growth in its for-profit commercial construction sector. Year Office Retail Industrial Hotel Total Average Annual CY 2002-2007 $208.0 $141.1 $136.4 $78.2 $563.7 CY 2013-2016 $138.8 $145.7 $31.4 $86.7 $402.7 FY 2016-2019 $83.3 $101.7 $30.0 $66.7 $281.7 FY 2019-2023 $100.0 $72.5 $30.0 $52.5 $255.0 Average Annual FY 2016-2019 $7.0 $4.0 $1.0 $1.0 $13.0 + 20% Miscellaneous $1.4 $0.8 $0.2 $0.2 $2.6 TOTAL $8.4 $4.8 $1.2 $1.2 $15.6 FY 2019-2023 $7.0 $6.0 $4.0 $5.0 $22.0 + 20% Miscellaneous $1.4 $3.0 $0.8 $1.0 $6.2 TOTAL $8.4 $9.0 $4.8 $6.0 $28.2 OWD as % of SD County FY 2016-2019 10%5%4%2%6% FY 2019-2023 8%12%16%11%11% Note: Publicly funded projects and remodeling excluded Source: The London Group Realty Advisors, California Homebuilding Foundation Otay Water District Service Area Non-Residential Permit Valuations (Historic and Projected) (In $ Millions) Otay Water District and San Diego County 2002 - 2023 p Annual Average ($ Millions) San Diego County Otay Water District Page 44 of 50 APPENDIX Otay Water District Page 45 of 50 Exhibit A Community Style Project Developer Remaining Units sell out FY 2016-2017 sell out FY 2017-2018 sell out FY 2018-2019 Eastlake Vistas - Lake Pointe - ORV2 Townhomes Siena at Lake Pointe Lennar 0 0 0 0 Eastlake Vistas - Lake Pointe - ORV2 Townhomes Palermo at Lake Pointe Lennar 0 0 0 0 Otay Ranch - Baldwin & Sons - ORV2 Townhomes Tosara I & II Pacific Coast 29 10 19 0 Otay Ranch - Baldwin & Sons - ORV2 Townhomes Aviare Sunrise 23 5 18 0 Millenia Townhomes Z at Millenia Shea 106 36 53 17 Millenia Townhomes Trio/Metro/Evo at Millenia Meridian 204 43 100 61 Otay Ranch - Baldwin & Sons - ORV2 Townhomes Parc Place at Otay Ranch Pacific Coast 162 20 60 60 Otay Ranch - Baldwin & Sons - ORV2 Townhomes Lovina Heritage 95 15 50 30 Otay Ranch - Baldwin & Sons - ORV2 Detached Bocara Heritage 0 0 0 0 Otay Ranch - Baldwin & Sons - ORV2 Detached Anacapa Otay Ranch 24 0 24 0 Otay Ranch - Baldwin & Sons - ORV2 Detached Presidio Otay Ranch 12 1 11 0 Millenia Detached Element at Millenia Shea 70 24 46 0 Otay Ranch - Baldwin & Sons - ORV2 Detached Monte Villa Pacific Coast 39 10 29 0 Total Attached 619 129 300 168 Total Detached 145 35 110 0 Total 764 164 410 168 Source: The London Group Realty Advisors Status of New, For-Sale Residential Market Eastern Chula Vista As of March 2017 Otay Water District Page 46 of 50 Exhibit B Project FY 2016-2017 FY 2017-2018 FY 2018-2019 FY 2019-2020 Total Rental Apartments Under Construction Alexan Millenia- Trammel Crow Residential 309*309 Duetta (Affordable)87*87 Volta (Affordable 123*123 Enclave at Otay Ranch 300*300 Total 0 819 0 0 519 Rental Apartments In Planning Enclave at Otay Ranch - Village 2 -Baldwin & Sons - Phase 2 300 300 Otay Ranch - Village 2 -Baldwin & Sons 157 79 92 328 Total - Planning 157 79 392 300 Total Apartments 0 976 79 392 819 *These units have already purchased meters Anticipated Deliveries of Rental Apartments Under Construction and in Planning Otay Water District Service Area as of March 2017 Otay Water District Page 47 of 50 Exhibit C Community & Project Name Development Type Developer Acres Total Residential Units Remaining to be Built Single Family Low Density High Density Commercial Space (Sq.Ft.)Groundbreak 1st Lot Delivery 1st Home Delivery Village 2 n/a Residential Baldwin & Sons/Home Fed 1,049 449 600 FY 2017-2018 FY 2017-2018 Cantemar Single Family Pacific Coast Communities 93 93 FY 2017-2018 FY 2017-2018 R-28 Multi-Family Montecito Village Partners 96 96 FY 2018-2019 n/a Single Family Cornerstone 44 227 227 FY 2017-2018 FY 2017-2018 n/a Single Family Home Fed (Otay Land Co.)62 62 FY 2019-2020 FY 2020-2021 Village 3 North Single Family Home Fed (Otay Land Co.)1,597 1,002 595 20,000 SF commercial FY 2017-2018 FY 2017-2018 FY 2018-2019 Village 8 West Residential & Commercial Home Fed (Otay Land Co.)300 2,050 621 530 899 300,000 SF FY 2020-2021 FY 2020-2021 FY 2020-2021 Village 8 East Residential & Commercial Home Fed (Otay Land Co.)3,560 943 2,617 50,000 SF FY 2020-2021 FY 2020-2021 FY 2020-2021 Village 9 Residential & Commercial Home Fed (Otay Land Co.)4,000 266 1,822 1,912 1,500,000 SF FY 2020-2021 FY 2020-2021 FY 2020-2021 Village 10 Residential Home Fed (Otay Land Co.)96 1,740 695 1,045 FY 2023-2024 FY 2023-2024 FY 2024-2025 Village 13 (in unincorporated co.) - Otay Ranch Resort Village Residential & Resort Baldwin & Sons/JPB (Jim Baldwin)2,869 1,980 1,980 40,000 SF + 200-room hotel FY 2018-2019 FY 2018-2019 FY 2018-2019 Freeway Commercial (Planning Area 12) Residential & Commercial Baldwin & Sons 35 600 600 30,000 SF + 300-room hotel FY 2017-2018 FY 2018-2019 Millenia n/a Multifamily 1,750 1,750 FY 2017-2018 FY 2017-2018 n/a Residential & Commercial 745 745 3.5 mm sq.ft. com'l & hotel FY 2019-2020 Misc. Projects El Dorado Ridge Condominiums The Phair Company 104 104 FY 2022+FY 2022+ Fuerte Ranch Estates Single Family Reynolds Communities 27 36 36 FY 2020-2021 FY 2021-2022 FY 2021-2022 Sweetwater Place Single Family Mastercraft Residential 122 122 FY 2020-2021 FY 2018-2019 Salt Creek Golf Course Resort Condominiums Pacific Hospitality Group 239 400 400 FY 2020-2021 Lyons Valley Road Single Family 6 6 FY 2022-2023 Source: The London Group Realty Advisors For Sale Residential Product in Planning Otay Water District Service Area as of March 2017 Multi-Family Projected Otay Water District Page 48 of 50 Exhibit D Community Single Family Multi-Family Total % Multi-Family Status OTAY RANCH Otay Ranch - Built Out Village 1 1,565 1,225 2,790 44%Built Out Village 1 West 909 0 909 0%Built Out Village 11 1,101 1,187 2,288 52%Built Out Village 5 - McMillin 699 827 1,526 54%Built Out Village 5 - Countryside 944 382 1,326 29%Built Out Village 6 443 1,094 1,537 71%Built Out Village 6 - McMillin 482 212 694 31%Built Out Village 7 804 316 1,120 28%Built Out Total Built Out 6,947 5,243 12,190 43% Otay Ranch - Active Development Village 2 1,216 3,322 4,538 73% Remaining: 748 SFD (19 UC), 2,334 MF (356 UC) Otay Ranch - In Planning Village 3 - North 1,002 595 1,597 37%in planning Village 8 West (Phase 1)331 1,719 2,050 84%in planning Village 8 East 943 2,617 3,560 74%in planning Village 9 105 3,895 4,000 97%in planning Village 10 695 1,045 1,740 60%in planning Village 13 (in unincorporated SD County)1,980 0 1,980 0%in planning Freeway Commercial (Planning Area 12)0 600 600 100%in planning Total in Planning 5,056 10,471 15,527 67% Total Otay Ranch 13,219 19,036 32,255 59% OTHER COMMUNITIES Other Communities - Built Out San Miguel Ranch 889 514 1,403 37%Built Out Rolling Hills Ranch 2,111 343 2,454 14%Built Out Eastlake Woods 661 0 661 0%Built Out Eastlake Vistas 777 1,197 1,974 61%Built Out Bella Lago 140 0 140 0%Built Out Salt Creek 1 166 357 523 68%Built Out Rancho del Rey I 1,328 785 2,113 37%Built Out Terra Nova 529 330 859 38%Built Out Rancho del Rey II 569 0 569 0%Built Out Rancho del Rey III 952 280 1,232 23%Built Out Eastlake Greens 2,106 1,253 3,359 37%Built Out Telegraph Canyon Estates 344 0 344 0%Built Out Sunbow II 1,128 849 1,977 43%Built Out Eastlake Trails 956 189 1,145 17%Built Out Total Built Out 12,656 6,097 18,753 33% Other Communities - Planned Miscellaneous Projects (Chula Vista)49 999 1,048 95% Fuerte Ranch Estates (Mt. Helix)36 0 36 0% Sweetwater Place (Spring Valley)122 0 122 0% Total - Planned 207 999 1,206 83% Other Communities - Active Development Millenia (Eastern Urban Center)70 3,079 3,149 98% Total - Active Development 70 3,079 3,149 98% Total - Other Communities 12,933 10,175 23,108 44% TOTAL RESIDENTIAL DEVELOPMENT % of Development Built Out 19,603 11,340 30,943 37%55.9% Active Development 1,286 6,401 7,687 83%13.9% In Plannng 5,263 11,470 16,733 69%30.2% Total Residential Development 26,152 29,211 55,363 53%100.0% Source: The London Group Realty Advisors Residential Development Progress Eastern Chula Vista as of March 2017 No. Units Otay Water District Page 49 of 50 COMPANY PROFILE REPRESENTATIVE SERVICES Market and Feasibility Studies Development Services Litigation Consulting Financial Structuring Fiscal Impact Workout Projects Asset Disposition Strategic Planning MAI Valuation Government Processing Capital Access Economic Analysis The London Group is a full service real estate investment and development consulting, capital access and publishing firm. We determine the answers to the questions: Should I purchase the property? If so, how much should I pay and what is my potential rate of return? What type of project should I invest in or develop? What type of deal should I structure? To answer these questions we conduct market analysis, feasibility studies, provide financial structuring advice and general economic consulting. Often we 'package' the deal and provide access to capital sources. We also have capabilities in pre-development consulting including asset management and disposition and in providing team coordination, processing and disposition services (packaging and promotion). The Real Estate & Economic Monitor is a newsletter published by The London Group providing market trend analysis and commentary for the serious real estate investor. The principals of the firm, Gary London and Nathan Moeder, bring acknowledged credentials and experience as advisors and analysts to many successful projects and assignments throughout North America. It is available and regularly updated on the World Wide Web at the following address: http://www.londongroup.com/. The London Group also draws upon the experience of professional relationships in the development, legal services, financial placement fields as well as its own staff. Clients who are actively investigating and investing in apartment projects, retail centers and commercial projects have regularly sought our advice and financial analysis capabilities. We have analyzed, packaged and achieved capital for a wide variety of real estate projects including hotels, office buildings, retail shopping centers and residential housing communities. We are generalists with experiences ranging from large scale, master planned communities to urban redevelopment projects, spanning all land uses and most development issues. These engagements have been undertaken throughout North America for a number of different clients including developers, investors, financial institutions, insurance companies, major landholders and public agencies. THE LONDON GROUP REALTY ADVISORS Otay Water District Page 50 of 50 CONTACT INFORMATION This market analysis was prepared by The London Group Realty Advisors and commissioned by the Otay Water District. Research for this project was completed in March 2017. Conclusions and recommendations are strictly those of The London Group Realty Advisors. Users of this information should recognize that assumptions and projections contained in this report will vary from the actual experience in the marketplace. Therefore, The London Group Realty Advisors is not responsible for the actions taken or any limitations, financial or otherwise, of property owners, investors, developers, lenders, public agencies, operators or tenants. This assignment was completed by the staff of The London Group Realty Advisors. Gary London, President, served as project director and provided strategic consultation and recommendations. Robert Martinez, Senior Analyst, conducted analysis and prepared the exhibits in this report. Nathan Moeder provided peer review. For further information or questions contact us at: The London Group Realty Advisors San Diego: 825 10th Ave | San Diego, CA 92101 | (619) 269-4010 Carlsbad: 2792 Gateway Road #104 | Carlsbad, CA 92009 | (619) 269-4012 www.londongroup.com Attachment F