HomeMy WebLinkAbout05-23-18 F&A Committee Packet 1
OTAY WATER DISTRICT
FINANCE AND ADMINISTRATION
COMMITTEE MEETING
and
SPECIAL MEETING OF THE BOARD OF DIRECTORS
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
BOARDROOM
WEDNESDAY
May 23, 2018
12:00 P.M.
This is a District Committee meeting. This meeting is being posted as a special meeting
in order to comply with the Brown Act (Government Code Section §54954.2) in the event that
a quorum of the Board is present. Items will be deliberated, however, no formal board actions
will be taken at this meeting. The committee makes recommendations
to the full board for its consideration and formal action.
AGENDA
1. ROLL CALL
2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU-
RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
DISCUSSION ITEMS
3. ADOPT RESOLUTION NO. 4346 TO CONTINUE WATER AND SEWER AVAILABIL-
ITY CHARGES FOR DISTRICT CUSTOMERS FOR FISCAL YEAR 2018-2019 TO BE
COLLECTED THROUGH PROPERTY TAX BILLS (CAREY) [5 minutes]
4. ADOPT RESOLUTION NO. 4347 TO ESTABLISH THE TAX RATE FOR
IMPROVEMENT DISTRICT NO. 27 AT $0.004 FOR FISCAL YEAR 2018-2019
(ZIOMEK) [5 minutes]
5. ACCEPT AN OFFER FROM THE STATE OF CALIFORNIA DEPARTMENT OF
TRANSPORTATION TO PURCHASE 0.331 ACRES OF LAND, LOCATED ALONG
THE FUTURE ALIGNMENT OF STATE ROUTE 11 IN OTAY MESA, FOR $90,000.00;
AND ENTER INTO A CONSENT TO COMMON USE AGREEMENT WITH GRANT OF
EASEMENT THAT SECURES THE OTAY WATER DISTRICT’S PRIOR PROPERTY
RIGHTS (MARTIN) [5 minutes]
6. RECEIVE AN UPDATE ON THE DISTRICT’S ASSET MANAGEMENT PROGRAM
AND RELATED SUPPORT PRACTICES (SEGURA) [5 minutes]
7. ADJOURNMENT
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BOARD MEMBERS ATTENDING:
Mark Robak, Chair
Mitch Thompson
All items appearing on this agenda, whether or not expressly listed for action, may be delib-
erated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the Dis-
trict’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 par-
ticipate 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 18, 2018 I posted a copy of the foregoing agenda near the regular
meeting place of the Board of Directors of Otay Water District, said time being at least 24
hours in advance of the meeting of the Board of Directors (Government Code Section
§54954.2).
Executed at Spring Valley, California on May 18, 2018.
/s/ Susan Cruz, District Secretary
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: June 6, 2018
SUBMITTED BY:
Andrea Carey,
Customer Service Manager
PROJECT: DIV. NO. All
APPROVED BY:
Joseph R. Beachem, Chief Financial Officer
Mark Watton, General Manager
SUBJECT: Adopt Resolution No. 4346 to Continue Water and Sewer
Availability Charges for District Customers for Fiscal Year
2018-2019 to be Collected through Property Tax Bills
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4346 to continue water and sewer
availability charges for District customers for fiscal year 2018-2019
to be collected through property tax bills.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
That the Board consider the adoption of Resolution No. 4346 to
continue water and sewer availability charges for District customers
for fiscal year 2018-2019 to be collected through property tax bills.
ANALYSIS:
The District levies availability charges each year on property in
both developed and undeveloped areas. State Water Code Section
71630-71637 authorizes the District to access such availability
charges. In order to place these charges on the tax roll, the County
of San Diego requires the District to provide a resolution
2
authorizing the charges. Each year, the District provides a
resolution along with the listing of charges by parcel. Current
legislation provides that any amount up to $10 per parcel (one acre
or less) is for general use and any amount over $10 per parcel ($30
per acre for parcels over one acre) is restricted, to be expended in
and for that Improvement District. The District uses amounts over
$10 per parcel to develop water and sewer systems within the
Improvement Districts where the funds are collected. In accordance
with legislation, the District places amounts up to $10 per parcel in
the General Fund.
FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer
The availability charges, as budgeted, will generate approximately
$1.2 million in revenue.
STRATEGIC GOAL:
This revenue source will help the District meet its fiscal
responsibility to its ratepayers.
LEGAL IMPACT:
None.
Attachments:
A) Committee Action
B) Resolution No. 4346
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Resolution No. 4346 to Continue Water and Sewer
Availability Charges for District Customers for Fiscal Year
2018-2019 to be Collected through Property Tax Bills
COMMITTEE ACTION:
That the Finance, Administration and Communications Committee
recommend that the Board adopt Resolution No. 4346 to continue water
and sewer availability charges for District customers for fiscal year
2018-2019 to be collected through property tax bills.
NOTE:
The “Committee Action” is written in anticipation of the Committee
moving the item forward for board approval. This report will be sent
to the Board as a committee approved item, or modified to reflect any
discussion or changes as directed from the committee prior to
presentation to the full board.
1
RESOLUTION NO. 4346
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
OTAY WATER DISTRICT CONTINUING PREVIOUSLY
ESTABLISHED WATER AND SEWER AVAILABILITY
CHARGES FOR FISCAL YEAR 2018-2019; REQUESTING
THE COUNTY TO COLLECT SUCH AVAILABILITY CHARGES
ON THE 2018-2019 SECURED TAX ROLL AND TAKING
OTHER RELATED ACTIONS
WHEREAS, the Otay Water District (herein "District") is a
member of the San Diego County Water Authority and the Metropolitan
Water District of Southern California and, as a member, the
District is entitled to purchase water for distribution within the
District and water so purchased is available to property in the
District that is also within the San Diego County Water Authority
and the Metropolitan Water District of Southern California, without
further need for annexation to any agency; and
WHEREAS, Improvement District No. 18 has been formed within
the Otay Water District (herein "District") and sanitary sewers
have been constructed and sewer service is available to land within
the said District; and
WHEREAS, in consideration of the benefit that water
availability confers upon property within the District, and in
further consideration of the need for revenue to pay the cost of
water storage and transmission facilities which directly and
specifically benefit property within the District, the District has
previously determined that water availability charges be fixed and
established under applicable provisions of law; and
WHEREAS, in consideration of the benefit which sewer
availability confers upon property within Improvement District No.
18, and in further consideration of the need to pay the cost of
Attachment B
2
sanitary sewers which directly and specifically benefit those
properties, the District has previously determined that sewer
availability charges be fixed and established for Improvement
District No. 18 as provided under applicable provisions of law; and
WHEREAS, the District desires to continue the collection of
such water and sewer availability charges without increases or
revisions in methodology or application.
NOW, THEREFORE, the Board of Directors of the Otay Water
District resolves, determines and orders as follows:
1. SCHEDULE OF WATER CHARGES
(A) The water availability charges previously fixed and
established are hereby continued for Fiscal Year 2018-2019 at the
existing rates, as follows:
(1) In Improvement District No. 22 the charge shall be
$30.00 per acre of land and $10.00 per parcel of land
less than one acre.
(2) For land located outside an improvement district and
within one mile of a District water line, the charge
shall be $10.00 per acre of land and $10.00 for each
parcel less than one acre.
(3) For land located outside an improvement district and
greater than one mile from District facilities, the
charge shall be $3.00 per acre of land and $3.00 for
each parcel less than one acre.
(B) Modifications The charges provided for in subparagraphs
(1) through (3) in (A) above shall be modified upon petition by the
3
property owner where the property does not receive water from the
District as follows:
(1) where a parcel of land or a portion thereof is within
an open space easement approved by San Diego County,
the charge for such parcel or portion thereof shall
be fifty percent (50%) of the charge determined
pursuant to paragraph (A), provided the owner files
with the District proof, satisfactory to the
District, that said parcel of land or portion thereof
is within such a designated permanent open space
area;
(2) where a parcel of land or portion thereof is in an
agricultural reserve under a Land Conservation
Contract with the County of San Diego, pursuant to
the Land Conservation Act of 1965 as amended, the
charge for such parcel shall be $3.00 per acre,
provided the owner files with the District proof,
satisfactory to the District, that said parcel of
land or portion thereof is within such an
agricultural preserve;
(3) where a parcel of land or a portion thereof is within
an area designated as a floodplain by the County of
San Diego, the charge for such a parcel or portion
thereof shall be $3.00 per acre, provided the owner
files with the District proof, satisfactory to the
District, that said parcel of land or portion thereof
is within such designated floodplain; and
4
(4) where a parcel of land or portion thereof exceeds a
30% slope, and where such is not within a legal
subdivision, lot-split or planned residential
development, the charge for the slope portion shall
be $3.00 per acre, or if such a parcel is less than
one acre and more than one-half of the area exceeds
30% slope, $3.00 for the parcel, provided the owner
files with the District proof, satisfactory to the
District, that said parcel of land or portion thereof
meets or exceeds the slope.
(C) Exceptions The charges provided for in (A) and (B) above
shall not apply, upon petition by the property owner, to the
following:
(1) land located within an area designated as a floodway
by the County of San Diego;
(2) land designated as a vernal pool area by a govern-
mental agency authorized to make such a designation
and which designation prohibits use of such area for
any purpose;
(3) land owned by non-profit, tax-exempt conservation
organizations specializing in identifying and
protecting the natural habitat of rare species; or
(4) land that is located within the boundaries of the
Otay Water District but not within the boundaries of
the Metropolitan Water District of Southern
California and the San Diego County Water Authority.
5
2. SCHEDULE OF SEWER CHARGES
(A) Sewer standby assessment or availability charges are
hereby fixed and established for Fiscal Year 2018-2019 as follows:
(1) In Improvement District No. 18 the charges shall be
$30.00 per acre of land and $10.00 per parcel of land
less than one acre. The preceding charges shall not
apply, upon petition by the property owner, to the
following:
(a) any portion of a parcel which is undeveloped
and maintained in its natural state within an
Open Space Area as a requirement under the San
Diego County General Plan, provided the owner
of such parcel files proof, satisfactory to the
District, of such designed Open Space Area;
(b) any portion of a parcel located within an area
designated by the County of San Diego as a
floodway or floodplain; or
(c) any portion of a parcel of land which exceeds a
slope of 30% and which is not within a legal
subdivision, lot split or planned lot split or
planned residential development.
3. DEFERRALS
(A) Deferral of Charge, Purpose Situations may arise when an
owner of a parcel of land does not use and has no present intention
of using water and/or sewer provided by the District on a parcel of
land, as defined in Section 4. The purpose of this section is to
permit an evaluation by the District, on a case-by-case basis, of
6
the circumstances which pertain to such situations to determine
whether a deferral of charges should be approved according to the
terms and conditions herein provided.
Any owner of a parcel of land who believes that the amount of
the water and/or sewer availability charges fixed against such
parcel should be deferred may file an application with the District
for deferral of the charge, as follows:
(a) Application The application shall include a
statement describing the circumstances and factual
elements which support the request for deferral.
(b) The General Manager shall consider the request
within sixty (60) days after the filing of a
completed application. If the application for
deferral meets the established criteria, the General
Manager may decide whether to approve the request
and order the charge deferred accordingly. If the
request is denied, the applicant shall be notified
in writing stating the reasons for the denial.
(B) Appeal to Board of Directors If the General Manager
denies a request, the owner may file an appeal with the Board of
Directors within sixty (60) days after such denial. No new
application for deferral need be considered by the General Manager
until expiration of twelve (12) months from the date of a denial,
unless differently directed by the Board of Directors.
(C) Deferred Charges on Restricted Parcels, Criteria The
levy of the charge may be deferred annually as to any parcel of
land which meets each of the following criteria:
7
(a) The owner of such parcel makes a timely application
requesting deferral of the charge.
(b) The parcel, which is the subject of the request,
will become subject to enforceable restrictions
which prohibits the connection to the District sewer
system or use of water on the parcel, except by
means of natural precipitation or runoff; provided,
however, if considered appropriate by the General
Manager, local water may be used for limited
domestic stock watering and irrigation uses.
(c) The owner executed a recordable agreement which
includes provisions that:
(1) set forth the enforceable restrictions
pertinent to the subject parcel;
(2) the agreement may be terminated upon written
request by the owner and payment of all
deferred water and/or sewer availability
charges, plus interest thereon, compounded
annually, and accruing at the legal rate from
the date such charges would have been otherwise
due and payable;
(3) no water and/or sewer service from the District
shall be provided to such parcel for a period
of ten (10) years after the total amount due
for the charges deferred, plus annually
compounded interest, is paid in full to the
District, unless a surcharge penalty as
8
described below is paid to the District prior
to connection of any water and/or sewer
service;
(4) if the surcharge is not paid, during the ten
(10) year period, while water and/or sewer
service is not available to the subject land,
the owner shall pay all annual water or
availability charges as fixed; and
(5) contains such other provisions considered by
the General Manager to be appropriate.
(D) Surcharge Upon termination of the deferral
agreement, an owner may elect to receive water and/or sewer
service prior to the expiration of the ten (10) year penalty
period upon payment of a surcharge. The surcharge shall be
equal to the amount of the annual water and/or sewer
availability charges fixed for the parcel(s) of land in the
year of election to receive water and/or sewer service
multiplied by the number of years remaining of the ten (10)
year penalty period. This surcharge shall also apply if a
property owner develops a parcel that is subject to a deferral
agreement without termination of said agreement.
(E) Enforcement Procedures In order to insure that
terms and conditions of the recordable agreement are being
met, the General Manager shall:
(1) Maintain a record of all parcels approved for
deferral of the water assessments or availability
charges.
9
(2) Report to the Board of Directors any instances where
the terms of the agreement are being violated.
(3) Take such other actions or procedures considered
appropriate.
4. DEFINITION OF PARCEL The term "parcel" as used herein shall
mean a parcel of land as shown on the assessment rolls of the
County Assessor of San Diego County as of March, 2018.
5. NOTICE AND REQUEST TO THE BOARD OF SUPERVISORS AND AUDITOR As
provided in Sections 71634 to 71637, on or before the third Monday
in August, 2018, the Secretary of this District shall furnish, in
writing to the Board of Supervisors of San Diego County and to the
County Auditor, a description of the land within the District upon
which availability charges are to be levied and collected for
Fiscal Year 2018-2019 together with the amount of the assessments
or charges. At the time and in the manner required by law for the
levying of taxes for county purposes, the Board of Supervisors of
San Diego County shall levy, in addition to taxes it levies, water
and/or sewer availability charges in the amounts fixed by this
Resolution for the respective parcels of land described in Section
1 of this Resolution. All County officers charged with the duty of
collecting taxes shall collect the charges with the regular
property tax payments in the same form and manner as County taxes
are collected. Such availability charges are a lien on the property
with respect to which they are fixed. Collection of the charges
may be enforced by the same means as provided for the enforcement
of liens for state and county taxes.
10
6. CERTIFICATION TO COUNTY BOARD OF SUPERVISORS The District
certifies that this Resolution complies with the provisions of
Article XIIID of the California Constitution in that the
availability charges are existing charges first set by the Board of
Directors of the District prior to November 6, 1996. At the time
the availability charges were initially established, the District
followed the applicable provisions of law then in effect, and the
District has continued to comply with such provisions, including
any requirements for notices or hearings, as from time to time in
effect. Therefore, pursuant to Section 71632 and Section 71638 of
the California Water Code, as currently in effect, the District may
continue the availability charges in successive years at the same
rate. The District further certifies that the charge is not
increased hereby and the methodology for the rate is the same as in
previous years. The charge is imposed exclusively to finance the
capital costs, maintenance and operating expenses of the water or
sewer system of the District, as applicable.
7. CERTIFIED COPIES The Secretary of this District shall deliver
certified copies of this Resolution to the Board of Supervisors and
to the Auditor of San Diego County with the list of charges
described in Section 4 above.
8. CORRECTIONS; OTHER ACTIONS The General Manager of the
District is hereby authorized to correct any clerical error made in
any assessment or charge pursuant to this Resolution and to make an
appropriate adjustment in any assessment or charge made in error.
Furthermore, the General Manager and the Secretary of this District
are hereby directed to take any further actions and deliver such
11
documents and certificates as necessary to carry out the purpose of
this Resolution.
PASSED, APPROVED AND ADOPTED by the Board of Directors of the
Otay Water District at a regular meeting duly held this 6th day of
June, 2018.
Ayes:
Noes:
Abstain:
Absent:
President
ATTEST:
Secretary
12
I HEREBY CERTIFY that the foregoing Resolution No. 4346 was duly
adopted by the BOARD OF DIRECTORS of the OTAY WATER DISTRICT at a
regular meeting thereof held on the 6th day of June, 2018 by the
following vote:
Ayes:
Noes:
Abstain:
Absent:
District Secretary
STAFF REPORT
TYPE MEETING: Regular Board MEETING
DATE:
June 6, 2018
SUBMITTED BY:
Jeanette Ziomek,
Senior Accountant
Kevin Koeppen, Assistant
Finance Chief
PROJECT: DIV. NO. All
APPROVED BY:
Joseph R. Beachem, Chief Financial Officer
Mark Watton, General Manager
SUBJECT: Adopt Resolution No. 4347 to Establish the Tax Rate for
Improvement District No. 27 (ID 27) for Fiscal Year
2018-2019
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4347 to establish the tax rate
for Improvement District No. 27 (ID 27) at $0.004 for fiscal year
2018-2019.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
Improvement District No. 27 (ID 27) has outstanding general
obligation bonds which mature in fiscal year 2023 and is the only
improvement district with general obligation debt service. As of
July 1, 2019, the outstanding debt will be $3.4 million with interest
rates from 3% to 4%. The bonds are non-callable.
At the beginning of each fiscal year staff must provide the County of
San Diego, Property Tax Services, with the tax rate to be charged
upon all property within ID 27 to ensure the amount of tax
2
collections will support the annual debt service requirement. Staff
recommends that the Board adopt Resolution No. 4347 to establish
the tax rate for ID 27 at $0.004 for fiscal year 2018-2019.
BACKGROUND:
In December 1992, the District sold $11,500,000 of general obligation
bonds in ID 27 for the construction of the 30mg reservoir. At the
time of the formation of ID 27, the District intended to have a
maximum tax rate of $0.10 per $100 of assessed valuation. The tax
rate has remained well below the intended maximum rate.
The District refinanced the bonds in fiscal year 1998 and again in
fiscal year 2010 which resulted in a reduction in the annual debt
schedule. Property valuations peaked in fiscal year 2008 at $12.5
billion, dropped below $10 billion in fiscal year 2011, and is now
valued at more than $11 billion. The combination of the reduced debt
service requirement and the increased assessed values resulted in the
District’s reserve levels exceeding the target.
From fiscal year 2009 to fiscal year 2015, the tax rate was $0.005
and from fiscal year 2016 to fiscal year 2018, the tax rate was
$0.004. During all of these years the District has covered any tax
collection shortfalls from the ID 27 reserves.
For fiscal year 2018-2019, staff proposes to maintain the tax rate at
$0.004 and continue to cover the tax collection shortfall from the ID
27 reserves. Staff projects that a $0.004 tax rate will wind down
reserve levels until the expiration of the debt. Upon expiration of
the debt the reserve will be fully depleted.
FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer
The tax proceeds are legally restricted for the sole purpose of the
repayment of this debt. These proceeds will be collected until the
debt obligation is fully paid, at which time the fund will have a
zero balance. The $0.004 tax rate is projected to generate $653,776
in revenue in fiscal year 2019. The projected revenue, given the
recommended tax rate combined with the current fund balance, will
meet the annual ID 27 debt service payment of $749,433.
3
STRATEGIC GOAL:
Through well-established financial policies and wise management of
funds, the District will continue to guarantee fiscal responsibility
to its ratepayers and the community at large.
LEGAL IMPACT:
None.
Attachments:
A) Committee Action
B) Resolution No. 4347
C) ID 27 Tables
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Resolution No. 4347 to Establish the Tax Rate for
Improvement District No. 27 (ID 27) for Fiscal Year
2018-2019
COMMITTEE ACTION:
That the Finance, Administration and Communications Committee
recommend that the Board adopt Resolution No. 4347 to establish
the tax rate for Improvement District No. 27 (ID 27) at $0.004
for fiscal year 2018-2019.
NOTE:
The “Committee Action” is written in anticipation of the Committee
moving the item forward for board approval. This report will be sent
to the Board as a committee approved item, or modified to reflect any
discussion or changes as directed from the committee prior to
presentation to the full board.
1
RESOLUTION NO. 4347
A RESOLUTION OF THE BOARD OF DIRECTORS OF
OTAY WATER DISTRICT FIXING TAX RATES FOR
FISCAL YEAR 2018-2019 FOR PAYMENT OF
PRINCIPAL AND INTEREST ON GENERAL OBLIGATION
BONDS OF IMPROVEMENT DISTRICTS (GF 1600)
WHEREAS, California Water Code Section 72091 authorizes the
Otay Water District, as a municipal water district, to levy an ad
valorem property tax which is equal to the amount required to
make annual payments for principal and interest on general
obligation bonds approved by the voters prior to July 1, 1978.
NOW, THEREFORE, the Board of Directors of the Otay Water
District resolves, determines and orders as follows:
1. Findings. It is necessary that this Board of Directors
cause taxes to be levied in fiscal year 2018-2019 for Improvement
District No. 27 of the Otay Water District to pay the amount of
the principal and interest on the bonded debt of such improvement
district.
2. Amounts to be Raised by Taxes. The amount required to
be raised by taxation during fiscal year 2018-2019 for the
principal and interest on the bonded debt of Improvement District
No. 27 is as follows:
Improvement District No. 27 $653,776
3. Tax Rates. The tax rates per one hundred dollars ($100)
of the full value of all taxable property within said improvement
district necessary to pay the aforesaid amounts of principal and
interest on the bonded debt of said improvement district for
fiscal year 2018-2019 is hereby determined and fixed as follows:
Improvement District No. 27 $0.004
Attachment B
2
4. Certification of Tax Rates. Pursuant to Water Code
Section 72094, this Board of Directors hereby certifies to the
Board of Supervisors and the County Auditor of the County of San
Diego the tax rates hereinbefore fixed, and said County Auditor
shall, pursuant to Section 72095 of said Code, compute and enter
in the County assessment roll the respective sums to be paid as
tax on the property in Improvement District No. 27, using the
rate of levy hereinabove fixed for such improvement district and
the full value as found on the assessment roll for the property
therein, and the Secretary of this Board of Directors is hereby
authorized and directed to transmit certified copies of this
resolution, Attachment B, and made a part hereof, to said Board
of Supervisors and said Auditor.
PASSED AND ADOPTED by the Board of Directors of the Otay
Water District at a regular meeting held this 6th day of June,
2018.
Ayes:
Noes:
Abstain:
Absent:
President
ATTEST:
Secretary
3
I HEREBY CERTIFY that the foregoing Resolution No. 4347 was duly
adopted by the BOARD OF DIRECTORS of the OTAY WATER DISTRICT at a
regular meeting thereof held on the 6th day of June, 2018 by the
following vote:
Ayes:
Noes:
Abstain:
Absent:
District Secretary
ATTACHMENT C
IMPROVEMENT DISTRICT 27
History
1989 Improvement District 27 was formed with $100,000,000 bonding authorized.
1992 District issued $11,500,000 in General Obligation Bonds primarily for the constructionof a 30 million gallon storage reservoir.
1998 District refinanced outstanding debt of $10,900,000.
2009 District refinanced again outstanding debt of $7,780,000.
TAXES DEBT TAX ASSESSED
COLLECTED SERVICE NET RATE VALUATION INC%
FY03 $725,085 $848,600 ($123,515) $0.01500 $3,837,693,353 37%
FY04 $829,036 $848,700 ($19,664) $0.01400 $5,047,625,296 32%
FY05 $994,501 $840,800 $153,701 $0.01200 $6,454,909,846 28%
FY06 $1,081,991 $840,385 $241,606 $0.01000 $8,579,576,581 33%
FY 07 $862,795 $837,936 $24,859 $0.00700 $10,348,663,242 21%
FY 08 $917,168 $835,017 $82,151 $0.00600 $12,518,643,676 21%
FY 09 $747,175 $830,823 ($83,648) $0.00500 $12,308,043,285 -2%
FY 10 $605,405 $934,674 ($329,269) $0.00500 $10,378,404,507 -16%
FY 11 $606,966 $781,144 ($174,178) $0.00500 $10,131,397,697 -2.4%
FY 12 $597,799 $752,976 ($155,177) $0.00500 $9,941,622,812 -1.9%
FY 13 $650,587 $773,863 ($123,276) $0.00500 $9,869,377,173 -0.7%
FY 14 $658,147 $750,088 ($91,940) $0.00500 $10,226,148,004 3.6%
FY 15 $706,025 $748,663 ($42,638) $0.00500 $11,157,255,925 9.1%
FY 16 $612,980 $751,663 ($138,683) $0.00400 $11,904,159,221 6.7%
FY 17 $640,241 $747,969 ($107,728) $0.00400 $12,738,454,702 7.0%
FY 18 $653,467 $744,633 ($91,166) $0.00400 $13,574,290,102 6.6%
FY 19 (1)$653,776 $749,433 ($95,657) $0.00400 $13,845,775,904 2.0%
(1) Due to timing of the report, taxes collected is an estimate.
TAXES DEBT TAX ASSESSEDCOLLECTED SERVICE NET RATE VALUATION INC%
Est Fund Balance 6/30/18 $463,098
FY19 $653,776 $749,433 ($95,657) $0.00400 $13,845,775,904 2.0%
Interest $1,574
Est Fund Balance 6/30/19 $369,014
Historical Data
Change in Fund Balance
$0
$2
$4
$6
$8
$10
$12
$14
$16
Bi
l
l
i
o
n
s
ASSESSED VALUATION
10 Year History
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: June 6, 2018
SUBMITTED BY:
Dan Martin
Engineering Manager
PROJECT: P2453-
006102
DIV. NO. 2
APPROVED BY:
Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT: Sale of 0.331 Acres of Otay Water District (District) Property
Located Along the Future Alignment of State Route 11 (SR-11)
on Otay Mesa
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
authorize the General Manager to accept an offer from the State of
California Department of Transportation (Caltrans) to purchase 0.331
acres of the land for $90,000.00 (Exhibit B), and enter into a Consent
to Common Use Agreement (Exhibit C) with Grant of Easement that
secures the Otay Water District’s prior property rights (Exhibit D)
(see Exhibit A for location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain approval from the Board to authorize the General Manager to
accept an offer from Caltrans to purchase 0.331 acres of the land for
$90,000.00 and enter into a Consent to Common Use Agreement with Grant
of Easement that secures the Otay Water District’s prior property
rights.
2
ANALYSIS:
The District owns a thirty (30) foot wide parcel (APN 648-070-18-00)
on Otay Mesa that is located within the proposed future alignment of
Alta Road on Otay Mesa and extends southerly to approximately 340 feet
north of the International Border (see Exhibit A). The parcel
supports the District’s 24-inch water distribution main that supplies
emergency water to Mexico.
Caltrans is in the process of moving forward with the development of
SR-11 east of Enrico Fermi Drive to the planned Otay Mesa East Port of
Entry from Mexico. The work by Caltrans includes acquisition of
right-of-way for the SR-11 project. The District has been approached
by Caltrans to acquire a portion of the thirty (30) foot wide parcel
for the SR-11 project. Caltrans has provided the District with an
appraisal for the portion of District property needed for the SR-11
project. The District’s appraisal for the proposed acquisition has
been reconciled with the appraisal performed by Caltrans. The highest
appraisal value is being used for the purchase of the District’s
property. Caltrans will also be completing a State funded relocation
of the District’s facilities as part of the SR-11 project. The sale
of the property by the District to Caltrans will avoid the State’s
legal condemnation process.
In March 2018, the District completed the sale of portions of the
District’s property located immediately north and south of the
proposed Caltrans acquisition. The Otay Crossings Commerce Park
acquired portions of the District’s property for the construction of
Alta Road between Otay Mesa Road and Airway Road. The County of San
Diego conditioned the Otay Crossings Commerce Park to construct Alta
Road, which will be part of the County of San Diego’s public right-of-
way when the development is completed. The District’s prior property
rights were secured as part of the sale of that property.
A Right-of-Way Contract for the Caltrans purchase of the property has
been developed (Exhibit B), which includes the Grant Deed and legal
description. A Consent to Common Use Agreement (Exhibit C) and Grant
of Easement (Exhibit D) have also been developed to secure the
District prior rights. Staff is recommending that these documents be
executed in substantially the same form as shown.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
This land sale will result in a one-time revenue to the District of
$90,000.00.
3
STRATEGIC GOAL:
The expansion of the distribution system through the construction
developer projects supports the District’s Mission statement, “To
provide high value water and wastewater services to the customers of
the Otay Water District, in a professional, effective, and efficient
manner” and the General Manager’s Vision, "A District that is at the
forefront in innovations to provide water services at affordable
rates, with a reputation for outstanding customer service."
LEGAL IMPACT:
None.
DM/RP:jf
P:\Public-s\STAFF REPORTS\2018\BD 06-06-18\BD 06-06-18 Sale of 0.33 Acres of Excess Property along Future
SR-11 Alignment to Caltrans, Staff Report (DM_RP).docx
Attachments: Attachment A – Committee Action
Exhibit A – Location Map
Exhibit B – Right of Way Contract and Grant Deed
Exhibit C – Consent to Common Use Agreement
Exhibit D – Grant of Easement
ATTACHMENT A
SUBJECT/PROJECT:
P2453-006102
Sale of 0.331 Acres of Otay Water District (District)
Property Located Along the Future Alignment of State Route
11 (SR-11) on Otay Mesa
COMMITTEE ACTION:
The Finance, Administration, and Communications Committee (Committee)
reviewed this item at a Committee Meeting held on May 23, 2018. The
Committee supported Staff’s recommendation.
NOTE:
The “Committee Action” is written in anticipation of the Committee
moving the item forward for Board approval. This report will be sent
to the Board as a Committee approved item, or modified to reflect any
discussion or changes as directed from the Committee prior to
presentation to the full Board.
OTAY WATER DISTRICTAPN 648-070-18LOCATION MAP
EXHIBIT A
P2453P:\DRAFTING DEPARTMENT\Info for Others\OWD\Dan Martin\APN 648-070-18\Revised Exhibit A, 05-02-2018, APN 648-070-18.mxd
Otay CrossingsCommerce Park?ÜFUTURE
Otay Water District APN 648-070-18Portion 1
FUTURE
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FUTURE PORTOF ENTRY
ME XICO
U.S.A.
Alta Rd
Otay Mesa Rd
Enrico Fermi Dr
CA-11 E
A v en id a I n t e rn ac i on al O ta y
Airway Rd
Marconi Dr
Donovan State Prison Rd
Paseo de la Fuente
Calzada de la Fuente
Siempre Viva Rd
Via de la Amistad
Access Rd
Kuebler Ranch Rd
VICINITY MAP
PROJECT SITE
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DIV 2
DIV 4
DIV 3
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APN 648-070-18, Portion 1
24 IN WATER PIPELINE
24 IN WATER PIPELINE
16 IN WATER PIPELINE
12 IN WATER PIPELINE
POTABLE WATER PIPELINE
STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION EXHIBIT B
RIGHT OF WAY CONTRACT - STATE HIGHWAY
RW 8-3 (Rev. 6/95)
R/W 34812-1 Otay Municipal Water District Page 1 of 5
, California DISTRICT
COUNTY
ROUTE KILO
POST R/W E.A PID
, 2018 11 SD 11 2.00 056339 1100020520
Otay Municipal Water District
Grantor--
RIGHT OF WAY CONTRACT--STATE HIGHWAY
This RIGHT OF WAY CONTRACT--STATE HIGHWAY (the “Agreement”), is entered into and
made effective on this ____ day of _____________, 2018, by and between the Otay Municipal
Water District, a municipal water district organized and operated pursuant to the Water Code
Section 71000, et seq. (“Otay”) and the State of California, Department of Transportation (“State”),
collectively referred to as the “Parties”, with reference to the facts set forth in the Recitals below.
RECITALS
A. Otay is the owner of that certain length of land from Otay Mesa Road to Via de la
Amistad along the alignment of Alta Road in the County of San Diego, State of
California and more particularly described in Document No. 34812-1, a Grant Deed,
which is attached hereto as Exhibit A and incorporated herein by reference (the
"Property").
B. The State desires to acquire the Property to construct and maintain a public highway on
the Property, a public use for which the State has the authority to exercise the power of
eminent domain.
C. The Parties recognize the expense, time, effort, and risk to both of them in determining
the compensation for the property by eminent domain litigation. The Parties wish to
avoid such litigation.
STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION EXHIBIT B
RIGHT OF WAY CONTRACT - STATE HIGHWAY
RW 8-3 (Rev. 6/95)
R/W 34812-1 Otay Municipal Water District Page 2 of 5
AGREEMENT
For good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Grantor and Grantee agree as follows:
1. Otay shall execute Document No. 34812-1 in the form of a Grant Deed conveying the Property
to the Grantee in fee before, or contemporaneously with, the execution of this Agreement and
promptly thereafter deliver it to Alma Villanueva, Right of Way Agent for the State of
California.
2. The State shall pay compensation to Otay in compromise and settlement and in lieu of
eminent domain litigation, the sum of $90,000.00 for the Property or interest conveyed by
the abovementioned Document when title to said property vests in the State free and clear of
all liens, encumbrances, assessments, easements and leases (recorded and/or unrecorded),
and taxes, except:
a. Taxes for the tax year in which this escrow closes shall be cleared and paid in the
manner required by Section 5086 of the Revenue and Taxation Code, if unpaid at the
close of escrow.
b. Covenants, conditions, restrictions and reservations of record, or contained in the above
referenced document.
c. Easements or right of way over said land for public or quasi-public utility or public street
purposes.
d. Future Annexation Community Facilities District No. 8 Sweetwater Union High
School District, recorded August 6, 1992 as instrument No. 1992-0492321 of Official
Records.
e. Notice of Special Tax Lien [a Mello-Roos Community Facilities District (CFD)] to
San Diego Rural Fire Protection District Community Facilities District No. 09-1 (East
Otay Mesa), recorded January 11, 2010 as instrument No. 2010-0012252 of Official
Records.
f. Water rights, claims or title to water, whether or not disclosed by the public records.
3. The conveyance of the Property will be handled through an escrow with Chicago Title Company
in Riverside, CA.
STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION EXHIBIT B
RIGHT OF WAY CONTRACT - STATE HIGHWAY
RW 8-3 (Rev. 6/95)
R/W 34812-1 Otay Municipal Water District Page 3 of 5
4. The State shall pay all escrow and recording fees incurred in the conveyance of the Property
and, if title insurance is desired by the State, the premium charged therefore. Said escrow and
recording charges shall not include documentary transfer tax.
5. The State shall have the authority to deduct and pay from the amount shown in Paragraph 2
above, any amount necessary to satisfy any bond demands and delinquent taxes due in any
year prior to the year in which this escrow closes, together with penalties and interest thereon,
and/or delinquent and unpaid non-delinquent assessments which have become a lien at the
close of escrow.
6. The State, in acquiring title subject to unpaid assessments as set forth herein, is not assuming
responsibility for payment or subsequent cancellation of such assessments. The assessments
remain the obligation of Otay; and, as between the State and Otay, no contractual obligation
has been made requiring their payment.
7. Otay agrees and consents to the dismissal of any eminent domain action in the Superior Court
wherein the Property is included and also waives any and all claims to any money that may
now be on deposit in said action.
8. Otay warrants that there are no oral or written leases on all or any portion of the Property
exceeding a period of one month, and Otay further agrees to hold the State harmless and
reimburse the State for any and all of its losses and expenses occasioned by reason of any
lease of the Property held by any tenant of Otay for a period exceeding one month.
9. It is agreed and confirmed by the parties hereto that notwithstanding other provisions in this
contract, the right of possession and use of the subject Property from the date the funds
specified in Paragraph 2 herein are deposited into the escrow controlling this transaction, or
the Grant Deed is recorded by the County Recorder, whichever is the later.
10. Otay shall retain its rights within the Property to provide water for public purposes and to
enable the United States to fulfill its water sharing obligations to Mexico when the need arises.
Otay’s rights for these purposes are superior to the State’s and these said rights shall be
referenced in a Grant of Easement of Right-of-Way to enable Otay to exercise those rights. In
addition, Otay’s facilities for said purposes shall remain on the Property. Upon completion of
SR-11 construction, a Consent to Common Use Agreement shall be executed by the parties to
perpetuate Otay’s Grant of Easement rights within the State’s Right-of-Way.
11. Should the property be materially destroyed by fire, earthquake, or other calamity without the
fault of either party, and prior to close of escrow, this contract may be rescinded by the State;
in such an event, the State may reappraise the property and make an offer thereon.
12. This Agreement shall be interpreted and enforced in accordance with the laws of the State of
California.
STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION EXHIBIT B
RIGHT OF WAY CONTRACT - STATE HIGHWAY
RW 8-3 (Rev. 6/95)
R/W 34812-1 Otay Municipal Water District Page 4 of 5
13. All exhibits and attachments attached to this Agreement and all Recitals above are
incorporated and made a part hereof as if fully set forth herein.
14. Terms and conditions of this Agreement which by their sense and context survive the
termination or expiration of this Agreement, will so survive.
15. If any term or condition of this Agreement is found unenforceable, the remaining terms and
conditions shall remain binding upon the Parties as though said unenforceable provision were
not contained herein. However, if the invalid, illegal or unenforceable provision materially
affects this Agreement then the Agreement may be terminated by either party on ten (10) days
prior written notice to the other party hereto.
16. Waiver of any provision or term of this Agreement, or of any breach or default hereunder,
shall not constitute a waiver of any other term, condition, breach or default, or of a subsequent
applicability of a term or condition, or a waiver of a subsequent breach or default, nor shall it
constitute an amendment to the term, condition or provision that is waived.
17. This Agreement contains all agreements, promises and understandings between Otay and the
State and no verbal or oral agreements, promises or understandings shall or will be binding
upon either Otay or the State and any addition, variation or modification to this Agreement
shall be in effect unless made in writing and signed by the Parties.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION EXHIBIT B
RIGHT OF WAY CONTRACT - STATE HIGHWAY
RW 8-3 (Rev. 6/95)
R/W 34812-1 Otay Municipal Water District Page 5 of 5
In Witness whereof, the parties have executed this agreement the day and year first above
written.
OTAY MUNICIPAL WATER DISTRICT
By____________________________
Mark Watton
General Manager
Approved as to form
______________________________
General Counsel
RECOMMENDED FOR APPROVAL:
By____________________________
Alma Villanueva STATE OF CALIFORNIA
Associate Right of Way Agent Department of Transportation
By____________________________ By _______________________________
Steve Aragon, Amy Lamott Vargas,
Senior Right of Way Agent Deputy District Director
Right of Way
STATË OF CALIFORNIA HIGIII'VAY USAGE
STATE BUSINËSS FREE GOVT CODE 27383
DEPARTMENT OF TRANSPORTAÏION
DISTRICT f I
Recording Requested By and Mail To:
State of Califomia
Department of Transportatlon
4050 Taylor Street M.S. 310
GRANT DEED
RM/ MAP: 10005.'1. 100t)4.1 & 10005 APN: 64-9-079-J8{0 E.A.: 05633
Otay Municipal Water District,
a corporation organized and existing under and by virtue of the laws of the State of California,
hereinafter called GRANTOR, hereby grants to the State of California, Department of Transportation,
hereinafter called STATE, all that real property in the County of San Diego, State of California, described
as follows:
sEE EXHIB|T *A", ATTACHED.
District Countv Route Postm¡lo I Number
11 SD 11 PM 2.00 RM/ 34812-1
Number
Rll^/ 34812-1
EXHIB¡T "A''
Parcel 34812-1
That portion of the Easterly 30 feet of the Easterly Half of the Northwest Quarter of Section 31,
Township 18 $outh, Range 1 Ëast, San Bernardino Base and Meridian, County of San Diego,
State of Callfornia, lying between the following described Line "4" and Line "8":
LINE "4": COMMENCING at the North Quarter Corner of said Section 31 marked with a 3 inch
brass disc stamped 'S.D.CO.ENGR. 1990', as shown on Record of Survey No. 18717, filed April
1, 2005 as File No. 2005-0265751, in the office of the San Diego County Recorder, State of
California; said monument bears N.00"16'27'W, 2,656.31 feet from a 2'r iron pipe with tag
stamped "LS 3145', accepted as the center of said Section 31 as shown on Record of Survey No.
6945, filed April 8, 1968 as File No. 58386, in the office of said County Recorder; thence along
the North-South centerline of said Section 31, S.00"16'27'Ê.-, 1,123.82 feet to the POINT OF
BEGINNING;
thence (1) leaving said centerline, N.83"47'39'W., 105.21feet to the POINT OF TERMINUS.
LINE "8": COMMENCING at the North Quarter Corner of said Section 31 marked with a 3 inch
brass disc stamped "S.D.CO.ENGR. 1990', as shown on Record of Survey No. 18717, filed April
1, 2005 as File No. 2005-0265751, in the office of said County Recorder; said monument bears
N.00'16'27"W., 2,656.31 feet from a 2" iron pipe with tag stamped "LS 3145", accepted as the
center of said Section 3l as shown on Record of Survey No. 6945, filed April 8, 1968 as File No.
58386, in the office of said County Recorder; thence along the North-South centerline of said
Section 31, S.00"16'27"8.,1,604.69 feet to the POINT OF BFGINNING;
thence (2) leaving said centerline, N.83"19'17'W., 113.57 feet to the POINT OF TERM¡NUS.
This conveyance is made for the purpose of a freeway and the GRANTOR hereby releases and
relinquishes to the GRANTEE any and all abutter's rights, including access rights appurtenant to
GRANTOR'S remaining property, in and to said freeway.
The bearings and distances used in the above descriptions are based on the California
Coordinate System of 1983, Zone 6, HPGN Epoch 1991.35, Divide all distances by 1.0000206 to
obtain ground level distances.
This real property description has been prepared by me, or under my
direction, in conformance with the Professional Land Surveyors'Act.
Signature
Date
AU SNÐ
L.S. 9567
Ëxp. 06/50/2019
CK PJP
Number
Rlw 34812-1
The GRANTOR further understands that the present intention of the STATE is to construct and maintain a
public highway on the lands hereby conveyed in fee and the GRANTOR, for itself and its successors and
assigns, hereby waives any and all claims for damages to GRANTOR's remaining property contiguous to the
property hereby conveyed by reason of the location, construction, landscaping or maintenance of the highway.
Dated: Otay MunicipalWater District
[Name of Grantor]
[Title]
[Name of Grantor]
lTitlel
This is to certify that the State of California, acting by and through the Department of Ïransportation
(according to Section 27281 of the Government Code), accepts for public purposes the real property
described in this deed and consents to its recordation.
Ðated MALCOLM DOUGHERTY
Director of Transportation
By
AMY LAMOTTVARGAS
Deputy District Director
Right of Way Division
EXHIBIT C
RW 13-2 (Rev. 8/2014) EA 056331/PID 1100020520
Page 1 of 3
ADA Notice – For individuals with sensory disabilities, this document is available in alternate formats. For alternate format information, contact the
Forms Management Unit at (916)445-1233, TTY 711, or write to Records and Forms Management, 1120 N Street, MS-89, Sacramento, CA 95814.
STATE OF CALIFORNIA HIGHWAY USAGE
STATE BUSINESS FREE GOVT. CODE 6103
DEPARTMENT OF TRANSPORTATION
When recorded mail to:
Utilities Relocation Branch Chief
State of California
Department of Transportation
4050 Taylor Street, MS-310
San Diego, CA 92110
STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION Space above this line for Recorder's Use
CONSENT TO COMMON USE AGREEMENT
11 SD 11 2.0
Dist Co Rte Post
Document No. 33718-1
THIS AGREEMENT, entered into this day of , 2018, by and
between OTAY WATER DISTRICT, hereinafter called "Owner", and the STATE OF CALIFORNIA,
acting by and through its Department of Transportation, hereinafter called "State".
WITNESSETH
WHEREAS, Owner is in possession of certain rights of way and easements, hereinafter referred to
as "Owner's easement", and described as follows:
An Easement Deed to Otay Municipal Water District recorded February 8, 1967, as Document 1967-17469,
of official records in the Office of the County Recorder of San Diego County, in the County of San Diego,
State of California,
and
An Easement Deed to Otay Water District recorded ______________, as Document _____________, of
official records in the Office of the County Recorder of San Diego County, in the County of San Diego,
State of California,
and
WHEREAS, State has acquired certain lands for highway purposes in the vicinity of San Diego,
County of San Diego on State Route 11, hereinafter referred to as "highway right of way", which said
highway right of way is subject to Owner’s easement; and
WHEREAS, the highway right of way occupies a portion of Owner's easement and is subject to
said easement which said portion is hereinafter referred to as "area of common use", and is described as
follows:
The area of common use as shown on Consent to Common Use Agreement Map No. 33718-1, sheets 1-2,
copies of which are attached to and made a part of this agreement.
CONSENT TO COMMON USE AGREEMENT EA 056331/PID 1100020520
RW 13-2 (Rev. 8/2014)
Page 2 of 3
C.C.U.A. NO. 33718-1
NOW, THEREFORE, Owner and State hereby mutually agree as follows:
1. Owner hereby consents to the construction, reconstruction, maintenance or use by State of a
highway over, along and upon Owner's easement in the area of common use upon and subject
to the terms and conditions herein contained.
2. State acknowledges Owner's title to Owner's easement in said area of common use and the
priority of Owner's title over the title of State therein. Owner has and reserves the right and
easement to use, in common with the public's use of said highway, said area of common use
for all of the purposes for which Owner's easement was acquired including, but not limited to,
its rights to provide water for public purposes and to enable the United States to fulfill its water
sharing obligations to Mexico when the need arises without need for any further permit or
permission from State. Except in emergencies, Owner shall give reasonable notice to State
before performing any work on Owner's facilities in said area of common use where such work
will be performed in, on or over the traveled way or improved shoulders of said highway or
will obstruct traffic. In all cases, Owner shall make adequate provision for the protection of
the traveling public as required by the State’s Encroachment Permit office.
3. Owner’s facilities in the new location are located entirely outside the freeway fence.
4. In the event that the future use of said highway shall at any time or times necessitate a
rearrangement, relocation, reconstruction or removal of any of Owner's facilities then existing
in said area of common use the State shall notify Owner in writing of such necessity and agree
to reimburse Owner on demand for its costs incurred in complying with such notice. Owner
will provide State with plans of its proposed rearrangement and an estimate of the cost thereof
and, upon approval of such plans by State, Owner will promptly proceed to effect such
rearrangement, relocation, reconstruction or removal. Owner shall make adequate provisions
for the protection of the traveling public as required by the State’s Encroachment Permit office.
No further permit or permission from State for such rearrangement shall be required and if such
rearrangement shall require the relocation of any of Owner's facilities outside of said area of
common use, State will (1) enter into the standard form of Joint Use Agreement covering the
new location of Owner's easement within the highway right of way, (2) provide executed
document(s) granting to Owner good and sufficient easement outside of the highway right of
way if necessary to replace Owner's easement or any part thereof, and (3) reimburse Owner for
any costs it may be required to expend to rearrange its facilities including, but not limited to,
costs expended to acquire such easement, provided it is mutually agreed in writing that Owner
shall acquire such easement.
5. Except as expressly set forth herein, this Agreement shall not in any way alter, modify or
terminate any provision of Owner's easement. Both State and Owner shall use said new location
in such a manner as not to interfere unreasonably with the rights of the other. Nothing herein
contained shall be construed as a release or waiver of any claim for compensation or damages
which Owner or State may now have or may hereafter acquire resulting from the construction
of additional facilities or the alteration of existing facilities by either State or Owner in such a
manner as to cause an unreasonable interference with the use of said new location by the other
party.
6. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of
both parties.
CONSENT TO COMMON USE AGREEMENT EA 056331/PID 1100020520
RW 13-2 (Rev. 8/2014)
Page 3 of 3
C.C.U.A. NO. 33718-1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate by
their respective officials thereunto duly authorized.
RECOMMENDED FOR APPROVAL: OWNER: OTAY WATER DISTRICT
____________________________________ By _________________________________
GREG GUTIERREZ, Chief Name:
Utility Relocation Branch Title:
Right of Way Division
By _________________________________
Name: Title:
Approved as to form:
____________________________________
General Counsel
STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION
Director of Transportation
By _________________________________
AMY LAMOTT VARGAS
Deputy District Director
Right of Way Division
Attorney in Fact
STATE OF CALIFORNIA
CALIFORNIA STATE TRANSPORTATION AGENCY
DEPARTMENT OF TRANSPORTATION
STATE OF CALIFORNIA
CALIFORNIA STATE TRANSPORTATION AGENCY
DEPARTMENT OF TRANSPORTATION
EXHIBIT D
AS7 Law San Diego/004344/000002/K/S0398605.DOCX
RECORDING REQUESTED BY
AND AFTER RECORDATION
MAIL TO: For Recorder's Use
OTAY WATER DISTRICT
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CA 91978-2004
APN: 648-070-18 Documentary Transfer Tax: None
(Exempt under Rev & Tax Code Section 11922)
GRANT OF EASEMENT OF RIGHT-OF-WAY TO
OTAY WATER DISTRICT
For good and valuable consideration, receipt of which is hereby acknowledged, the undersigned State of
California, acting by and through its Director of Transportation, as Grantor hereby GRANT(S) to OTAY
WATER DISTRICT, a municipal water district formed under the Municipal Water District Law of 1911, as
amended, situated in the County of San Diego, State of California, as Grantee, a permanent easement of right-
of-way for the purpose of laying underground water pipelines and sewer pipelines and laterals, trunk lines,
collection lines and laterals, sewer manholes and other underground and surface structures appurtenant to said
water pipelines or sewer lines, including but not limited to power lines for transmission and communication
purposes, pumps, regulators, valves and access roads or areas within said easement, hereinafter referred to as
"said facilities," to provide water for public purposes and to enable the United States to fulfil its water sharing
obligations to Mexico when the need arises, together with the right to construct, operate, maintain, repair and
replace said facilities, and the right of ingress and egress for such purposes. Said easement is described and/or
depicted as follows:
(See Exhibit “A” attached hereto and made a part hereof)
Grantor reserves the right to use said land at Grantor's own risk for any and all purposes not conflicting,
interfering or inconsistent with Grantee's use of, and access to, said facilities. Grantor waives any right under
Civil Code section 845, and any right to compel Grantee to grade, surface or otherwise improve or maintain
said easement area as a roadway.
Grantor shall not increase or decrease or permit to be increased or decreased the ground elevations of said
easement existing at the time this document is executed, nor construct or permit to be constructed any
permanent building, structures, improvements or other encroachment upon said easement which will cause
damage to or threaten the safety of any of said facilities of Grantee placed within the easement without
Grantee’s prior written consent.
EXHIBIT D
AS7 Law San Diego/004344/000002/K/S0398605.DOCX
Grantee may remove from the easement any building, structure, improvement or other encroachments thereon
conflicting, interfering or inconsistent with its use for the purposes hereby granted. Grantee shall have the
right to install its own gates and locks in all fences, which now cross or may hereafter cross said easement.
Grantee agrees on its own behalf and on behalf of its successors in interest that it will indemnify and hold
harmless Grantor for any damages to the property, which result from Grantee’s negligence or willful
misconduct in connection with its use of the easement and maintenance and repair operations
within the easement.
Grantor may use said land to construct and maintain a public highway on the property and to the extent of such
use may surface or pave the area, subject to the restrictions as to changes in existing ground elevations and
indemnifications set forth above.
Grantee may, at Grantor's expense, and subject to Grantee’s prior written consent, relocate the above mentioned
facilities in the event such conflict with future development of said property, provided that Grantor does not
cause discontinuance of service to any area, and provided, further, that Grantee receives, without expenses to
Grantee, an easement comparable to this easement for said relocated facilities. Except as otherwise provided
herein, Grantee shall never be required to relocate or alter in any way the facilities installed pursuant to this
grant of easement, or to bear any cost in connection therewith as a result of changes in the location of any said
facilities.
Grantee shall have the right to transfer and assign all or a portion of this easement to its successor in interest,
or to any other political subdivision or public utility for use of the above stated purpose.
EXHIBIT D
AS7 Law San Diego/004344/000002/K/S0398605.DOCX
This conveyance is executed pursuant to the authority vested in the Director of Transportation by law and, in
particular, by the Streets and Highways Code.
Dated
STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION
APPROVED AS TO FORM AND
PROCEDURE
LAURIE BERMAN
ATTORNEY
DEPARTMENT OF TRANSPORTATION
Director of Transportation
By
Attorney in Fact
AMY LAMOTT VARGAS
Deputy District Director
Right of Way Division
This Space Reserved for California Transportation Commission
Certification
EXHIBIT D
AS7 Law San Diego/004344/000002/K/S0398605.DOCX
[Each signature of Grantor must be acknowledged in the form attached hereto]
DISTRICT CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by the Grant of Easement of Right of Way to Otay Water
District dated , 2018 from the State of California, to OTAY WATER DISTRICT, a municipal
water district, is hereby accepted by order of the Board of Directors pursuant to the authority conferred by Resolution
No. 1829, adopted on February 23, 1981, and the Grantee consents to recordation thereof by its duly authorized officer.
Dated: By:
Susan Cruz, District Secretary
Otay Water District
EXHIBIT D
AS7 Law San Diego/004344/000002/K/S0398605.DOCX
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
GRANTOR’S SIGNATURE ACKNOWLEDGEMENT
State of California )
) ss
County of )
On before me,
DATE NAME, TITLE OF OFFICER - E.G., "JANE DOE, NOTARY PUBLIC"
personally appeared
NAME(S) OF SIGNER(S)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
(Notary Seal)
A notary public or other officer completing this certificate verifies
only the identity of the individual who signed the document towhich this certificate is attached, and not the truthfulness,accuracy, or validity of that document.
EXHIBIT “A”
Parcel DE34812-1
That portion of the Easterly 30 feet of the Easterly Half of the Northwest Quarter of Section 31, Township
18 South, Range 1 East, San Bernardino Base and Meridian, County of San Diego, State of California, lying
between the following described Line “A” and Line “B”:
LINE “A”: COMMENCING at the North Quarter Corner of said Section 31 marked with a 3 inch brass
disc stamped “S.D.CO.ENGR. 1990”, as shown on Record of Survey No. 18717, filed April 1, 2005 as File
No. 2005-0265751, in the office of the San Diego County Recorder, State of California; said monument
bears N.00°16'27"W., 2,656.31 feet from a 2” iron pipe with tag stamped “LS 3145”, accepted as the center
of said Section 31 as shown on Record of Survey No. 6945, filed April 8, 1968 as File No. 58386, in the
office of said County Recorder; thence along the North-South centerline of said Section 31, S.00°16'27”E.,
1,123.82 feet to the POINT OF BEGINNING;
thence (1) leaving said centerline, N.83°47'39"W., 105.21 feet to the POINT OF TERMINUS.
LINE “B”: COMMENCING at the North Quarter Corner of said Section 31 marked with a 3 inch brass
disc stamped “S.D.CO.ENGR. 1990”, as shown on Record of Survey No. 18717, filed April 1, 2005 as File
No. 2005-0265751, in the office of said County Recorder; said monument bears N.00°16'27"W., 2,656.31
feet from a 2” iron pipe with tag stamped “LS 3145”, accepted as the center of said Section 31 as shown
on Record of Survey No. 6945, filed April 8, 1968 as File No. 58386, in the office of said County Recorder;
thence along the North-South centerline of said Section 31, S.00°16'27”E., 1,604.69 feet to the POINT OF
BEGINNING;
thence (2) leaving said centerline, N.83°19'17"W., 113.57 feet to the POINT OF TERMINUS.
The bearings and distances used in the above descriptions are based on the California Coordinate System
of 1983, Zone 6, HPGN Epoch 1991.35. Divide all distances by 1.0000206 to obtain ground level distances.
This real property description has been prepared by me, or under my direction, in conformance with the
Professional Land Surveyors' Act.
Signature
Date March 13, 2018
AU SND
CK MAH
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: June 6, 2018
PROJECT: DIV. NO.: ALL
SUBMITTED BY: Adolfo Segura, Chief of Administrative Services
APPROVED BY:
Mark Watton, General Manager
SUBJECT: ASSET MANAGEMENT PROGRAM UPDATE
GENERAL MANAGER’S RECOMMENDATION:
No recommendation. This is an informational item only.
COMMITTEE ACTION:
Please see “Attachment A”.
PURPOSE:
This is an informational item regarding the District’s Asset Management
(AM) Program and related support practices.
ANALYSIS:
For nearly two decades, the District has employed and adopted a series
of programmatic best practices to maintain reliable water and wastewater
services, while minimizing the lifecycle cost of asset ownership.
Prior to 2001, AM data was housed in a number of stand-alone systems
and paper records. Commencing in 2001, the District made significant
investments in technology and process improvements. A holistic approach
was adopted using Esri’s enterprise water model. The model would link
the functions of inventory, collection, storage, and asset publication.
The summary of these efforts became the District’s technology foundation
of today’s AM Program.
The District’s Geographical Information System (GIS), IT, Engineering,
and Operations teams worked on a series of project deliverables
including conversion of paper records; system population; validation of
asset inventory, field data collection points, and condition and
maintenance history; and GPS location accuracy to survey grade detail
of sub 12” to name a few of the key tasks.
Following, are some of the key details of the District’s AM Program.
AM Program Practices:
The AM Program is supported by every department at the District:
Administrative Services is responsible for all technology and
application support; Operations is responsible for the maintenance,
operation, first-line condition assessment of distribution, and field
assets; Engineering is responsible for the planning, design,
construction, rehabilitation, replacement, CIP projects and budget,
and scheduling; Finance is responsible for financial analysis and
overall budget support; and the General Manager’s office is
responsible for review and direction. With a series of scheduled
meetings throughout the year, these departments work in concert to
review, prepare, report, and advance AM Program initiatives to
management and the Board.
Inventory of Assets/Asset Registry:
The District’s enterprise GIS database is the platform and living
repository of water, sewer, and recycled assets. At the core is a
structured asset registry containing standardized reporting
components such as standard naming convention, identification,
classification, equipment class, and equipment type to name a few.
Incorporated into the database are sources of data including as-built
drawings, maintenance/condition documents, design drawings, photos,
and videos. To date, the District’s enterprise GIS database contains
an asset registry with over 500,000 asset data records (horizontal
and vertical). Following are key inventory assets:
730 miles of potable mains
104 miles of recycle mains
88 miles of sewer mains
5,972 fire hydrants
20,746 potable valves
1,497 recycle valves
40 potable reservoirs/218 million gallon storage capacity
4 recycle reservoirs/43 million gallon storage capacity
856 potable cathodic test stations
189 recycled cathodic test stations
1 wastewater treatment plant
AM Maintenance Practices:
The District’s AM maintenance practice consists of three working
workflows: developer projects, CIP projects, and field operation and
replacement schedule. From inception and throughout the lifecycle
schedule, all asset activity is incorporated into the District’s
enterprise GIS database and GIS-centric work order management system,
Cityworks. Cityworks contains over 300 maintenance templates, or work
order types, that are used daily by staff. Predefined reports also
provide staff and management with work order and performance trends.
The District’s maintenance practices were developed using Water
Agency Standards (WAS), American Water Works Association (AWWA), and
National Association of Sewer Service Companies (NASSCO) standards,
Environmental Protection Agency (EPA) regulatory mandates,
manufacturer recommendations, condition assessment, and shared
operation experiences with other agencies.
AM Condition Assessment Practices:
Condition assessment practices are incorporated into the District’s
Operations and Engineering departments. The bulk of the day-to-day
condition assessment of assets and the associated data collection is
part of Operations’ normal course of work. Condition assessment data
is collected with a number of tools and assistance from predefined
rating templates that are built-in to the technology solutions. Once
field work is complete, the information is synchronized to the
appropriate data table in the District’s enterprise GIS database.
As a standard practice, the Operations and Engineering departments
meet regularly to review asset work order and performance trends,
inspection reports including video and contractor information, and
asset condition data including service risk factors. Through this
practice, asset repair, rehabilitation, and replacement decisions
are determined, to include CIP forecasting.
AM Level Of Service (LOS):
In order to meet customer expectations, and to maintain a reliable
potable, recycled, and sewer distribution system, the District
performs a vast number of maintenance tasks. Staff reviews, tracks,
and reports over 20 key performance and maintenance functions, which
are reported on a quarterly schedule in the form of strategic
performance metrics. Along with the production of an Annual Consumer
Confidence Report (CCR), the Annual Drinking Water Report to the
State and others, these performance metrics are presented to the
Board in the semi-annual Strategic Plan update.
In support of District opinion of its asset operation and management
as it relates to customer expectations, the 2015 Otay Water Customer
Awareness and Opinion Survey Report, indicated that 74% of customers
surveyed, rated the Otay Water District’s services as “Very Good”,
if not “Excellent”. Following are a number of key LOS measures that
affect customer service expectations:
Answer Rate
Billing Accuracy
Scheduled Service interruptions
Communications, out-dial campaigns & website & social media
information
Technical Quality Complaint
Consumer Confidence Report (CCR)
Sewer Rate Ranking
Water Rate Ranking
AM Future Program Initiatives:
Over the course of the upcoming FY2019 – FY2022 Strategic Plan, the
District will be deploying a number of decision-making and predictive
analysis tools to help predict pipe failure, mitigation analysis and
corrective planning, improved long-term replacement cost
forecasting, and progression towards a condition assessment
methodology. The District has also commenced the use of drones and
will continue to evaluate its AM application potential. Lastly, the
District will also be evaluating a number of formal AM frameworks
with the goal of enhancing efficiencies in day-to-day operating
activities, system reliability, and reduction of risk-related costs.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None. This is an informational item only.
STRATEGIC GOAL:
3.1.2.2 - “Optimize Asset Management Program”: Maximize the efficiency
and effectiveness of important business processes.
LEGAL IMPACT:
None.
ATTACHMENTS:
Attachment A – Committee Action Report
Attachment B – “Asset Management” PowerPoint Presentation
ATTACHMENT A
SUBJECT/PROJECT: ASSET MANAGEMENT PROGRAM UPDATE
COMMITTEE ACTION:
The Finance, Administration, and Communications Committee reviewed this
item at a meeting held on May 23, 2018. The Committee supports
presentation to the full Board for their review.
NOTE:
The “Committee Action” is written in anticipation of the Committee
moving the item forward for Board approval. This report will be sent to
the Board as a committee approved item, or modified to reflect any
discussion or changes as directed from the committee prior to
presentation to the full Board.
Asset Management (AM)
OTAY WATER DISTRICT
What is Asset Management?
A systematic approach of managing assets to
ensure long-term sustainability,and the ability to
make appropriate decisions regarding repair,
rehabilitation,replacement,and funding strategy
2
GIS-Based Asset Management Platform
3
Asset Management Maintenance Practices
•Industry Best Practices:American Water Works Association (AWWA),
California Water Environment Association (CWEA),Pressure Vessel (API
510),National Association of Sewer Service Companies (NASSCO),etc.
•Regulatory:State Water Resource Control Board (SWRCB),Regional Water
Quality Control Board (RWQCB),Air Pollution Control District (APCD),
California Accidental Release Prevention (CalARP),API 510,EPA,etc.
•Manufacturer’s Recommendations:O&M Manuals,equipment training,
refresher training,etc.
•Experience &Lessons Learned:Information sharing with external agencies
to include WAS,AMI,SDCWA,and surrounding water agencies.
4
AM -Condition Assessment Practices
Utility Maintenance:
•Valve Exercise –Distribution valves,hydrants,air vacs and blow-offs
•Vault Inspections –Pipelines,valves,pumps,and flow meters
•CCTV –Pipelines and manholes
•Recycled Force Main Inspection –Valves,pipelines,blow-offs,air vacs
•As-needed pipeline internal visual inspections
•Easement Inspections –General facilities,properties and parcels
Water Systems:
Acoustic Leak Detection –Pipelines,valves,meters,air vacs,blow offs,
Pump Station Inspections –Pumps,motors,engines,generators,MCCs,VFDs,meters,
instrumentation,SCADA/PLCs,valves,fuel storage,air compressors,surge/hydro tanks,
disinfection system
Reservoir Inspections –Tanks,vents,cathodic protection
Mock Shutdowns -Valves 5
AM -Condition Assessment Practices (cont.)
Pump/Electric:
Vibration Testing –Motors,pumps,instrumentation
Pump Efficiency Testing –Motors,pumps,meters,engines,instrumentation
Altitude Valve Testing –Valves,instrumentation
Pressure Reducing Station Testing –Valves,instrumentation
Resistance Checks –Motors,Motor Control Centers (MCCs),electrical supply
Thermal Imaging –To evaluate MCCs
Pressure Vessel Inspections –Surge/hydro tanks,instruments,air compressors
ATS Testing –Automatic transfer switches,instrumentation
6
AM -Condition Assessment Practices (cont.)
Fleet Maintenance:
•BIT Inspections –Vehicles,trailers,field equipment
•Monthly Pump Station Checks -Pumps,motors,engines,generators,MCCs,VFDs,
meters,instrumentation,SCADA/PLCs,valves,fuel storage,air compressors,surge/hydro
tanks
•Generator Testing -Pumps,motors,engines,generators,MCCs,VFDs,meters,
instrumentation,SCADA/PLCs,valves,fuel storage,air compressors,surge/hydro tanks
•Oil Analysis –Engines,generators
7
AM -Condition Assessment Practices (cont.)
Lab:
Water Quality Testing –Sample stations and disinfection systemTreatment Plant Process Control Testing –Instrumentation,aeration system,mixers and chlorine
system
SCADA:
Calibrations –Meters,instruments,and SCADA/PLCs
Treatment Plant:
Megger and Amperage Checks –Mixers,pumps,and motorsFlow Readings –Meters and instrumentationDaily Morning Rounds –Pumps,motors,facilities,valves,basins,tanks,blowers,chlorine system,
meters,SCADA/PLCs,engine,surge tank,air compressors,piping,MCC,ATS,generator,fuel
storage,and instrumentsLift Station Inspections (2x per week)Exercise Pumps –Pumps,motors,instrumentation,facility,
and parcelStorm Water BMPS Monthly -Facilities
8
GIS-Centric Asset Management Tools
Cityworks –CMMS:
•An enterprise work order system that captures labor,equipment,material and
contractor costs spent on various assets,and creates a performance history that’s
applicable to the asset lifecycle
Pipeline Observation System Management (POSM):
•Records the CCTV video and condition assessment scores for the collection system
pipelines
•NASSCO-certified
iWater:
•Captures specific conditions (turns,torque,visual)for specific assets (valves,vaults,
reservoirs,etc.)
InfoMaster
9
GIS-Centric Asset Management Tools (cont.)
10
InfoWater:
•A fully GIS-integrated water distribution modeling and management software
InfoSewer:
•An ArcGIS-based software for planning and design as well as expansion of sanitary,
storm,and combined sewer collection system
InfraMap:
•A fully disconnected ArcGIS mobile solution for multiple field operations,such as valve
exercise and redline
Operation Dashboard:
•A web-based GIS application with interactive maps for the District’s asset and related
information such as as-builds,easements,pressure zones,and other GIS information
(flood zone,earthquake zoning,wildland fire zone,etc.)
GIS-Centric Asset Management Tools (cont.)
Dig-Smart:
•A GIS-based dig-alert software to manage the alert tickets from the County using
geographic information system
Cathodic Test Station (CTS) Mobile Application:
•An ArcGIS, online-based mobile solution for smart phones. The app is used for annual
cathodic test station surveys.
E-Facility Book:
•An ArcGIS application that handles the permits and plan checks for the Engineering
department’s front counter
HACH WIMS –Treatment Plant and Lab:
•Water testing data documentation
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Questions ?
12