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04-16-18 EO&WR Committee Packet
OTAY WATER DISTRICT ENGINEERING, OPERATIONS & WATER RESOURCES COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA Board Room MONDAY April 16, 2018 12:30 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. APPROVE CHANGE ORDER NO. 4 TO THE EXISTING CONTRACT WITH BLASTCO, INC. IN THE CREDIT AMOUNT OF <$267,197.50> FOR THE 978-1 AND 850-2 RESERVOIRS INTERIOR/EXTERIOR COATINGS AND UPGRADES PRO- JECT (MARTIN) [5 minutes] 4. APPROVE CHANGE ORDER NO. 2 TO THE EXISTING CONTRACT WITH T.C. CONSTRUCTION COMPANY, INC. IN THE AMOUNT OF $149,280.00 FOR THE HILLSDALE ROAD 12-INCH WATERLINE REPLACEMENT (CIP P2573) AND SEW- ER REPAIRS (CIP S2048) PROJECTS (MARTIN) [5 minutes] 5. APPROVE THE WATER SUPPLY ASSESSMENT AND VERIFICATION REPORT DATED MARCH 2018 FOR THE OTAY RANCH RESORT VILLAGE PROJECT, AS REQUIRED BY SENATE BILLS 610 AND 221 (COBURN-BOYD) [5 minutes] 6. AWARD A PROFESSIONAL ENVIRONMENTAL SERVICES CONTRACT TO ICF JONES AND STOKES, INC. FOR THE MAINTENANCE AND MONITORING OF THE SAN MIGUEL HABITAT MANAGEMENT AREA AND CIP-ASSOCIATED MITIGATION 2 PROJECTS FOR A THREE (3) YEAR PERIOD (JUNE 2018 – JUNE 2021) IN AN AMOUNT NOT-TO-EXCEED $483,787.40 (COBURN-BOYD) [5 minutes] 7. SAN DIEGO COUNTY WATER AUTHORITY UPDATE (SMITH) [10 minutes] 8. ADJOURNMENT BOARD MEMBERS ATTENDING: Tim Smith, Chair Gary Croucher 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 that would require accommodation in order to enable you to partici- pate 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 April 13, 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 April 13, 2018. /s/ Tita Ramos-Krogman, Sr. Confidential Executive Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 2, 2018 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: P2534-001103 P2544-001103 DIV. NO. 3 & 5 APPROVED BY: Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Approve Change Order No. 4 to the Contract with Blastco, Inc. for the 978-1 & 850-2 Reservoirs Interior/Exterior Coatings & Upgrades Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approve Change Order No. 4 (Exhibit C) to the existing contract with Blastco, Inc. (Blastco) in the credit amount of <$267,197.50> for the 978-1 & 850-2 Reservoirs Interior/Exterior Coatings & Upgrades Project (see Exhibit A for Project locations). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute Change Order No. 4 in the credit amount of <$267,197.50> to the construction contract with Blastco for the 978-1 & 850-2 Reservoirs Interior/Exterior Coatings & Upgrades Project. 2 ANALYSIS: At the October 5, 2016 Board Meeting, the Board awarded a construction contract in the amount of $1,106,200.00 to Blastco to replace the existing interior and exterior coating for the 978-1 and 850-2 Reservoirs. In addition to replacing the coatings of the Reservoirs, the Project includes structural upgrades to comply with the current American Water Works Association (AWWA) and the Occupational Safety and Health Administration standards for both Federal (OSHA) and State (Cal-OSHA) levels. The 978-1 Reservoir is a 0.5 million gallon (MG) steel tank originally constructed in 1959. The tank is located on Pence Drive, in unincorporated El Cajon. It is one of two (2) tanks in the 978 pressure zone. The 978-1 was last recoated in 2000 on the interior surface and 1996 on the exterior surface. The 850-2 Reservoir is a 3.1 MG steel tank originally constructed in 1973. It is one of four tanks in the 850 pressure zone. The 850-2 was last recoated on the interior and exterior surfaces in 1996. The construction contract includes Board approved allowance items, which were established to address structural deficiencies identified during construction. Since the award of the construction contract, structural repair work was identified and completed at the 978-1 and 850-2 Reservoirs under Work Orders, which were approved against the allowance items. All contract coating work has been completed and the 978-1 and 850-2 Reservoirs were approved to be placed back into service on July 27, 2017 and January 12, 2018, respectively. To date, three (3) change orders have been issued on the Project. Table 1 below provides a summary of the approved contract change orders for the Project. Each change order addresses both cost and time impacts associated with the work and serves as total compensation to the contractor. Table 1. Summary of Approved Change Orders Change Order Description Approval Date Value Time (Days) 1 No cost change order to address contract time associated with Bid Allowance work at the 978-1 Reservoir and to extend contract time due to weather impacts. 6/22/17 $0.00 12 3 2 Change order to address contract time associated with Bid Allowance work at the 850- 2 Reservoir. Change Order also partially reconciled structural bid allowance items resulting in a credit. 9/1/17 <$670.00> 61 3 Change order completed modifications to the handrail at the 850-2 Reservoir, added contract time for this work, and completed the reconciliation of the remaining structural bid allowance items. Change order credited the District for damage repairs to the 850-2 Reservoir’s RFID Card Access System due to Contractor Operations. 12/13/17 $627.63 4 Total <$42.37> 77 With the approval of the change orders summarized above, the contract completion date was revised from June 15, 2017 to September 1, 2017. Throughout the contract, Blastco has been notified that the District will be assessing liquidated damages associated with the late delivery of the Project. Section 00400 (Form A) of the contract between the District and Blastco includes provisions for liquidated damages associated with completion of the work beyond the contract time. Per the contract, liquidated damages accrue at a rate of two thousand dollars ($2,000) per calendar day until substantial completion is reached. Blastco substantially completed the contract on January 11, 2018. In accordance with the contract provisions, the District has withheld liquidated damages from progress payment requests. Change Order No. 4, which is the subject of this staff report, reconciles the final number of liquidated damages assessed and adjusts the final contract amount accordingly. Additionally, Change Order No. 4 serves as a contract closeout change order and will credit the contract for items furnished by the District to Blastco at the request of Blastco, including the following, compensation for damaged pavement at the 978-1 and 850-2 Reservoirs sites and premium time associated with specialty inspection on weekends. Change Order No. 4 will also reconcile bid 4 item No. 3.5 “1/4-inch Steel Patch Plates” as required for field conditions. In total, Change Order No. 4 is a credit to the District in the amount of <$267,197.50>. Blastco has notified the District that they disagree with the assessment of liquidated damages. The District’s Construction Manager has sent correspondence (Exhibit B) noting that Blastco has submitted two (2) claims on the Project and that the Engineer’s Entitlement Decision denying the claims has been issued. Blastco’s response is pending. A recommendation has been made to process Change Order No. 4 unilaterally to allow the Project to closeout and record project completion. The Contract includes a detailed claim resolution procedure, which remains unaffected by processing Change Order No. 4 unilaterally. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP P2534, as approved in the FY 2018 budget, is $650,000. Total expenditures, plus outstanding commitments and forecast, are $609,091. See Attachment B-1 for the budget detail. The total budget for CIP P2544, as approved in the FY 2018 budget, is $980,000. Total expenditures, plus outstanding commitments and forecast, are $824,480. See Attachment B-2 for the budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budget is sufficient to support the Project. The Finance Department has determined that, under the current rate model, 100% of the funding will be available from the Replacement Fund. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” 5 LEGAL IMPACT: None. DM/RP:mlc P:\WORKING\CIP P2534 & P2544 - 978-1 & 850-2 Reservoir Int-Ext Coating\Staff Reports\BD 05-02-18\BD 05- 02-18, Staff Report 978-1 & 850-2 Reservoir Coating.docx Attachments: Attachment A – Committee Action Attachment B-1 – Budget Detail for P2534 (978-1 Reservoir) Attachment B-2 – Budget Detail for P2544 (850-2 Reservoir) Exhibit A – Project Location for 978-1 & 850-2 Exhibit B – Alyson Consulting Letter dated 4/9/2018 Exhibit C – Change Order No. 4 ATTACHMENT A SUBJECT/PROJECT: P2534-001103 P2544-001103 Approve Change Order No. 4 to the Contract with Blastco, Inc. for the 978-1 & 850-2 Reservoirs Interior/Exterior Coatings & Upgrades Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on April 16, 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. ATTACHMENT B-1 – Budget Detail for P2534 SUBJECT/PROJECT: P2534-001103 P2544-001103 Approve Change Order No. 4 to the Contract with Blastco, Inc. for the 978-1 & 850-2 Reservoirs Interior/Exterior Coatings & Upgrades Project Date Updated: 4/09/18 Budget 650,000 Planning Standard Salaries 2,458 2,458 0 2,458 Consultant Contracts 3,800 3,800 - 3,800 HDR ENGINEERING INC Regulatory Agency Fees 25 25 - 25 PETTY CASH CUSTODIAN - - - - Total Planning 6,283 6,283 0 6,283 Design Standard Salaries 15,278 15,278 - 15,278 - - - - Total Design 15,278 15,278 - 15,278 Construction Standard Salaries 150,000 140,522 9,478 150,000 Construction Contract 369,840 319,219 50,621 369,840 BLASTCO, INC. (Paid) 19,465 - 19,465 19,465 BLASTCO, INC. (Retention) (60,000) - (60,000) (60,000) CO No. 4 Service Contracts 52 52 - 52 DAILY JOURNAL CORP Service Contracts 465 465 - 465 MAYER REPROGRAPHICS 55,957 55,957 - 55,957 CORRPRO COMPANIES INC 1,978 1,978 - 1,978 NINYO & MOORE 2,013 2,013 - 2,013 PSOMAS 30,000 24,150 5,850 30,000 ALYSON CONSULTING-CM 2,261 2,261 - 2,261 CLARKSON LAB & SUPPLY 10,500 5,642 4,858 10,500 WATCHLIGHT CORPORATION 5,000 - 5,000 5,000 Legal Total Construction 587,530 552,258 35,272 587,530 Grand Total 609,091 573,818 35,272 609,091 Vendor/Comments Otay Water District P2534-978-1 Reservoir Interior/Exterior Coating Committed Expenditures Outstanding Commitment & Projected Final Cost ATTACHMENT B-2 – Budget Detail for P2544 SUBJECT/PROJECT: P2534-001103 P2544-001103 Approve Change Order No. 4 to the Contract with Blastco, Inc. for the 978-1 & 850-2 Reservoirs Interior/Exterior Coatings & Upgrades Project Date Updated: 4/09/18 Budget 980,000 Planning Standard Salaries 2,211 2,211 - 2,211 Consultant Contracts 3,800 3,800 - 3,800 HDR ENGINEERING INC Service Contracts - - - - - - - - Regulatory Agency Fees 25 25 - 25 PETTY CASH CUSTODIAN Total Planning 6,036 6,036 - 6,036 Design Standard Salaries 13,701 13,701 - 13,701 Total Design 13,701 13,701 - 13,701 Construction Standard Salaries 150,000 136,205 13,795 150,000 Construction Contract 681,010 480,738 200,272 681,010 BLASTCO, INC. (Paid) 35,843 - 35,843 BLASTCO, INC. (Retention) (207,198) - (207,198) (207,198) CO No. 4 Service Contracts 24,431 24,431 - 24,431 CORRPRO COMPANIES INC 61,950 61,950 - 61,950 CSI SERVICES INC 1,234 1,234 - 1,234 NINYO & MOORE 5,820 5,820 - 5,820 PSOMAS 35,000 29,150 5,850 35,000 ALYSON CONSULTING-CM 688 688 - 688 CLARKSON LAB & SUPPLY 10,500 8,187 2,313 10,500 WATCHLIGHT CORPORATION 465 465 - 465 MAYER REPROGRAPHICS 5,000 - 5,000 5,000 Legal Total Construction 804,743 748,868 55,875 804,743 Grand Total 824,480 768,605 55,875 824,480 Vendor/Comments Otay Water District P2544-850-2 Reservoir Interior/Exterior Coating Committed Expenditures Outstanding Commitment & Projected Final Cost OTAY WATER DISTRICT 978-1 & 850-2 Reservoirs Interior/Exterior Coatings & UpgradesLocation Map EXHIBIT A F P:\WORKING\P2534 & P2544 978-1 & 850-2 Reservoirs Int-Ex Coating\Graphics\Exhibits-Figures\Location Map-Color.mxd §¨¦8 §¨¦8 §¨¦8 ÃÅ94 ÃÅ125 ÃÅ94 ÃÅ125 ÃÅ94 0 5,0002,500 Feet 850-2 RESERVOIR 978-1RESERVOIR CIP P2534CIP P2544 PROJECT SITE PROJECT SITE SR-94 / CAMPO RD !\ VICINITY MAP PROJECT SITENTS DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë !\ PROJECT SITE F J A M A C H A BLVD J A M A C H A R D 9968 Hibert Street, Suite 109 – San Diego, California 92131 619-851-3331 – alysonconsulting.com April 9, 2018 Mr. Dan Martin, PE Manager, Engineering OTAY WATER DISTRICT 2554 Sweetwater Springs Blvd Spring Valley, CA 91978 Re: Recommend Unilateral Processing of Change Order No. 4 978-1 & 850-2 Reservoir Interior/Exterior Coating & Upgrades (CIP P2534/2544) Dear Mr. Martin: Change Order No. 4 was issued to Blastco on February 21, 2018 for signature (e-mail thread attached). Subsequent correspondence indicated Blastco’s legal team was reviewing the document prior to issuing a response. Via correspondence received on April 5, 2018 Blastco disagreed with the assessment of liquidated damages and expressed an unwillingness to sign the change order. The Contractor has submitted two claims on the project. The Engineer’s Entitlement Decision denying the claims has been issued and Blastco’s response is pending. The Contract includes a detailed claim resolution procedure which remains unaffected by processing Change Order No. 4 unilaterally. Given the contractor’s unwillingness to sign the change order I recommend the District process Change Order No. 4 unilaterally to allow the project to closeout and record project completion. Please do not hesitate to contact me if you have any questions or comments. Sincerely, Douglas Cook Construction Manager Print | Close Window Subject: Re: [FWD: RE: [FWD: 978 & 850 CO 04 Closeout for signature]] From: Bob Kelley <Bob.Kelley@tfwarren.com> Date: Thu, Apr 05, 2018 8:36 pm To: "dcook@alysoncorp.com" <dcook@alysoncorp.com> Doug, As previously discussed, Blastco disagrees with the assessment of liquidated damages pursuant Claims 1 and 2 and will not acknowledge the validity of your change order by signing this document. Respectfully, Bob Kelley| Operations Manager| Blastco Inc D: 5622315458 | C: 5623675089 11905 Regentview Ave | Downey, CA 90241 Sent from my iPhone On Apr 5, 2018, at 9:37 PM, "dcook@alysoncorp.com" <dcook@alysoncorp.com> wrote: Bob, I have not received a response regarding Blastco signing CO 04. Unless notified otherwise prior to close of business on Friday, April 6, 2018, the District will move forward with processing the CO unilaterally. Please do not hesitate to contact me if you have any questions or comments. Thank you, Doug Original Message Subject: RE: [FWD: 978 & 850 CO 04 Closeout for signature] From: <dcook@alysoncorp.com> Date: Fri, March 23, 2018 12:36 pm To: "Bob Kelley" <Bob.Kelley@tfwarren.com> Cc: "Dan Martin" <Dan.Martin@otaywater.gov> Bob, As we discussed yesterday this CO requires Board action and our window for placing this item on the May Board meeting agenda closes early next week. You are scheduled to complete the punchlist today and missing the May Board meeting will delay our ability to record the project as complete and therefore delay the release of remaining retention funds. Please respond and clarify if Blastco will sign the CO or if the CO needs to be processed unilaterally. Please do not hesitate to contact me if you have any questions or comments. Thank you, Doug Original Message Subject: Re: [FWD: 978 & 850 CO 04 Closeout for signature] From: Bob Kelley <Bob.Kelley@tfwarren.com> Date: Mon, March 19, 2018 8:28 pm To: "dcook@alysoncorp.com" <dcook@alysoncorp.com> Doug, As previously discussed and pursuant to our claim I do not acknowledge the validity of the liquidated damages. Therefore, I will forward the document to our legal team for review and advisement. Respectfully, Bob Kelley| Operations Manager| Blastco Inc D: 5622315458 | C: 5623675089 11905 Regentview Ave | Downey, CA 90241 On Mar 19, 2018, at 1:34 PM, "dcook@alysoncorp.com" <dcook@alysoncorp.com> wrote: Bob, I also left you a voicemail. Please let me know the status of the subject CO. Thank you, Doug Original Message Subject: 978 & 850 CO 04 Closeout for signature From: <dcook@alysoncorp.com> Date: Wed, February 21, 2018 1:41 pm To: "Bob Kelley" <bob.kelley@tfwarren.com> Bob, Per our discussion, please find the subject CO attached for signature. Please do not hesitate to contact me if you have any questions or comments. Thank you, Doug <CO 04 Closeout.pdf> Copyright © 20032018. All rights reserved. OTAY WATER DISTRICT 2554 SWEETWATER SPRINGS BLVD., SPRING VALLEY, CA. 91978, (619) 670-2222 CONTRACT/P.O. CHANGE ORDER No. 4 PROJECT/ITEM: 978-1 & 850-2 Reservoir Interior/Exterior Coating and Upgrades CONTRACTOR/VENDOR: Blastco, Inc. REF.CIP No.: P2534/P2544 APPROVED BY: Board REF. P.O. No: 719760 DATE: 2/21/18 DESCRIPTION: See attached page 2 of 2 for continuation. REASON: See attached page 2 of 2 for continuation. CHANGE P.O. TO READ: Revise Contract to deduct $267,197.50 and add 0 days time for a total Contract amount of $838,960.13 with a Contract Duration of 305 Calendar Days. ORIGINAL CONTRACT/P.O. AMOUNT: $ 1,106,200.00 ADJUSTED AMOUNT FROM PREVIOUS CHANGE: $ (42.37) TOTAL COST OF THIS CHANGE ORDER: $ (267,197.50) NEW CONTRACT/P.O. AMOUNT IS: $ 838,960.13 ORIGINAL CONTRACT COMPLETION DATE: 6/15/17 CONTRACT/P.O. TIME AFFECTED BY THIS CHANGE: No REVISED CONTRACT COMPLETION DATE: 9/1/17 IT IS UNDERSTOOD WITH THE FOLLOWING APPROVALS, THAT THE CONTRACTOR/VENDOR IS AUTHORIZED AND DIRECTED TO MAKE THE HEREIN DESCRIBED CHANGES. IT IS ALSO AGREED THAT THE TOTAL COST FOR THIS CHANGE ORDER CONSTITUTES FULL AND COMPLETE COMPENSATION FOR OBLIGATIONS REQUIRED BY THE CONTRACT/P.O. ALL OTHER PROVISIONS AND REQUIREMENTS OF THE CONTRACT/P.O. REMAIN IN FULL FORCE AND EFFECT. CONTRACTOR/VENDOR: STAFF APPROVALS: SIGNATURE: Processed Unilaterally PROJ. MGR : DATE: 4/9/18 NAME : Bob Kelly DIV. MGR : DATE: TITLE: Project Manager DATE : CHIEF: DATE: COMPANY & Blastco, Inc. ADDRESS: 11905 Regentview Avenue DISTRICT APPROVAL: Downey, CA 90241 GEN. MANAGER: DATE: COPIES: o FILE (Orig.), o CONTRACTOR/VENDOR, o CHIEF-ENGINEERING, o CHIEF-FINANCE, o ENGR. MGR. o ACCTS PAYABLE, o INSPECTION, o PROJ. MGR., o ENGR. SECRETARY, o PURCHASING, o PROJECT BINDER Contract / P.O. Change Order No. 4 page 2 of 3 Description of Work Description Increase Decrease Time Item No. 1: Reimbursement for additional inspection costs outside normal work hours per Section 00800-1.2 at the 850-2 Reservoir. $2,499.00 0 Item No. 2: Reimbursement for liquidated damages from September 1, 2017 until Substantial Completion on January 11, 2018 (132 Calendar days at $2,000/calendar day) $264,000.00 0 Item No. 3: Reimbursement for grinding removal ($1.50/SF) and replacement ($15.00/SF) of damaged asphalt concrete paving at the 850-2 Reservoir. (Credit 23 SF at $16.50/SF) $379.50 0 Item No. 4: Reimbursement for grinding removal ($1.50/SF) and replacement ($15.00/SF) of damaged asphalt concrete paving at the 978-1 Reservoir. (Credit 26 SF at $16.50/SF) $429.00 0 Item No. 5: This Change Order increases the amount allocated for Bid Item 3.5, ¼-Iinch Steel Patch Plates by $110.00 to a new authorized amount of $1,100.00. (Add 1 EA at $110/EA) $110.00 Sub Total Amount $110.00 $267,307.50 0 Total Net Change Order Amount ($267,197.50) Revisions to: BID SCHEDULE Item # Description Quantity Unit Unit Price Amount 3.5 ¼-inch Steel Patch Plates 11 EA 110 $1,210.00 Reason: Item No. 1: Contract Documents Section 00800-1.2 provides for reimbursement of additional expenses of Owner’s personnel and inspection services resulting from work outside normal working hours. The Contractor requested and was granted authorization to work overtime between November 1, 2017 and January 11, 2017 with the provision for reimbursement of additional inspection costs. The delta between overtime and regular time inspection costs is $21/hr. A total of 119 hours of overtime inspection was provided requiring premium time reimbursement. This change order is required to reimburse the District for additional costs associated with providing inspection outside normal working hours as requested by the Contractor. Item No. 2: Pursuant to contractual provisions, failure of the Contractor to complete the work within the time allowed will result in damages being sustained by the District for each calendar day the Contractor fails to substantially complete all work. The adjusted Contract complete date was September 1, 2017 and substantial completion was achieved on January 11, 2018 resulting in 132 days of liquidated damages. This change order is required to reimburse the District for costs associated with the Contractor not completing the project within the allotted time. Item No. 3: The Contractor damaged existing asphalt concrete paving at the 850-2 Reservoir. In lieu of replacing the damaged asphalt concrete paving the contractor elected to utilize the District’s FY2018 As-Needed Asphaltic Concrete Paving Services Contract pricing to reimburse the District for the associated repair cost. This change order is required to reimburse the District for costs associated with damaged asphalt concrete replacement at the 850-2 Reservoir. Contract / P.O. Change Order No. 4 page 3 of 3 Item No. 4: The Contractor damaged existing asphalt concrete paving at the 978-1 Reservoir. In lieu of replacing the damaged asphalt concrete paving the contractor elected to utilize the District’s FY2018 As-Needed Asphaltic Concrete Paving Services Contract pricing to reimburse the District for the associated repair cost. This change order is required to reimburse the District for costs associated with damaged asphalt concrete replacement at the 978-1 Reservoir. Item No. 5: The Contract Bid Item No 3.5, ¼-inch Steel Patch Plates, required a quantity adjustment resulting from field conditions. Federal ID (EIN):45-0532361 CSI Services, Inc. P.O. Box 801357 Santa Clarita, CA 91380-2316 US (877)2742422 www.csiservices.biz INVOICE BILL TO Otay Water District Attn: Accounts Payable 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 INVOICE #7885 DATE 12/05/2017 DUE DATE 01/04/2018 TERMS Net 30 PO/AUTH.PROJECT NO PROJECT NAME 720092 217282 850-2 Spring Valley Tank DATE ACTIVITY ACTIVITY QTY RATE AMOUNT 10/30/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 10/31/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/01/2017 Inspector Coating Inspection Services-OT 4:00 115.75 463.00 11/01/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/02/2017 Inspector Coating Inspection Services-OT 1:00 115.75 115.75 11/02/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/03/2017 Inspector Coating Inspection Services-OT 2:00 115.75 231.50 11/03/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/04/2017 Inspector Coating Inspection Services-OT 8:00 94.75 758.00 11/06/2017 Inspector Coating Inspection Services-OT 2:00 115.75 231.50 11/06/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/07/2017 Inspector Coating Inspection Services-OT 2:00 115.75 231.50 11/07/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/08/2017 Inspector Coating Inspection Services-OT 2:00 115.75 231.50 11/08/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/09/2017 Inspector Coating Inspection Services-OT 2:00 115.75 231.50 11/09/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/10/2017 Inspector Coating Inspection Services-OT 1:00 115.75 115.75 11/10/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/11/2017 Inspector Coating Inspection Services-OT 8:00 94.75 758.00 11/13/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/13/2017 Inspector Coating Inspection Services-OT 2:00 115.75 231.50 11/14/2017 Inspector Coating Inspection Services-OT 2:00 115.75 231.50 11/14/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/15/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/15/2017 Inspector Coating Inspection Services-OT 2:00 115.75 231.50 11/16/2017 Inspector Coating Inspection Services-OT 2:00 115.75 231.50 Federal ID (EIN):45-0532361 DATE ACTIVITY ACTIVITY QTY RATE AMOUNT 11/16/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/17/2017 Inspector Coating Inspection Services-OT 1:00 115.75 115.75 11/17/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/18/2017 Inspector Coating Inspection Services-OT 8:00 115.75 926.00 11/20/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/21/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 11/21/2017 Inspector Coating Inspection Services-OT 2:00 115.75 231.50 11/22/2017 Inspector Coating Inspection Services 8:00 94.75 758.00 There will be a 3 percent surcharge for payments made with a credit card BALANCE DUE $19,211.25 GS¡rg¡EFtvtcEs¡ CSlServices, lnc. P.O, Box 801357 Santa Clarita, CA 91380-2316 US (877)2742422 www.csiservices.biz 0TAY_rydIR ütsTRrcTËilr.i-rvilD l0l$.tÅt'l lé Pl{ ? t2 INVOICE BILL TO Otay Water District Attn: Accounts Payable 2554 Sweeiwater Springs Blvd Spring Valley, CA 91978-2004 ,i¡r,i.i il3t¡ii INVO|CE # 7929 DATE 0110912A18 DUE DATE O2IO8I2O1B TERMS Net 30 i,/ ¡ìt¡,:':t: t ,- r ;t ; i' i:; ,.;,¡ ¡,i :, i.jÍ i'":it i;'r| 1 i '. ¡i t:l PO/AUTH 720092 DATE 11t27t2017 1112712017 1112812017 1112812017 11t29t2017 1112912017 11t30t2017 11t30t2017 12t01t2017 12t01t2017 12102t2017 1210412017 121A412017 1214512017 12tC5t2C17 12t06t2017 1210612017 1210712017 12t07t2017 12t08t2017 12t08t2017 12t0912A17 12111t2017 12t11t2017 1211212017 12t12t2017 12/13/2017 ACTIVITY lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector RATE 1 15.75 94.75 115.75 94.75 115.75 94.75 1 15.75 94.75 1 15.75 94.75 1 15.75 115.75 94.75 1 15.75 94.75 1 15.75 94.75 1 15.75 94.75 94.75 1 15.75 115.75 94.75 115.75 115.75 94.75 1 15.75 AMOUNT 231.50 758.00 23'1.50 758,00 231.50 758.00 231.50 758.00 23'1.50 758.00 926.00 231.50 758.00 231,50 758.00 231.50 758.00 231.50 758.00 758.00 23't.50 926.00 758.00 231.50 231.50 758.00 231.50 PROJECT NO 217282 ACTIVITY Coating lnspection Services-OT Coating lnspection Services Coating lnspection Services-OT Coating lnspection Services Coating lnspection Services-OT Coating lnspection Services Coating lnspection Services-OT Coating lnspection Services Coating lnspection Services-OT Coating lnspection Services Coating lnspection Services-OT Coating lnspection Services-OT Coating lnspection Services Coating lnspection Services-OT Coating lnspection Services Coating lnspection Services-OT Coating lnspection Services Coating lnspection Services-OT Coating lnspection Services Coating lnspection Services Coating lnspection Services-OT Coating lnspection Services-OT Coating lnspection Services Coating lnspection Services-OT Coating lnspection Services-OT Coating lnspection Services Coating lnspection Services-OT PROJECT NAME 850-2 Spring Valley Tank QTY 2:00 8:00 2:04 B:00 2:40 8:00 2:00 8:00 2:00 B:00 B:00 2:00 8:00 2:04 8:00 2:04 B:00 2:00 8:00 B:00 2:00 8:00 8:00 2:00 2:00 8:00 2:00 Federal lD (ElN):45-0532361 oirE 12t13t2017 1211412017 12114t2017 1211512017 12t15t2017 1211612017 12t18t2017 12t1812017 12119t2A17 1211912017 12t20t2417 1212112017 1212112017 12t22t2017 ACTIVITY lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector RATE 94.75 94.75 1 15.75 1 15.75 94.75 1 15.75 1 15.75 94.75 1 15.75 94.75 94.75 94.75 1 15.75 94.75 AMOUNT 758.00 758.00 231.50 231.50 758,00 926.00 231.50 758.00 231.50 758.00 758.00 758,00 231.50 758.00 There will be a 3 percenl surcharge for payments made with a credit card ACTIVITY Coating lnspection Services Coating lnspection Services Coating lnspection Services-OT Coating lnspection Services-OT Coating lnspection Services Coating I nspection Services-OT Coating I nspection Services-OT Coating lnspection Services Coating I nspection Services-OT Coating lnspection Services Coating lnspection Services Coating lnspection Services Coati ng I nspection Services-OT Coating lnspection Services BALANCE DUE QTY 8:00 8:00 2:00 2:0A 8:00 8:00 2:00 B:00 2:00 8:00 8:00 8:00 2:00 8:00 922,105.00 Federal lD (ElN):45-053236 1 GSI SiEFIVIGES CSlSeruices, lnc. P.O. Box 801357 Santa Clarita, CA 91380-2316 US (877)2742422 www.csiservices.biz 0TAY W&THIì ÐI$-rRlcï ?0ls ttÐ l? Âlt ls 25 INVOICE BILL TO Otay Water District Attn:Accounts Payable 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 INVO|CE # 7s71 DATE 01/31/2018 DUE DATE 03/02/2018 TERMS Net30 PO/AUTH 720092 PROJECT NO 217282 ACTIVITY PROJECT NAME 850-2 Spring Valley Tank DATE 12/26/2017 12/26/2017 12/27/2017 1212712017 12/28/2017 12/28/2017 12/29t2017 0110212018 01/03/2018 0110412018 01t04/2018 01/05/2018 0110812018 01t10/2018 01 /11 /2018 0111212018 ACTIVITY lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector lnspector Coating Coating Coating Coating Coating Coating Coating Coating Coating Coating Coating Coating Coating Coating Coating Coating lnspection lnspection lnspection lnspection lnspection lnspection lnspection lnspection lnspection lnspection lnspection lnspection lnspection lnspection lnspection lnspection Services-OT Services Services-OT Services Services-OT Services Services Services Services Services-OT Services Services Services IServices Services Services RATE 1 15.75 94.75 1 15.75 94.75 115.75 94.75 94.75 94.75 94.75 1 15.75 94.75 94.75 94.75 94.75 94.75 94.75 AMOUNT 231.50 758.00 231.50 758.00 231.50 758.00 758.00 758.00 758.00 231.50 758.00 758.00 758.00 758.00 758.00 758.00 QTY 2:00 8:00 2:00 8:00 2:00 8:00 8:00 8:00 8:00 2:00 B:00 8:00 8:00 B:00 B:00 8:00 There will be a 3 percent surcharge for payments made with a credit card BALANCE DUE $10,022.00 E fnìtì'i i lii i 1 ) ti q 0 Federal lD (El N) :45-0532361 tËB t 9?'tlfJ 978-1 & 850-2 Reservoir Int/Ext Coating and Upgrades Project: P2534/P2544 Consultant/Contractor: Blastco, Inc.Subproject: 001103 APPROVED C.O.AMOUNT BY DATE DESCRIPTION TYPE C.O. 1 $0.00 Chief 6/22/2017 Contract time for weather impacts and Work Order No. 1 structural repairs at 978-1 Reservoir Contractor 2 ($670.00) Chief 9/1/2017 Contract time for Work Orders 2, 3, and 4 at the 850-2 Reservoir. Close out Bid Item 3.4. Installation of seismic support straps. Contractor 3 $627.63 Chief 12/13/2017 Handrail modifications at the 850-2 reservoir, credit for reservoir repairs to RFID Card Access system Contractor 4 ($267,197.50) Board Close Out change order to reconcile 132 days of liquidated damages for late delivery; credit for inspection outside normal working hours; credit for damaged pavement at 978-1 and 850-2 Reservoir sites; and compensation for steel patch plates. Contractor 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Total C.O.'s To Date: ($267,239.87) -24.2% Original Contract Amount:$1,106,200.00 Current Contract Amount:$838,960.13 Month Net C.O.$ Limit Authorization Absolute C.O.$ C.O. % 4/18 ($267,197.50) $2,000 Insp 0.0% $10,000 PM/Sr. Engr. 0.0% $20,000 DivM 0.0% $25,000 Chief 0.0% $75,000 GM 0.0% >$75000 Board 0.0% CHANGE ORDER LOG P:\WORKING\CIP P2534 & P2544 - 978-1 & 850-2 Reservoir Int-Ext Coating\Construction\Change Orders\P2534_P2544_COLOG_180409 1 4/9/2018 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 2, 2018 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: P2573-001103 S2048-001103 DIV. NO.: 5 APPROVED BY: Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Approve Change Order No. 2 to the Contract with T.C. Construction Company, Inc. for the Hillsdale Road 12-Inch Waterline Replacement (CIP P2573) and Sewer Repairs (CIP S2048) Projects GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approve Change Order No. 2 to the existing contract with T.C. Construction Company, Inc. (T.C. Construction) in the amount of $149,280.00 for the Hillsdale Road 12-Inch Waterline Replacement (CIP P2573) and Sewer Repairs (CIP S2048) Projects (see Exhibit A for Project locations). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute Change Order No. 2 in the amount of $149,280.00 to the construction contract with T.C. Construction for the Hillsdale Road 12-Inch Waterline Replacement (CIP P2573) and Sewer Repairs (CIP S2048) Projects (Project). 2 ANALYSIS: The District provides water distribution service and sanitary sewer collection service in the Jamacha drainage basin located in the northern area of the District. The existing 12-inch Cement Mortar Lined and Coated (CML&C) steel pipe that serves as the distribution main for Hillsdale Road was constructed in 1959. Staff made the determination that the pipeline has reached the end of its useful life and should be replaced. The County of San Diego has also designated Hillsdale Road for road resurfacing as soon as the District completes utility work in this area, prompting the sewer repairs to be included in the Project. Deficiencies in the existing 8-inch sewer system were observed and documented by closed-circuit television inspection and condition assessment at two (2) locations within Hillsdale Road. The Project also includes the repairs of the sewer at the two (2) locations, which are east of Jalisco Road and west of Vista Grande Road. At the September 6, 2017 Board Meeting, the Board awarded a construction contract in the amount of $2,396,060.00 to TC Construction to construct approximately 4,050 linear feet of 12-inch Polyvinyl Chloride (PVC) water line and about 760 linear feet of 8- inch PVC sewer replacement along Hillsdale Road. Shortly after issuing the construction contract’s Notice to Proceed, during the month of October 2017, the existing 12-inch CML&C steel pipe that serves as the distribution main for Hillsdale Road experienced a main break in the area that fronts Valhalla High School. The main break was not related to the construction work, which was active at the time. District Operations responded immediately to restore water service in the area and construct temporary roadway facilities to reopen Hillsdale Road. The remaining items required to complete restoration of the roadway facilities at this location, including curb, gutter, sidewalk, and asphalt pavement. The restoration work associated with the main break is being handled as an insurance claim with the Special District Risk Management Authority (SDRMA), the District’s insurance provider. In an effort to coordinate work and reduce the impacts of multiple contractors working in the area in front of Valhalla High School, the District requested a quote from TC Construction to complete the damage claim roadway facilities restoration. TC Construction’s quote was compared to a quote secured from the District’s As-Needed Paving contractor and found to be competitive. TC Construction’s quote was provided to SDRMA and SDRMA has approved the quoted amount to allow the restoration work to proceed. The SDRMA approved amount is reflected in Change Order No. 2 (Exhibit B). 3 To date, there has been one change order approved on the construction contract. Change Order No. 1, which totals $44,695.77, and was approved under the General Manager’s authority, compensated TC Construction for modifications required due to existing utilities and addressed traffic signal impacts for unmarked traffic loops at the Hillsdale Road/Chase Avenue intersection. Change Order No. 1 also added 5 days to the contract including time for weather impacts between September 2017 and March 2018. Change Order No. 2, included in this staff report, will compensate TC Construction $149,280.00 for the restoration of the asphalt pavement, curb, gutter, and sidewalk, which was damaged during the water main break. Change Order 2 will also add 55 days of contract time to the Project. This added time will allow the restoration work to occur after Valhalla High School’s graduation, which is in the month of June 2018. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP P2573, as approved in the FY 2018 budget, is $2,450,000. The total budget approved by SDRMA for the Hillsdale Road water main break restoration work is $149,280. The total of these two approved budgets is $2,599,280. Total expenditures, plus outstanding commitments and forecast including this contract, are $2,598,455. See Attachment B1 for budget detail. The total budget for CIP S2048, as approved in the FY 2018 budget, is $720,000. Total expenditures, plus outstanding commitments and forecast including this contract, are $693,051. See Attachment B2 for budget detail. Based on a review of the financial budgets, the Project Manager anticipates that the budgets for CIP P2573, CIP S2048, and the budget amount approved by SDRMA are sufficient to support the Project. The District has received a reimbursement payment from SDRMA in the amount of $149,280 to support the subject change order work. The Finance Department has determined that, under the current rate model, 100% of the funding for CIP P2573 and CIP 2048 is available from the Replacement Fund. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” 4 LEGAL IMPACT: None. DM/RP:mlc P:\WORKING\CIP P2573 12-Inch PL Replacement, 803 Zone, Hillsdale Road\Staff Reports\BD 05-02-18\BD 05- 02-18 Staff Report Approve CO 2 For The Hillsdale Road Waterline Replacement and Sewer Repair Project.Docx Attachments: Attachment A – Committee Action Attachment B1 – P2573 Budget Detail Attachment B2 - S2048 Budget Detail Exhibit A - Project Location Map Exhibit B – Change Order No. 2 ATTACHMENT A SUBJECT/PROJECT: P2573-001103 S2048-001103 Approve Change Order No. 2 to the Contract with T.C. Construction Company, Inc. for the Hillsdale Road 12-Inch Waterline Replacement (CIP P2573) and Sewer Repairs (CIP S2048) Projects COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on April 16, 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. ATTACHMENT B1 – P2573 Budget Detail SUBJECT/PROJECT: P2573-001103 S2048-001103 Approve Change Order No. 2 to the Contract with T.C. Construction Company, Inc. for the Hillsdale Road 12-Inch Waterline Replacement (CIP P2573) and Sewer Repairs (CIP S2048) Projects 4/10/2018 Budget 2,450,000.00 CIP P2573 149,280.00 SDRMA FUNDING 2,599,280.00 TOTAL Planning Regulatory Fees 50 50 - 50 Petty Cash Custodian Standard Salaries 8,660 8,660 - 8,660 Total Planning 8,710 8,710 - 8,710 Design 001102 Consultant Contracts 145,063 145,063 - 145,063 PSOMAS 2,278 2,278 - 2,278 HUNSAKER & ASSOCIATES 25,658 25,658 - 25,658 NINYO & MOORE GEOTECHNICAL AND Regulatory Agency Fees 19,895 19,895 - 19,895 COUNTY OF SAN DIEGO Service Contracts 51 51 - 51 DAILY JOURNAL CORPORATION 750 750 - 750 CHICAGO TITLE COMPANY Standard Salaries 80,683 80,683 - 80,683 Total Design 274,378 274,378 - 274,378 Construction Construction Contract 1,873,791 1,294,481 579,310 1,873,791 TC CONSTRUCTION COMPANY INC. 98,621 68,131 30,490 98,621 CALIFORNIA BANK & TRUST 149,280 - 149,280 149,280 CO NO. 2 Consultant Contracts 26,345 20,370 5,975 26,345 ALYSON CONSULTING 1,430 1,430 - 1,430 VALLEY CONSTRUCTION MANAGEMENT 1,500 263 1,237 1,500 CLARKSON LAB & SUPPLY INC. 1,400 1,400 - 1,400 PSOMAS Regulatory Fees 10,000 - 10,000 10,000 County of San Diego Permit Inspection - - - - Standard Salaries 153,000 128,100 24,900 153,000 - - - Total Construction 2,315,367 1,514,174 801,193 2,315,367 Grand Total 2,598,455 1,797,262 801,193 2,598,455 Vendor/Comments Otay Water District P2573 -PL-12" PL Repl 803Z Hillsdale Road Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost (Budget detail includes approved SDRMA Funds) ATTACHMENT B2 – S2048 Budget Detail SUBJECT/PROJECT: P2573-001103 S2048-001103 Approve Change Order No. 2 to the Contract with T.C. Construction Company, Inc. for the Hillsdale Road 12-Inch Waterline Replacement (CIP P2573) and Sewer Repairs (CIP S2048) Projects Bud 4/10/2018 Budget 720,000 Planning Total Planning - - - - Design 001102 Consultant Contracts 6,415 6,415 - 6,415 NINYO & MOORE GEOTECHNICAL 36,533 36,533 - 36,533 PSOMAS - - - - Standard Salaries 21,760 21,760 - 21,760 Total Design 64,707 64,707 - 64,707 Construction Construction Contract 444,927 3,206 441,721 444,927 TC CONSTRUCTION COMPANY INC. 23,417 169 23,248 23,417 CALIFORNIA BANK & TRUST Consultant Contracts 20,000 - 20,000 20,000 ALYSON CONSULTING 10,000 350 9,650 10,000 PSOMAS Regulatory Fees 20,000 - 30,000 30,000 County of San Diego Permit Inspection - - - - Standard Salaries 100,000 2,988 97,012 100,000 Total Construction 618,344 6,713 621,631 628,344 Grand Total 683,051 71,420 621,631 693,051 Vendor/Comments Otay Water District S2048 - Hillsdale Road Sewer Repairs Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost OTAY WATER DISTRICTHILLSDALE RD 12-INCH WATER PIPELINE REPLACEMENT & SEWER REPAIRSLOCATION MAPEXHIBIT A CIP P2573CIP S2048 F P:\WORKING\CIP P2573 12-Inch PL Replacement, 803 Zone, Hillsdale Road\Graphics\Exhibits-Figures\Exhibit A, Water Main and Sewer Main Replacement on Hillsdale Road, Location Map, Aug 2017.mxd JAMACHA RD C H A S E A V VISTA HILLSDALE RD D O N A H U E D R G R A N D E R D 12" Water PipelineReplacement Sewer Repair Sewer Repair JALISCO RD WIND RIVER RD VICINITY MAP PROJECT SITE NTS DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë F 0 500250 Feet !\Legend 12-Inch Waterline Replacement Sewer Main Repairs (Two Sites) OTAY WATER DISTRICT 2554 SWEETWATER SPRINGS BLVD., SPRING VALLEY, CA. 91978, (619) 670-2222 CONTRACT/P.O. CHANGE ORDER No. 2 PROJECT/ITEM: Hillsdale Road 12-inch Waterline Replacement and Sewer Repairs CONTRACTORNENDOR: TC Construction Co. Inc. REF.CIP No.: P2573/S2048 APPROVED BY: Board REF. P.O. No: 720147 DATE: 4/6/18 DESCRIPTION: Remove 1,005 square yards of existing asphalt concrete, grade and compact existing aggregate base, install 7-inches of new asphalt concrete paving, restore traffic striping to match existing, remove and replace 45 linear feet of curb/gutter/sidewalk per county standards and RFP 001. REASON: Resulting from an existing waterline failure on Hillsdale Road a portion of existing AC paving was detrimentally affected. This change order is required to restore the affected paving and curb/gutter/sidewalk to serviceable conditions. CHANGE P.O. TO READ: Revise Contract to add $149,280.00 and add 55 days time for a total Contract amount of $2,590,035.77 with a Contract Duration of 260 Calendar Days. ORIGINAL CONTRACT/P.O. AMOUNT: ADJUSTED AMOUNT FROM PREVIOUS CHANGE: TOTAL COST OF THIS CHANGE ORDER: NEW CONTRACT/P.O. AMOUNT IS: ORIGINAL CONTRACT COMPLETION DATE: CONTRACT/P.O. TIME AFFECTED BY THIS CHANGE: REVISED CONTRACT COMPLETION DATE: $ 2,396,060.00 $ 44,695.77 $ 149,280.00 $ 2,590,035.00 4/27/18 Yes 6/26/18 IT IS UNDERSTOOD WITH THE FOLLOWING APPROVALS, THAT THE CONTRACTORNENDOR IS AUTHORIZED AND DIRECTED TO MAKE THE HEREIN DESCRIBED CHANGES. IT IS ALSO AGREED THAT THE TOTAL COST FOR THIS CHANGE ORDER CONSTITUTES FULL AND COMPLETE COMPENSATION FOR OBLIGATIONS REQUIRED BY THE CONTRACT/P.O. ALL OTHER PROVISIONS AND REQUIREMENTS OF THE CONTRACT/P.O. REMAIN IN FULL FORCE AND EFFECT. CONTRACTORNE7 c ____ STAFF APPROVALS: SIGNATURE: PROJ. MGR : _ ..... ~_-l-~ _______ DATE: 4l\O\\1b NAME : Austin Cameron DIV. MGR : DATE: ___ _ TITLE: -'-P:..::.res=id=e=nt ______ DATE: 0'l,IJo!Jcl8 CHIEF: ___________ DATE: ___ _ COMPANY & TC Construction Company. Inc. ADDRESS: ..:.,10=..::5....:..40:..;P.-,;,ro,::..:s..c;..pec=.:....;t A...;.;;v..::.,e __________ DISTRICT APPROVAL: ..=S..::;an=te=e;...,;. C=.:.,A.:....;9=2.;;.;07.-,;,1 __________ GEN. MANAGER: _________ DATE: ___ _ COPIES: 0 FILE (Orig.), 0 CONTRACTORNENDOR, 0 CHIEF-ENGINEERING, 0 CHIEF-FINANCE, 0 ENGR. MGR. o ACCTS PAYABLE, 0 INSPECTION, 0 PROJ. MGR., 0 ENGR. SECRETARY, 0 PURCHASING, 0 PROJECT BINDER Alyson Consulting 8898 Hibert Ave, Suite 109 San Diego, CA 92131 (858) 518-3072 REQUEST FOR PROPOSAL # 001 Date: February 5, 2018 Project Name: Hillsdale Road 12-inch Waterline Replacement and Sewer Repairs To: TC Construction C.I.P. No.: P2573 & S2048 10540 Prospect Ave. Santee, CA 92071 Contractor: TC Construction Co., Inc. Attn: Carlos Perea From: Douglas Cook Subject: SDRMA Paving Reference Drawings: N/A Ref. Spec. Section: N/A Referenced RFI: N/A Description: Shop drawings required X No Shop drawings required Please prepare a lump sum proposal to furnish all required labor, material, and equipment necessary to implement the following item per field and office discussions including limits defined in site walk with County representative: • Remove 1,005 square yards of existing asphalt concrete roadway, grade and re-compact existing aggregate base and install 7-inches of new asphalt concrete per County standards. • Remove and replace 45 linear feet of existing curb/gutter including 5-foot sidewalk. • Install new striping to match existing. • Required traffic control for work. • Work to take place during Valhalla High School summer recess. • Please submit a lump sum cost proposal for this adjustment to your construction contract by September 11, 2017. Your proposal should include a complete detailed breakdown of labor man-hours, materials, equipment, and all other related costs which would be basis for negotiation and agreement in an adjustment to the contract price. • Please quantify the impact, if any, the above described scope of work will have upon your project completion date, by identifying the first critical path element of your schedule which is impacted and the duration of the impact. • Other requirements to be included are: N/A By: Construction Manager’s Signature Hillsdale Road 12-Inch Waterline Replacement and Sewer Repairs Project: P2573/S2048 Consultant/Contractor: TC Construction Co. Inc. Subproject: 001103 APPROVED C.O.AMOUNT BY DATE DESCRIPTION TYPE C.O. 1 $44,695.77 GM Change order modifies water main profile due to existing utilites; addresses unmarked traffic loops at Hillsdale/Chase intersection; addition of thrust blocks at two locations; repairs unmarked water service; and addresses contract time for weather. Contractor 2 $149,280.00 Board Change order adds roadway, crub, gutter, and sidewalk repair scope to the project resulting from an existing water line failure on Hillsdale Road fronting Valhalla High School. This change order is funded by SDRMA Insurance. OWD 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Total C.O.'s To Date: $193,975.77 8.1% Original Contract Amount:$2,396,060.00 Current Contract Amount:$2,590,035.77 Month Net C.O.$ Limit Authorization Absolute C.O.$ C.O. % 4/18 $149,280.00 $2,000 Insp 0.0% $5,000 PM/Sr. Engr. 0.0% $10,000 DivM 0.0% $20,000 Chief 0.0% $75,000 GM 0.0% >$75000 Board 0.0% CHANGE ORDER LOG P:\WORKING\CIP P2573 12-Inch PL Replacement, 803 Zone, Hillsdale Road\Construction\Change Orders\180410_COLOG 1 4/10/2018 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 2, 2018 SUBMITTED BY: Lisa Coburn-Boyd Environmental Specialist Bob Kennedy Engineering Manager CIP./G.F. NO: D0909- 090331 DIV. NO. NA APPROVED BY: Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Approval of Water Supply Assessment and Verification Report (March 2018) for the Otay Ranch Resort Village Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approves the Water Supply Assessment and Verification Report (WSA&V Report) dated March 2018 for the Otay Ranch Resort Village Project (Resort Project), as required by Senate Bill 610 and 221 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board approval of the March 2018 WSA&V Report for the Resort Project, as required by Senate Bill 610 and Senate Bill 221 (SB 610 and SB 221). ANALYSIS: The County of San Diego submitted a request to the District for an updated WSA&V report pursuant to SB 610 and SB 221. SB 610 and SB 221 require that, upon the request of the City or County, a water purveyor, such as the District, prepare a water supply assessment and verification report to be included in the California Environmental Quality Act (CEQA) environmental documentation. The original WSA&V report for the Project was approved in February 2009 and an update to that report was approved in January 2014. The County has requested that the 2 Board approve an updated WSA&V for a new Land Use alternative (Alternative H) that they are considering for the Project, which has a reduced footprint and less water demand and use. Since 2009 and 2014, there have also been updates to the County planning documents that include the Resort Project. SB 610 requires a city or county to evaluate whether water supplies will be sufficient to meet the projected water demand for certain “projects” that are otherwise subject to the requirement of the CEQA. SB 610 provides its own definition of “project” in Water Code Section 10912. SB 221 requires affirmative written verification from the water purveyor of the public water system that sufficient water supplies are planned to be available for certain residential subdivisions of property. The requirements of SB 610 and SB 221 are addressed by the January 2014 WSA&V Report for this Project. The WSA&V Report was prepared by the District in consultation with Dexter Wilson Engineering, the San Diego County Water Authority (Water Authority), and the County of San Diego (County). Prior to transmittal to the County, the WSA&V Report must be approved by the Board of Directors. An additional explanation of the intent of SB 610 and SB 221 is provided in Exhibit B, and the Resort Project WSA&V Report is provided as Exhibit D. As the responsible land use agency for the Resort Project, the County has requested the WSA&V report from the District because the project meets one or more of the SB 610 and SB 221 criteria. The Resort Project is located in the unincorporated area of San Diego County and is bound by Lower Otay Reservoir to the south and the Upper Otay Reservoir to the northwest. The Resort Project is not currently within the jurisdictions of the District, Water Authority, and Metropolitan Water District of Southern California (MWD), but will be annexed into these jurisdictions at a later date. The Resort Project is a proposed development of approximately 1,869 acres. It is planned to include 1,881 single-family dwelling units, a mixed-use area with 57 multi-family residences and up to 20,000 square feet of commercial use, and a 15 acre resort hotel with 200 guest rooms with an additional 20,000 square feet of ancillary commercial/office uses (total commercial use of 40,000 sq. ft.). The Project also includes an elementary school site, five private and one public park sites, 3 a public safety site and approximately 1,408 acres of open space (preserve and non-preserve). The Project site will be developed in multiple phases. The expected potable water demand for the Otay Ranch Resort Village Project is 1.18 million gallons per day (MGD) or about 1,318 acre-feet per year (AFY). This is 296 AFY lower than the demand estimate in the January 2014 WSA&V report that was prepared for the project and approved by the Board in March 2014. Although the land uses for the project have not changed significantly since the January 2014 report, the reduction in water demand reflects the revised water duty factors currently used by the District to project water demands as a result of water conservation efforts in recent years. Additional water demand reduction is realized as a result of a change in the footprint of the developed areas which has reduced the amount of irrigated areas. The previously estimated 1,615 AFY demand (January 2014 WSA&V) was accounted for in the District’s 2015 Urban Water Management Plan (UWMP) and the Water Authority’s 2015 UWMP. Therefore, based on the findings from the District’s 2015 UWMP and the Water Authority’s 2015 UWMP, this Project will result in no unanticipated demands. The entire watershed of the Otay Ranch Resort Village is tributary to the Lower Otay Reservoir. The use of recycled water within watersheds tributary to surface water storage reservoirs that provide supply for potable domestic water uses must be approved by the owners of the reservoirs in order to protect water quality in these reservoirs. The Applicant for the project discussed the use of recycled water with the City of San Diego, the operator of the Lower Otay Reservoir. In an email to the Applicant, dated February 27, 2018 (Exhibit C), the City states that it is restricting the expansion of a reclaimed water system into the Village (Otay Ranch Resort Village) development to protect the reservoir from excessive salt loading. For this reason, the projected water use within the Otay Ranch Resort Village has been estimated without the use of recycled water. The request for compliance with SB 221 requirements was made by the County because the Project will exceed the SB 221 criteria of a proposed residential development subdivision of more than 500 dwelling units. Pursuant to SB 610 and SB 221, the WSA&V Report incorporates by reference the current Urban Water Management Plans and other water resources planning documents of the District, the Water 4 Authority, and the MWD. The District prepared the WSA&V Report in consultation with Dexter Wilson Engineering, the Water Authority, and the County, which demonstrates and documents that sufficient water supplies are planned for and are intended to be made available over a 20-year planning horizon under normal supply conditions and in single and multiple-dry years to meet the projected demand of the Otay Ranch Resort Village Project, and other planned development projects within the District. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The District has been reimbursed $8,000 for all costs associated with the preparation of the Otay Ranch Resort Village Project WSA&V Report. The reimbursement was accomplished via an $8,000 deposit the Project proponents placed with the District on January 5, 2018. STRATEGIC GOAL: The preparation and approval of the WSA&V Report for the Otay Ranch Resort Village Project supports the District’s Mission statement, "To provide the best quality of water and wastewater services to the customers of the Otay Water District, in a professional, effective, and efficient manner” and the District’s Strategic Goal, in planning for infrastructure and supply to meet current and future potable water demands. LEGAL IMPACT: Approval of a WSA&V Report for the Otay Ranch Resort Village Project in form and content satisfactory to the Board of Directors would allow the District to comply with the requirements of Senate Bill 610 and 221. LCB/BK:jf P:\WORKING\WO D0909 - Resort Village\Staff Report Documents\D0909-090331\BD 05-02-18 Staff Report Otay Ranch Resort Village 13 WSAV (LCB-BK).doc Attachments: Attachment A – Committee Action Exhibit A – Project Location Map Exhibit B – Explanation of the Intent of SB 610 & SB 221 Exhibit C – E-mail from the City of San Diego Exhibit D – Otay Ranch Resort Village Project WSA&V Report Exhibit E – Presentation ATTACHMENT A SUBJECT/PROJECT: D0909-090331 Approval of Water Supply Assessment and Verification Report (March 2018) for the Otay Ranch Resort Village Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on April 16, 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. EXHIBIT B Background Information The Otay Water District (District) prepared the March 2018 Water Supply Assessment and Verification (WSA&V) Report for the Otay Ranch Resort Village Project at the request of the County of San Diego. The County’s WSA&V request letter dated March 21, 2018 was received by the District on March 21, 2018 so the 90-day deadline for the District to provide the Board an approved WSA&V Report to the City ends June 19, 2018. The March 2018 WSA&V Report for the Otay Ranch Resort Village Project has been prepared by the District in consultation with Dexter Wilson Engineering, the Water Authority, and the County pursuant to Senate Bills (SB) 610 and 221. The requirements of SB 610 and SB 221 are addressed in the March 2018 WSA&V Report for the Otay Ranch Resort Village Project. The Otay Ranch Resort Village Project (Resort Project) is included within a land use planning document known as the Otay Ranch General Development Plan/Sub-regional Plan (Otay Ranch GDP), jointly prepared and adopted by the County of San Diego and City of Chula Vista. The Resort Project, identified as Village 13 in the Otay Ranch GDP, is located within what is defined as the Proctor Valley Parcel of the Otay Ranch GDP. The Resort Project current development plan approval is dependent on the County’s eventual adoption of their entitlement application. The proposed development concept for the approximately 1,869 acres of Village 13 is generally planned as a combination of land uses consisting of a resort/hotel and associated facilities, a mix of single-family residential neighborhoods, a multiple use neighborhood, an elementary school, a public safety facilities site, commercial, open space, preserve land, circulation elements, parks, and recreational facilities. The expected potable water demand for the Otay Ranch Resort Village Project is 1.18 million gallons per day (MGD) or about 1,318 acre-feet per year (AFY). This is 296 AFY lower than the demand estimate in the January 2014 WSA&V that was prepared for the Project and approved by the Board in March 2014. Therefore, based on the findings from the Otay WD’s 2015 UWMP and the Water Authority’s 2015 UWMP, this Project will result in no unanticipated demands. The entire watershed of the Resort Project is tributary to the Upper and Lower Otay Reservoirs. The developers of the Resort Village 13 Project have met with and discussed the use of recycled water with the City of San Diego, the operator of the reservoirs. The City of San Diego has requested that the Project not use recycled water because they are concerned about the runoff from the Project entering the reservoirs and increasing nutrients and salinity. For this reason, the projected water use within the Resort Project has been estimated without the use of recycled water. The District currently depends on the Water Authority and the MWD for all of its potable water supplies and regional water resource planning. The District’s 2015 Urban Water Management Plan (UWMP) relies heavily on the UWMP’s and Integrated Water Resources Plans (IRPs) of the Water Authority and MWD for documentation of supplies available to meet projected demands. These plans are developed to manage the uncertainties and variability of multiple supply sources and demands over the long-term through preferred water resources strategy adoption and resource development target approvals for implementation. With District Board approval of the Otay Ranch Resort Village Project WSA&V Report, the Otay Ranch Resort Village Project proponents can proceed with the draft environmental documentation required for the CEQA review process. The water supply issues will be addressed in these environmental documents, consistent with the WSA&V Report. The District, as well as others, can comment on the draft EIR with recommendations that water conservation measures and actions be employed on the Otay Ranch Resort Village Project. Water supplies necessary to serve the demands of the proposed Otay Ranch Resort Village Project, along with existing and other projected future users, as well as the actions necessary to develop these supplies, have been identified in the water supply planning documents of the District, the Water Authority, and MWD. The WSA&V Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, or agreements relevant to the identified water supply needs for the proposed Otay Ranch Resort Village Project. The WSA&V Report demonstrates and documents that sufficient water supplies are planned and are intended to be available over a 20-year planning horizon, under normal conditions and in single and multiple-dry years, to meet the projected demand of the proposed Otay Ranch Resort Village Project and the existing and other planned development projects within the District. EXHIBIT C From: Steve Nielsen <Steve@dwilsoneng.com> Sent: Friday, March 9, 2018 1:57 PM To: Bob Kennedy Cc: Lisa Coburn-Boyd Subject: FW: Village 13 Reclaimed Water From: Amen, Rania [mailto:RAmen@sandiego.gov] Sent: Tuesday, February 27, 2018 2:24PM To: TShaw@atlantissd.com Subject: FW: Reclaimed water question Mr. Shaw, Vic asked me to follow up with you on your question since the Recycled Water System is within my purview. As you may know, Otay Village 13 is immediately adjacent to Otay Reservoir. The City of San Diego is restricting the expansion of the reclaimed water system into Village 13, to protect Otay Reservoir from salt loading. Excessive salt loading is a concern for the reservoir as a drinking source water. The City is very concerned about salt loading from the project areas into Otay Reservoir. This problem would be exacerbated by the use of recycled water to irrigate landscaping in the project area. Recycled water carries salt loads well in excess of the drinking water standard. Salt in recycled water is about double that in imported water and about four times that in local runoff. Even if there is no direct runoff of recycled water to the reservoir, the salt in the irrigation water accumulates on the land surface or in shallow soil, and is subsequently carried by rainfall runoff to the reservoir. Let me know if you have additional questions. Thanks! Rania S. Amen, P.E. Assistant Director- System Management and Operations Branch City of San Diego Public Utilities Department T (858) 292-6418 The City of SAN DIEGO - A world-class city for all - EXHIBIT D OTAY WATER DISTRICT WATER SUPPLY ASSESSMENT AND VERIFICATION REPORT for the County of San Diego Otay Ranch Resort Village Prepared by: Lisa Coburn-Boyd Environmental Compliance Specialist and Bob Kennedy, P.E. Engineering Manager Otay Water District In consultation with Dexter Wilson Engineering, Inc. And San Diego County Water Authority March 2018 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village Otay Water District Water Supply Assessment and Verification Report March 2018 Otay Ranch Resort Village Table of Contents Executive Summary .................................................................................................................. 1 Section 1 - Purpose .................................................................................................................... 5 Section 2 - Findings ................................................................................................................... 6 Section 3 - Project Description ................................................................................................ 9 Section 4 – Otay Water District ............................................................................................... 9 Section 5 – Historical and Projected Water Demands ........................................................ 12 5.1 Demand Management (Water Conservation)………………………………..17 Section 6 - Existing and Projected Supplies ......................................................................... 20 6.1 Metropolitan Water District of Southern California 2015 Urban Water Management Plan ......................................................................................... 21 6.1.2 MWD Capital Investment Plan .......................................................... 22 6.2 San Diego County Water Authority Regional Water Supplies ................ 23 6.2.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies ............................................................................................. 24 6.2.1.2 All-American Canal and Coachella Canal Lining Projects .. 31 6.2.1.3 Carlsbad Seawater Desalination Project ............................... 35 6.2.2 Water Authority Capital Improvement Program and Financial Information ........................................................................... 38 6.3 Otay Water District ...................................................................................... 39 6.3.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies ............................................................................................. 40 6.3.1.1 Imported and Regional Supplies ........................................... 41 6.3.1.2 Recycled Water Supplies ...................................................... 43 Section 7 – Conclusion: Availability of Sufficient Supplies ................................................ 51 Source Documents ................................................................................................................... 57 Appendices Appendix A: Otay Ranch Resort Village Vicinity Map Appendix B: Otay Ranch Resort Village Development Plan Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 1 Otay Water District Water Supply Assessment and Verification Report March 2018 Otay Ranch Resort Village Executive Summary The Otay Water District (Otay WD) prepared this Water Supply Assessment and Verification Report (WSA&V Report) at the request of the County of San Diego (County) for the Otay Ranch Village 13 Project (Otay Ranch Resort Village). The County is having an environmental impact report (EIR) prepared for the development of this project. Baldwin and Sons, LLC and Moller Otay Lakes Investment, LLC are the project applicants. Otay Ranch Resort Village Overview and Water Use The Otay Ranch Resort Village is not currently located within the jurisdictions of the Otay WD, the San Diego County Water Authority (Water Authority), and the Metropolitan Water District of Southern California (MWD). In order to obtain permanent imported water supply service, the project is required to annex into the jurisdictions of the Otay WD, Water Authority, and MWD. The Otay Ranch Resort Village is identified and described within a land use planning document known as the Otay Ranch General Development Plan/Sub-regional Plan (Otay Ranch GDP). The County of San Diego and City of Chula Vista jointly prepared and adopted the Otay Ranch GDP. The Resort Village project, identified as Village 13 within the Otay Ranch GDP, is located in what is defined as the Proctor Valley Parcel of the Otay Ranch GDP. The Resort Village is part of the designated 14 villages and 5 planning areas within the Otay Ranch GDP area. The Chula Vista City Council and the County of San Diego Board of Supervisors adopted the Otay Ranch GDP on October 28, 1993, which was accompanied by a Program Environmental Impact Report EIR-90-01 (SCH #89010154). As the Otay Ranch area has developed over time, The Otay Ranch GDP has been periodically amended to address land use and circulation element issues specific to individual villages. Baldwin and Sons, LLC and Moller Otay Lakes Investment, LLC (“applicants”) proposed development concept for the approximately 1,869 acre Otay Ranch Resort Village property is generally planned as a combination of land uses. These land uses consist of a resort/hotel and associated facilities, a mix of single and multi-family residential neighborhoods, an elementary school, a public safety facilities site, commercial, open space, preserve land, circulation elements, parks, and recreational facilities. The total number of resort/hotel units Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 2 is planned to be 200. Approximately 520 acres of the total project site are dedicated for 1,881 single family detached homes and 57 multi-family homes are part of a mixed use site. Typically a development of this magnitude is constructed in several phases over many years. The expected potable water demand for the Otay Ranch Resort Village is 1,177,200 gallons per day (gpd) or about 1,318.7 acre feet per year (AFY). This is 296.3 AFY less than the projected water demand in the January 2014 Water Supply Assessment and Verification Report that was previously approved for the project. Although the land use plan has not changed significantly since the January 2014 report, the reduction in water demand reflects the revised water duty factors currently used by Otay WD to project water demands as a result of water conservation efforts in recent years. For the current land use plan, the number of dwelling units and the areas for commercial development, parks, schools and public safety sites match the total approved units and approximately match the non-residential areas noted on Table C-4 in Appendix C (Population, Employment and Development Forecasting) of the District’s Water Facilities Master Plan Update, dated March 2016 (WFMP Update). However, the actual area of development has been reduced resulting in a higher dwelling unit density and less irrigated area per home. Additionally, the area of irrigated areas in parks, open space and adjacent to streets will be reduced further, lowering the demand for potable water. The entire watershed of the Otay Ranch Resort Village is tributary to the Lower Otay Reservoir. The use of recycled water within watersheds tributary to surface water storage reservoirs that provide supply for potable domestic water uses must be approved by the owners of the reservoirs in order to protect water quality in these reservoirs. The Applicant for the project discussed the use of recycled water with the City of San Diego, the operator of the Lower Otay Reservoir. In an email to the Applicant, dated February 27, 2018, the City states that it is restricting the expansion of a reclaimed water system into the Village 13 (Otay Ranch Resort Village) development to protect the reservoir from excessive salt loading. For this reason, the projected water use within the Otay Ranch Resort Village has been estimated without the use of recycled water. Planned Imported Water Supplies from the Water Authority and MWD The Water Authority and MWD have an established process that ensures supplies are being planned to meet future growth. Any annexations and revisions to established land use plans are captured in the San Diego Association of Governments (SANDAG) updated forecasts for land use planning, demographics, and economic projections. SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information. The Water Authority and MWD update their demand forecasts and supply needs based on the most recent SANDAG forecast approximately every five years to coincide with preparation of their UWMP’s. Prior to the next forecast update, local jurisdictions with land use authority may require water supply assessment and/or verification reports for proposed land developments that are not within the OTAY WD, Water Authority, or MWD jurisdictions (i.e. pending or proposed annexations) or that have revised land use plans with either lower or Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 3 higher development intensities than reflected in the existing growth forecasts. Proposed land areas with pending or proposed annexations, or revised land use plans, typically result in creating higher demand and supply requirements than previously anticipated. The Otay WD, Water Authority, and MWD next demand forecast and supply requirements and associated planning documents would then capture any increase or decrease in demands and required supplies as a result of annexations or revised land use planning decisions. An important planning document utilized by MWD, the Water Authority and Otay WD is the Integrated Resources Plan (IRP) which describes an agency’s long term water plan. MWD’s 2015 IRP offers an adaptive management strategy to protect the region from future supply shortages. This adaptive management strategy has five components: achieve additional conservation savings, develop additional local water supplies, maintain Colorado River Aqueduct supplies, stabilize State Water Project supplies, and maximize the effectiveness of storage and transfer. MWD’s 2015 IRP has a plan for identifying and implementing additional resources that expand the ability for MWD to meet future changes and challenges as necessary to ensure future reliability of supplies. The proper management of these resources help to ensure that the southern California region, including San Diego County, will have adequate water supplies to meet long-term future demands. Another important planning document is the UWMP. The California Urban Water Management Planning Act (Act), which is included in the California Water Code, requires all urban water suppliers within the state to prepare an UWMP and update it every five years. The purpose and importance of the UWMP has evolved since it was first required 25 years ago. State agencies and the public frequently use the document to determine if agencies are planning adequately to reliably meet future demands. As such, UWMPs serve as an important element in documenting supply availability for the purpose of compliance with state laws, Senate Bills 610 and 221, linking water supply sufficiency to large land-use development approval. Agencies must also have a UWMP prepared, pursuant to the Act, in order to be eligible for state funding and drought assistance. MWD’s 2015 UWMP Findings state that MWD has supply capabilities that would be sufficient to meet expected demands from 2020 through 2040. MWD has plans for supply implementation and continued development of a diversified resource mix including programs in the Colorado River Aqueduct, State Water Project, Central Valley Transfers, local resource projects, and in-region storage that enables the region to meet its water supply needs. The County Water Authority Act, Section 5 subdivision 11, states that the Water Authority “as far as practicable, shall provide each of its member agencies with adequate supplies of water to meet their expanding and increasing needs.” As part of preparation of a written water supply assessment report, an agency’s shortage contingency analysis should be considered in determining sufficiency of supply. Section 11 of the Water Authority’s 2015 UWMP Update contain a detailed shortage contingency analysis that addresses a regional catastrophic shortage situation and drought management. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 4 The analysis demonstrates that the Water Authority and its member agencies, through the Integrated Contingency Plan, Emergency Storage Project, and Water Shortage and Drought Response Plan are taking actions to prepare for and appropriately handle an interruption of water supplies. The Water Shortage and Drought Response Plan, provides the Water Authority and its member agencies with a series of potential actions to take when faced with a shortage of imported water supplies from MWD due to prolonged drought or other supply shortfall conditions. The actions will help the region avoid or minimize the impacts of shortages and ensure an equitable allocation of supplies. Water supply agencies throughout California continue to face climate, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento-San Joaquin Delta issues and reoccurring droughts impacting the western states. Even with these ever present challenges, the Water Authority and MWD, along with Otay WD fully intend to have sufficient, reliable supplies to serve demands. Otay Water District Water Supply Development Program In evaluating the availability of sufficient water supply, the Otay Ranch Resort Village will be required to participate in the water supply development program being implemented by the Otay WD. This is intended to be achieved through financial participation in several local and/or regional water supply development projects envisioned by the Otay WD. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents, and are in response to the regional water supply issues. These new water supply projects are not currently developed and are in various stages of the planning process. Imported water supplies along with the development of these additional Otay WD water supply development projects supplies are intended to increase water supplies to serve the Otay Ranch Resort Village water supply needs and that of other similar development projects. The Otay WD water supply development program includes but is not limited to projects such as the Middle Sweetwater River Basin Groundwater Well project, the Rancho del Rey Groundwater Well project, the North District Recycled Water Supply Concept, and the Otay Mesa Conveyance and Disinfection System Project. The Water Authority and MWD’s next forecasts and supply planning documents would capture any increase in water supplies resulting from any new water resources developed by the Otay WD. Findings The WSA&V Report identifies and describes the processes by which water demand projections for the proposed Otay Ranch Resort Village will be fully included in the water demand and supply forecasts of the Urban Water Management Plans and other water resources planning documents of the Water Authority and MWD. Water supplies necessary to serve the demands of the proposed project, along with existing and other projected future Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 5 users, as well as the actions necessary and status to develop these supplies, have been identified in the Otay Ranch Resort Village WSA&V Report and will be included in the future water supply planning documents of the Water Authority and MWD. This WSA&V Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, water supply projects, or agreements relevant to the identified water supply needs for the proposed Otay Ranch Resort Village. The WSA&V Report demonstrates and documents that sufficient water supplies are planned for and are intended to be available over a 20-year planning horizon, under normal conditions and in single and multiple dry years to meet the projected demand of the proposed Otay Ranch Resort Village and the existing and other planned development projects to be served by the Otay WD. Accordingly, after approval of a WSA&V Report for the Otay Ranch Resort Village by the Otay WD Board of Directors (Board), the WSA&V Report may be used to comply with the requirements of the legislation enacted by Senate Bills 610 and 221 as follows: 1. Senate Bill 610 Water Supply Assessment: The Otay WD Board approved WSA&V Report may be incorporated into the California Environmental Quality Act (CEQA) Environmental Impact Report (EIR) compliance process for the Otay Ranch Resort Village as a water supply assessment report consistent with the requirements of the legislation enacted by SB 610. The County, as lead agency under CEQA for the Otay Ranch Resort Village EIR and Alternatives, may cite the approved WSA&V Report as evidence that a sufficient water supply is planned for and is intended to be made available to serve the Otay Ranch Resort Village. 2. Senate Bill 221 Water Supply Verification: The Otay WD Board approved WSA&V Report may be incorporated into the County’s Tentative Map approval process for the Otay Ranch Resort Village as a water supply verification report, consistent with the requirements of the legislation enacted by SB 221. The County, within their process of approving the Otay Ranch Resort Village Tentative Map, may cite the approved WSA&V Report as verification of intended sufficient water supply to serve the Otay Ranch Resort Village. Section 1 - Purpose The County of San Diego is having an environmental impact report (EIR) prepared for the development of the 1869 acre project (Otay Ranch Resort Village). The project is located within the Otay Ranch General Development Plan along Otay Lakes Road on the north side of Lower Otay Reservoir. The County requested that the Otay WD prepare a Water Supply Assessment and Verification (WSA&V) Report for the Otay Ranch Resort Village. The Otay Ranch Resort Village project description is provided in Section 3 of this WSA&V Report. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 6 This WSA&V Report for the Otay Ranch Resort Village has been prepared by the Otay WD in consultation with Dexter Wilson Engineering, Inc., the Water Authority, and the County pursuant to Public Resources Code Section 21151.9 and California Water Code Sections 10631, 10656, 10910, 10911, 10912, and 10915 referred to as Senate Bill (SB) 610 and Business and Professions Code Section 11010 and Government Code Sections 65867.5, 66455.3, and 66473.7 referred to as SB 221. SB 610 and SB 221 amended state law, effective January 1, 2002, is intended to improve the link between the information on water supply availability and certain land use decisions made by cities and counties. SB 610 requires that the water purveyor of the public water system prepare a water supply assessment to be included in the CEQA documentation and approval process of certain proposed projects. SB 221 requires affirmative written verification from the water purveyor of the public water system that sufficient water supplies are to be available for certain residential subdivisions of property prior to approval of a tentative map. The requirements of SB 610 and SB 221 are being addressed by this WSA&V Report. The County also requested, since the requirements of SB 610 and SB 221 are substantially similar, that Otay WD prepare both the water supply assessment and verification concurrently. This WSA&V Report evaluates water supplies that are planned to be available during normal, single dry year, and multiple dry water years during a 20-year planning horizon to meet existing demands, expected demands of the Otay Ranch Resort Village, and reasonably foreseeable planned future water demands to be served by Otay WD. The Otay Water District Board of Directors approved WSA&V Report is planned to be used by the County in its evaluation of the Otay Ranch Resort Village under the CEQA approval process procedures. Section 2 - Findings The Otay WD prepared this WSA&V Report at the request of the County for the Otay Ranch Resort Village. Baldwin and Sons, LLC and Moller Otay Lakes Investment, LLC submitted an entitlement application to the County for the project. The Otay Ranch Resort Village is not currently within the jurisdictions of the Otay WD, the Water Authority, and MWD. To obtain permanent imported water supply service, Otay Ranch Resort Village is required to annex into the jurisdictions of the Otay WD, Water Authority, and MWD to utilize imported water supply. The expected potable water demand for the Otay Ranch Resort Village is 1,177,200 gallons per day (gpd) or about 1,318.7 acre feet per year (AFY). This is 296.3 AFY less than the projected water demand in the January 2014 Water Supply Assessment and Verification Report that was previously approved for the project. Although the land use plan has not Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 7 changed significantly since the January 2014 report, the reduction in water demand reflects the revised water duty factors currently used by Otay WD to project water demands as a result of water conservation efforts in recent years. For the current land use plan, the number of dwelling units and the areas for commercial development, parks, schools and public safety sites match the total approved units and approximately match the non-residential areas noted on Table C-4 in Appendix C (Population, Employment and Development Forecasting) of the District’s Water Facilities Master Plan Update, dated March 2016 (WFMP Update). However, the actual area of development has been reduced resulting in a higher dwelling unit density and less irrigated area per home. Additionally, the area of irrigated areas in parks, open space and adjacent to streets will be reduced further, lowering the demand for potable water. Recycled water is not proposed to be used on the project due to its proximity to Lower Otay Reservoir. The Water Authority and MWD have an established process that ensures supplies are being planned to meet future growth. Any annexations and revisions to established land use plans are captured in the San Diego Association of Governments (SANDAG) updated forecasts for land use planning, demographics, and economic projections. SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information. The Water Authority and MWD update their demand forecasts and supply needs based on the most recent SANDAG forecast approximately every five years to coincide with preparation of their urban water management plans. Prior to the next forecast update, local jurisdictions may require water supply assessment and/or verification reports for proposed land developments that are not within the Otay WD, Water Authority, or MWD jurisdictions (i.e. pending or proposed annexations) or that have revised land use plans with lower or higher land use intensities than reflected in the existing growth forecasts. Proposed land areas with pending or proposed annexations, or revised land use plans, typically result in creating higher demand and supply requirements than anticipated. The Otay WD, the Water Authority, and MWD next demand forecast and supply requirements and associated planning documents would then capture any increase or decrease in demands and required supplies as a result of annexations or revised land use planning decisions. This process is utilized by the Water Authority and MWD to document the water supplies necessary to serve the demands of the Otay Ranch Resort Village, along with existing and other projected future users, as well as the actions necessary to develop any required water supplies. Through this process the necessary demand and supply information is thus assured to be identified and incorporated within the water supply planning documents of the Water Authority and MWD. This WSA&V Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, proposed water supply projects, and agreements relevant to the identified water supply needs for the proposed Otay Ranch Resort Village. This WSA&V Report incorporates by reference the current Urban Water Management Plans and other water resources planning documents of the Otay WD, the Water Authority, and MWD. The Otay WD prepared this WSA&V Report to assess and document Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 8 that sufficient water supplies are planned for and are intended to be acquired to meet projected water demands of the Otay Ranch Resort Village as well as existing and other reasonably foreseeable planned development projects within the Otay WD for a 20-year planning horizon, in normal supply years and in single dry and multiple dry years. The Otay Water District 2015 UWMP includes a water conservation component to comply with Senate Bill 7 of the Seventh Extraordinary Session (SBX 7-7), which became effective February 3, 2010. This new law was the water conservation component to the Delta legislation package, and seeks to achieve a 20 percent statewide reduction in urban per capita water use in California by December 31, 2020. Specifically, SBX 7-7 from this Extraordinary Session requires each urban retail water supplier to develop urban water use targets to help meet the 20 percent reduction goal by 2020 (20x2020), and an interim water reduction target by 2015. Otay WD adopted Method 1 to set its 2015 interim and 2020 water use targets. Method 1 requires setting the 2020 water use target to 80 percent of baseline per capita water use target as provided in the State’s 20x2020 Water Conservation Plan. The Otay WD 2015 target was 172 gpcd which it met (2015 actual was 124 gpcd) and the 2020 gpcd target (80 percent of baseline) is 153 gpcd. The Otay WD’s recent per capita water use has been declining and current water use already meets the 2020 target as calculated using Method 1. This recent decline in per capita water use is largely due to drought water use restrictions, increased water costs, and economic conditions. However, Otay WD’s effective water use awareness campaign and enhanced conservation mentality of its customers will likely result in some long-term carryover of these reduced consumption rates. Based on a normal water supply year, the five-year increments for a 20-year projection indicate projected potable and recycled water supply is being planned for and is intended to be acquired to meet the estimated water demand targets of the Otay WD per the Otay Water District 2015 UWMP. Based on dry year forecasts, the estimated water supply is also being planned for and is intended to be acquired to meet the projected water demand, during single dry and multiple dry year scenarios. On average, the dry-year demands are about 6.64 percent higher than the normal year demands. The Otay WD recycled water supply is assumed to be drought-proof and not subject to reduction during dry periods. Together, these findings assess, demonstrate, and document that sufficient water supplies are planned for and are intended to be acquired for the Otay Ranch Resort Village. In addition, the actions necessary to develop these supplies are and will be further documented, to serve the proposed project and the existing and other reasonably foreseeable planned development projects within the Otay WD in both normal and single and multiple dry year forecasts for a 20-year planning horizon. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 9 Section 3 - Project Description The Otay Ranch Resort Village is located along Otay Lakes Road within the Proctor Valley Parcel of the Otay Ranch Development. Refer to Appendix A for a vicinity map of the proposed Otay Ranch Resort Village. The project is proposed to be located on 1,869 acres within the Otay Ranch General Development Plan. Although the proposed development is located within the County and subject to the County’s land use jurisdiction, the Otay WD is the potable and recycled water purveyor. The Otay Ranch Resort Village is required to be annexed into the jurisdictions of the Otay WD, the Water Authority, and MWD. Baldwin and Sons, LLC and Moller Otay Lakes Investment, LLC (“applicants”) proposed development concept for the approximately 1,869 acre Otay Ranch Resort Village property is generally planned as a combination of land uses. These land uses consist of a resort/hotel and associated facilities, a mix of single and multi-family residential neighborhoods, an elementary school, a public safety facilities site, commercial, open space, preserve land, circulation elements, parks, and recreational facilities. The total number of resort/hotel units is planned to be 200. Approximately 520 acres of the total project site are dedicated for 1,881 single family detached homes and 57 multi-family homes are part of a mixed use site. Typically a development of this magnitude is constructed in several phases over many years. The County has discretionary authority on land use decisions for the Otay Ranch Resort Village and can establish actions and/or permit approval requirements. The projected potable water demands associated with the Otay Ranch Resort Village EIR has considered the anticipated County discretionary actions and/or permit approvals and are incorporated into and used in this WSA&V Report. The water demands for the proposed Otay Ranch Resort Village are included in the projected water demand estimates provided in Section 5 – Historical and Projected Water Demands. Section 4 – Otay Water District The Otay WD is a municipal water district formed in 1956 pursuant to the Municipal Water District Act of 1911 (Water Code §§ 71000 et seq.). The Otay WD joined the Water Authority as a member agency in 1956 to acquire the right to purchase and distribute imported water throughout its service area. The Water Authority is an agency responsible for the wholesale supply of water to its 24 public agency members in San Diego County. The Otay WD currently meets all its potable demands with imported treated water from the Water Authority. The Water Authority is the agency responsible for the supply of imported water into San Diego County through its membership in MWD. The Water Authority currently obtains about 40% of its imported supply from MWD, but is in the process of further diversifying its available supplies. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 10 The Otay WD provides water service to residential, commercial, industrial, and agricultural customers, and for environmental and fire protection uses. In addition to providing water throughout its service area, Otay WD also provides sewage collection and treatment services to a portion of its service area known as the Jamacha Basin. The Otay WD also owns and operates the Ralph W. Chapman Water Reclamation Facility (RWCWRF) which has an effective treatment capacity of 1.2 million gallons per day (mgd) or about 1,300 acre feet per year to produce recycled water. On May 18, 2007, an additional source of recycled water supply of up to 6 mgd, or about 6,720 acre feet per year, became available to Otay WD from the City of San Diego’s South Bay Water Reclamation Plant (SBWRP). The Otay WD jurisdictional area is generally located within the south central portion of San Diego County and includes approximately 125 square miles. The Otay WD serves portions of the unincorporated communities of southern El Cajon, La Mesa, Rancho San Diego, Jamul, Spring Valley, Bonita, and Otay Mesa, the eastern portion of the City of Chula Vista and a portion of the City of San Diego on Otay Mesa. The Otay WD jurisdiction boundaries are roughly bounded on the north by the Padre Dam Municipal Water District, on the northwest by the Helix Water District, and on the west by the South Bay Irrigation District (Sweetwater Authority) and the City of San Diego. The southern boundary of Otay WD is the international border with Mexico. The planning area addressed in the Otay WD WFMP Update and the Otay WD 2015 UWMP includes both the land within the jurisdictional boundary of the Otay WD and those areas outside of the present Otay WD boundaries considered to be in the Area of Influence of the Otay WD. Figure 3-1 contained within the Otay WD 2015 UWMP shows the jurisdictional boundary of the Otay WD and the Area of Influence. The planning area is approximately 143 square miles, of which approximately 125 square miles are within the Otay WD current boundaries and approximately 18 square miles are in the Area of Influence. The area east of Otay WD is rural and currently not within any water purveyor jurisdiction and potentially could be served by the Otay WD in the future if the need for imported water becomes necessary, as is the case for the Area of Influence. The City of Chula Vista, the City of San Diego, and the County of San Diego are the three land use planning agencies within the Otay WD jurisdiction. Data on forecasts for land use planning, demographics, economic projections, population, and the future rate of growth within Otay WD were obtained from the San Diego Association of Governments (SANDAG). SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information through the year 2050. Population growth within the Otay WD service area is expected to increase from the 2015 figure of 217,339 to an estimated 285,340 by 2040. Land use information used to develop water demand projections are based upon Specific or Sectional Planning Areas, the Otay Ranch General Development Plan/Sub- regional Plan, East Otay Mesa Specific Plan Area, San Diego County Community Plans, and City of San Diego, City of Chula Vista, and County of San Diego General Plans. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 11 The Otay WD long-term historic growth rate has been approximately 4 percent. The growth rate has significantly slowed due to the current economic conditions and it is expected to slow as the inventory of developable land is diminished. Climatic conditions within the Otay WD service area are characteristically Mediterranean near the coast, with mild temperatures year round. Inland areas are both hotter in summer and cooler in winter, with summer temperatures often exceeding 90 degrees and winter temperatures occasionally dipping to below freezing. Most of the region’s rainfall occurs during the months of December through March. Average annual rainfall is approximately 10.08 inches per year. Historic climate data were obtained from the Western Regional Climate Center for Station 042706 (El Cajon). This station was selected because its annual temperature variation is representative of most of the Otay WD service area. While there is a station in the City of Chula Vista, the temperature variation at the City of Chula Vista station is more typical of a coastal environment than the conditions in most of the Otay WD service area. Urban Water Management Plan In accordance with the California Urban Water Management Planning Act and recent legislation, the Otay WD Board of Directors adopted an UWMP in June 2016 and subsequently submitted the plan to the California Department of Water Resources (DWR). As required by law, the Otay Water District 2015 UWMP includes projected water supplies required to meet future demands through 2040. In accordance with Water Code Section 10910 (c)(2) and Government Code Section 66473.7 (c)(3), information from the Otay WD 2015 UWMP along with supplemental information from the Otay WD WFMP Update have been utilized to prepare this WSA Report and are incorporated herein by reference. The state Legislature passed Senate Bill 7 as part of the Seventh Extraordinary Session (SBX 7-7) on November 10, 2009, which became effective February 3, 2010. This new law was the water conservation component to the Delta legislation package and seeks to achieve a 20 percent statewide reduction in urban per capita water use in California by December 31, 2020. Specifically, SBX 7-7 from this Extraordinary Session requires each urban retail water supplier to develop urban water use targets to help meet the 20 percent reduction goal by 2020 (20x2020), and an interim water reduction target by 2015. The SBX 7-7 target setting process includes the following: (1) baseline daily per capita water use; (2) urban water use target; (3) interim water use target; (4) compliance daily per capita water use, including technical bases and supporting data for those determinations. In order for an agency to meet its 2020 water use target, each agency can increase its use of recycled water to offset potable water use and also step up its water conservation measures. The required water use targets for 2020 and an interim target for 2015 are determined using one of four target methods – each method has numerous methodologies. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 12 In 2015, urban retail water suppliers were required to report interim compliance followed by actual compliance in 2020. Interim compliance is halfway between the baseline water use and 2020 target. Baseline, target, and compliance-year water use estimates are required to be reported in gallons per capita per day (gpcd). Failure to meet adopted targets will result in the ineligibility of a water supplier to receive grants or loans administered by the State unless one (1) of two (2) exceptions is met. Exception one (1) states a water supplier may be eligible if they have submitted a schedule, financing plan, and budget to DWR for approval to achieve the per capita water use reductions. Exception two (2) states a water supplier may be eligible if an entire water service area qualifies as a disadvantaged community. Otay WD adopted Method 1 to set its 2015 interim and 2020 water use targets. Method 1 requires setting the 2020 water use target to 80 percent of baseline per capita water use target as provided in the State’s 20x2020 Water Conservation Plan. The Otay WD was well below its required 2015 target of 172 gpcd, with an actual 2015 gpcd of 124. The 2020 gpcd target which is 80 percent of baseline is 153 gpcd. The Otay WD’s recent per capita water use has been declining to the point where current water use already meets the 2020 target for Method 1. This recent decline in per capita water use is largely due to drought water use restrictions and increased water costs. However, Otay WD’s effective water use awareness campaign and enhanced conservation mentality of its customers will likely result in some long-term carryover of these reduced consumption rates beyond the current period. Section 5 – Historical and Projected Water Demands The projected demands for Otay WD are based on Specific or Sectional Planning Areas, the Otay Ranch General Development Plan/Sub-regional Plan, the East Otay Mesa Specific Plan Area, San Diego County Community Plans, and City of San Diego, City of Chula Vista, and County of San Diego General Plans. This land use information is also used by SANDAG as the basis for its most recent forecast data. This land use information was utilized for the preparation of the Otay Water District WFMP Update and Otay Water District 2015 UWMP to develop the forecasted demands and supply requirements. In 1994, the Water Authority selected the Institute for Water Resources-Municipal and Industrial Needs (MAIN) computer model to forecast municipal and industrial water use for the San Diego region. The MAIN model uses demographic and economic data to project sector-level water demands (i.e. residential and non-residential demands). This econometric model has over a quarter of a century of practical application and is used by many cities and water agencies throughout the United States. The Water Authority’s version of the MAIN Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 13 model was modified to reflect the San Diego region’s unique parameters and is known as CWA-MAIN. The foundation of the water demand forecast is the underlying demographic and economic projections. This was a primary reason why, in 1992, the Water Authority and SANDAG entered into a Memorandum of Agreement (MOA) in which the Water Authority agreed to use the SANDAG current regional growth forecast for water supply planning purposes. In addition, the MOA recognizes that water supply reliability must be a component of San Diego County’s regional growth management strategy required by Proposition C, as passed by the San Diego County voters in 1988. The MOA ensures a strong linkage between local general plan land use forecasts and water demand projections and resulting supply needs for the San Diego region. Consistent with the previous CWA-MAIN modeling efforts, on October 15, 2013, the SANDAG Board of Directors accepted the Series 13: 2050 Regional Growth Forecast. The 2050 Regional Growth Forecast will be used by SANDAG as the foundation for the next Regional Comprehensive Plan update. SANDAG forecasts were used by local governments for planning, including the Water Authority 2015 UWMP update. The municipal and industrial forecast also included an updated accounting of projected conservation savings based on projected regional implementation of the California Urban Water Conservation Council (CUWCC) Best Management Practices and SANDAG demographic information for the period 2015 through 2050. These savings estimates were then factored into the baseline municipal and industrial demand forecast. Agricultural demand projections were developed through a cooperative effort between Water Authority staff, Water Authority member agencies, SANDAG, County of San Diego Agricultural Weights and Measures, and the California Avocado Commission. Forecast driver variables include irrigated acreage within the Water Authority’s service area, estimated crop type distribution, and calculated historic water-use factors. SANDAG’s projection of agricultural land conversions to other land use categories provides the long-term trend in acreage used to forecast agricultural water use. The total agricultural forecast is then separated into two categories: (1) projected demands in the Water Authority’s Transitional Special Agricultural Water Rate (TSAWR) program and (2) demands under the Water Authority M&I rate or agricultural demands met through local supplies. The Water Authority and MWD update their water demand and supply projections within their jurisdictions utilizing the SANDAG most recent growth forecast to project future water demands. This provides for the important strong link between demand and supply projections to the land use plans of the cities and the county. This provides for consistency between the retail and wholesale agencies water demand projections, thereby ensuring that adequate supplies are and will be planned for the Otay WD existing and future water users. Existing land use plans, any revisions to land use plans, and annexations are captured in the SANDAG updated forecasts. The Water Authority and MWD update their demand forecasts based on Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 14 the SANDAG most recent forecast approximately every five years to coincide with preparation of their urban water management plans. Prior to the next forecast update, local jurisdictions may require water supply assessment and/or verification reports consistent with Senate Bills 610 and 221 for proposed land use developments that either have pending or proposed annexations into the Otay WD, Water Authority, and MWD or that have revised land use plans than originally anticipated. The Water Authority and MWD’s next forecasts and supply planning documents would then capture any increase or decrease in demands caused by annexations or revised land use plans. In evaluating the availability of sufficient water supply, the Otay Ranch Resort Village proponents are required to participate in the development of alternative water supply project(s). This can be achieved through payment of the New Water Supply Fee adopted by the Otay WD Board in May 2010. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new water supply projects are in response to the regional water supply issues related to the Sacramento-San Joaquin Delta and the current ongoing western states drought conditions. These additional water supply projects are not currently developed and are in various stages of the planning process. A few examples of these alternative water supply projects include the Middle Sweetwater River Basin Groundwater Well project, the Otay WD Otay Mesa Conveyance and Disinfection System project, and the Rancho del Rey Groundwater Well project. The Water Authority and MWD next forecast and supply planning documents would capture any increase in water supplies resulting from verifiable new water resources developed by the Otay WD. In addition, MWD’s 2015 UWMP identified potential reserve supplies in the supply capability analysis (Tables 2-4, 2-5, and 2-6), which could be available to meet any unanticipated demands. The Water Authority and MWD’s next forecasts and supply planning documents would capture any increase in necessary supply resources resulting from any new water supply resources. Demand Methodology The Otay WD water demand projection methodology in the WFMP Update utilizes a component land use approach. This is done by applying representative values of water use to the acreage of each land use type and then aggregating these individual land use demand projections into an overall total demand for the Otay WD. This is called the water duty method, and the water duty is the amount of water used in gallons per day per acre per year. This approach is used for all the land use types except residential development where a demand per dwelling unit was applied. In addition, commercial and industrial water use categories are further subdivided by type including separate categories for golf courses, schools, jails, prisons, hospitals, etc. where specific water demands are established. To determine water duties for the various types of land use, the entire water meter database of the Otay WD is utilized and sorted by the appropriate land use types. The metered Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 15 consumption records are then examined for each of the land uses, and water duties are determined for the various types of residential, commercial, industrial, and institutional land uses. For example the water duty factors for commercial and industrial land uses are estimated using 1,785 and 893 gallons per day per acre (gpd/acre) respectively. Residential water demand is established based on the same data but computed on a per-dwelling unit basis. The focus is to ensure that for each of the residential land use categories (very low, low, medium, and high densities), the demand criteria used is adequately represented based upon actual data. This method is used because residential land uses constitute a substantial percentage of the total developable planning area of the Otay WD. The WFMP Update calculates potable water demand by taking the gross acreage of a site and applying a potable water reduction factor (PWRF), which is intended to represent the percentage of acreage to be served by potable water and that not served by recycled water for irrigation. For industrial land use, as an example, the PWRF is 0.95 (i.e., 95% of the site is assumed to be served by potable water, 5% of the site is assumed to be irrigated with recycled water, if available). The potable net acreage is then multiplied by the unit demand factor corresponding to its respective land use. This approach is used in the WFMP Update for all the land use types except residential development where a demand per dwelling unit is applied. In addition, commercial and industrial water use categories are further subdivided by type including separate categories for golf courses, schools, jails, prisons, hospitals, etc. where specific water demands are allocated. Otay Water District Projected Demand By applying the established water duties to the proposed land uses, the projected water demand for the entire Otay WD planning area at ultimate development is determined. Projected water demands for the intervening years were determined using growth rate projections consistent with data obtained from SANDAG and the experience of the Otay WD. The historical and projected potable water demands for Otay WD are shown in Table 1. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 16 Table 1 Historical and Projected Potable Water Fiscal Year Demands (acre-feet) Water Use Sectors 2010 2015 2020 2025 2030 2035 2040 Single Family Residential 17,165 16,228 17,072 19,806 20,752 20,649 23,224 Multi-Family Residential 3,605 3,460 5,557 6,732 7,342 7,585 8,837 Commercial, Industrial & Institutional 4,110 4,953 6,577 7,949 8,653 8,923 10,378 Landscape 3,732 4,079 4,400 4,600 4,700 4,900 5,200 AFG* - University I. D. 11.7 11.7 11.7 11.7 11.7 AFG – PA 12 46 46 46 46 46 AFG – Otay 250 836 836 836 836 836 Near-term Annexations 2,973 2,973 2,973 2,973 2,973 Other 2,563 1,578 470 470 470 470 470 Totals 31,175 30,298 37,943 43,424 45,784 46,394 51,976 Source: Otay Water District 2015 UWMP. *Accelerated Forecasted Growth Increment Otay Ranch Resort Village Projected Water Demand Using the land use demand projection methodology noted above, the projected potable water demand for the proposed Otay Ranch Resort Village is shown in Table 2. The projected potable water demand is 1,177,200 gpd, or about 1,318.7 ac-ft/yr. The number of dwelling units and the areas for commercial development, parks, schools and public safety sites match the total approved units and approximately match the non-residential acreages noted on Table C of the District’s Water Facilities Master Plan Update dated March 2016 (WFMP Update). Table 2 Otay Ranch Resort Village Projected Potable Water Annual Average Demands Neighborhood Land Use Designation Gross Acres Quantity, Units Water Duty Factor Total Average Water Demand, GPD R-1 SF Residential 33.0 149 435 gpd/unit 64,815 R-2 SF Residential 38.3 211 435 gpd/unit 91,785 R-3 SF Residential 89.2 288 435 gpd/unit 125,280 R-4 SF Residential 115.4 281 700 gpd/unit 196,700 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 17 Neighborhood Land Use Designation Gross Acres Quantity, Units Water Duty Factor Total Average Water Demand, GPD R-5 SF Residential 18.1 55 435 gpd/unit 23,925 R-6 SF Residential 38.6 149 435 gpd/unit 64,815 R-7 SF Residential 30.3 184 435 gpd/unit 80,040 R-8 SF Residential 65.8 249 435 gpd/unit 108,315 R-9 SF Residential 58.6 206 435 gpd/unit 89,610 R-10 SF Residential 29.1 109 435 gpd/unit 47,415 MU-R Mixed Use - Res 3.9 57 200 gpd/unit 11,400 MU-C Mixed Use-Com 2.0 --- 1,785 gpd/ac 3,570 P-1 Park 10.5 --- 1,900 gpd/ac 19,950 P-2 Park 2.5 --- 1,900 gpd/ac 4,750 P-3 Park 3.6 --- 1,900 gpd/ac 6,840 P-4 Park 2.6 --- 1,900 gpd/ac 4,940 P-5 Park 2.9 --- 1,900 gpd/ac 5,510 P-6 Park 2.5 --- 1,900 gpd/ac 4,750 --- Public Safety 2.7 --- 1,785 gpd/ac 4,820 S-1 School 10.1 --- 1,785 gpd/ac 18,030 HOA HOA 6.0 --- 1,900 gpd/ac 11,400 Resort Resort Units 14.7 200 200 gpd/unit 40,000 Resort Resort Commercial 2.0 --- 1,785 gpd/ac 3,570 Irrigated Areas 76.3 --- 1,900 gpd/ac 144,970 Preserve Open Space 1,177.1 --- 0 0 Circulation Open Space 32.2 --- 0 0 TOTAL 1,9381 1,177,200 1 Total Residential Units. 5.1 Demand Management (Water-Use Efficiency) Demand management, or water-use efficiency is a critical part of the Otay Water District’s 2015 Urban Water Management Plan (UWMP) and its long-term strategy for meeting the water supply needs of its customers. Water conservation is frequently the lowest cost resource available to any water agency. The Otay WD’s water conservation program Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 18 objectives are to: • Reduce the demand for more expensive, imported water. • Ensure a reliable water supply. The Otay WD was one of the original signatories to the Memorandum of Understanding (MOU) regarding Urban Water Conservation in California, which created the California Urban Water Conservation Council (CUWCC) in 1991 in an effort to reduce California's long-term water demands. The Otay WD has been a long-standing supporter of the CUWCC through its implementation of Best Management Practices (BMPs), which required the District to submit biannual reports that detailed the implementation of its conservation programs. As a result of the 2014-2017 drought and the state’s changing regulatory, political, social, economic, and environmental climate, CUWCC members and its Board, in 2017, restructured the organization and renamed it the California Water Efficiency Partnership (CWEP). The new framework allows the organization to better fulfill its members’ needs, quickly adapt to the changing climate, provide resources about water-use efficiency issues in California, and foster collaboration among a wide variety of stakeholders. The Otay WD is currently a member of CWEP as part of its effort to continue upholding its long-term commitment in reducing the state’s water demands, diversifying local water supply, and encouraging its customer to make conservation a way of life. In addition to meeting customer demands during a drought, the District consistently advocates for state policies and legislation that include supply development and water-use efficiency. The District continues to work closely with the Water Authority, the Association of California Water Agencies, and other water agencies in the region to ensure that the targets and measures in the State Water Resources Control Board’s (SWRCB) long-term framework support a balanced approach and reflect local water supply investments and conditions. Water conservation programs are developed and implemented on the premise that water conservation increases the local water supply by reducing the demand on available imported supply, which is vital to the optimal utilization of a region's water supply resources. The Otay WD participates in many water conservation programs designed and typically operated on a shared cost-participation program basis among the Water Authority, MWD, and their member agencies. The demands shown in Tables 1 and 2 take into account implementation of water conservation measures within Otay WD. As part of the preceding CUWCC’s BMPs requirements, the Otay WD implemented water conservation programs and provided services to its customers to promote water-use efficiencies and water savings. It continues to do so today. As a member of the Water Authority, Otay WD also benefits from regional programs performed on behalf of its member agencies. In partnership with the Water Authority, the County of San Diego, City of San Diego, City of Chula Vista, and developers, the Otay WD water-use efficiency efforts are expected to grow and expand. The resulting savings directly relate to additional available water in the San Diego County region for beneficial use within the Water Authority service area, Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 19 including the Otay WD. Additional conservation or water-use efficiency measures or programs practiced by the Otay WD include the following: Supervisory Control and Data Acquisition System The Otay WD implemented and has operated for many years a Supervisory Control and Data Acquisition (SCADA) system to control, monitor, and collect data regarding the operation of the water system. The major facilities that have SCADA capabilities are the water-flow control supply sources, transmission network, pumping stations, and water storage reservoirs. The SCADA system allows for many and varied useful functions. Some of the functions they provide for operating personnel are the ability to monitor the water supply source flow rates, reservoir levels, tum on or off pumping units, etc. The SCADA system aids in the prevention of water reservoir overflow events and increases energy efficiency. Water Conservation Ordinance California Water Code Sections 375 et seq. permit public entities, which supply retail water to adopt and enforce a water conservation program to reduce the quantity of water used by the customers, resulting in the conservation of water supplies for that public entity. In 1988, the Otay WD Board of Directors established a comprehensive water conservation program pursuant to California Water Code Sections 375 et seq., based upon the need to conserve water supplies and to avoid or minimize the effects of any future shortage. A water shortage could exist based upon the occurrence of one or more of the following conditions: 1. A general water supply shortage due to increased demand or limited supplies. 2. Distribution or storage facilities of the Water Authority or other agencies become inadequate. 3. A major failure of the supply, storage, and distribution facilities of MWD, Water Authority, and/or Otay WD. The Otay WD water conservation ordinance specifies that the conditions prevailing in the San Diego County area require that the available water resources be put to maximum beneficial use to the extent to which they are capable, and that the waste or unreasonable use, or unreasonable method of use, of water be prevented. In addition, the ordinance encourages the conservation of such water with a view to the maximum reasonable and beneficial use thereof in the interests of the people of the Otay WD and for the public welfare. Otay WD continues to promote water-use efficiency and conservation at community and business events, including those involving developers in its service area. In addition, Otay WD, working with the Water Authority and MWD manages a number of programs. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 20 Otay WD is currently engaged in a number of conservation and water-use efficiency activities. Listed below are programs that either are current or have been concluded: • Residential Water Surveys • Large Landscape Surveys • Cash for Water Smart Plants Landscape Retrofit Program • Rotating Nozzles Rebates • Residential Weather-Based Irrigation Controller (WBIC) Incentive Program • Residential High Efficiency Clothes Washers • Residential ULFT/HET Rebate Program • Outreach Efforts to Otay WD Customers - the Otay WD promotes its conservation programs through outreach at community and business events, bill inserts, articles in the Otay WD's quarterly customer Pipeline newsletter, direct mailings to Otay WD customers, the Otay WD's webpage and social media platforms, and through the Water Authority's marketing efforts. • School Education Programs - the Otay WD funds school tours of the Water Conservation Garden and school assemblies, co-funds Splash Labs, and maintains school-age appropriate water-themed books, DVDs, and videos. • Water efficiency in new construction through Cal Green and the Model Water Efficient Landscape Ordinance • Focus on Commercial/Institutional/Industrial through Promoting MWD's Save a Buck (Commercial) Program in conjunction with the Otay WD's own Commercial Process Improvement Program • Landscape Contest for homeowners in the Otay WD’s service area The county’s residents and businesses also exceeded the SWRCB’s emergency water-use reduction mandates during 2015 and 2016, and they continue to use less water than they did in 2013 even though drought conditions have ended. Since the SWRCB’s conservation mandate began in June 2015, Otay customers have saved an average of 16 to 19 percent more water compared to 2013 water-use totals. Section 6 - Existing and Projected Supplies The Otay WD currently does not have an independent raw or potable water supply source. The Otay WD is a member public agency of the Water Authority and the Water Authority is a member public agency of MWD. The statutory relationships between the Water Authority and its member agencies, and MWD and its member agencies, respectively, establish the scope of the Otay WD entitlement to water from these two agencies. The Water Authority currently supplies the Otay WD with 100 percent of its potable water through two delivery pipelines, referred to as Pipeline No. 4 and the Helix Flume Pipeline. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 21 The Water Authority in turn, currently purchases the majority of its water from MWD. Due to the Otay WD reliance on these two agencies, this WSA&V Report includes referenced documents that contain information on the existing and projected supplies, supply programs, and related projects of the Water Authority and MWD. The Otay WD, Water Authority, and MWD are actively pursuing programs and projects to further diversify their water supply resources. The description of local recycled water supplies available to the Otay WD is also discussed below. 6.1 Metropolitan Water District of Southern California 2015 Urban Water Management Plan MWD has prepared its 2015 UWMP which was adopted on May 9, 2016. The 2015 UWMP provides MWD’s member agencies, retail water utilities, cities, and counties within its service area with, among other things, a detailed evaluation of the supplies necessary to meet future demands, and an evaluation of reasonable and practical efficient water uses, recycling, and conservation activities. During the preparation of the 2015 UWMP, MWD utilized the previous SANDAG regional growth forecast in calculating regional water demands for the Water Authority service area. 6.1.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies MWD is a wholesale supplier of water to its member public agencies and obtains its supplies from two primary sources: the Colorado River, via the Colorado River Aqueduct (CRA), which it owns and operates, and Northern California, via the State Water Project (SWP). The 2015 UWMP documents the availability of these existing supplies and additional supplies necessary to meet future demands. MWD’s IRP identifies a mix of resources (imported and local) that, when implemented, will provide 100 percent reliability for full-service demands through the attainment of regional targets set for conservation, local supplies, State Water Project supplies, Colorado River supplies, groundwater banking, and water transfers. The 2015 update to the IRP (2015 IRP Update) describes an adaptive management strategy to protect the region from future supply shortages. This adaptive management strategy has five components: achieve additional conservation savings, develop additional local water supplies, maintain Colorado River Aqueduct supplies, stabilize State Water Project supplies, and maximize the effectiveness of storage and transfer. MWD’s 2015 IRP Update has a plan for identifying and implementing additional resources that expand the ability for MWD to meet future changes and challenges as necessary to ensure future reliability of supplies. The proper management of these resources help to ensure that the southern California region, including San Diego County, will have adequate water supplies to meet long-term future demands. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 22 In May 2016, MWD adopted its 2015 UWMP in accordance with state law. The resource targets included in the preceding 2015 IRP Update serve as the foundation for the planning assumptions used in the 2015 UWMP. MWD’s 2015 UWMP contains a water supply reliability assessment that includes a detailed evaluation of the supplies necessary to meet demands over a 20-year period in average, single dry year, and multiple dry year periods. As part of this process, MWD also uses the current SANDAG regional growth forecast in calculating regional water demands for the Water Authority’s service area. As stated in MWD’s 2015 UWMP, the plan may be used as a source document for meeting the requirements of SB 610 and SB 221 until the next scheduled update is completed in 5 years (2020). The 2015 UWMP includes a “Justifications for Supply Projections” in Appendix A.3, that provides detailed documentation of the planning, legal, financial, and regulatory basis for including each source of supply in the plan. A copy of MWD’s 2015 UWMP can be found on the internet at the following site address: http://www.mwdh2o.com/PDF_About_Your_Water/2015_UWMP.pdf The UWMP updates for both MWD and the Water Authority included the increase in demand projections included in SANDAG’s Series 13 Update and from the projections from Otay Water District WFMP Update. Water supply agencies throughout California continue to face climate, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento-San Joaquin Delta and the current western states drought conditions. Challenges such as these essentially always will be present. The regional water supply agencies, the Water Authority and MWD, along with Otay WD nevertheless fully intend to have sufficient, reliable supplies to serve demands. 6.1.2 MWD Capital Investment Plan MWD prepares a Capital Investment Plan as part of its annual budget approval process. The cost, purpose, justification, status, progress, etc. of MWD’s infrastructure projects to deliver existing and future supplies are documented in the Capital Investment Plan. The financing of these projects is addressed as part of the annual budget approval process. MWD’s Capital Investment Plan includes a series of projects identified from MWD studies of projected water needs, which, when considered along with operational demands on aging facilities and new water quality regulations, identify the capital projects needed to maintain infrastructure reliability and water quality standards, improve efficiency, and provide future cost savings. All projects within the Capital Investment Plan are evaluated against an objective set of criteria to ensure they are aligned with the MWD’s goals of supply reliability and quality. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 23 6.2 San Diego County Water Authority Regional Water Supplies The Water Authority has adopted plans and is taking specific actions to develop adequate water supplies to help meet existing and future water demands within the San Diego region. This section contains details on the supplies being developed by the Water Authority. A summary of recent actions pertaining to development of these supplies includes: In accordance with the Urban Water Management Planning Act, the Water Authority adopted their 2015 UWMP in June 2016. The updated Water Authority 2015 UWMP identifies a diverse mix of local and imported water supplies to meet future demands. A copy of the updated Water Authority 2015 UWMP can be found on the internet at: http://www.sdcwa.org/sites/default/files/UWMP2015.pdf As part of the October 2003 Colorado River Quantification Settlement Agreement (QSA), the Water Authority was assigned MWD’s rights to 77,700 acre feet per year of conserved water from the All-American Canal (AAC) and Coachella Canal (CC) lining projects. Deliveries of this conserved water from the CC reached the region in 2007 and deliveries from the AAC reached the region in 2010. Expected supplies from the canal lining projects are considered verifiable Water Authority supplies. Deliveries of conserved agricultural water from the Imperial Irrigation District (IID) to San Diego County have increased annually since 2003, with 70,000 acre feet per year of deliveries in Fiscal Year (FY) 2010. The quantities will increase annually to 200,000 acre feet per year by 2021, and then remain fixed for the duration of the transfer agreement. Development of seawater desalination in San Diego County assists the region in diversifying its water resources; reduces dependence on imported supplies; and provides a new drought‐proof, locally treated water supply. The Carlsbad Desalination Project is a fully operational seawater desalination plant and conveyance pipeline developed by Poseidon, a private investor–owned company that develops water and wastewater infrastructure. The Carlsbad Desalination Project, located at the Encina Power Station in Carlsbad, began commercial operation on December 23, 2015, and can provide a highly reliable local supply of up to 56,000 AF/YR for the region. Of the total Carlsbad Desalination Plant production, Vallecitos Water District has a direct connection and a contract to receive 4,083 AFY. Carlsbad MWD has agreed to a take or pay of 2,500 AFY. Through implementation of the Water Authority and member agency planned supply projects, along with reliable imported water supplies from MWD, the region anticipates having adequate supplies to meet existing and future water demands. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 24 To ensure sufficient supplies to meet projected growth in the San Diego region, the Water Authority uses the SANDAG most recent regional growth forecast in calculating regional water demands. The SANDAG regional growth forecast is based on the plans and policies of the land-use jurisdictions with San Diego County. The existing and future demands of the member agencies are included in the Water Authority’s projections. 6.2.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies The Water Authority currently obtains imported supplies from MWD, conserved water from the AAC and CC lining projects, an increasing amount of conserved agricultural water from IID, and desalinated seawater from the Carlsbad desalination plant. Of the twenty-seven member agencies that purchase water supplies from MWD, the Water Authority is MWD’s largest customer. Section 135 of MWD’s Act defines the preferential right to water for each of its member agencies. Until recently, the Water Authority paid about 22 percent of MWD's total revenue, but had preferential rights to only 18.53 percent of MWD's water supply. The Water Authority’s rate case litigation against MWD produced a significant increase in the Water Authority’s preferential rights to MWD water. The courts ruled that MWD unlawfully under calculated the Water Authority’s statutory right to MWD’s supply and ordered MWD to recalculate the preferential rights to include the Water Authority’s wheeling payments. After accounting for those payments, the Water Authority’s preferential right to MWD water supply increased from 18.53 percent to 24.22 percent. Under preferential rights, MWD could allocate water without regard to historic water purchases or dependence on MWD. The Water Authority and its member agencies are taking measures to reduce dependence on MWD through development of additional supplies and a water supply portfolio that would not be jeopardized by a preferential rights allocation. MWD has stated, consistent with Section 4202 of its Administrative Code that it is prepared to provide the Water Authority’s service area with adequate supplies of water to meet expanding and increasing needs in the years ahead. When and as additional water resources are required to meet increasing needs, MWD stated it will be prepared to deliver such supplies. In Section ES-5 of their 2015 UWMP, MWD states that MWD has supply capacities that would be sufficient to meet expected demands from 2020 through 2040. MWD has plans for supply implementation and continued development of a diversified resource mix including programs in the Colorado River Aqueduct, State Water Project, Central Valley Transfers, local resource projects, and in-region storage that enables the region to meet its water supply needs. The Water Authority has made large investments in MWD’s facilities and will continue to include imported supplies from MWD in the future resource mix. As discussed in the Water Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 25 Authority’s 2015 UWMP, the Water Authority and its member agencies are planning to diversify the San Diego regions supply portfolio and reduce purchases from MWD. As part of the Water Authority’s diversification efforts, the Water Authority is now taking delivery of conserved agricultural water from IID, water saved from the AAC and CC lining projects and desalinated seawater from the Carlsbad desalination plant. Table 3 summarizes the Water Authority’s supply sources with detailed information included in the sections to follow. Deliveries from MWD are also included in Table 3, which is further discussed in Section 6.1 above. The Water Authority’s member agencies provided the verifiable local supply targets for groundwater, recycled water, potable reuse and surface water, which are discussed in more detail in Section 5 of the Water Authority’s 2015 UWMP. Table 3 Projected Verifiable Water Supplies – Water Authority Service Area Normal Year (acre feet)1 Water Supply Sources 2020 2025 2030 2035 2040 Water Authority Supplies MWD Supplies 136,002 181,840 207,413 224,863 248,565 Water Authority/IID Transfer 190,000 200,000 200,000 200,000 200,000 AAC and CC Lining Projects 80,200 80,200 80,200 80,200 80,200 Regional Seawater Desalination 50,000 50,000 50,000 50,000 50,000 Member Agency Supplies Surface Water 51,580 51,480 51,380 51,280 51,180 Water Recycling 40,459 43,674 45,758 46,118 46,858 Seawater Desalination 6,000 6,000 6,000 6,000 6,000 Brackish GW Recovery 12,100 12,500 12,500 12,500 12,500 Groundwater 17,940 19,130 20,170 20,170 20,170 Potable Reuse 3,300 3,300 3,300 3,300 3,300 Total Projected Supplies 587,581 648,124 676,721 694,431 718,773 Source: Water Authority 2015 Urban Water Management Plan – Table 9-1. 1Normal water year demands based on 1960-2013 hydrology. Section 5.6.1 of the Water Authority’s 2015 UWMP also includes a discussion on the local supply target for seawater desalination. Seawater desalination supplies represent a significant local resource in the Water Authority’s service area. The Carlsbad Desalination Project (Project) is a fully-permitted seawater desalination plant and conveyance pipeline designed to provide a highly reliable local supply of up to 56,000 acre-feet (AF) per year for the region. In 2020, the Project would account for approximately 8% of the total projected regional supply and 30% of all locally generated water in San Diego County. The project became operational in late 2015 and it more than doubles the amount of local supplies developed in the region since 1991. The desalination plant itself was fully financed, built, and is being operated by Poseidon. The Water Authority purchases water Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 26 from the plant under a water purchase agreement. The new pipeline connecting the desalination plant with the Water Authority’s Second Aqueduct is owned and operated by the Water Authority, but Poseidon had the responsibility for design and construction through a separate Design-Build Agreement. The Water Authority was responsible for aqueduct improvements, including the relining and rehabilitation of Pipeline 3 to accept desalinated water under higher operating pressures, modifications to the San Marcos Vent that allows the flow of water between Pipelines 3 and 4, and improvements at the Twin Oaks Valley Water Treatment Plant necessary to integrate desalinated water into the Water Authority’s system for optimal distribution to member agencies. The Water Authority’s existing and planned supplies from the IID transfer, canal lining, and desalination projects are considered “drought-proof” supplies and should be available at the yields shown in Table 4 in normal water year supply and demand assessment. Single dry year and multiple dry year scenarios are discussed in more detail in Section 9 of the Water Authority’s 2015 UWMP. As part of preparation of a written water supply assessment and/or verification report, an agency’s shortage contingency analysis should be considered in determining sufficiency of supply. Section 11 of the Water Authority’s 2015 UWMP contains a detailed shortage contingency analysis that addresses a regional catastrophic shortage situation and drought management. The analysis demonstrates that the Water Authority and its member agencies, through the Emergency Response Plan, Emergency Storage Project, and Drought Management Plan (DMP) are taking actions to prepare for and appropriately handle an interruption of water supplies. The Water Authority’s Board of Directors approved the Drought Management Plan (DMP) in 2006. The DMP outlined a series of orderly, progressive steps for the Water Authority and its member agencies to take during shortages to minimize impacts to the region’s economy and quality of life. It also included an allocation methodology to equitably allocate water supplies to the member agencies. The DMP was first activated in 2007 in response to MWD drawing water from storage to meet demands, and deactivated in 2011 when supply conditions improved. In 2008, the Water Authority’s Board approved another drought management document, the Model Drought Response Conservation Program Ordinance. The model ordinance focuses on core water use restrictions and is intended to assist the member agencies when updating or drafting local drought response ordinances. The intent of the model ordinance is to provide regional consistency in drought response levels and messaging to the public and media. Also in 2008, the Water Authority’s Board adopted Resolution 2008-11, that established procedures to administer the supply allocation methodology contained in the DMP. In 2012, the DMP’s supply allocation methodology was updated, using lessons from the previous shortage periods, and the DMP was renamed the Water Shortage and Drought Response Plan (WSDRP). In 2014, the WSDRP was activated due to critically dry weather in California and the impact on water supply conditions. It deactivated in 2016 when supply conditions improved. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 27 In each instance when the DMP and WSDRP were activated, a smooth transition into and out of water allocations for the member agencies was possible due to the advanced planning of the Water Authority and its member agencies. Those planning efforts also resulted in an approach that allowed for regional consistency in public drought messaging. On August 24, 2017, the Water Authority’s Board approved proposed revisions of the WSDRP and renamed it the Water Shortage Contingency Plan (WSCP) to align the WSCP with the framework outlined in the April 2017 Final Report, Making Water Conservation a California Way of Life, Implementing Executive Order B-37-16 in the areas of water use efficiency and shortage response planning. The WSCP continues a proactive and comprehensive approach to shortage response planning for the region. The plan will be reviewed and potentially updated at least every five years in coordination with the preparation of the Water Authority’s Urban Water Management Plan for 2020, which will include any final requirements approved through legislation implementing the state’s framework report. The approval of the WSCP does not require the member agencies to update their planning document or conservation ordinance at this time. 6.2.1.1 Water Authority-Imperial Irrigation District Water Conservation and Transfer Agreement The QSA was signed in October 2003, and resolves long-standing disputes regarding priority and use of Colorado River water and creates a baseline for implementing water transfers. With approval of the QSA, the Water Authority and IID were able to implement their Water Conservation and Transfer Agreement. This agreement not only provides reliability for the San Diego region, but also assists California in reducing its use of Colorado River water to its legal allocation. On April 29, 1998, the Water Authority signed a historic agreement with IID for the long-term transfer of conserved Colorado River water to San Diego County. The Water Authority-IID Water Conservation and Transfer Agreement (Transfer Agreement) is the largest agriculture-to- urban water transfer in United States history. Colorado River water will be conserved by Imperial Valley farmers who voluntarily participate in the program and then transferred to the Water Authority for use in San Diego County. Implementation Status On October 10, 2003, the Water Authority and IID executed an amendment to the original 1998 Transfer Agreement. This amendment modified certain aspects of the Transfer Agreement to be consistent with the terms and conditions of the QSA and related agreements. It also modified other aspects of the agreement to lessen the environmental impacts of the transfer of conserved water. The amendment was expressly contingent on the approval and implementation of the Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 28 QSA, which was also executed on October 10, 2003. Section 6.2.1, “Colorado River,” contains details on the QSA. On November 5, 2003, IID filed a complaint in Imperial County Superior Court seeking validation of 13 contracts associated with the Transfer Agreement and the QSA. Imperial County and various private parties filed additional suits in Superior Court, alleging violations of the California Environmental Quality Act (CEQA), the California Water Code, and other laws related to the approval of the QSA, the water transfer, and related agreements. The lawsuits were coordinated for trial. The IID, Coachella Valley Water District, MWD, the Water Authority, and state are defending these suits and coordinating to seek validation of the contracts. In January 2010, a California Superior Court judge ruled that the QSA and 11 related agreements were invalid, because one of the agreements created an open-ended financial obligation for the state, in violation of California’s constitution. The QSA parties appealed this decision and on July 2013, a Sacramento Superior Court judge entered a final judgment validating the QSA and rejecting all of the remaining legal challenges. The judge affirmed all of the contested actions, including the adequacy of the environmental documents prepared by the IID. In May 2015, the state Court of Appeal issued a ruling that dismissed all remaining appeals. Expected Supply Deliveries into San Diego County from the transfer began in 2003 with an initial transfer of 10,000 acre feet per year. The Water Authority received increasing amounts of transfer water each year, according to a water delivery schedule contained in the transfer agreement The quantities will increase annually to 200,000 acre feet per year by 2021 then remain fixed for the duration of the transfer agreement. The initial term of the Transfer Agreement is 45 years, with a provision that either agency may extend the agreement for an additional 30-year term. During dry years, when water availability is low, the conserved water will be transferred under IID’s Colorado River rights, which are among the most senior in the Lower Colorado River Basin. Without the protection of these rights, the Water Authority could suffer delivery cutbacks. In recognition for the value of such reliability, the 1998 contract required the Water Authority to pay a premium on transfer water under defined regional shortage circumstances. The shortage premium period duration is the period of consecutive days during which any of the following exist: 1) a Water Authority shortage; 2) a shortage condition for the Lower Colorado River as declared by the Secretary; and 3) a Critical Year. Under terms of the October 2003 amendment, the shortage premium will not be included in the cost formula until Agreement Year 16. Transportation The Water Authority entered into a water exchange agreement with MWD on October 10, 2003, to transport the Water Authority–IID transfer water from the Colorado River to San Diego County. Under the exchange agreement, MWD takes delivery of the transfer water through its Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 29 Colorado River Aqueduct. In exchange, MWD delivers to the Water Authority a like quantity and quality of water. The Water Authority pays MWD’s applicable wheeling rate for each acre- feet of exchange water delivered. Under the terms of the water exchange agreement, MWD will make delivery of the transfer water for 35 years, unless the Water Authority and MWD elect to extend the agreement another 10 years for a total of 45 years. Cost/Financing The costs associated with the transfer are financed through the Water Authority’s rates and charges. In the agreement between the Water Authority and IID, the price for the transfer water started at $258 per acre-feet and increased by a set amount for the first seven years. In December 2009, the Water Authority and IID executed a fifth amendment to the water transfer agreement that sets the price per acre-feet for transfer water for calendar years 2010 through 2015, beginning at $405 per acre-feet in 2010 and increasing to $624 per acre-feet in 2015. For calendar years 2016 through 2034, the unit price will be adjusted using an agreed-upon index. The amendment also required the Water Authority to pay IID $6 million at the end of calendar year 2009 and another $50 million on or before October 1, 2010, provided that a transfer stoppage is not in effect as a result of a court order in the QSA coordinated cases. Beginning in 2035, either the Water Authority or IID can, if certain criteria are met, elect a market rate price through a formula described in the water transfer agreement. The October 2003 exchange agreement between MWD and the Water Authority set the initial cost to transport the conserved water at $253 per acre-feet. Thereafter, the price is set to be equal to the charge or charges set by MWD’s Board of Directors pursuant to applicable laws and regulation, and generally applicable to the conveyance of water by MWD on behalf of its member agencies. The Water Authority is providing $10 million to help offset potential socioeconomic impacts associated with temporary land fallowing. IID will credit the Water Authority for these funds during years 16 through 45. In 2007, the Water Authority prepaid IID an additional $10 million for future deliveries of water. IID will credit the Water Authority for this up-front payment during years 16 through 30. As part of implementation of the QSA and water transfer, the Water Authority also entered into an environmental cost sharing agreement. Under this agreement the Water Authority is contributing a total of $64 million to fund environmental mitigation projects and the Salton Sea Restoration Fund. Written Contracts or Other Proof The supply and costs associated with the transfer are based primarily on the following documents: Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 30 Agreement for Transfer of Conserved Water by and between IID and the Water Authority (April 29, 1998). This Agreement provides for a market-based transaction in which the Water Authority would pay IID a unit price for agricultural water conserved by IID and transferred to the Water Authority. Revised Fourth Amendment to Agreement between IID and the Water Authority for Transfer of Conserved Water (October 10, 2003). Consistent with the executed Quantification Settlement Agreement (QSA) and related agreements, the amendments restructure the agreement and modify it to minimize the environmental impacts of the transfer of conserved water to the Water Authority. Amended and Restated Agreement between MWD and Water Authority for the Exchange of Water (October 10, 2003). This agreement was executed pursuant to the QSA and provides for delivery of the transfer water to the Water Authority. Environmental Cost Sharing, Funding, and Habitat Conservation Plan Development Agreement among IID, Coachella Valley Water District (CVWD), and Water Authority (October 10, 2003). This Agreement provides for the specified allocation of QSA-related environmental review, mitigation, and litigation costs for the term of the QSA, and for development of a Habitat Conservation Plan. Quantification Settlement Agreement Joint Powers Authority Creation and Funding Agreement (October 10, 2003). The purpose of this agreement is to create and fund the QSA Joint Powers Authority and to establish the limits of the funding obligation of CVWD, IID, and Water Authority for environmental mitigation and Salton Sea restoration pursuant to SB 654 (Machado). Fifth Amendment to Agreement Between Imperial Irrigation District and San Diego County Water Authority for Transfer of Conserved Water (December 21, 2009). This agreement implements a settlement between the Water Authority and IID regarding the base contract price of transferred water. Federal, State, and Local Permits/Approvals Federal Endangered Species Act Permit. The U.S. Fish and Wildlife Service (USFWS) issued a Biological Opinion on January 12, 2001, that provides incidental take authorization and certain measures required to offset species impacts on the Colorado River regarding such actions. State Water Resources Control Board (SWRCB) Petition. SWRCB adopted Water Rights Order 2002-0016 concerning IID and Water Authority’s amended joint petition for approval of a long- term transfer of conserved water from IID to the Water Authority and to change the point of diversion, place of use, and purpose of use under Permit 7643. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 31 Environmental Impact Report (EIR) for Conservation and Transfer Agreement. As lead agency, IID certified the Final EIR for the Conservation and Transfer Agreement on June 28, 2002. U. S. Fish and Wildlife Service Draft Biological Opinion and Incidental Take Statement on the Bureau of Reclamation's Voluntary Fish and Wildlife Conservation Measures and Associated Conservation Agreements with the California Water Agencies (12/18/02). The U. S. Fish and Wildlife Service issued the biological opinion/incidental take statement for water transfer activities involving the Bureau of Reclamation and associated with IID/other California water agencies' actions on listed species in the Imperial Valley and Salton Sea (per the June 28, 2002 EIR). Addendum to EIR for Conservation and Transfer Agreement. IID as lead agency and Water Authority as responsible agency approved addendum to EIR in October 2003. Environmental Impact Statement (EIS) for Conservation and Transfer Agreement. Bureau of Reclamation issued a Record of Decision on the EIS in October 2003. CA Department of Fish and Game California Endangered Species Act Incidental Take Permit #2081-2003-024-006). The California Department of Fish and Game issued this permit (10/22/04) for potential take effects on state-listed/fully protected species associated with IID/other California water agencies' actions on listed species in the Imperial Valley and Salton Sea (per the June 28, 2002 EIR). California Endangered Species Act (CESA) Permit. A CESA permit was issued by California Department of Fish and Game (CDFG) on April 4, 2005, providing incidental take authorization for potential species impacts on the Colorado River. 6.2.1.2 All-American Canal and Coachella Canal Lining Projects As part of the QSA and related contracts, the Water Authority was assigned MWD’s rights to 77,700 acre-feet per year of conserved water from projects that will line the All-American Canal (AAC) and Coachella Canal (CC). The projects will reduce the loss of water that currently occurs through seepage, and the conserved water will be delivered to the Water Authority. This conserved water will provide the San Diego region with an additional 8.5 million acre-feet over the 110-year life of the agreement. Implementation Status The CC lining project began in November 2004 and was completed in 2006. Deliveries of conserved water to the Water Authority began in 2007. The project constructed a 37-mile parallel canal adjacent to the CC. The AAC lining project was begun in 2005 and was completed in 2010. The lining project constructed a concrete-lined canal parallel to 24 miles of the existing AAC from Pilot Knob to Drop 3. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 32 In July 2005, a lawsuit (CDEM v United States, Case No. CV-S-05-0870-KJD-PAL) was filed in the U. S. District Court for the District of Nevada on behalf of U.S. and Mexican groups challenging the lining of the AAC. The lawsuit, which names the Secretary of the Interior as a defendant, claims that seepage water from the canal belongs to water users in Mexico. California water agencies note that the seepage water is actually part of California's Colorado River allocation and not part of Mexico's allocation. The plaintiffs also allege a failure by the United States to comply with environmental laws. Federal officials have stated that they intend to vigorously defend the case. Expected Supply The AAC lining project makes 67,700 acre-feet of Colorado River water per year available for allocation to the Water Authority and San Luis Rey Indian water rights settlement parties. The CC lining project makes 26,000 acre-feet of Colorado River water each year available for allocation. The 2003 Allocation Agreement provides for 16,000 acre-feet per year of conserved canal lining water to be allocated to the San Luis Rey Indian Water Rights Settlement Parties. The remaining amount, 77,700 acre-feet per year, is to be available to the Water Authority, with up to an additional 4,850 acre-feet per year available to the Water Authority depending on environmental requirements from the CC lining project. For planning purposes, the Water Authority assumes that 2,500 acre-feet of the 4,850 acre-feet will be available each year for delivery, for a total of 80,200 acre-feet per year of that supply. According to the Allocation Agreement, IID has call rights to a portion (5,000 acre-feet per year) of the conserved water upon termination of the QSA for the remainder of the 110 years of the Allocation Agreement and upon satisfying certain conditions. The term of the QSA is for up to 75 years. Transportation The October 2003 Exchange Agreement between the Water Authority and MWD provides for the delivery of the conserved water from the canal lining projects. The Water Authority pays MWD’s applicable wheeling rate for each acre-foot of exchange water delivered. In the Agreement, MWD will deliver the canal lining water for the term of the Allocation Agreement (110 years). Cost/Financing Under California Water Code Section 12560 et seq., the Water Authority received $200 million in state funds for construction of the canal lining projects. In addition, $20 million was made available from Proposition 50 and $36 million from Proposition 84. The Water Authority was responsible for additional expenses above the funds provided by the state. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 33 The rate to be paid to transport the canal lining water will be equal to the charge or charges set by MWD’s Board of Directors pursuant to applicable law and regulation and generally applicable to the conveyance of water by MWD on behalf of its member agencies. In accordance with the Allocation Agreement, the Water Authority is responsible for a portion of the net additional Operation, Maintenance, and Repair (OM&R) costs for the lined canals. Any costs associated with the lining projects as proposed are to be financed through the Water Authority’s rates and charges. Written Contracts or Other Proof The expected supply and costs associated with the lining projects are based primarily on the following documents: U.S. Public Law 100-675 (1988). Authorized the Department of the Interior to reduce seepage from the existing earthen AAC and CC. The law provides that conserved water will be made available to specified California contracting water agencies according to established priorities. California Department of Water Resources - MWD Funding Agreement (2001). Reimburse MWD for project work necessary to construct the lining of the CC in an amount not to exceed $74 million. Modified by First Amendment (2004) to replace MWD with the Authority. Modified by Second Amendment (2004) to increase funding amount to $83.65 million, with addition of funds from Proposition 50. California Department of Water Resources - IID Funding Agreement (2001). Reimburse IID for project work necessary to construct a lined AAC in an amount not to exceed $126 million. MWD - CVWD Assignment and Delegation of Design Obligations Agreement (2002). Assigns design of the CC lining project to CVWD. MWD - CVWD Financial Arrangements Agreement for Design Obligations (2002). Obligates MWD to advance funds to CVWD to cover costs for CC lining project design and CVWD to invoice MWD to permit the Department of Water Resources to be billed for work completed. Allocation Agreement among the United States of America, The MWD Water District of Southern California, Coachella Valley Water District, Imperial Irrigation District, San Diego County Water Authority, the La Jolla, Pala, Pauma, Rincon, and San Pasqual Bands of Mission Indians, the San Luis Rey River Indian Water Authority, the City of Escondido, and Vista Irrigation District (October 10, 2003). This agreement includes assignment of MWD’s rights and interest in delivery of 77,700 acre-feet of Colorado River water previously intended to be delivered to MWD to the Water Authority. Allocates water from the AAC and CC lining projects for at least 110 years to the Water Authority, the San Luis Rey Indian Water Rights Settlement Parties, and IID, if it exercises its call rights. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 34 Amended and Restated Agreement between MWD and Water Authority for the Exchange of Water (October 10, 2003). This agreement was executed pursuant to the QSA and provides for delivery of the conserved canal lining water to the Water Authority. Agreement between MWD and Water Authority regarding Assignment of Agreements related to the AAC and CC Lining Projects. This agreement was executed in April 2004 and assigns MWD's rights to the Water Authority for agreements that had been executed to facilitate funding and construction of the AAC and CC lining projects: Assignment and Delegation of Construction Obligations for the Coachella Canal Lining Project under the Department of Water Resources Funding Agreement No. 4600001474 from the San Diego County Water Authority to the Coachella Valley Water District, dated September 8, 2004. Agreement Regarding the Financial Arrangements between the San Diego County Water Authority and Coachella Valley Water District for the Construction Obligations for the Coachella Canal Lining Project, dated September 8, 2004. Agreement No. 04-XX-30-W0429 Among the United States Bureau of Reclamation, the Coachella Valley Water District, and the San Diego County Water Authority for the Construction of the Coachella Canal Lining Project Pursuant to Title II of Public Law 100-675, dated October 19, 2004. California Water Code Section 12560 et seq. This Water Code Section provides for $200 million to be appropriated to the Department of Water Resources to help fund the canal lining projects in furtherance of implementing California’s Colorado River Water Use Plan. California Water Code Section 79567. This Water Code Section identifies $20 million as available for appropriation by the California Legislature from the Water Security, Clean Drinking Water, Coastal, and Beach Protection Fund of 2002 (Proposition 50) to DWR for grants for canal lining and related projects necessary to reduce Colorado River water use. According to the Allocation Agreement, it is the intention of the agencies that those funds will be available for use by the Water Authority, IID, or CVWD for the AAC and CC lining projects. California Public Resources Code Section 75050(b) (1). This section identifies up to $36 million as available for water conservation projects that implement the Allocation Agreement as defined in the Quantification Settlement Agreement. Federal, State, and Local Permits/Approvals AAC Lining Project Final EIS/EIR (March 1994). A final EIR/EIS analyzing the potential impacts of lining the AAC was completed by the Bureau of Reclamation (Reclamation) in March 1994. A Record of Decision was signed by Reclamation in July 1994, implementing the preferred alternative for lining the AAC. A re-examination and analysis of these environmental compliance documents by Reclamation in November 1999 determined that these documents continued to meet the requirements of the NEPA and the CEQA and would be valid in the future. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 35 CC Lining Project Final EIS/EIR (April 2001). The final EIR/EIS for the CC lining project was completed in 2001. Reclamation signed the Record of Decision in April 2002. An amended Record of Decision has also been signed to take into account revisions to the project description. Mitigation, Monitoring, and Reporting Program for Coachella Canal Lining Project, SCH #1990020408; prepared by Coachella Valley Water District, May 16, 2001. Environmental Commitment Plan for the Coachella Canal Lining Project, approved by the US Bureau of Reclamation (Boulder City, NV) on March 4, 2003. Environmental Commitment Plan and Addendum to the All-American Canal Lining Project EIS/EIR California State Clearinghouse Number SCH 90010472 (June 2004, prepared by IID). Addendum to Final EIS/EIR and Amendment to Environmental Commitment Plan for the All-American Canal Lining Project (approved June 27, 2006, by IID Board of Directors). 6.2.1.3 Carlsbad Seawater Desalination Project Development of seawater desalination in San Diego County has assisted the region in diversifying its water resources, reduce dependence on imported supplies, and provide a new drought-proof, locally treated water supply. The Carlsbad Desalination Project is a fully- permitted seawater desalination plant and conveyance pipeline developed by Poseidon, a private investor–owned company that develops water and wastewater infrastructure. The project, located at the Encina Power Station in Carlsbad, has been in development since 1998 and was incorporated into the Water Authority’s 2003 Water Facilities Master Plan and the 2015 UWMP. The Carlsbad Desalination Project has obtained all required permits and environmental clearances and starting in late 2015 provides a highly reliable local supply of 48,000 to 56,000 acre-feet per year for the region. Implementation Status The Project has obtained all required permits and environmental clearances, including the following: National Pollutant Discharge Elimination System (NPDES) Discharge Permit (Regional Water Quality Control Board) Conditional Drinking Water Permit (California Department of Health Services) State Lands Commission Lease (State Lands Commission) Coastal Development Permit (California Coastal Commission) Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 36 IDE Technologies, a worldwide leader in the design, construction, and operation of desalination plants, is the desalination process contractor for the Project. On July 22, 2010, the Board approved a Term Sheet between the Water Authority and Poseidon Resources that outlined the key terms and conditions that would be detailed and incorporated in a comprehensive Water Purchase Agreement (WPA). Beginning in October 2011 and under the direction of the Board’s Carlsbad Desalination Project Advisory Group, staff began developing and negotiating with Poseidon a WPA consistent with the July 22, 2010 Board approved Term Sheet. The July 2010 Term Sheet also identified specific conditions precedent to Board consideration of the WPA. On November 29, 2012, the Water Authority Board adopted a resolution approving the Design-Build Agreement between the Water Authority and Poseidon. The Design-Build Agreement established the commercial and technical terms for implementation of the desalination product pipeline improvements. These improvements consisted of an approximate 10-mile long, 54-inch diameter conveyance pipeline connecting the Desalination Plant to the Water Authority’s Second Aqueduct. The pipeline was generally be constructed within improved streets in commercial and industrial areas in the cities of Carlsbad, Vista, and San Marcos. The Water Authority owns the Project Water Pipeline Improvements and has assumed operational control of all pipeline improvements. This system was placed into service in late 2015. Expected Supply The Project provides a highly reliable local supply of 48,000 to 56,000 acre-feet per year of supply for the region, available in both normal and dry hydrologic conditions. In 2020, the Project would account for approximately 10% of the total projected regional supply and 30% of all locally generated water in San Diego County. The project more than doubles the amount of local supplies developed in the region since 1991. Transportation On November 29, 2012, the Water Authority Board adopted a resolution approving the Design-Build Agreement between the Water Authority and Poseidon. The Design-Build Agreement establishes the commercial and technical terms for implementation of the desalination product pipeline improvements. These improvements consisted of an approximate 10-mile long, 54-inch diameter conveyance pipeline connecting the Desalination Plant to the Water Authority’s Second Aqueduct. The pipeline was generally constructed within improved streets in commercial and industrial areas in the cities of Carlsbad, Vista, and San Marcos. The Water Authority owns the Project Water Pipeline Improvements and has assumed operational control of all pipeline improvements. The Water Authority was responsible for aqueduct improvements, including the relining and rehabilitation of Pipeline 3 to accept desalinated water under higher operating pressures, Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 37 modifications to the San Marcos Vent that allows the flow of water between Pipelines 3 and 4, and improvements at the Twin Oaks Valley Water Treatment Plant necessary to integrate desalinated water into the Water Authority’s system for optimal distribution to member agencies. Cost/Financing The plant and the offsite pipeline is being financed through tax exempt government bonds issued for the Water Authority by the California Pollution Control Financing Authority (CPCFA). On November 29, 2012, the Water Authority Board adopted a resolution approving agreements to accomplish tax exempt project financing through the CPCFA. Based on current electricity cost estimates, the Water Purchase Agreement sets the price of the water from the Carlsbad Desalination Project at $2,131 to $2,367 per acre foot in 2016. The Water Authority’s water purchase costs would be financed through Water Authority rates and charges. Poseidon is financing the capital cost of the Project with a combination of private equity and tax-exempt Private Activity Bonds. Written Contracts or Other Proof The expected supply and costs associated with the Carlsbad Desalination Project are based primarily on the following documents: Development Agreement between City of Carlsbad and Poseidon (October 2009). A Development Agreement between Carlsbad and Poseidon was executed on October 5, 2009 Agreement of Term Sheet between the Water Authority and Poseidon Resources (July 2010). The Water Authority approved the Term Sheet at its July 2010 Board Meeting. The Term Sheet outlines the terms and conditions of a future Water Purchase Agreement with Poseidon and allocates the resources to prepare the draft Water Purchase Agreement. Federal, State, and Local Permits/Approvals Carlsbad Desalination Project Final EIR The City of Carlsbad, acting as lead agency for Carlsbad Seawater Desalination Plant and appurtenant facilities proposed by Poseidon (the “Project”) prepared an Environmental Impact Report for the Project in compliance with the California Environmental Quality Act (“CEQA”), which the City of Carlsbad certified on June 13, 2006. http://www.sdcwa.org/rwfmp-peir Regional Water Facilities Master Plan EIR On November 20, 2003, the Water Authority Board of Directors adopted Resolution No. 2003-34 certifying the Final Program Environmental Impact Report (State Clearinghouse No. 2003021052) for the Water Authority’s Regional Water Facilities Master Plan Project (the “Master Plan EIR”), which evaluated, among other things, potential growth inducing impacts Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 38 associated with new water supplies to the region including, but not limited to, up to 150 million gallons per day (“MGD”) of new supplies from seawater desalination. This certification included a 50 MGD plant located in the City of Carlsbad. The environmental documents and permits are found at the following links: http://www.sdcwa.org/rwfmp-peir Sub regional Natural Community Conservation Plan/Habitat Conservation Plan (NCCP/HCP) On December 8, 2010, the Board adopted Resolution No. 2010-18 certifying a Final environmental Impact Report/Environmental Impact Statement for the San Diego County Water Authority Subregional Natural Community Conservation Plan/Habitat Conservation Plan (State Clearinghouse No. 2003121012) (the “Habitat Conservation Plan EIR/EIS”), which Plan was implemented on December 28, 201. The environmental documents and permits are found at the following links: http://www.sdcwa.org/nccp-hcp Twin Oaks Valley Water Treatment Plant EIR On September 8, 2005, the Board adopted Resolution No. 2005-31 certifying a Final Environmental Impact Report for the Twin Oaks Valley Water Treatment Plant Project (State Clearinghouse No. 20040071034) (the “Twin Oaks EIR”), which project was constructed as a 100 MGD submerged membrane water treatment facility, including treated water holding tanks and distribution pipelines and other facilities, consistent with the conditions and mitigation measures included in the Twin Oaks EIR. http://www.sdcwa.org/twin-oaks-valley-treatment-plant-final-eir Drinking Water Permit (October 2006). The California Department of Health Services approved the Conditional Drinking Water Permit on October 19, 2006. 6.2.2 Water Authority Capital Improvement Program and Financial Information The Water Authority’s Capital Improvement Program (CIP) can trace its beginnings to a report approved by the Board in 1989 entitled, The Water Distribution Plan, and a Capital Improvement Program through the Year 2010. The Water Distribution Plan included ten projects designed to increase the capacity of the aqueduct system, increase the yield from existing water treatment plants, obtain additional supplies from MWD, and increase the reliability and flexibility of the aqueduct system. Since that time the Water Authority has made numerous additions to the list of projects included in its CIP as the region’s infrastructure needs and water supply outlook have changed. The current list of projects included in the CIP is based on the results of planning studies, including the 2015 UWMP and the 2013 Regional Water Facilities Master Plan. These CIP projects, which are most recently described in the Water Authority’s Adopted Multi-Year Budget Fiscal Years 2018 and 2019, include projects valued at $118 million. These CIP Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 39 projects are designed to meet projected water supply and delivery needs of the member agencies. The projects include a mix of new facilities that will add capacity to existing conveyance, storage, and treatment facilities, as well as repair and replace aging infrastructure: Asset Management – The primary components of the asset management projects include relining and replacing existing pipelines and updating and replacing metering facilities. New Facilities – These projects will expand the capacity of the aqueduct system and evaluate new supply opportunities. Emergency Storage Project – Projects remaining to be completed under the ongoing ESP include the San Vicente Dam Raise, the Lake Hodges projects, and a new pump station to extend ESP supplies to the northern reaches of the Water Authority service area. Other Projects – This category includes out-of-region groundwater storage, increased local water treatment plant capacity, and projects that mitigate environmental impacts of the CIP. The Water Authority Board of Directors is provided a semi-annual and annual report on the status of development of the CIP projects. As described in the Water Authority’s biennial budget, a combination of long and short term debt and cash (pay-as-you-go) will provide funding for capital improvements. Additional information is included in the Water Authority’s biennial budget, which also contains selected financial information and summarizes the Water Authority’s investment policy. 6.3 Otay Water District The Otay Water District WFMP Update and the 2015 UWMP contain comparisons of projected supply and demands through the year 2040. Projected potable water resources to meet planned demands as documented were planned to be supplied entirely with imported water received from the Water Authority. Recycled water resources to meet projected demands are planned to be supplied from local wastewater treatment plants. The Otay WD currently has no local supply of raw water, potable water, or groundwater resources. The development and/or acquisition of potential groundwater, recycled water market expansion, and seawater desalination supplies by the Otay WD have evolved and are planned to occur in response to the regional water supply issues. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new additional water supply projects are not currently developed and are in various stages of the planning process. These local and regional water supply projects will allow for less reliance upon imported water and are considered a new water supply resource for the Otay WD. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 40 The supply forecasts contained within this WSA Report do consider development and/or acquisition of potential groundwater, recycled water market expansion, and seawater desalination supplies by the Otay WD. 6.3.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies The availability of sufficient potable water supplies and plans for acquiring additional potable water supplies to serve existing and future demands of the Otay WD is founded upon the preceding discussions regarding MWD’s and the Water Authority’s water supply resources and water supplies to be acquired by the Otay WD. Historic imported water deliveries from the Water Authority to Otay WD and recycled water deliveries from the Otay WD Ralph W. Chapman Water Reclamation Facility (RWCWRF) are shown in Table 4. Since the year 2000 through mid-May 2007, recycled water demand has exceeded the recycled water supply capability typically in the summer months. The RWCWRF is limited to a maximum production of about 1,300 acre-feet per year. The recycled water supply shortfall had been met by supplementing with potable water into the recycled water storage system as needed by adding potable water supplied by the Water Authority. On May 18, 2007 an additional source of recycled water supply from the City of San Diego’s South Bay Water Reclamation Plant (SBWRP) became available. The supply of recycled water from the SBWRP is a result of completing construction and the operation of the transmission, storage, and pump station systems necessary to link the SBWRP recycled water supply source to the existing Otay WD recycled water system. Table 4 Otay Water District Historic Imported and Local Water Supplies Calendar Year Imported Water (acre-feet) Recycled Water (acre-feet) Total (acre-feet) 1980 12,558 0 12,558 1985 14,529 0 14,529 1990 23,200 0 23,200 1995 20,922 614 21,536 2000 29,901 948 30,849 2005 37,678 1,227 38,905 2010 29,270 4,090 33,270 2015 26,494 3,777 30,271 Source: Otay Water District operational records. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 41 6.3.1.1 Imported and Regional Supplies The availability of sufficient imported and regional potable water supplies to serve existing and planned uses within Otay WD is demonstrated in the above discussion on MWD and the Water Authority’s water supply reliability. The County Water Authority Act, Section 5 subdivision 11, states that the Water Authority “as far as practicable, shall provide each of its member agencies with adequate supplies of water to meet their expanding and increasing needs.” The Water Authority provides between 75 to 95 percent of the total supplies used by its 24 member agencies, depending on local weather and supply conditions. Potable Water System Facilities The Otay WD continues to pursue diversification of its water supply resources to increase reliability and flexibility. The Otay WD also continues to plan, design, and construct potable water system facilities to obtain these supplies and to distribute potable water to meet customer demands. The Otay WD has successfully negotiated two water supply diversification agreements that enhance reliability and flexibility, which are briefly described as follows. The Otay WD entered into an agreement with the City of San Diego, known as the Otay Water Treatment Plant (WTP) Agreement. The Otay WTP Agreement provides for raw water purchase from the Water Authority and treatment by the City of San Diego at their Otay WTP for delivery to Otay WD. The supply system link to implement the Otay WTP Agreement to access the regions raw water supply system and the local water treatment plant became fully operational in August 2005. This supply link consists of the typical storage, transmission, pumping, flow measurement, and appurtenances to receive and transport the treated water to the Otay WD system. The City of San Diego obligation to supply 10 mgd of treated water under the Otay WTP Agreement is contingent upon there being available 10 mgd of surplus treatment capacity in the Otay WTP until such time as Otay WD pays the City of San Diego to expand the Otay WTP to meet the Otay WD future needs. In the event that the City of San Diego’s surplus is projected to be less than 10 mgd the City of San Diego will consider and not unreasonably refuse the expansion of the Otay WTP to meet the Otay WD future needs. The Otay WTP existing rated capacity is 40 mgd with an actual effective capacity of approximately 34 mgd. The City of San Diego’s typical demand for treated water from the Otay WTP is approximately 20 mgd. It is at the City of San Diego’s discretion to utilize either imported raw water delivered by the Water Authority Pipeline No. 3 or local water stored in Lower Otay Reservoir for treatment to supply the Otay WD demand. The Otay WD entered into an agreement with the Water Authority, known as the East County Regional Treated Water Improvement Program (ECRTWIP Agreement). The ECRTWIP Agreement provides for transmission of raw water to the Helix WD R. M. Levy WTP for treatment and delivery to Otay WD. The supply system link to implement the ECRTWIP Agreement is complete allowing access to the regions raw water supply Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 42 system and the local water treatment plant. This supply link consists of the typical transmission, pumping, storage, flow control, and appurtenances to receive and transport the potable water from the R. M. Levy WTP to Otay WD. The Otay WD is required to take a minimum of 10,000 acre-feet per year of treated water from the R.M. Levy WTP supplied from the regions raw water system. Cost and Financing The capital improvement costs associated with water supply and delivery are financed through the Otay WD water meter capacity fee and user rate structures. The Otay WD potable water sales revenue are used to pay for the wholesale cost of the treated water supply and the operating and maintenance expenses of the potable water system facilities. Written Agreements, Contracts, or Other Proof The supply and cost associated with deliveries of treated water from the Otay WTP and the R.M. Levy WTP is based on the following documents. Agreement for the Purchase of Treated Water from the Otay Water Treatment Plant between the City of San Diego and the Otay Water District. The Otay WD entered into an agreement dated January 11, 1999 with the City of San Diego that provides for 10 mgd of surplus treated water to the Otay WD from the existing Otay WTP capacity. The agreement allows for the purchase of treated water on an as available basis from the Otay WTP. The Otay WD pays the Water Authority at the prevailing raw water rate for raw water and pays the City of San Diego at a rate equal to the actual cost of treatment to potable water standards. Agreement between the San Diego County Water Authority and Otay Water District Regarding Implementation of the East County Regional Treated Water Improvement Program. The ECRTWIP Agreement requires the purchase of at least 10,000 acre-feet per year of potable water from the Helix WD R.M. Levy WTP at the prevailing Water Authority treated water rate. The ECRTWIP Agreement is dated April 27, 2006. Agreement between the San Diego County Water Authority and Otay Water District for Design, Construction, Operation, and Maintenance of the Otay 14 Flow Control Facility Modification. The Otay WD entered into the Otay 14 Flow Control Facility Modification Agreement dated January 24, 2007 with the Water Authority to increase the physical capacity of the Otay 14 Flow Control Facility. The Water Authority and Otay WD shared the capital cost to expand its capacity from 8 mgd to 16 mgd. Federal, State, and Local Permits/Approvals The Otay WD acquired all the permits for the construction of the pipeline and pump station associated with the Otay WTP supply source and for the 640-1 and 640-2 water storage Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 43 reservoirs project associated with the ECRTWIP Agreement through the typical planning, environmental approval, design, and construction processes. The transmission main project constructed about 26,000 feet of a 36-inch diameter steel pipeline from the Otay 14 Flow Control Facility to the 640-1 and 640-2 Reservoirs project. The Otay 14 Flow Control Facility modification increased the capacity of the existing systems from 8 mgd to 16 mgd. CEQA documentation is complete for both projects. Construction of both of these projects was completed October 2010. The City of San Diego and the Helix Water District are required to meet all applicable federal, state, and local health and water quality requirements for the potable water produced at the Otay WTP and the R.M. Levy WTP respectively. 6.3.1.2 Recycled Water Supplies Wastewater collection, treatment, and disposal services provided by the Otay WD is limited to a relatively small area within what is known as the Jamacha Basin, located within the Middle Sweetwater River Basin watershed upstream of the Sweetwater Reservoir and downstream of Loveland Reservoir. Water recycling is defined as the treatment and disinfection of municipal wastewater to provide a water supply suitable for non-potable reuse. The Otay WD owns and operates the Ralph W. Chapman Water Reclamation Facility, which produces recycled water treated to a tertiary level for landscape irrigation purposes. The recycled water market area of the Otay WD is located primarily within the eastern area of the City of Chula Vista. The Otay WD distributes recycled water to a substantial market area that includes but is not limited to the U.S. Olympic Training Center, the Eastlake Golf Course, Otay Ranch, and other development projects. The Otay WD projects that annual average demands for recycled water will increase to 6,500 acre-feet per year by 2050. About 1,300 acre-feet per year of supply is generated by the RWCWRF, with the remainder planned to be supplied to Otay WD by the City of San Diego’s SBWRP. North District Recycled Water Concept The Otay WD is a recognized leader in the use of recycled water for irrigation and other commercial uses. The Otay WD continues to investigate all viable opportunities to expand the successful recycled water program into areas that are not currently served. One of these areas is in the portion of the service area designated as the North District, located within the Middle Sweetwater River Basin watershed upstream of the Sweetwater River. The close proximity of the recycled water markets in the North District to the Otay WD source of recycled water, the RWCWRF, means that the distribution system to serve this area could be constructed relatively cost effectively. This makes the North District a logical location for the expansion of the Otay WD recycled water system and market area. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 44 The purpose of the North District Recycled Water System Development Project, Phase I Concept Study, was to identify the feasibility of using recycled water in the North District and to investigate and assess any limitations or constraints to its use. The Phase I study components of the North District Recycled Water Concept encompassed the preparation of six technical memorandums including the project definition, a discussion of the regulatory process, a discussion of the protection of the watershed that would be affected by recycled water use in the North District, identification of stakeholders, public outreach, and an implementation plan. Several opportunities that could be realized with the implementation of the use of recycled water in the North District were identified. These include a reduction of demand on the potable water system and maximizing recycled water resources which in turn minimizes treated wastewater discharges to the local ocean outfall. Other opportunities are a possible partnership with Sweetwater Authority to monitor any benefits and impacts of increased recycled water use in the watershed and stakeholder outreach to resolve any water quality concerns and to retain consumer confidence. Also identified were two major constraints associated with the North District Recycled Water System Development Project. One constraint is the water quality objectives for the Middle Sweetwater Basin that will affect the effluent limitations for the recycled water produced at the RWCWRF. The effluent limit of concern was total nitrogen. The RWCWRF underwent an upgrade in 2012 to enhance nitrogen removal through the treatment process. The other major constraint is the cost of the infrastructure needed to convey and store recycled water in the North District. These costs are estimated to be in the range of $14 to $15 million dollars. There are two additional phases proposed for the North District Recycled Water System Development Project. Phase II would include further investigation of the issues identified in Phase I as requiring further study. These include stakeholder outreach, regulatory issues, and facility planning. The third phase of the effort would include the facility planning, permitting, environmental compliance, design, and construction of the improvements necessary for delivery of recycled water to the North District markets. The estimated amount of imported water saved at full implementation of the North District Recycled Water System Development Project is 1,200 acre-feet per year. This saved imported water could then be used to offset new potable water demands. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 45 Recycled Water System Facilities The Otay WD has constructed recycled water storage, pumping, transmission, and distribution facilities and will continue to construct these facilities to meet projected recycled water market demands. The Supply Link project consisting of a transmission main, storage reservoir, and a pump station to receive and transport the recycled water from the City of San Diego’s SBWRP was completed in 2007 and recycled water deliveries began on May 18, 2007. Cost and Financing The capital improvement costs associated with the recycled water supply and distribution systems are financed through the Otay WD water meter capacity fee and user rate structures. The Otay WD recycled water sales revenue, along with MWD and the Water Authority’s recycled water sales incentive programs are used to help offset the costs for the wholesale purchase and production of the recycled water supply, the operating and maintenance expenses, and the capital costs of the recycled water system facilities. Written Agreements, Contracts, or Other Proof The supply and cost associated with deliveries of recycled water from the SBWRP is based on the following document. Agreement between the Otay Water District and the City of San Diego for Purchase of Reclaimed Water from the South Bay Water Reclamation Plant. The agreement provides for the purchase of at least 6,721 acre-feet per year of recycled water from the SBWRP at an initial price of $350 per acre-foot. The Otay Water District Board of Directors approved the final agreement on June 4, 2003 and the San Diego City Council approved the final agreement on October 20, 2003. Effective January 1, 2016, the City of San Diego raised the cost of recycled water 116% to $754 per acre-foot. Federal, State, and Local Permits/Approvals The Otay WD has in place an agreement with MWD for their recycled water sales incentive program for supplies from the RWCWRF and the SBWRP. Also, the Otay WD has in place an agreement with the Water Authority for their recycled water sales incentive program for supplies from the RWCWRF and the SBWRP. The Water Authority sales incentive agreement was approved by Water Authority on July 26, 2007 and by Otay WD on August 1, 2007. All permits for the construction of the recycled water facilities to receive, store, and pump the SBWRP supply have been acquired through the typical planning, environmental approval, design, and construction processes. The California Regional Water Quality Control Board San Diego Region (RWQCB) “Master Reclamation Permit for Otay Water District Ralph W. Chapman Reclamation Facility” was adopted on May 9, 2007 (Order No. R9-2007-0038). This order establishes master Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 46 reclamation requirements for the production, distribution, and use of recycled water in the Otay WD service area. The order includes the use of tertiary treated water produced and received from the City of San Diego‘s SBWRP. Recycled water received from and produced by the SBWRP is regulated by Regional Board Order No. 2000-203 and addenda. The City of San Diego is required to meet all applicable federal, state, and local health and water quality requirements for the recycled water produced at the SBWRP and delivered to Otay WD in conformance with Order No. 2000-203. 6.3.1.3 Potential Groundwater Supplies The Otay Water District WFMP Update, 2015 UWMP, and the 2015 Integrated Water Resources Plan Update all contain a description of the development of potential groundwater supplies. Over the past several years, Otay WD has studied numerous potential groundwater supply options that have shown, through groundwater monitoring well activities, poor quality water and/or insufficient yield from the basins at a cost effective level. The Otay WD has developed capital improvement program projects to continue the quest to develop potential groundwater resources. Local Otay WD groundwater supply development is currently considered as a viable water supply resource to meet projected demands. The development and/or acquisition of potential groundwater supply projects by the Otay WD have been on hold in response to the regional water supply issues related to water source supply conditions. Local ground water supply projects will allow for less reliance upon imported water, achieve a level of independence of the regional wholesale water agencies, and diversify the Otay WD water supply portfolio consistent with the Otay Water District 2015 IRP Update. In recognition of the need to develop sufficient alternative water supplies, the Otay WD has taken the appropriate next steps towards development of production groundwater well projects. There are three groundwater well projects that the Otay WD is actively pursuing to develop as new local water supplies. They are known as the Middle Sweetwater River Basin Groundwater Well, the Otay Mesa Lot 7 Groundwater Well, and the Rancho del Rey Groundwater Well projects. Middle Sweetwater River Basin Groundwater Well The Middle Sweetwater River Basin Groundwater Well is an additional water supply project that was thoroughly studied and documented in the 1990s. The Middle Sweetwater River Basin is located within the Sweetwater River watershed and that reach of the river extends from Sweetwater Reservoir to the upstream Loveland Reservoir. The next step in development of the Middle Sweetwater River Basin Groundwater Well is the implementation of a pilot well project. The ultimate objective of the Otay WD is to develop a groundwater Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 47 well production system within the Middle Sweetwater River Basin capable of producing a sustainable yield of potable water as a local supply. The purpose of the Middle Sweetwater River Basin Groundwater Well Pilot project is to identify the feasibility of developing a groundwater resource production system and then determine and assess any limitations or constraints that may arise. The Middle Sweetwater River Basin Groundwater Well Pilot Project will accomplish six primary goals: Update project setting Update applicable project alternatives analysis Prepare groundwater well pilot project implementation plan Construct and test pilot monitoring and extraction wells Provide recommendations regarding costs and feasibility to develop a groundwater well production system within the Middle Sweetwater River Basin capable of producing a sustainable yield of potable water Prepare groundwater well production project implementation plan and scope of work The groundwater conjunctive use concept is described as the extraction of the quantity of water from the groundwater basin that was placed there by customers of the Otay Water District, Helix Water District, and Padre Dam Municipal Water District by means of their use of imported treated water that contributed to the overall volume of groundwater within the basin. An estimated quantity was developed to be approximately 12.5 percent of the total consumption of the Otay WD customers within that basin, as measured by water meters. In the 1994-1995 period, the quantity of water that was returned to the groundwater basin by Otay WD customers was estimated to be 810 acre-feet per year. Currently, that 12.5 percent quantity could be on the order of 1,000 acre-feet per year. A future scope of work will need to addresses this concept while considering further development of the groundwater basin as an additional supply resource. If it is deemed that a Middle Sweetwater River Basin Groundwater Well Production Project is viable then the consultant will develop and provide a groundwater well production project implementation plan, cost estimate, and related scope of work. Further development of the groundwater basin to enhance the total groundwater production could be accomplished by the Otay WD by means of additional extraction of water from the basin that is placed there by means of either injection and/or spreading basins using imported untreated water as the resource supply. The existing La Mesa Sweetwater Extension Pipeline, owned by the Water Authority, once converted to an untreated water delivery system, could be the conveyance system to transport untreated water for groundwater recharge in support of this conjunctive use concept. These two distinct water resource supply conjunctive use concepts will be addressed so they may coexist and to allow for their development as separate phases. The scope of work to complete Middle Sweetwater River Basin Groundwater Well Pilot Project consists of many major tasks and is to address the groundwater supply concepts Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 48 outlined above. It is anticipated that the cost for the entire scope of work, will be on the order of $2,000,000, which includes a contingency and may take up to one and a half years to complete. The primary desired outcome of the Middle Sweetwater River Basin Groundwater Well Pilot Project is for the engineering consultant to determine and make recommendations if it is financially prudent and physically feasible to develop a Phase I groundwater well production system within the Middle Sweetwater River Basin capable of producing a sustainable yield of up to 1,500 ac-ft/yr of potable water for the Otay WD. If it is deemed that a Middle Sweetwater River Basin Groundwater Well Production Project is viable then the consultant will develop and provide a groundwater well production project implementation plan and related scope of work. Otay Mesa Lot 7 Groundwater Well In early 2001 the Otay WD was approached by a landowner representative about possible interest in purchasing an existing well or alternatively, acquiring groundwater supplied from the well located on Otay Mesa. The landowner, National Enterprises, Inc., reportedly stated that the well could produce 3,200 acre-feet per year with little or no treatment required prior to introducing the water into the Otay WD potable water system or alternatively, the recycled water system. In March 2001 authorization to proceed with testing of the Otay Mesa Lot 7 Groundwater Well was obtained and the Otay WD proceeded with the investigation of this potential groundwater supply opportunity. The May 2001 Geoscience Support Services, Inc. completed for the Otay WD the preparation of a report entitled, “Otay Mesa Lot 7 Well Investigation,” to assess the Otay Mesa Lot 7 Well. The scope of work included a geohydrologic evaluation of the well, analyses of the water quality samples, management and review of the well video log, and documentation of well pump testing. The primary findings, as documented in the report, formed the basis of the following recommendations: For the existing well to be use as a potable water supply resource, a sanitary seal must be installed in accordance with the DDW guidelines. Drawdown in the well must be limited to avoid the possibility of collapsing the casing. Recover from drawdown from pumping is slow and extraction would need to be terminated for up to 2 days to allow for groundwater level recovery. The well water would need to be treated and/or blended with potable water prior to introduction into the potable water distribution system. The existing Otay Mesa Lot 7 Well, based upon the above findings, was determined not to be a reliable municipal supply of potable water and that better water quality and quantity perhaps could be discovered deeper or at an alternative location within the San Diego Formation. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 49 The Otay WD may still continue to pursue the Otay Mesa groundwater well opportunity with due consideration of the recommendations of the existing report. Based on the recommendations of the investigation report, a groundwater well production facility at Otay Mesa Lot 7 could realistically extract approximately 300 acre-feet per year. Rancho del Rey Groundwater Well In 1991, the McMillin Development Company drilled the Rancho del Rey Groundwater Well to augment grading water supplies for their Rancho del Rey development projects. Although the well was considered a “good producer,” little was known regarding its water quality and sustainable yield because the water was used solely for earthwork (i.e. dust control and soil compaction). The well was drilled to 865 feet, with a finished depth of 830 feet and produced approximately 400 acre-feet per year of low quality water for four years until its use was discontinued in April 1995 when the well was no longer needed. McMillin notified the Otay WD of its intent to sell off the groundwater well asset. In 1997, the Otay WD purchased an existing 7-inch well and the surrounding property on Rancho del Rey Parkway from the McMillin Company with the intent to develop it as a source of potable water. Treatment was required to remove salts and boron, among other constituents, using reverse osmosis membranes and ion exchange. In 2000, having received proposals for the design and construction of a reverse osmosis treatment facility that far exceeded the allocated budget, the Board of Directors instructed staff to suspend the project until such time as it became economically viable. In January 2010, citing the rising cost of imported water and the Otay WD's interest in securing its own water source for long-term supply reliability, the Board authorized Phase 1 for drilling and development of the Rancho del Rey Well. On March 3, 2010, the Board adopted the Mitigated Negative Declaration for this project and a Notice of Determination was filed with the County of San Diego on March 5, 2010. In September 2010, a new 12-inch production well was drilled to a depth of 900 feet through the groundwater formation and into fractured bedrock. Testing showed the long-term yield of the new well to be 450 gpm, higher than previous studies had estimated. Separation Processes, Inc. (SPI), a highly qualified membrane treatment firm, was hired to conduct a detailed economic feasibility study to confirm that the annualized unit cost of the new water source was economically competitive with other sources. The economic study estimated the unit cost of water to be $1, 500 to $2,000 per acre-feet for an alternative that utilizes a seawater membrane for treating both salts and boron. When compared with the current imported treated water rate from the Water Authority, and with the knowledge that this rate will continually increase as MWD and the Water Authority raise their rates, the Rancho del Rey Well project appears to be economically viable. The Otay WD is continuing to pursue the Rancho del Rey groundwater well opportunity with due consideration of the recommendations of the existing reports and plans to develop a Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 50 groundwater well production facility to extract approximately 500 acre-feet per year. For water planning purposes, production of groundwater from the Rancho del Rey well is considered “additional planned” for local supplies. 6.3.1.4 Otay Water District Otay Mesa Conveyance and Disinfection System Project The Otay WD is currently investigating the feasibility of purchasing desalinated water from a seawater reverse osmosis plant that is planned to be located in Rosarito, Mexico, known as the Otay Mesa Conveyance and Disinfection System project. The desalination treatment facility is intended to be designed, constructed, and operated in Mexico by a third party. The Otay WD’s draft Desalination Feasibility Study, prepared in 2008, discusses the likely issues to be considered in terms of water treatment and monitoring, potential conveyance options within the United States from the international border to potential delivery points, and environmental, institutional, and permitting considerations for the Otay WD to import the Desalination project product water as a new local water supply resource. While the treatment facility for the Desalination project will not be designed or operated by the Otay WD, it is important that the Otay WD maintain involvement with the planning, design, and construction of the facility to ensure that the implemented processes provide a product water of acceptable quality for distribution and use within the Otay WD’s system as well as in other regional agencies’ systems that may use the product water, i.e. City of San Diego, the Water Authority, etc. A seawater reverse osmosis treatment plant removes constituents of concern from the seawater, producing a water quality that far exceeds established United States and California drinking water regulations for most parameters, however, a two-pass treatment system may be required to meet acceptable concentrations of boron and chlorides, similar to the levels seen within the existing Otay WD supply sources. The Desalination Feasibility Study addresses product water quality that is considered acceptable for public health and distribution. The Otay WD, or any other potential participating agencies, will be required to get approval from the DDW in order to use the desalinated seawater as a water source. Several alternative approaches are identified for getting this approval. These alternatives vary in their cost and their likelihood of meeting DDW approval. The Rosarito Desalination Facility Conveyance and Disinfection System Project report addresses two supply targets for the desalinated water (i.e. local and regional). The local alternative assumes that only Otay WD would participate and receive desalinated water, while the regional alternative assumes that other regional and/or local agencies would also participate in the Rosarito project. On November 3, 2010, the Otay WD authorized the General Manager to enter into an agreement with AECOM for the engineering design, environmental documentation, and the Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 51 permitting for the construction of the conveyance pipeline, pump station, and disinfection facility to be constructed within the Otay WD. The supply target is assumed to be 50 mgd while the ultimate capacity of the plant will be 100 mgd. The Otay WD is proceeding with negotiations among the parties. 6.3.2 Otay Water District Capital Improvement Program The Otay WD plans, designs, constructs, and operates water system facilities to acquire sufficient supplies and to meet projected ultimate demands placed upon the potable and recycled water systems. In addition, the Otay WD forecasts needs and plans for water supply requirements to meet projected demands at ultimate build out. The necessary water facilities and water supply projects are implemented and constructed when development activities proceed and require service to achieve timely and adequate cost effective water service. New water facilities that are required to accommodate the forecasted growth within the entire Otay WD service area are defined and described within the Otay Water District WFMP Update. These facilities are incorporated into the annual Otay WD Six Year Capital Improvement Program (CIP) for implementation when required to support development activities. As major development plans are formulated and proceed through the land use jurisdictional agency approval processes, Otay WD prepares water system requirements specifically for the proposed development project consistent with the Otay WD WFMP Update. These requirements document, define, and describe all the potable water and recycled water system facilities to be constructed to provide an acceptable and adequate level of service to the proposed land uses, as well as the financial responsibility of the facilities required for service. The Otay WD funds the facilities identified as CIP projects. Established water meter capacity fees and user rates are collected to fund the CIP project facilities. The developer funds all other required water system facilities to provide water service to their project. Section 7 – Conclusion: Availability of Sufficient Supplies The Otay Ranch Resort Village is currently located within the jurisdictions of the Otay WD, Water Authority, and MWD. To obtain permanent imported water supply service, land areas are required to be within the jurisdictions of the Otay WD, Water Authority, and MWD to utilize imported water supply. The Water Authority and MWD have an established process that ensures supplies are being planned to meet future growth. Any annexations and revisions to established land use plans are captured in the SANDAG updated forecasts for land use planning, demographics, and economic projections. SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information. The Water Authority and MWD update their Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 52 demand forecasts and supply needs based on the most recent SANDAG forecast approximately every five years to coincide with preparation of their urban water management plans. Prior to the next forecast update, local jurisdictions with land use authority may require water supply assessment and/or verification reports for proposed land developments that are not within the Otay WD, Water Authority, or MWD jurisdictions (i.e. pending or proposed annexations) or that have revised land use plans with either lower or higher development intensities than reflected in the existing growth forecasts. Proposed land areas with pending or proposed annexations, or revised land use plans, typically result in creating higher demand and supply requirements than previously anticipated. The Otay WD, Water Authority, and MWD next demand forecast and supply requirements and associated planning documents would then capture any increase or decrease in demands and required supplies as a result of annexations or revised land use planning decisions. MWD’s IRP identifies a mix of resources (imported and local) that, when implemented, will provide 100 percent reliability for full-service demands through the attainment of regional targets set for conservation, local supplies, State Water Project supplies, Colorado River supplies, groundwater banking, and water transfers. The 2015 IRP Update describes an adaptive management strategy to protect the region from future supply shortages. This adaptive management strategy has five components: achieve additional conservation savings, develop additional local water supplies, maintain Colorado River Aqueduct supplies, stabilize State Water Project supplies, and maximize the effectiveness of storage and transfer. MWD’s 2015 IRP has a plan for identifying and implementing additional resources that expand the ability for MWD to meet future changes and challenges as necessary to ensure future reliability of supplies. The proper management of these resources help to ensure that the southern California region, including San Diego County, will have adequate water supplies to meet long-term future demands. MWD adopted its 2015 UWMP, in accordance with state law, on May 9, 2016. The resource targets included in the preceding 2015 IRP Update serve as the foundation for the planning assumptions used in the 2015 UWMP. MWD’s 2015 UWMP contains a water supply reliability assessment that includes a detailed evaluation of the supplies necessary to meet demands over a 20-year period in average, single dry year, and multiple dry year periods. As part of this process, MWD also uses the current SANDAG regional growth forecast in calculating regional water demands for the Water Authority’s service area. As stated in MWD’s 2015 UWMP, the plan may be used as a source document for meeting the requirements of SB 610 and SB 221 until the next scheduled update is completed in 5 years (2020). The 2015 UWMP includes a “Justifications for Supply Projections” in Appendix A.3, that provides detailed documentation of the planning, legal, financial, and regulatory basis for including each source of supply in the plan. In the Findings Section of the Executive Summary (Page ES-5) of their 2015 UWMP, MWD states that MWD has supply capacities that would be sufficient to meet expected demands from 2020 through 2040 under the single dry-year and multiple dry-year conditions. MWD Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 53 has plans for supply implementation and continued development of a diversified resource mix including programs in the Colorado River Aqueduct, State Water Project, Central Valley Transfers, local resource projects, and in-region storage that enables the region to meet its water supply needs. MWD’s 2015 UWMP identifies potential reserve supplies in the supply capability analysis (Tables 2-4, 2-5 and 2-6), which could be available to meet the unanticipated demands. The County Water Authority Act, Section 5 subdivision 11, states that the Water Authority “as far as practicable, shall provide each of its member agencies with adequate supplies of water to meet their expanding and increasing needs.” As part of preparation of a written water supply assessment report, an agency’s shortage contingency analysis should be considered in determining sufficiency of supply. Section 11 of the Water Authority’s 2015 Updated UWMP contains a detailed shortage contingency analysis that addresses a regional catastrophic shortage situation and drought management. The analysis demonstrates that the Water Authority and its member agencies, through the Emergency Response Plan, Emergency Storage Project, Carlsbad Desalination Project, and Drought Management Plan (DMP) are taking actions to prepare for and appropriately handle an interruption of water supplies. The DMP, adopted in May 2006, provides the Water Authority and its member agencies with a series of potential actions to take when faced with a shortage of imported water supplies from MWD due to prolonged drought or other supply shortfall conditions. The actions will help the region avoid or minimize the impacts of shortages and ensure an equitable allocation of supplies. The WSA&V Report identifies and describes the processes by which water demand projections for the proposed Otay Ranch Resort Village will be fully included in the water demand and supply forecasts of the Urban Water Management Plans and other water resources planning documents of the Water Authority and MWD. Water supplies necessary to serve the demands of the proposed Otay Ranch Resort Village, along with existing and other projected future users, as well as the actions necessary and status to develop these supplies, have been identified in the Otay Ranch Resort Village WSA&V Report and will be included in the future water supply planning documents of the Water Authority and MWD. This WSA&V Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, water supply projects, or agreements relevant to the identified water supply needs for the proposed Otay Ranch Resort Village. This WSA Report assesses, demonstrates, and documents that sufficient water supplies are planned for and are intended to be available over a 20-year planning horizon, under normal conditions and in single and multiple dry years to meet the projected demand of the proposed Otay Ranch Resort Village and the existing and other planned development projects to be served by the Otay WD. Table 5 presents the forecasted balance of water demands and required supplies for the Otay WD service area under average or normal year conditions. The total actual demand for FY Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 54 2015 was 30,271 acre feet. The demand for FY 2015 is 2,999 acre feet lower than the demand in FY 2010 of 33,270 acre feet. The drop in demand is a result of the unit price of water and the conservation efforts of users as a result of a prolonged drought. Table 5 presents the forecasted balance of water demands and supplies for the Otay WD service area under single dry year conditions. Table 6 presents the forecasted balance of water demands and supplies for the Otay WD service area under multiple dry year conditions for the three year period ending in 2019. The multiple dry year conditions for periods ending in 2025, 2030, and 2035 are provided in the Otay Water District 2015 UWMP. The projected potable demand and supply requirements shown the Tables 5 and 6 are from the Otay WD 2015 UWMP. Hot, dry weather may generate urban water demands that are about 6.4 percent greater than normal. This percentage was utilized to generate the dry year demands shown in Table 6. The recycled water supplies are assumed to experience no reduction in a dry year. Table 5 Projected Balance of Water Demands and Supplies Normal Year Conditions (acre feet) Description FY 2020 FY 2025 FY 2030 FY 2035 FY 2040 Demands Otay WD Demands 47,328 54,771 57,965 59,279 65,913 Active Conservation Savings (2,111) (1,844) (1,585) (1,538) (1,587) Accelerated Forecast Growth (AFG) – Planning Area 12 46 46 46 46 46 AFG – Otay Sunroad EOM SPA 836 836 836 836 836 AFG University Innovation District 11.7 11.7 11.7 11.7 11.7 Passive Conservation Savings (2,497) (4,497) (5,489) (6,040) (6,744) Total Demand 43,613.7 49,323.7 51,784.7 52,594.7 58,475.7 Supplies Water Authority Supply 37,943.7 43,423.7 45,784.7 46,394.7 51,975.7 Recycled Water Supply 5,670 5,900 6,000 6,200 6,500 Total Supply 43,613.7 49,323.7 51,784.7 52,594.7 58,475.7 Supply Surplus/(Deficit) 0 0 0 0 0 Table 6 presents the forecasted balance of water demands and supplies for the Otay WD service area under single dry year and multiple dry year conditions from the Otay Water District 2015 UWMP. Table 6 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 55 Projected Balance of Water Demands and Supplies Single Dry and Multiple Dry Year Conditions (acre feet) Normal Year Single Dry Year Multiple Dry Years FY 2011 FY 2017 FY 2017 FY 2018 FY 2019 Demands Otay WD Demands 37,176 38,749 38,844 40,378 42,430 Total Demand 37,176 38,749 38,844 40,378 42,430 Supplies Water Authority Supply 33,268 33,877 33,972 35,240 37,026 Recycled Water Supply 3,908 4,872 4,872 5,138 5,404 Total Supply 37,176 34,639 38,844 40,378 42,430 Supply Surplus/(Deficit) 0 0 0 0 0 District Demand totals with SBX7-7 conservation target achievement plus single dry year increase as shown. The Water Authority could implement its DMP. In this instances, the Water Authority may have to allocate supply shortages based on it equitable allocation methodology in its DMP. Dry year demands assumed to generate a 7% increase in demand over normal conditions for a single dry year. For multiple dry years an 8% increase in demand over normal conditions is projected in the first year, 14% in the second year and 21% increase is projected in the third year in addition to new demand growth. In evaluating the availability of sufficient water supply, the Otay Ranch Resort Village development proponents will be required to participate in the development of alternative water supply project(s). This can be achieved through payment of the New Water Supply Fee adopted by the Otay WD Board in May 2010. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new water supply projects are in response to the regional water supply issues related to climatological, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento-San Joaquin Delta and the current ongoing western states drought conditions. These new additional water supply projects are not currently developed and are in various stages of the planning process. The Otay WD water supply development program includes but is not limited to projects such as the Middle Sweetwater River Basin Groundwater Well project, the North District Recycled Water Supply Concept, the Otay WD Otay Mesa Conveyance and Disinfection System project, and the Rancho del Rey Groundwater Well project. The Water Authority and MWD’s next forecasts and supply planning documents would capture any increase in water supplies resulting from any new water resources developed by the Otay WD. The Otay WD acknowledges the ever-present challenge of balancing water supply with demand and the inherent need to possess a flexible and adaptable water supply implementation strategy that can be relied upon during normal and dry weather conditions. The responsible regional water supply agencies have and will continue to adapt their resource Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 56 plans and strategies to meet climate, environmental, and legal challenges so that they may continue to provide water supplies to their service areas. The regional water suppliers along with Otay WD fully intend to maintain sufficient reliable supplies through the 20-year planning horizon under normal, single, and multiple dry year conditions to meet projected demand of the Otay Ranch Resort Village, along with existing and other planned development projects within the Otay WD service area. This WSA&V Report assesses, demonstrates, and documents that sufficient water supplies are planned for and are intended to be acquired, as well as the actions necessary and status to develop these supplies, to meet projected water demands of the Otay Ranch Resort Village as well as existing and other reasonably foreseeable planned development projects within the Otay WD for a 20-year planning horizon, in normal and in single and multiple dry years. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 57 Source Documents Otay Ranch Resort Village SB 610 and SB 221 Compliance request letter received March 21, 2018. Rania S. Amen, City of San Diego, “FW: Reclaimed Water Question”, message to T. Shaw, February 27, 2018. E-mail. CH2M and Otay Water District, “Otay Water District 2015 Urban Water Management Plan Update”, May 2016. City of Chula Vista, “Otay Ranch General Development Plan/Sub-regional Plan, The Otay Ranch Joint Planning Project,” October 1993 amended June 1996. Otay Water District, “2015 Water Facilities Master Plan Update,” March 2016. Carollo and Otay Water District, 2015 Integrated Water Resources Plan Update, June 2015. San Diego County Water Authority, “Final 2015 Urban Water Management Plan, June, 2016. MWD Water District of Southern California, “2015 Urban Water Management Plan,” June 2016. Camp Dresser & McKee, Inc., “Rosarito Desalination Facility Conveyance and Disinfection System Project,” June 21, 2010. PBS&J, “Draft Otay Water District North District Recycled Water System Development Project, Phase I Concept Study,” December 2008. NBS Lowry, “Middle Sweetwater River System Study Water Resources Audit,” June 1991. Michael R. Welch, “Middle Sweetwater River System Study Alternatives Evaluation,” May 1993. Michael R. Welch, “Middle Sweetwater River Basin Conjunctive Use Alternatives,” September 1994. Geoscience Support Services, Inc., “Otay Mesa Lot 7 Well Investigation,” May 2001. Boyle Engineering Corporation, “Groundwater Treatment Feasibility Study Ranch del Rey Well Site,” September 1996. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 58 Agreement for the Purchase of Treated Water from the Otay Water Treatment Plant between the City of San Diego and the Otay Water District. Agreement between the San Diego County Water Authority and Otay Water District regarding Implementation of the East County Regional Treated Water Improvement Program. Agreement between the San Diego County Water Authority and Otay Water District for Design, Construction, Operation, and Maintenance of the Otay 14 Flow Control Facility Modification. Agreement between the Otay Water District and the City of San Diego for Purchase of Reclaimed Water from the South Bay Water Reclamation Plant. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 59 Appendix A Otay Ranch Resort Village Vicinity Map Otay Water District Water Supply Assessment and Verification Report Otay Ranch Resort Village 60 Appendix B Otay Ranch Resort Village Development Plan Otay Water District Board of Directors Meeting May 2, 2018 Water Supply Assessment & Verification Report for the Otay Ranch Resort Village Project SB 610 & SB 221 Compliance EXHIBIT E BACKGROUND •Senate Bills 610 and 221 -improve the link between water supply availability and land use decisions. •SB 610 requires a WSA and SB 221 requires a WSA&V to be included in the CEQA documents for a project. •Board approval required for submittal of the WSA&V Report to the County of San Diego. Otay Ranch Resort Village Project Potable Water Demand •Potable water demand is 1,318 acre- feet per year (1.18 MGD) •Recycled water use is restricted by City of San Diego because the project is tributary to the Upper and Lower Otay Reservoirs. Otay Water District Projected Balance of Supply and Demand Description FY 2020 FY 2025 FY 2030 FY 2035 FY 2040 Demands Otay WD Demands 47,328 54,771 57,965 59,279 65,913 Active Conservation Savings (2,111)(1,844)(1,585)(1,538)(1,587) Accelerated Forecast Growth (AFG) - Planning Area 12 46 46 46 46 46 AFG –Otay Sunroad EOM SPA 836 836 836 836 836 AFG –University Innovation District 11.7 11.7 11.7 11.7 11.7 Passive Conservation Savings (2,497)(4,497)(5,489)(6,040)(6,744) Total Demand 43,613.7 49,323.7 51,784.7 52,594.7 58,475.7 Supplies Water Authority Supply 37,943.7 43,423.7 45,784.7 46,394.7 51,975.7 Recycled Water Supply 5,670 5,900 6,000 6,200 6,500 Total Supply 43,613.7 49,323.7 51,784.7 52,594.7 58,475.7 Supply Surplus/(Deficit)0 0 0 0 0 CONCLUSION •Water demand and supply forecasts are included in the planning documents of MWD, CWA, and OWD. •Actions necessary to develop the identified water supplies are documented. •The WSA&V Report documents that sufficient water supplies are planned for and available over the next 20 years. •The Board has met the intent of the SB 610 and SB 221 statutes. Questions? STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 2, 2018 SUBMITTED BY: Lisa Coburn-Boyd Environmental Compliance Specialist Bob Kennedy Engineering Manager PROJECT: P1253- 004000 DIV. NO. 5 APPROVED BY: Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT: Award of a Professional Environmental Services Contract for the San Miguel Habitat Management Area and CIP-Associated Mitigation Projects for Three Years (June 2018–June 2021) GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) awards a Professional Environmental Services Contract to ICF Jones & Stokes, Inc. (ICF) for the maintenance and monitoring of the San Miguel Habitat Management Area and CIP-Associated Mitigation Projects for a three year period (June 2018–June 2021) and authorizes the General Manager to execute an agreement in an amount not-to-exceed $483,787.40 (see Exhibit A for location map). COMMITTEE ACTION: Please see Attachment A. PURPOSE: That the Board authorizes the General Manager to execute a Professional Environmental Services Agreement with ICF in an amount not-to-exceed $483,787.40 for the maintenance, monitoring, and reporting for the San Miguel Habitat Management Area and CIP- Associated Mitigation Projects for three years (June 2018–June 2021). 2 ANALYSIS: The District’s Habitat Management Area (HMA) is a 230-acre, designated biological reserve located within the District’s 509-acre Use Area property within the City of Chula Vista. The HMA serves as a mitigation bank with credits that can be utilized to offset habitat impacts associated with District projects and facilities. It also serves as a habitat restoration area for vegetation impacts associated with the construction of District CIP projects. The District is required to conduct biological monitoring, provide continuous maintenance, and submit annual reports to the U.S. Fish and Wildlife Service and the California Department of Fish & Wildlife for the HMA. The HMA has been in existence since 1997 and is required to be monitored and maintained in perpetuity. Individual restoration areas associated with CIP projects at the HMA generally have a three (3) to five (5) year maintenance, monitoring, and reporting period. Currently, Helix Environmental is the firm that has the contract for the HMA maintenance, monitoring, and reporting. Their contract will conclude at the end of May, 2018. In order to have a new consultant on board immediately following the end of the current contract so that maintenance services are not neglected, the District solicited Professional Environmental Consulting Services from consulting firms by placing an advertisement on the District’s website and in various other publications. Twelve (12) firms submitted a Letter of Interest and Statement of Qualifications. The Request for Proposal (RFP) was sent to all twelve firms resulting in five (5) proposals received on February 28, 2018, from the following consulting firms: ESA (San Diego, CA) Helix Environmental Planning (La Mesa, CA) ICF (San Diego, CA) Merkel & Associates, Inc. (San Diego, CA) RECON Environmental (San Diego, CA) In accordance with the District’s Policy 21, staff evaluated and scored all written proposals and interviewed the five (5) firms on April 5, 2018. ICF received the highest score for their services based on their extensive experience in the management of habitat areas, comprehensive understanding of the scope of work, proposed method to accomplish the work, and overall strength of their project team. A summary of the complete evaluation is shown in Exhibit B. Staff worked with ICF in negotiating the fee for services, which resulted in a fee decrease of $13,521.82 from their original proposal fee of $497,309.22, yielding the revised proposed fee of $483,787.40. 3 The reduction of fee was based on a reduction in the maintenance hours for the overall HMA. Based on District staff’s past 11 years of experience managing the HMA contract, ICF had slightly over- estimated the hours for this task and the new hours are more appropriate without compromising the effort that will be required. Staff reviewed the new level of effort and the revised fee and concluded that the modifications were appropriate. ICF submitted the Company Background Questionnaire, as required by the RFP, and staff did not find any significant issues. In addition, staff checked their references and performed an internet search on the company. Staff found the references to be excellent and did not find any outstanding issues with the internet search. FISCAL IMPACT: Joe Beachem, Chief Financial Officer This contract totals $483,787.40 and will be expended from June 2018 through June 2021, encompassing Fiscal years 2018-2021. The Project Manager expects that this contract amount is sufficient to cover the required expenditures in each of these years. The Operating Budget amount for 2018 is $130,000. The Project Manager anticipates this amount is sufficient to cover the expenses for this fiscal year. The requested budget for 2019 is $130,000 and, if approved, the Project Manager anticipates the requested budget to be sufficient to cover the operating expenses for the HMA maintenance, monitoring and reporting services required. Likewise future operating budgets will be requested to support these required expenditures. STRATEGIC GOAL: This Project supports the District’s Mission statement, "To provide 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. LCB/BK:mlc P:\WORKING\CIP P1253\Subproject 004000 - HMA\HMA Contract - 2018-2021\Staff Report\BD 05-02-18, Staff Report, San Miguel HMA Services Contract – 2018-2021 (LCB-BK).doc Attachments: Attachment A – Committee Action Attachment B – Summary of Proposal Rankings Exhibit A – Location Map ATTACHMENT A SUBJECT/PROJECT: P1253-004000 Award of a Professional Environmental Services Contract for the San Miguel Habitat Management Area and CIP-Associated Mitigation Projects for Three Years (June 2018–June 2021) COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on April 16, 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. Attachment B Qualifications of Staff Understanding of Scope, Schedule and Resources Soundness and Viability of Proposed Project Plan INDIVIDUAL SUBTOTAL - WRITTEN AVERAGE SUBTOTAL - WRITTEN Proposed Fee* Consultant's Commitment to DBE AVERAGE TOTAL WRITTEN Additional Creativity and Insight Strength of Project Manager Presentation, Communication Skills Quality of Response to Questions INDIVIDUAL TOTAL - ORAL AVERAGE TOTAL ORAL 30 25 30 85 85 15 Y/N 100 15 15 10 10 50 50 150 Poor/Good/ Excellent Steve Beppler 24 23 26 73 11 12 8 7 38 Kevin Cameron 27 22 24 73 12 11 7 8 38 Lisa Coburn-Boyd 25 23 25 73 12 13 8 8 41 Jeff Marchioro 27 22 25 74 13 13 8 8 42 Kent Payne 23 23 25 71 9 10 8 8 35 Steve Beppler 27 21 25 73 12 12 9 8 41 Kevin Cameron 28 24 27 79 13 13 8 8 42 Lisa Coburn-Boyd 27 24 26 77 13 14 8 8 43 Jeff Marchioro 28 23 27 78 13 13 9 9 44 Kent Payne 27 24 28 79 13 13 8 8 42 Steve Beppler 26 24 27 77 15 14 10 10 49 Kevin Cameron 28 23 26 77 15 14 9 9 47 Lisa Coburn-Boyd 28 25 28 81 15 14 10 10 49 Jeff Marchioro 27 24 27 78 14 14 10 10 48 Kent Payne 26 23 26 75 15 14 9 10 48 Steve Beppler 24 22 25 71 12 10 6 8 36 Kevin Cameron 26 22 24 72 11 10 7 7 35 Lisa Coburn-Boyd 26 22 24 72 12 11 7 7 37 Jeff Marchioro 26 22 25 73 11 10 6 7 34 Kent Payne 25 23 26 74 10 9 6 6 31 Steve Beppler 25 21 26 72 13 12 9 8 42 Kevin Cameron 25 21 23 69 14 15 9 8 46 Lisa Coburn-Boyd 26 23 25 74 14 14 9 8 45 Jeff Marchioro 26 20 23 69 14 14 10 9 47 Kent Payne 23 22 25 70 12 12 9 8 41 Review Panel does not see or consider fee when scoring other categories. Fee is scored by the PM, who is not on Review Panel. Consultant Proposed Fee Position Score Merkel $428,010.40 lowest 15 Helix $461,486.00 12 Recon $470,896.06 11 ICF $497,309.22 8 ESA $565,758.00 highest 1 134 73 77 78 Y 82 126 FEE SCORING CHART Helix ESA 131 Y 89 122 RECON 11 35 REFERENCES 87 1 12 8 15 WRITTEN 113 SUMMARY OF PROPOSAL RANKINGS San Miguel HMA Environmental Services TOTAL SCORE 72 71 44 Y 86 74 Y MAXIMUM POINTS Merkel Y 48 ORAL 39 42 ICF Y:\Board\CurBdPkg\ENGRPLAN\2018\05-02-2018\Award of a Professional Contract for the San Miguel Habitat Management Area\BD 05-02-18, Att. A -Summary of Proposal Rankings.xls P:\ W o r k i n g \ P 2 4 9 5 - S a n M i g u e l H M A a n d A s s o c . M i t i g a t i o n P r o j e c t s \ S t a f f R e p o r t s \ E x h i b i t A (;+,%,7$ ! VICINITY MAP NTS ?ò Aä ?Ë ;&s DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?p SITE HMA SITE OTAY WATER DISTRICT Environmental Setting MapSan Miguel Habitat Management Area F CIP P2495 F CIP P1253 P: \ W O R K I N G \ C I P P 1 2 5 3 \ S u b p r o j e c t 0 0 4 0 0 0 - H M A \ H M A C o n t r a c t - 2 0 1 8 - 2 0 2 1 \ S t a f f R e p o r t \ B D 0 5 - 0 2 - 1 8 , E x h i b i t A - S a n M i g u e l H M A l o c a tio n m a p . m x d