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02/17/2019
               • • •
               Koff and Associates


               Re: City of San Diego Public Utilities Director



               Dear Sir or Madam:

                       I am an experienced water utility executive and am writing to apply for the City of San Diego
               Director of Public Utilities.  I am applying for this position because of my concern for the Department
               and Þrm belief the organization needs an experienced, outside perspective.

                       Serving as San Diego’s Assistant Public Utilities Director, I set forth the position that the Pure
               Water Program as implemented, is misguided and will soon render water unaffordable for most San Diego
               customers. As news outlets report signiÞcant cost overruns, its more important than ever we revisit the
               fundamental assumptions underlying the Project.

                       In order to implement the Pure Water Program, the Department denied customers access to the
               reclaimed water system, thus ÒstrandingÓ seventy-Þve percent of itÕs reclaimed water infrastructure
               investment over two decades. Rather than implement more cost-effective strategies the Department
               earmarked nearly all funding, and reserved available wastewater volumes for future potable reuse.  As a
               member of the Senior Executive Team, I argued that while potable reuse has an important role in San
               DiegoÕs future, the Department needed to realize a return on the communityÕs initial reclaimed water
               investment before asking rate-payers to fund the most expensive water resource option possible.
               Meanwhile, treated reclaimed water was returned to the sewer system for eventual ocean discharge, rather
               than being leveraged for cost effective applications such as golf courses and freeway corridors.

                       The Pure Water Program is built upon two studies which did not contemplate a Program of its
               current magnitude. As a basis for economic comparisons, the studies overestimated the  expected
               production rates, and the necessary “down time” needed to keep it’s aging reclaimed water plants
               operating at full design capacity. Historically, the North City and South Bay reclamation plants declined
               to a Þfty percent reliability status. Improving the reliability scorecard of these reclamation plants is one of
               the DepartmentÕs major challenges, and represents a signiÞcant  risk to the success of Pure Water. These
               studies need to be revised in light of the changing economic realities experienced.

                       If selected, I would re-examine the Pure Water Program. I would revisit the enabling studies,  and
               reassess the fundamental efÞcacy of the water resource strategies. I also have perspectives on the
               Department’s customer service ethic, branding efforts, and stakeholder involvement which I look forward
               to discussing further.
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