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HomeMy WebLinkAbout02-19-25 F&A Committee Packet 1 OTAY WATER DISTRICT FINANCE AND ADMINISTRATION COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA BOARDROOM WEDNESDAY FEBRUARY 19, 2025 12:00 P.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full board for its consideration and formal action. AGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD’S JURISDICTION INCLUDING AN ITEM ON TODAY’S AGENDA DISCUSSION ITEMS 3. ADOPT RESOLUTION NO. 4552 APPROVING THE ANNEXATION OF THE PROPERTY OWNED BY JOHN AND EMILY LIEBER (APN 517-030-33-00, 2018- 22 WILLOW GLEN DRIVE, EL CAJON, CA) TO THE OTAY WATER DISTRICT SEWER IMPROVEMENT DISTRICT NO. 18 (KEVIN CAMERON) [5 MINUTES] 4. AUTHORIZE THE GENERAL MANAGER TO NEGOTIATE AND ENTER INTO AN INITIAL TWO-YEAR AGREEMENT, WITH THE OPTION OF THREE (3) ONE- YEAR EXTENSIONS, WITH PAYMENTUS TO PROVIDE PHONE PAYMENT SERVICES IN AN AMOUNT NOT TO EXCEED $290,000 ($58,000 ANNUALLY) (CATHY BARNHILL) [5 MINUTES] 5. ENTERPRISE UTILITY BILLING SYSTEM UPGRADE PROJECT (MICHAEL KERR) [5 MINUTES] 6. ADJOURNMENT 2 BOARD MEMBERS ATTENDING: Gary Croucher, Chair Jose Lopez All items appearing on this agenda, whether or not expressly listed for action, may be de- liberated 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 attachments are also available by contacting the District Secretary at (619) 670-2253. If you have any disability which would require accommodations to enable you to participate in this meeting, please call the District Secretary at 670-2253 at least 24 hours prior to the meeting. Certification of Posting I certify that on February 14, 2025, 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 February 14, 2025. /s/ Tita Ramos-Krogman, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 5, 2025 SUBMITTED BY: Kevin Cameron Engineering Manager PROJECT NO: FILE NO: D1216-090686 ANX-24-002 DIV. NO. 5 APPROVED BY: Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Adopt Resolution No. 4552 Approving the Sewer Annexation of Property Owned by John and Emily Lieber (APN 517-030-33-00 – 2018-22 Willow Glen Drive, El Cajon, CA) to the Otay Water District Sewer Improvement District No. 18 GENERAL MANAGER’S RECOMMENDATION: Adopt Resolution No. 4552 approving the annexation of the property owned by John and Emily Lieber (APN 517-030-33-00 – 2018-22 Willow Glen Drive, El Cajon, CA) to the Otay Water District Sewer Improvement District (ID) No. 18 (see Exhibit C for Location Map). COMMITTEE ACTION: Please see Attachment A. PURPOSE: The proposed annexation is to provide sewer service to the parcel located on 2018-22 Willow Glen Drive, El Cajon, in an unincorporated area of the County of San Diego, California 92019 (APN 517-030-33-00). AGENDA ITEM 3 2 ANALYSIS: A written request and Petition signed by the licensed surveyor, Lawrence W. Walsh, has been received for annexation of APN 517- 030-33-00, located on 2018-22 Willow Glen Drive, in the City of El Cajon and County of San Diego, for sewer service. The total acreage to be annexed is 1.81 acres. The property is within the jurisdictional boundary of the Otay Water District (“District”) and following the Board’s approval, it will become part of Sewer ID No. 18. The parcel is located adjacent to an existing 15-inch Otay Water District sewer main on Willow Glen Drive. The parcel is already contained within the District’s water ID boundary. This parcel is part of the District’s Wastewater Master Plan. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The property owner has paid the District’s annexation processing fee of $1,031.17, sewer annexation fee for one (1) sewer EDU (current fee is $1,471.28 per EDU), and will pay sewer capacity fees upon annexation approval for parcels located outside the sewer ID (current fee is $10,759.61 per EDU) in effect at the time the service is provided, and any additional fees, including the availability fee, as established in the attached Resolution (Attachment B). STRATEGIC GOAL: Provide enhanced sewer service to meet customer needs. LEGAL IMPACT: No legal impact. KC/ML:jf Attachments: Attachment A - Committee Action Attachment B - Resolution No. 4552 Exhibit A - Legal Description Exhibit B - Legal Map Exhibit C – Location Map ATTACHMENT A SUBJECT/PROJECT: D1216-090686 ANX-24-002 Adopt Resolution No. 4552 Approving the Sewer Annexation of Property Owned by John and Emily Lieber (APN 517-030- 33-00 – 2018-22 Willow Glen Dr., El Cajon, CA) to the Otay Water District Sewer Improvement District No. 18 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on February 18, 2025. 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 by the Committee prior to presentation to the full Board. ATTACHMENT B Page 1 of 4 RESOLUTION NO. 4552 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPROVING THE ANNEXATION TO THE OTAY WATER DISTRICT IMPROVEMENT DISTRICT NO. 18 OF THOSE LANDS DESCRIBED AS “JOHN & EMILY LIEBER SEWER ANNEXATION (APN: 517-030-33-00)” (FILE NO. ANX-24- 002/DIVISION 5) WHEREAS, a letter has been submitted by LAWRENCE W. WALSH, the Licensed Surveyor, representing the owner and party (John & Emily Lieber) that has an interest in the land described in Exhibit "A," attached hereto, for annexation of said land to the Otay Water District Sewer Improvement District (ID) No. 18 pursuant to California Water Code Section 72670 et seq., and WHEREAS, pursuant to Section 72680.1 of said Water Code, the Board of Directors may proceed and act thereon without notice and hearing. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT FINDS, RESOLVES, ORDERS, AND DETERMINES as follows: 1. A depiction of the area proposed to be annexed and the boundaries of ID 18 following the annexation is set forth on a map in Exhibit “B” filed with the Secretary of the District, which map shall govern for all details as to the area proposed to be annexed. 2. The purpose of the proposed annexation is to make sewer service available to the area to be annexed, which availability constitutes a benefit to said area. 3. The Board finds and determines that the area proposed to be annexed to ID 18 will be benefited by such annexation and that the property currently within ID 18 will also be benefited ATTACHMENT B Page 2 of 4 and not injured by such annexation because after the annexation a larger tax base will be available to finance the sewer facilities and improvements of ID 18. 4. The Board of Directors hereby declares that the annexation of said property is subject to the owners complying with the following terms and conditions: (a) The petitioner for said annexation shall pay to Otay Water District the following: (1) The annexation processing fee at the time of application; (2) State Board of Equalization filing fees in the amount of $3,500, if applicable; (3) The sewer annexation fees at the time of connection to the Otay Water District water system; (4) Yearly assessment fees will be collected through the County Tax Assessor’s office in the amount of $10 for APN 517-030-33-00; (5) In the event that sewer service is to be provided, Petitioners shall pay all applicable sewer fees per Equipment Dwelling Unit (EDU) at the time the sewer connection is purchased; and (6) Payment by the owner of APN 517-030-33-00 of all other applicable local or state agency fees or charges. ATTACHMENT B Page 3 of 4 (b) The property to be annexed shall be subject to taxation after annexation thereof for the purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district, authorized and outstanding at the time of annexation, the same as if the annexed property had always been a part of the improvement district. 5. The Board hereby declares that the property described in Exhibit "A" shall be considered annexed to ID 18 upon passage of this resolution. 6. The Board of Directors further finds and determines that there are no exchanges of property tax revenues to be made pursuant to California Revenue and Taxation Code Section 95 et seq. as a result of such annexation. 7. The annexation of APN 517-030-33-00 to the District’s Sewer Improvement District 18 is hereby designated as the “JOHN & EMILY LIEBER SEWER ANNEXATION (APN: 517-030-33-00).” 8. Pursuant to Section 57202(a) of the Government Code, the effective date of the JOHN & EMILY LIEBER SEWER ANNEXATION (APN: 517-030-33-00) shall be the date this Resolution is adopted by the Board of Directors of the Otay Water District. 9. The General Manager of the District and the Secretary of the District, or their respective designees, are hereby ordered to take all actions required to complete this annexation. ATTACHMENT B Page 4 of 4 PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 5th day of March, 2025. President ATTEST: __________________________________ District Secretary EXHIBIT A G L E N W I L L O W N 89°12'00" E 333.56' N 00°1 0 ' 2 0 " E 86.00' 161.56' N 89°12'00" E R=1,5 3 0 . 0 0 ' Δ=10° 0 0 ' 0 0 " L=26 7 . 0 4 ' N 0 0 ° 1 1 ' 5 0 " E 3 1 2 . 5 5 ' 171.5 5 ' N 60° 2 0 ' 3 0 " E C L N 70°2 0 ' 3 0 " E 110.90 ' D R I V E 81'30' 51' R/W PORTION OF PARCEL 1, PM 8517 PARC E L 2 , PM 85 1 7 PARCEL 1, PM 8378 PARCEL 2, PM 8378 R/W R/W PA R C E L 3 , P M 8 3 7 8 POB CENTER OF SEC. 21 N 89°12'00" E 667.12' TPOB 0 SCALE: 1"= 160'80'40'80' 80'WALSH ENGINEERING & SURVEYING, INC. 607 ALDWYCH ROAD EL CAJON, CA 92020 (619) 588-6747 ASSESSOR'S PARCEL MAP:LAFCO RESOLUTION NO.ACREAGE:DATE: 1"=80' SCALE:0 SCALE: 1"= 160'80'40'80' 80'WALSH ENGINEERING & SURVEYING, INC. 607 ALDWYCH ROAD EL CAJON, CA 92020 (619) 588-6747 ASSESSOR'S PARCEL MAP:LAFCO RESOLUTION NO.ACREAGE:DATE:SCALE: 517-030-33 1.81 AC 11/05/2024XX XX-XX NO SCALE VICINITY MAP OTAY WATER DISTRICT 2554 SWEETWATER SPRINGS BLVD. SPRING VALLEY, CALIFORNIA 91978 LEGEND: DISCLAIMER: CHASE A V E I D A L E SLLH DR WILLO W GLEN D R SITE 8 R/W POB TPOB JA M A C H A R D 54 EXHIBIT B OTAY WATER DISTRICTANNEXATION OF APN 517-030-33-00TO THE OTAY WATER DISTRICT AND TOSEWER IMPROVEMENT DISTRICT 18 EXHIBIT CC:\OneDrive\Otay Water District\ENG PUBLIC SERVICES - Documents\SAMP WSA ANX\D1216-090686 Sewer Annex 2018-22 Willow Glen Dr_APN 517-030-33-00\Archive\Exhibit C-Sewer Annexation-ANX-24-002-Willow Glen Dr-517-030-33.mxd APN 517-111-53-00 ANX-24-002 VISTA VEREDA CT VISTA GRANDE RD !( !( !( !( 5170311400 5170303900 5170310700 ROW 5170311100 51703113005170311200 5170500300 5170304300 5170411700 5170302800 5170303300 5170304500 5170302900 5170304000 5170304100 5170304200 5170303800 5170411600 5170304400 5170310800 5170300800 §¨¦ §¨¦ §¨¦ §¨¦ §¨¦ §¨¦ §¨¦ ÃÅ ÃÅ ÃÅ ÃÅ ÃÅ ÃÅ ÃÅ ÃÅ ÃÅ VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 !\ 5 8 805 805 11 9454 94 125 125 905 125 905 125 NTSF 2018-22 Willow Glen DriveEl Cajon, 92019APN 517-030-33-00 15" PVCSewer Main W I L L O W G L E N D R SINGING CANYON DR CAMPBELL LN STAFF REPORT TYPE MEETING: Regular Board SUBMITTED BY: Cathy Barnhill Customer Service Supervisor MEETING DATE: March 5, 2025 PROJECT: DIV. NO.All APPROVED BY: Andrea Carey, Customer Service Manager Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Authorize the General Manager to Negotiate and Enter Into an Agreement with Paymentus for Phone Payment Services GENERAL MANAGER’S RECOMMENDATION: That the Board authorizes the General Manager to negotiate and enter into an initial two-year agreement, with the option of three (3) one- year extensions, with Paymentus to provide phone payment services in an amount not to exceed $290,000 ($58,000 annually). COMMITTEE ACTION: See Attachment A. PURPOSE: Authorize the General Manager to negotiate and enter into an initial two-year agreement, with the option of three (3) one-year extensions, with Paymentus to provide phone payment services in an amount not to exceed $290,000 ($58,000 annually). ANALYSIS: The District accepts approximately 2,750 payments per month through the automated phone system. The contract for the District’s current vendor, Paymentus, will expire in March 2025. In preparation, staff issued a Request for Proposal(RFP) via the District’s online solicitation portal, PlanetBids. Four responses were received, and AGENDA ITEM 4 three were evaluated based on background and experience, ability to perform the required services, implementation, training and support, and estimated monthly cost. The ratings for all criteria, excluding cost, are below: Vendor Overall Service Rating (70 pts Max) Paymentus 68.17 Catalis Payments, LLC 63.33 Infosend, Inc. 50.33 One vendor’s submission was considered non-responsive and was removed from the evaluation process. To ensure an equitable evaluation, staff based the monthly cost analysis on current payment volumes and averages. Below is the projected average monthly cost of each vendor, from lowest to highest, based on RFP submissions: Vendor Monthly Cost Paymentus $4,463.00 Infosend, Inc. $6,284.25 Catalis Payments, LLC $8,869.00 Paymentus received the highest overall service rating and was the most cost-effective. Paymentus has agreed to keep pricing fixed for the duration of the contract, which consists of the initial two-year period and the three (3) optional one-year extensions. District staff who work closely with Paymentus report excellent service, and no negative feedback has been received from District customers utilizing the phone payment service. Furthermore, Paymentus currently manages payment processing for over 200 companies in California, including Sweetwater Authority, which also reports excellent service and expressed satisfaction with the service. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The annual cost for Paymentus services is projected to be approximately $54,000 for fiscal year 2025. Based on historical figures, staff anticipates an increase in phone payment volume and credit card usage, which will increase the overall charges compared to current levels. Based on anticipated increases in future phone payment and credit card usage, staff projects an annual cost of approximately $58,000. STRATEGIC GOAL: Evaluate the most cost-effective and efficient processes and tools to communicate service related issues to customers. LEGAL IMPACT: None. Attachments: A) Committee Action ATTACHMENT A SUBJECT/PROJECT: Authorize the General Manager to Negotiate and Enter Into an Agreement with Paymentus for Phone Payment Services COMMITTEE ACTION: STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 5, 2025 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Michael Kerr, Information Technology Manager APPROVED BY: Adolfo Segura, Chief of Administrative Services Jose Martinez, General Manager SUBJECT: ENTERPRISE UTILITY BILLING SYSTEM UPGRADE PROJECT GENERAL MANAGER'S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see "Attachment A". PURPOSE: To provide an update on the progress of the District's Utility Billing (UB) system upgrade. ANALYSIS: On September 6, 2023, the District awarded Tyler Technologies (Tyler) the contract to procure, implement, and host new Enterprise Resource Planning (ERP) software. The project emerged as a critical need to replace the District's aging 20-year-old system, which had reached its end-of- life and would no longer be supported due to the vendor’s decision to discontinue product support. These functions include Accounting, General Ledger, Budgeting, Human Capital Management, and Customer Information/Utility Billing processing. During that meeting, staff highlighted specific challenges related to the Munis UB module and discussed the potential need for an external UB solution due to identified limitations. Following a comprehensive assessment, staff confirmed that the Munis UB module exhibits AGENDA ITEM 5 functionality gaps that limit its effectiveness in fulfilling the District's customer billing needs. The Munis UB module does not support the District's intricate rate structures, essential for ensuring accurate and flexible billing. The District's rate calculations are customized to meet various service needs and usage levels, but the lack of adaptability in Munis UB makes it challenging to implement these structures effectively. The current utility rate structure in Munis UB would require significant customization to meet the District's specific rate requirements, meaning the District would have to rely on the vendor for any future or substantial rate changes. This inefficiency is a significant issue that cannot be overlooked, as it would impact the District's ability to maintain efficient billing operations for our customers. Furthermore, there is significant concern regarding the inefficiency of the Munis UB system in executing billing cycles. Research and feedback from other agencies have shown that the system often struggles to complete billing processes, sometimes taking an entire day, which is unmanageable for the District given its size and volume. Additionally, the Munis UB module lacks essential self-service options, which are increasingly important to meet modern customer expectations. Customers currently cannot independently access data such as daily water usage or account history, limiting their ability to manage their accounts effectively. The Munis UB module also has limitations in internal reporting, which is essential for informed decision-making and efficient billing management. Moreover, its lack of full compatibility with the District’s reporting tools limits staff's ability to analyze and manage billing data effectively. Staff have concluded that, in its current state, the Munis UB module does not fully align with the District's operational needs and expectations. Staff have identified two potential pathways to address the District’s billing needs: integrating a third-party solution designed to support our intricate billing structures, in-depth billing cycles, and customer self-service requirements or implementing custom enhancements within the Munis UB module to address the identified functionality gaps. Third-Party Solution Pursuing a third-party UB solution would enable the District to address all areas where the Munis UB module falls short. Over the past year and a half, staff have researched other billing systems throughout the public sector landscape that may better align with the District's requirements. In preparation for a UB system replacement, staff also conducted a Request for Information (RFI) to gather additional and detailed responses from UB vendors. This process provided valuable insights into the capabilities of each vendor's solutions with our specific needs, including core billing functions and advanced features that can accommodate our growing demand for customer self-service, detailed water usage tracking, and flexible rate configurations. The RFI responses have been instrumental in helping staff clarify functional requirements and assess each vendor's ability to meet the District's long-term goals. Custom Enhancements to Munis UB In parallel, staff continued discussing and evaluating the new Munis UB Module as presented to the Board at the September 2023 meeting. Based on these discussions and evaluations, staff are unconvinced that the new Munis UB Module meets the District’s needs. Given the current billing rate structures, it became clear that many of the District's unique billing requirements could only be achieved through extensive custom development. Tyler indicated that most desired functionalities, such as custom rate structures and enhanced customer access features, and improvements to detailed billing processing would require significant customization, leading to substantial project costs. This approach would also increase operational complexity, as maintaining these customizations would require dedicated resources. With essential support staff nearing retirement, the District could face challenges sustaining this customized environment over time. Based on this preliminary information, staff is considering a third-party solution to support the District’s billing needs. The extensive customization required by Munis UB would introduce unnecessary complexity and long-term financial burden, outweighing the advantages of staying within the Munis framework. Staff believes integrating a third-party UB solution offers a more viable and sustainable approach, providing a proven system with built-in capabilities designed to meet the District's unique UB requirements. Proposed Timeline The project timeline outlines a phased approach to the ongoing ERP implementation, detailing each phase's proposed timeline and completion dates, specifically focusing on a new UB system. Begin Phases Completion Module Go-Live Deliverables Jan 2024 Jan 2025 Financial Jan 2025 Chart of Accounts, General Ledger, Accounts Receivable, Purchasing Oct 2024 Oct 2024 HRM/Payroll Oct 2025 Human Resources, Employee Records, Benefits Sept 2025 Mar 2027 Utility Billing (UB) Mar 2027 Utility Billing, Customer Information System Jan 2026 Jan 2027 Permitting Jan 2027 Licensing, Permitting, and Inspections Next Steps Staff will present a final recommendation to the Board in June 2025 for a replacement billing system. This proposal will include detailed research, evaluations, and considerations, giving the Board a comprehensive overview of the proposed system and its benefits for the District. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Funding for this project will come before the Board for consideration during the FY25/26 Board Budget Workshop. STRATEGIC GOAL: This project aligns with the strategic objective of enhancing operational effectiveness by completing the evaluation and upgrade of the District's financial management system through the implementation of new technologies. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – PowerPoint Presentation ATTACHMENT A SUBJECT/PROJECT: ENTERPRISE UTILITY BILLING SYSTEM UPGRADE PROJECT COMMITTEE ACTION: This item was presented to the Finance and Administration Committee at a meeting held on February 19, 2025. The Committee supports presentation to the full Board. 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 by the committee prior to presentation to the full Board. Utility Billing System Upgrade February 19, 2025 ATTACHMENT B April 2004 – September 2024 [Sept 6, 2023] Replace a 20-year-old system at end-of-life Address limitations in financial and billing processes Support critical functions: Accounting, Budgeting, Human Capital Management, Permitting & Licensing, Utility Billing Vendor Selected: Tyler Technologies Recap - Enterprise Resource Planning (ERP) System Challenges with MUNIS Utility Billing Module Munis Utility Billing module has significant functionality gaps Lacks flexibility to support the District’s rate structure and other system requirements No self-service options for customers, reporting tools limitations, etc. Exploration of Solutions Considered two paths: third-party integration or customization Extensive research conducted over the last year and a half Request for Information (RFI) issued to assess vendor capabilities Third-Party UB System •Advanced features for detailed water usage tracking •Enhanced customer experience with modern tools •Special rate-structure billing options available Custom Development •Enhancing the Munis UB module through custom development •Potential to tailor solutions to the District's specific needs •Balancing between integration and customization Initial Recommendations •Munis UB requires extensive customization, leading to unnecessary complexity and higher long-term costs •Explicitly designed for Utility Billing requirements •Offers a reliable system with features tailored to meet District needs •A third-party system is strongly recommended to better meet the District’s billing needs •Final recommendation to the Board is planned for May 2025 ERP Timeline