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OTAY WATER DISTRICT
CODE OF ORDINANCES
ADOPTED BY
ORDINANCE NO. 310
EFFECTIVE OCTOBER 15, 1984
i
OTAY WATER DISTRICT
CODE OF ORDINANCES
TABLE OF CONTENTS
ARTICLE I DISTRICT ADMINISTRATION
CHAPTER 1 GENERAL PROVISIONS
SECTION 0 Definitions and Miscellaneous Provisions
0.01 Title - Reference to Code
0.02 Definitions
0.03 Effect of Heading
0.04 Notices
0.05 Validity of Code
0.06 Time Limit for Seeking Review of
Administrative Decisions
CHAPTER 2 ADMINISTRATION OF DISTRICT
SECTION 1 Board of Directors and Officers
1.01 Governing Body
1.02 Officers
1.03 Election of Board Officers
1.04 Board Vacancies
1.05 Duties of President
1.06 Duties of Vice President
1.07 Duties of Secretary
1.08 Meetings of the Board
1.09 Public Hearings
1.10 Robert's Rules of Order
1.11 Seal of the District
SECTION 2 Management of the District
2.01 Authority of the General Manager
2.02 Order of Succession
CHAPTER 3 DISTRICT FINANCIAL MATTERS
SECTION 3 District Banking and Other Financial Matters
3.01 Designation of Depository
3.02 Deposit of Cash
3.03 Types of Accounts and Investment Accounts
3.04 Classes of Bank Accounts
3.05 Transfer of Funds From One Account to
Another
3.06 Withdrawal of Funds
3.07 Directions Pertaining to Demand Deposits
ii
3.08 Fiscal Year
3.09 Closing of Books of Account
3.10 Appointment of an Auditor for Annual Audit
of Books of Account
CHAPTER 4 PURCHASING
SECTION 4 Purchases and Payments
4.01 Purchases of Property or Services
4.02 Payment of Invoices
4.03 Petty Cash Purchases
4.04 Public Works Contracts
4.05 Disposal of Surplus Property
CHAPTER 5 PERSONNEL PRACTICES
SECTION 5 Employer-Employee Relations
5.01 Purpose
5.02 Definitions
5.03 District Authority
5.04 Employee Rights
5.05 Establishment of Representation Units
5.06 Certification of Employee Organizations
5.07 Employee Organizations' Rights
5.08 Impasse Procedures
5.09 Decertification Procedure
5.10 Individual Representation
5.11 Employer-Employee Communications
5.12 Information Requests
5.13 Interpretation
5.14 Amendments
5.15 Severability
SECTION 6 Conflict of Interest Code
6.01 Definitions
6.02 Designated Employees
6.03 Disclosure Categories
6.04 Statements of Economic Interests: Place of
Filing
6.05 Statements of Economic Interests: Time of
Filing
6.06 Statements for Persons Who Resign Prior to
Assuming Office
6.07 Contents Of and Period Covered by Statements
of Economic Interests
6.08 Manner of Reporting
6.09 Prohibition on Receipt of Honoraria
6.10 Prohibition on Receipt of Gifts in Excess of
Amount Established by Law
6.11 Loans to Public Officials
6.12 Loan Terms
iii
6.13 Personal Loans
6.14 Disqualification
6.15 Legally Required Participation
6.16 Disqualification of State Officers and
Employees
6.17 Disclosure of Disqualifying Interest
6.18 Assistance of the Commission and Counsel
6.19 Violations
6.20 Prohibited Transactions
6.21 Incompatible Activities
SECTIONS 7 AND 8 (RESERVED)
CHAPTER 6 MISCELLANEOUS ADMINISTRATION PROCEDURES
SECTION 9 Annexations and Detachments
9.01 Requirement of Annexation for Service
9.02 Annexations to or Detachments from
Improvement Districts
9.03 Annexations to or Detachments from the
District through LAFCO
9.04 Fees and Charges for Annexations or
Detachments
9.05 Taxation of Property after Annexation to
Improvement District
9.06 Other Conditions of Annexation
SECTION 10 Application for Waiver or Modification of
Ordinance Requirements
10.01 Filing of Petition
10.02 Review by Board of Directors
SECTIONS 11 THROUGH 20 (RESERVED)
ARTICLE II DISTRICT OPERATIONS
CHAPTER 1 WATER SERVICE
SECTION 21 Rules and Regulations for Water Service
SECTION 22 District Water Systems
22.01 Control and Operation of Systems
22.02 Installation or Removal of Meters
22.03 Turn-on or Turn-off of Water Service
22.04 Inspection of Customer Premises
SECTION 23 Non-Responsibility of District
23.01 Interruptions of Water Service
23.02 Privately-Owned Water Lines
23.03 Water Pressure Regulation
iv
23.04 Cross-Connections and Backflow Devices
23.05 Water Service for Steam Boilers
23.06 Electrical Ground Connections
SECTION 24 Certain Service Limitations
24.01 Non-Service Areas
24.02 Reserved
24.03 Reserved
24.04 Fire Hydrants and Certain Other Facilities
SECTION 25 Conditions for Water Service
25.01 Service Area
25.02 Definition of "H.C.F." and "Unit of Water"
25.03 Definition of Water Service Categories,
Water Rates, Charges and Fees
25.04 Deposits by Lessees or Non-Owners of
Property
25.05 Service to Subsequent Customers
SECTION 26 Water Recycling Plan and Implementing
Procedures
26.01 Findings
26.02 Use of Recycled Water
26.03 Definitions
26.04 Water Reclamation Master Plan
26.05 Procedures
26.06 Regulation of Waste Discharge to Sewerage
Systems
26.07 Sanctions
26.08 Validity
SECTION 27 Requirements and Limitations for Obtaining
Water Service
27.01 Requirement for Water/Sewer Permit and
Payment of Fees, Charges, and Deposits
27.02 Size of Water Meter
27.03 Manufacturers Recommended Maximum Flow Rate
for District Meters
27.04 Resale or Distribution of Water
27.05 Conservation and Local Supply Use
Requirements
SECTION 28 Connection Fees and Charges for Potable or
Recycled Water Service
28.01 Collection of Fees and Charges
28.02 Installation Charges for Water Meter and
Water Service Laterals
28.03 Meter Fee Refund
v
SECTION 29 (RESERVED)
SECTION 30 Non-Permanent Irrigation Water Service
30.01 Definition of Non-Permanent Irrigation Water
Service
30.02 Conditions for Non-Permanent Irrigation
Water Service
SECTION 31 Construction Water Service
31.01 Definition of Construction Service
31.02 Requirement of Construction Meter for
Service
31.03 Fees and Charges for Construction Meters
31.04 Payment of Capacity, New Water Supply, and
Annexation Fees for Construction Meters
SECTION 33 General Regulations for Use of Water Meters
33.01 Furnished and Installed Only by District
33.02 Ownership of Meters
33.03 Relocation of Meters
33.04 Meter Turn-Off Requested by Customer
33.05 Removal of Meters
33.06 Reading of Meters
33.07 Adjustment for Meter Inaccuracies
33.08 Reserved
SECTION 34 Issuance and Payment of Water Bills
34.01 Issuance, Due Date and Final Payment Date of
Statement of Charges for Service
34.02 Delinquent Accounts
SECTION 35 Repealed on 2/3/10 (consolidated into Section
72)
SECTION 36 Location of Water Lines and Easements
36.01 Location of Water Lines
36.02 District Water Line Easements
36.03 Encroachment in District Easements
36.04 Concurrent Use of District Easements
SECTION 37 Fire Hydrants
37.01 Charges for Installation
37.02 Use of District Fire Hydrants
SECTION 38 Service for Fire Protection Systems
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38.01 Service for Commercial or Industrial
Purposes
38.02 Rules and Regulations for Fire Hydrant
and/or Fire Sprinkler Service for Commercial
or Industrial Purposes on Private Property
38.03 Services for Residential Fire Protection
SECTION 39 Drought Response Conservation Program
39.01 Declaration of Necessity and Intent
39.02 Definitions Applicable to the Program
39.03 Application
39.04 Drought Response Level 1
39.05 Drought Response Level 2
39.06 Drought Response Level 3 – Drought Critical
Condition
39.07 Drought Response Level 4
39.08 Drought Response Level 5
39.09 Drought Response Level 6
39.10 Procedures for Determination and
Notification of Drought Response Level
39.11 Hardship Variance
39.12 Violations and Penalties
ADDED SECTION 40 State Drought Response
40.01 Declaration of Necessity and Intent
40.02 Conservation Regulations Related to
Executive Order B-29-15
SECTIONS 41 THROUGH 49 (RESERVED)
CHAPTER 2 SEWER SERVICE
SECTION 50 Rules and Regulations for Sewer Service
SECTION 51 District Sewer System
51.01 Control and Operation of System
51.02 Connections and Disconnections to Sewer
System
51.03 Inspection of Customer Premises
51.04 Reserved
51.05 Permit Revocated or Suspended
SECTION 52 Waste Disposal
52.01 Definitions of "Sewer System," "Sewage" and
"Industrial Wastes"
52.02 Federal and State Statutes and Regulations
Applicable to District Sewer Service
52.03 Enforcement of District Rules and
Regulations
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52.04 Prohibitions Against Discharge of
Objectionable Wastes
52.05 Guidelines to Determine Acceptability of
Wastes
52.06 Discharge of Industrial Waste
SECTION 53 Conditions for Sewer Service
53.01 Conditions for Acquisition of Sewer Service
Capacity
53.02 Service Areas
53.03 Acquisition of Sewer Connections for Service
53.04 Charges for Installation of Sewer Laterals
53.05 Payment of Fees
53.06 Sewer Service Use Changes Resulting in
Increased System Utilization
53.07 Wastewater Discharge Permit Issuance and
Limitation
53.08 Basis for Determination of Equivalent
Dwelling Units (EDUs)
53.09 Transfer, Assignment or Resale of Sewer
Connection Rights
53.10 Definitions of Residential and Multi-
Residential Sewer Service Rates, Charges and
Fees
53.11 Definitions of Commercial and Industrial
Sewer Service Rates, Charges and Fees
53.12 Issuance and Payment of Sewer Bills
53.13 Delinquent Accounts
SECTION 54 Deposit by Lessees or Non-Owners of Property
54.01 Amount of Deposit
54.02 Refund of Deposit
54.03 Letter of Credit
SECTION 55 Issuance and Payment of Sewer Bills
55.01 Issuance, Due Date and Final Payment Date of
Statement of Charges for Service
SECTION 56 Location of Sewer Lines and Easements
56.01 Location of Sewer Lines
56.02 District Sewer Line Easements
56.03 Encroachment in District Easements
56.04 Concurrent Use of District Easements
SECTIONS 57 THROUGH 59 (RESERVED)
ARTICLE III SUBDIVISION AND PARCEL MAP DEVELOPMENTS
CHAPTER 1 WATER AND SEWER SYSTEMS FOR SUBDIVISIONS
AND PARCEL MAPS
viii
SECTION 60 Utility Facilities for Subdivisions and Parcel
Map Developments
60.01 Installation by District
60.02 Installation by Developers
60.03 Issuance of Availability Letters for Water
and/or Sewer Service
60.04 Requirement for a Subarea Master Plan (SAMP)
60.05 Requirement for a Tentative Map
60.06 Requirement of Easement or Right-of-Way for
Utility Facilities
60.07 Requirement for Annexation
60.08 Requirement for Approved Plans and
Construction Agreement
60.09 Requirement for District Inspection
60.10 Requirements for Use of Utilities for
Occupancy Prior to District Acceptance
60.11 Requirement for Final Acceptance by the
General Manager
60.12 Requirement for One Year Warranty Period
SECTION 61 (RESERVED)
SECTION 62 Extent of Systems for Subdivisions and Parcel
Maps
62.01 Location and Scope of System
62.02 Request for Variance
ARTICLE IV PROHIBITED ACTIVITIES; REMEDIES AND ENFORCEMENT
CHAPTER 1 GENERAL PROVISIONS
SECTION 70 Definitions
70.01 Reference to Article
70.02 Definitions
SECTION 71 Violations; Prohibited Activities
CHAPTER 2 DISTRICT REMEDIES
SECTION 72 Penalties and Damages
72.01 General
72.02 Certain Specific Operational Violations
72.03 Violation of Conservation or Other Water Use
Restriction Provisions
72.04 Violations Involving District Real Property
72.05 Administrative Fines
SECTION 73 Additional District Remedies
ix
73.01 Other Remedies of District
73.02 Notice to District Concerning Violations
73.03 Severability
APPENDIX A Charges and Fee Matrix
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DIVISION I DISTRICT ADMINISTRATION
CHAPTER 1 GENERAL PROVISIONS
SECTION 0 DEFINITIONS AND MISCELLANEOUS PROVISIONS
0.01 TITLE - REFERENCE TO CODE
This Code shall be known as the "Otay Water District Code of
Ordinances." References herein to the "Code" or the "Ordinances"
shall be deemed to mean said Code of Ordinances.
0.02 DEFINITIONS
The following words as used in this Code shall have the
meanings set forth below unless otherwise apparent in the context
in which they are used:
"Board of Directors" or "Board" means the Board of Directors
of the District.
"Board Member" or "Member of the Board" means a Director of
the Board of Directors.
"Central Area Service Zone" means all land within the bounda-
ries of the area identified as the Central Area Service Zone
as shown on the map on file in the Office of the District Sec-
retary.
"County" means the County of San Diego.
"Customer" means any person, firm, association, partnership,
corporation or governmental agency supplied or entitled to be
supplied with water or sewer service by the District for com-
pensation.
"Developer" means any person, firm, association, partnership,
joint venture or corporation who applies for acceptance by the
District of an addition or change to its water distribution
system or its sewer collection system.
“Development” means the improvement of a parcel or a group of
parcels that are owned by the same or affiliated parent
entity, subsidiary, or Developer.
"District" means the Otay Water District (formerly Otay
Municipal Water District).
0-2
“District Sewer” means sewer mains owned and operated by
the District which are tributaries to treatment or
reclamation facilities operated or utilized by the
District, excluding Sewer Laterals.
"Equivalent Dwelling Unit" or "EDU" means a unit of meas-
urement for water service or sewer service. For water
service, one EDU shall be considered to be equivalent to
a ¾-inch meter, and is also typically considered to be
equivalent to 650 gallons per day (gpd) for planning pur-
poses. For sewer service, one EDU shall be 250 gallons
per day (gpd) of residential strength wastewater defined
as having a maximum concentration of 280 milligrams per
liter (mg/l) biochemical oxygen demand (BOD) and 234 mil-
ligrams per liter (mg/l) suspended solids.
"General Manager" means the General Manager of the Dis-
trict or the designated representative.
"Irrigated area" means the area of land (measured in
square feet) which may require supplemental water (pota-
ble or recycled) from the District for the support of
landscaping, but does not include decks, walkways, pat-
ios, tennis courts or any other permanently hard-surfaced
areas maintained within or around landscaped areas.
Trees shall have an irrigated area equal to the area
within the circumference of the canopy (drip line) of the
tree at maturity.
"Landscape or landscaping" means the living plant mate-
rial and organic or inorganic ground covers (mulches)
used for aesthetic, erosion control and/or fire control
purposes as specified by city or county regulations.
"Line Extension" means a water or sewer main constructed
from the termination point of an existing District main
to provide service beyond the existing main.
"Non-permanent Irrigation Service" means temporary water
service furnished to establish and maintain re-vegetated
native plants.
“Facilities” means structures, and water or sewer system
elements that may be located above or below ground level
including, but not limited to, pipelines, system
appurtenances, pump stations and reservoirs.
"Off-Site Facilities" means facilities which must be con-
structed outside the boundaries of a development to bring
utility service from the nearest District facility to the
boundary of the land being developed.
0-3
"On-Site Facilities" means facilities which must be con-
structed within the boundaries of a development for util-
ity service within the development or other land to be
served.
"Parcel Map Development" or "Lot-Split" means a real es-
tate development resulting in a division of land into
four or less parcels for which no subdivision map is re-
quired but for which a parcel map is required to be filed
and approved by the applicable local governmental agency.
"Person" means any individual, firm, co-partnership,
joint venture association, corporation, county, city,
municipal corporation or other political subdivision, or
any other group or combination acting as a unit.
"Regional Facility” means those facilities that serve a
regional need and are not required for a specific
Development or Developments as defined in Section 0.02 of
the District’s Code of Ordinances and as demonstrated by
the Development’s Sub Area Master Plan(s). The
District’s Water Facilities Master Plan defines which
Regional Facilities are eligible for reimbursement.
"Sewer Lateral" means a privately-owned pipeline
connecting a property to the District Sewer.
“Sewer Maintenance” means the cleaning, servicing,
inspection, repairing and/or replacing of sewer-related
facilities.
The word "shall" means mandatory and the word "may" means
permissive.
"Staff" means the General Manager and other administra-
tive personnel of the District.
"Subdivision" means a real estate development resulting
in a division of land into five or more lots or parcels
for which a subdivision map is required to be filed and
approved by the applicable local governmental agency.
"Utility" or "Utility System" means a water system and/or
sewer system, as applicable.
"Water Lateral" means the portion of pipe between the
District water main and the water meter location.
"Water Meter" means an instrument used for automatic
recording of the quantity of water delivered to a cus-
0-4
tomer and the term shall include the fittings, valves and
equipment required for operation of the water meter.
"Water Service" means the furnishing of water to a cus-
tomer through a District-owned water meter or meters.
0.03 EFFECT OF HEADING
The title, division or section headings contained in this
Code shall not be deemed to govern, limit or modify in any
manner the scope, meaning or intent of the provisions of any
section or subsection of this Code.
0.04 NOTICES
A.Whenever a notice is required to be given under this
Code, unless different provisions are specifically made
herein, such notice may be made either by personal delivery
thereof to the person to be notified or by deposit in the U.S.
Mail in a sealed envelope, postage prepaid, addressed to such
person at his last known business or residence address as the
name appears in public records or other records pertaining to
the matter to which the notice is directed. Service by mail
shall be deemed to have been completed at the time of deposit
in the post office.
B.Proof of giving any notice may be made by the cer-
tificate of any officer or employee of the District or by
affidavit of any person over the age of eighteen years, which
shows service in conformity with this Code or other provisions
of law applicable to the subject matter concerned.
0.05 VALIDITY OF CODE
If any section, subsection, sentence, clause, phrase or
portion of this Code is for any reason held to be invalid or
unconstitutional by the decision of any court, such decision
shall not affect the remaining portions of this Code. The
Board of Directors hereby declares that it would have adopted
this Code and each section, subsection, sentence, clause,
phrase or portion thereof, irrespective that any one or more
sections, subsections, clauses, phrases or portions be
declared invalid or unconstitutional.
0.06 TIME LIMIT FOR SEEKING REVIEW OF ADMINISTRATIVE
DECISIONS
Judicial review of any administrative decision of the
District may be had pursuant to Code of Civil Procedure Sec-
tion 1094.5 only if the petition for writ of mandate is filed
not later than the ninetieth day following the date on which
the decision become final.
1-1
CHAPTER 2 ADMINISTRATION OF DISTRICT
SECTION 1 BOARD OF DIRECTORS AND OFFICERS
1.01 GOVERNING BODY
A.Authority of Board. The Board of Directors, act-
ing as a Board, is the governing body of the District. The
Board shall act only at its regular, regularly adjourned or
special meetings.
B.Authority of Individual Board Members. All pow-
ers of the District shall be exercised and performed by the
Board as a body. Individual Board members, except as pro-
vided in this Code or otherwise authorized by the Board,
shall have no power to act for the District, or the Board,
or to direct the Staff of the District.
C.Compensation for District Directors. Each member
of the District Board of Directors shall be compensated as
per Board of Directors Policy 8, Directors Compensation,
Reimbursement of Expenses and Group Insurance Benefits,
under Item A, Directors Per Diem, for each day's attendance
at meetings of the Board, or for each day's service
rendered as a member of the Board at meetings or functions
approved by the Board. A request for service made by the
General Manager of the District or made or approved by the
President of the Board shall be deemed approved by the
Board. The number of days of authorized compensation for
any calendar month shall be limited to ten, regardless of
the number of meetings attended or days of service
rendered.
D.Staff Direction. The Board shall work through
the General Manager to obtain such information as may be
necessary and appropriate to assist the Board in its
deliberations, and may direct Staff to implement the
policies and decisions of the Board. Individual Board
members shall not act independently to direct Staff in the
performance of their duties, or to provide or compile data,
information or reports.
1.02 OFFICERS
A.Board Officers. The Board shall elect one of its
members as President, and one of its members as Vice Presi-
dent.
B.District Officers. The Board shall appoint offi-
cers of the District as required by law, including a
Secretary, Deputy or Assistant Secretary, Deputy or
1-2
Assistant Treasurer, and such other assistants and
employees as it may deem necessary to operate the District.
The Secretary and Treasurer of the District may, but need
not be, members of the Board.
1.03 ELECTION OF BOARD OFFICERS
A.Date of Election. In the month of December of
each year, or at such time the Board deems necessary, the
Board shall elect a President and Vice President. Their
terms shall be for one year, or until their successors are
elected. The Board may, however, at its sole discretion
and without cause reorganize and select new officers at
anytime prior to the expiration of the one-year term.
B.Procedure for Election. The procedure in this
paragraph B shall govern the election of Board President
and Vice President, unless changed by action of the Board
by motion at the time of the election. The General Manager
shall chair the proceedings for election of the President,
which shall be the first order of business after any newly
elected directors have been seated or at anytime as the
Board deems necessary. The newly-elected President shall
assume office immediately, and shall chair the proceedings
for the election of the Vice President. The Chair shall
call for nominations from members of the Board. No second
shall be required for nominations, although one or more
members may second a nomination to indicate endorsement.
No member may nominate more than one person for the
position. Once all nominations have been made, the Chair
shall call for a roll call vote. Each Board member shall
state the name of the candidate for whom he/she casts
his/her vote. Three votes shall be required for election.
If only one person should be nominated for an office, the
Board may act by motion to elect such nominee.
1.04 BOARD VACANCIES
Procedure for Appointment. Vacancies in the office of
Director shall be filled in accordance with the provisions
of Section 1780 of the California Government Code. Such
procedure permits the remaining members of the Board to
fill the vacancy by appointment, provided the appointment
is made within 60 days after the effective date of the va-
cancy, and provided further that notice of the vacancy is
given as provided by law. In making such appointment, the
Board shall follow the same procedure as provided for the
election of its officers. In lieu of making an appointment,
the remaining members of the Board may request an election
to fill the vacancy.
1-3
1.05 DUTIES OF PRESIDENT
A.Meetings. The President shall preside over and
conduct all meetings of the Board and hearings before the
Board. In so doing, the President shall have the following
powers and responsibilities:
1.To follow the prepared agenda unless the Board
concurs in any change.
2.To determine all questions of order and parlia-
mentary procedure, unless he/she chooses to
submit any such question to the Board for
decision.
3.To maintain order and to enforce reasonable rules
of decorum.
4.To determine at meetings of the Board, other than
public hearings, whether or not members of the
public should be heard on particular issues or
otherwise be permitted to address the Board.
5.To set reasonable limits upon the length of time
and the number of occasions on which a person may
speak at public hearings as well as other meet-
ings of the Board.
6.To recognize Board members who may wish to be
heard.
7.To restate, where necessary, and to put to a vote
all questions properly before the Board, and to
announce the result of each vote.
8.To terminate debate after there has been reason-
able opportunity for full discussion of any issue
and further debate would be needlessly repetitive
or otherwise not useful, and where proper, to put
the matter to a vote.
9.To rule out of order any comment by Board mem-
bers, Staff or members of the public not germane
to the issue then before the Board.
10.To respond to inquiries by Board members relating
to procedures, or to factual information bearing
upon the business before the Board.
11.To establish standing or ad hoc committees of the
Board, and to appoint the members thereof, when
requested by the General Manager.
1-4
12.To declare the meeting adjourned upon such vote
by the Board, or when in his/her judgment any
emergency or other cause requires adjournment.
13.To authenticate by his/her signature all acts,
orders, and other proceedings of the Board.
Notwithstanding the delegation of such powers to the Presi-
dent, any action taken by a majority of the Board on any of
the foregoing matters shall be determinative thereof.
B.Board Spokes Person. The President shall act as
spokes person for the Board with respect to its actions and
policies, and those of the District. This provision, how-
ever, shall not preclude any other officer or employee of
the District from making appropriate comments within the
scope of his/her position.
C. Public Appearances. The President, or any Board
member or Staff person he/she designates, shall represent
the Board, where it is appropriate or desirable for the
District to appear, at meetings of other public agencies,
before public groups, or on other public occasions.
However, this provision shall not limit the attendance of
any Director or authorized officer or employee of the
District.
1.06 DUTIES OF VICE-PRESIDENT
A.Powers of Vice-President. The Vice-President
shall act if the President is absent or unable to act, and
shall exercise all of the powers of the President on such
occasion.
1.07 DUTIES OF SECRETARY
A.Board Matters. With respect to the affairs of
the Board of Directors, the Secretary shall have the
following duties:
1.To take and prepare minutes of all Board
meetings.
2.To keep in appropriate books the original copies
of all final minutes, ordinances and resolutions
of the Board.
3.To keep on file all Board committee reports.
1-5
4.To attest to the minutes, ordinances, resolutions
and other documents of the Board.
5.To provide notice as required by law of any spe-
cial meeting or regularly adjourned meeting.
6.To provide notice as required by law of any hear-
ing before the Board.
7.In the absence of the President and Vice-
President to call any meeting to order, and to
preside until the election of a chair person pro
tem, who shall then exercise the powers of the
President at such meeting.
B.Other Duties. The responsibilities enumerated in
Section 7A are not intended to limit any other duties of
the Secretary imposed by law, or assigned from time to time
by the Board, or by the General Manager if the Secretary is
an employee of the District.
C.Assistant Secretary. The Assistant Secretary
shall act if the Secretary is absent or unable to act, and
shall exercise all the powers of the Secretary on such
occasion.
1.08 MEETINGS OF THE BOARD
A.Time and Place of Meetings. Regular meetings of
the Board shall be held at the office of the District at
2554 Sweetwater Springs Boulevard, Spring Valley,
California, at such day and hour as may be specified from
time to time by resolution of the Board.
B.Public Nature of Meetings. All meetings of the
Board shall be open to the public, except when the Board is
convened in Closed Session as authorized under provisions
of law. Meetings of Board committees composed of not more
than two members of the Board shall not be public meetings,
unless the committee determines otherwise.
C.Quorum and Voting Requirements. A majority of
the Board of Directors shall constitute a quorum for the
transaction of business. However, no ordinance, resolution
or motion shall be passed without three affirmative votes.
D.Agendas for Board Meetings
1.The General Manager shall prepare the agendas for
meetings. Agendas shall be based upon items re-
quested by any Board member or by others in the
1-6
normal course of the District business, or as de-
termined by the General Manager.
2.Each agenda for a regular meeting shall provide
an opportunity for members of the public to
address the Board of Directors on items of
interest to the public that are within the
subject matter of the Board of Directors. Action
by the Board of Directors on any such matter
shall be taken in accordance with Section 1.08E
of this Code.
3.The agenda for a regular or adjourned regular
meeting may provide for a Consent Calendar for
items which the General Manager deems to be of a
routine nature. Action by the Board of Directors
on the Consent Calendar shall be taken in accor-
dance with Section 1.08E of this Code.
4.At least 72 hours before a regular meeting of the
Board an agenda containing a brief general de-
scription of each item of business to be trans-
acted or discussed at the meeting shall be posted
at the entrance to the District business office
in a location accessible to members of the
public.
E.Board Action
1.The Board shall act only by ordinance, reso-
lution or motion. The vote on ordinances
shall be recorded in the minutes. An ordi-
nance does not require two readings at sepa-
rate meetings, and unless otherwise provided
by its own terms, shall become effective
upon adoption. Ordinances, resolutions and
other motions may be adopted by a voice
vote, but on demand of any member of the
Board, the roll shall be called and the vote
recorded. All motions, including a motion
to adopt an ordinance or to approve a
resolution, shall require a second. If a
second is not received, the motion shall
fail without the requirement of a vote. Any
member of the Board, including the Chair,
can make and second a motion, and the Chair
shall vote on all motions unless
disqualified or abstaining. If a motion is
not in writing, and if it is necessary for
full understanding of the matter before the
Board, the Chair shall restate the question
prior to the vote. Common motions may be
stated in abbreviated form, and will be put
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into complete form in the minutes. Until
the Chair states the question, the maker
with the approval of the second may modify
his/her motion or withdraw it completely.
However, after the question has been stated
by the Chair, the motion may be changed only
by motion to amend, which is seconded and
carried.
2.All items on the Consent Calendar on a Board
Meeting Agenda may be approved without dis-
cussion upon motion duly made, seconded and
approved by at least three Directors. At
the request of a Director or a member of the
public, an item on the Consent Calendar
shall be removed from the Consent Calendar
and placed on the Agenda with other items
for discussion and consideration by the
Board of Directors.
3.The Board shall not take action on any item
not appearing on the agenda previously
posted for the meeting pursuant to Section
1.08D of this Code; excepting, however, the
Board may consider items not appearing on
the posted agenda if:
(a)a majority of the Board determines that
an emergency situation) as defined in
Government Code Section 54956.5)
exists;
(b)two-thirds of the Board finds that the
need to take action arose after the
agenda was posted; or
(c)the item was posted for a prior meeting
occurring not more than five days prior
to the current meeting and was
continued to the current meeting.
F.Parliamentary Procedures Affecting Motions.
After a motion has been made and seconded, any member of
the Board may make any of the following motions:
1.To continue the motion to a specific time.
2.To table the motion, the effect of which de-
fers further discussion and a vote until the
majority of the Board again wishes to resume
consideration of the motion.
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3.To commit or refer the motion to a
committee, the effect of which is to defer
further consideration until the committee
has reported its findings to the Board.
4.To amend the motion to modify its wording
before adoption, provided the suggested
amendment is germane to the original motion.
5.To propose a substitute motion, which has
the effect of disposing of the motion before
the Board and eliminating the necessity of a
vote on the original motion.
6.To call for the question, which in fact is a
motion to terminate further debate, and re-
quires a second and an affirmative vote of
the Board.
G.Routine Business. Matters of routine business
such as approval of the minutes, and approval of minor mat-
ters, may be expedited by assuming unanimous consent of the
members of the Board, and having the Chair state that
without objection the matter will stand approved. If any
member should object to such unanimous consent, the Chair
shall then call for a vote.
H.Orderly Discussion. In order to promote orderly
discussion of the issues before the Board, each member
shall be recognized by the Chair before speaking. Each
member shall have a right to speak subject to Section
1.05A, subnumber 8 and 9 of this Code. Each member of the
Board may seek information or comment by the Staff on any
question.
I.Rules of Procedure for Board Meetings. The fol-
lowing shall apply to persons desiring to address the Board
of Directors:
1.Anyone who desires to speak to the Board of
Directors on a specific subject at a
particular meeting should contact the
District Secretary and give their name and
address, request that the subject be placed
on the Agenda for that meeting and give the
reason for such request.
2.Anyone in attendance at a Board meeting, who
desires to speak to an item on the Agenda
that is being considered, may request to be
heard by stepping to the podium and stating
his or her name and address for the record.
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3.Anyone in attendance at a Board meeting who
desires to speak on a subject that is not on
the Agenda for that meeting may request to
do so by stepping to the podium and stating
his or her name, address and the subject
they wish to discuss. The Board shall
determine in accordance with Section 1.08E3
of this Code whether the subject will be
taken as an "off-docket" item and discussed
at that meeting or placed on the Agenda for
the next Board meeting.
4.No one in the audience shall be permitted to
pose questions or carry on any discussion on
any matter being considered by the board un-
less they first step to the podium and give
their name and address as required above.
Anyone failing to comply may be deemed "out
of order" by the Chair and statements or
comments made by such person shall not be
considered by the Board of Directors.
J. Closed Sessions. Except as required by law, all
proceedings in Closed Sessions shall remain confidential.
1.09 PUBLIC HEARINGS
A.Order of Procedure. Public hearings shall be
called to order by the Chair at or as soon as practical
after the time for which the hearing has been noticed. The
Chair shall interrupt at a reasonable point any business
before the Board in order to proceed with such noticed pub-
lic hearing. The procedure for public hearings shall
generally be as follows:
1.The Secretary shall report upon the notice of the
hearing which has been given.
2.The Secretary shall indicate or summarize all
protests or correspondence which has been
received on the issue to be heard.
3.The Staff shall present such information,
exhibits and recommendations as may be
appropriate.
4.The Chair shall call upon such members of the
public as may wish to be heard.
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5.Board members and Staff shall attempt to answer
such questions from members of the public as may
be germane to the issues of the hearing.
6.Board members and Staff, after recognition by the
Chair, may ask questions of members of the public
who speak.
7.Board members shall refrain from discussing the
issues among themselves, or expressing their per-
sonal views, until all of the testimony has been
heard and the hearing has been closed.
8.If the nature of the hearing appears to warrant
sworn testimony, the Chair may require that all
persons giving testimony do so under oath. The
oath may be administered by the Chair, a Board
member, or by the Secretary.
9.Any member of the public may, at his/her own
expense, transcribe the proceedings of the
hearing.
1.10 ROBERT'S RULES OF ORDER
A.Applicability. While many of the principles of
Robert's Rules of Order have come to be generally accepted
as the proper, fair and efficient way of conducting a meet-
ing, such Rules were not designed for small governing
boards of public agencies, and in some instances conflict
with the law. Accordingly, while many of the fundamental
concepts of Robert's Rules of Order have been included
within the provisions of this Ordinance, such Rules shall
not technically apply to the affairs of the Board of
Directors of this District.
1.11 SEAL OF THE DISTRICT
The Seal, an impression of which is hereby affixed to
this page and bearing the words "OTAY WATER DISTRICT
founded January 27, 1956" is adopted as the official Seal
of this District.
CHAPTER 2 ADMINISTRATION OF THE DISTRICT
SECTION 2 MANAGEMENT OF THE DISTRICT
2.01 AUTHORITY OF THE GENERAL MANAGER
Pursuant to Sections 71362 and 71363 of the California
Water Code, and other applicable laws of the State of
California, the General Manager shall, subject to the approval
and direction of the Board of Directors, operate and manage the
affairs of the District. The General Manager shall have the
following specifically enumerated powers and authority:
A.To control the administration, maintenance, operation
and construction of the water and sewer systems and facilities
of the District in an efficient manner.
B.To employ and discharge all employees and assistants,
other than those referred to in Section 71340 of the California
Water Code, and to prescribe their duties and promulgate
specific rules and regulations for such employees and
assistants.
C.To promulgate policies and procedures necessary to
enhance the security of the District and increase the
transparency of District operations, including provisions for
the disclosure of conflicts of interest by employees.
D.To establish the terms and conditions for collection
of receivables, thereby facilitating the efficient
administration of the District’s receivables. The General
Manager or designee is given this authority as well as the
authority to waive, adjust, or reduce any receivable for amounts
up to $10,000.
E. To execute agreements, contracts, other documents, or
commitments on behalf of the District where the amount involved
does not exceed $100,000, provided that Public Works Contracts
shall be awarded in compliance with applicable laws.
F.To approve change orders to agreements, contracts, or
other commitments on behalf of the District. If the underlying
contract is awarded by the General Manager pursuant to paragraph
2.01-E above, the cumulative value of the approved change orders
and the underlying agreement, contract, or commitment shall not
exceed the General Manager’s signatory authority established
above. If the underlying contract is awarded by the Board, the
General Manager may approve change orders thereto in an
aggregate amount not exceeding the General Manager’s signatory
authority established above.
G.To approve plans, specifications, maps and agreements,
and any other documents involving land development projects
within the District.
H.To authorize the use of District Real Property by
third parties if all the following conditions are met: (a) the
consideration is less than the General Manager’s authority; and
(b) the proposed use consists of an easement, license, access
permit or other use of a portion of the District Real Property
that will not interfere with the existing or anticipated uses of
the District Real Property for District purposes; and (c) either
(i) the term of the proposed use is 10 years or less, or (ii)
the entity proposing to use the District Real Property is a
regulated utility, governmental entity or not-for profit
organization. All uses of District Real Property not
contemplated herein or specifically authorized in other sections
of this Code of Ordinance shall be presented to the Board of
Directors for consideration.
1.The General Manager may establish terms and
conditions for the use of and access to District Real Property
contemplated herein, including administrative charges.
2.The use of any District Real Property shall
require consideration satisfactory to the General Manager, which
may be monetary compensation in an amount equal to the fair
market value of the proposed use plus an administrative charge
or may be in the form of a real property interest or other
equivalent compensation or use.
3.“District real property” means and includes real
property and interests thereon, such as fee interests,
easements, licenses and other such interests acquired for
various District purposes including but not limited to the
construction, operation, access or maintenance of pipelines or
other facilities necessary or convenient to the full exercise of
the District’s powers.
I.To declare an emergency and, in such event, to have
the additional powers specified in the District’s emergency
management plan, referred to as the National Incident Management
System (NIMS), and below, pursuant to California Contract Code
Section 22050. An emergency is a sudden, unexpected occurrence
that poses a clear and imminent danger, requiring immediate
action to prevent and mitigate the loss or impairment of life,
health, property, or essential public services.
1.In a declared emergency, the General Manager
may direct employees, take action to continue or restore service
capability, and execute any contracts for necessary equipment,
services, or supplies directly related and required by the
emergency. Notwithstanding the limits imposed in the prior
paragraphs of this Section 2.01, or by any other policy or
guideline of the District, in an emergency, the General Manager
may award and execute contracts for goods, services, work,
facility or improvement, without bidding and without regard to
said limits, provided that the goods, services, work, facilities
or improvements acquired or contracted for are of an urgent
nature, directly and immediately required by the emergency. Any
contract for goods or services with a value of more than
$250,000 shall be subject to ratification by the Board at its
first regularly scheduled meeting following the declaration of
the emergency to which the contract relates. Any contract for
work, facilities or improvements with a value of more than
$500,000 shall be subject to ratification by the Board at its
first regularly scheduled meeting following the declaration of
the emergency to which the contract relates.
2.The General Manager shall report to the Board not
later than 48 hours after the emergency action or at the next
regularly scheduled meeting, whichever is earlier. The report
shall include the details of the emergency and reasons
justifying the actions taken, and provide an accounting of the
funds expended or yet to be expended in connection with the
emergency.
3.If the emergency action continues for seven days
and a regularly scheduled meeting will not occur within 14 days
from the day the emergency action was taken, the General Manager
shall request that the Board review the emergency action and
determine by formal action if the need to take emergency action
continues.
4.At each regularly scheduled meeting following the
declaration of an emergency the Board may, by formal action and
pursuant to a vote as required by Section 22050 of the Public
Contract Code, determine if there is a need to continue the
emergency action. If the Board does not determine that the
emergency continues, the power to operate under emergency
conditions will terminate and any new work, goods or services
not yet procured shall be contracted or acquired in accordance
with applicable provisions of this Code.
J.In addition to the authority for the use of District
Real Property enumerated in subsection H above, to approve the
following types of agreements and amendments to agreements for
the lease of District Real Property and/or space on District
facilities to cellular companies and related entities for
telecommunications purposes, provided such agreements and
amendments are substantially in compliance with the District’s
standard contract terms and provisions and have been reviewed
and approved by General Counsel:
1.A reduction of the lease rate of not more than
25%.
2.Any increase in the lease rate.
3.Allowance of new equipment on the leased space,
provided proper land use permits are acquired by the lessee from
the appropriate entities.
4.Administrative changes to the lease, including
amending leases to the District’s most current form as approved
by the Board.
5.Entering into a lease that contains the
District’s most current form as approved by the Board with a new
entity on a new site or a site that has been vacated.
2.02 ORDER OF SUCCESSION
When the General Manager is going to be absent from the
District, the General Manager is authorized to designate an
Asst. General Manager to act on his behalf and said person shall
have the same authority as the General Manager. Any long-term
vacancies (over 30 days) shall be filled by vote of the majority
of the Board.
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CHAPTER 3 DISTRICT FINANCIAL MATTERS
SECTION 3 DISTRICT BANKING AND OTHER FINANCIAL MATTERS
3.01 DESIGNATION OF DEPOSITORY
The Board of Directors shall designate a depository or
depositories to have custody of District funds, which
depositories shall give the District sufficient
collateralization to secure the District against possible
loss, as required by law. Only such person or persons
authorized by the Board may sign checks to withdraw funds
from any of such depositories.
The General Manager, Secretary, Treasurer, –Chief
Financial Officer, and all other employees or assistants of
the District who may be required to do so by the Board of
Directors, shall give such fidelity or performance bonds to
the District as the Board may from time to time require.
The premium for such bonds shall be paid by the District.
3.02 DEPOSIT OF CASH
All funds received by the District from any source
whatsoever shall be promptly deposited in one of the time
or demand bank accounts established by resolution of the
Board of Directors. It shall be the responsibility of the
Chief Financial Officer of the District and of his/her
deputies, who have been or may be appointed, to assure such
prompt deposit of funds.
3.03 TYPES OF ACCOUNTS AND INVESTMENT ACCOUNTS
A.The following types of bank accounts and
investment accounts shall be established and maintained for
District funds as directed or approved by the Board of
Directors:
1.Demand Deposit Account. All funds, when first
received, shall be deposited in one of the demand
deposit accounts established under Section 3.02.
However, the– Chief Financial Officer, or his/her
designee, shall cause those funds for which an
early demand is not foreseen, to be transferred
to a time deposit account or to an investment
account to produce an interest return as soon as
practicable.
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2.Time Deposit Account. Funds for which an early
demand is not foreseen shall be transferred from
a demand deposit account to a time deposit
account or invested in an investment authorized
under 3 of this Section 3.03.
3.Investments. As an alternative to placing funds
in a time deposit account, funds may be invested
in the form of securities authorized by Section
53601 of the California Government Code and
District Policy No. 27.
3.04 CLASSES OF BANK ACCOUNTS
A.The following classes of accounts shall be estab-
lished and maintained for the District:
1.General Accounts. All District funds shall be
placed in one or more of the types of accounts or
investments listed under Section 3.03. Such
funds shall be designated "Otay Water District,
General Account" except for funds which are to be
placed in special accounts as may be directed by
the Board of Directors or as otherwise authorized
in this Section 3.04. Such special accounts may
be any one of the types listed in Section 3.03.
2.Payroll Account. One special demand deposit
account, designated "Otay Water District, Payroll
Account," shall be maintained for the sole
purpose of paying wages, salaries and taxes for
District employees. No funds shall be deposited
in this account except funds withdrawn by check
or transfer from a General Account.
3.05 TRANSFER OF FUNDS FROM ONE ACCOUNT TO ANOTHER
A.The Chief Financial Officer of the District or
his/her designee is authorized and is delegated the
responsibility of directing banking institutions to
transfer funds from one type of account to another type in
a financial institution which has been approved by the
Board of Directors. For the purpose of such transfers the
types of accounts designated "Demand Deposits," "Time
Deposits," and "Investment Accounts" shall be inter-
changeable at the direction of the Chief Financial Officer
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or his/her designee with after-the-fact approval of the
Board.
3.06 WITHDRAWAL OF FUNDS
A.Funds may be withdrawn from any class of demand
deposit by issuance of a check or by means of a wire
transfer which must be approved by two authorized signers.
B.All checks drawn against the General Accounts
shall be listed in numerical order on a list of demands
that shall be included in a report to the Board of Direc-
tors on a regular basis.
C.All checks drawn against the General Accounts or
payroll account must be executed using a facsimile
signature or require the signatures of two signers. Checks
will not be released until approved by the General Manager
and the Chief Financial Officer; or individuals designated
by the General Manager or Chief Financial Officer,
respectively.
3.07 DIRECTIONS PERTAINING TO DEMAND DEPOSITS
Each demand deposit account shall be established only
by resolution which shall contain directions therein as to
the persons who may sign checks on the account.
3.08 FISCAL YEAR
The fiscal year of the District shall be the period
beginning July 1 of each calendar year through June 30 of
the next calendar year.
3.09 CLOSING OF BOOKS OF ACCOUNT
Within 30 days after the last day of each fiscal year,
the Chief Financial Officer shall cause all final entries
for such fiscal year to be made in the District books of
account, prepare them for examination by the external
Auditor, and notify the Auditor that the books of account
are ready for audit.
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3.10 APPOINTMENT OF AN AUDITOR FOR ANNUAL AUDIT OF
BOOKS OF ACCOUNT
The Auditor for the District shall be appointed by the
Board of Directors and shall serve thereafter until such
time as the Auditor may resign, the appointment may be
revoked by the Board, or a successor has been appointed by
the Board.
Within 60 days after the books of account have been
prepared for the Auditor's use, as provided in Section
3.09, the Auditor shall perform and submit the annual audit
of said books of account to the District.
4-1 Revised 4/2/08, Ord. 515
CHAPTER 4 PURCHASING
SECTION 4 PURCHASES AND PAYMENTS
4.01 PURCHASES OF PROPERTY OR SERVICES
With the exception of real property, all purchases
shall be made in conformity with the District Purchasing
Manual promulgated by the General Manager and approved by
the Board.
4.02 PAYMENT OF INVOICES
Payments to suppliers shall be made only upon receipt
of invoices satisfactory to the District staff with the
proper purchase order numbers indicated thereon, when
applicable. Invoices shall not be paid until the following
documents are delivered to Accounts Payable for issuance of
a check and payment is made in accordance with Chapter 3,
Section 3.06 of the Code of Ordinance:
A.Supplier's invoice, which shall be checked for
purchase order number, where applicable,
accuracy, and an appropriate signature for
receipt of the goods or services.
B.District purchase order, where applicable.
C.Receiving document, where applicable.
4.03 PETTY CASH PURCHASE
Purchase of supplies and services may be made from
petty cash funds in accordance with District Policy 15 of
the Code of Ordinance.
4.04 PUBLIC WORKS CONTRACTS
All public works contracts shall be let in accordance
with applicable provisions of the California Water Code and
the District Purchasing Manual.
4.05 DISPOSAL OF SURPLUS PROPERTY
All property, real or personal, which has been declared
surplus to the District's needs, shall be disposed of in
accordance with the District Purchasing Manual or
applicable statutes and laws.
5-1
CHAPTER 5 PERSONNEL PRACTICES
SECTION 5 EMPLOYER-EMPLOYEE RELATIONS
5.01 PURPOSE
It is the purpose of this Chapter to establish orderly
procedures to promote full communication between the District and
its employees by providing a reasonable method for meeting and
conferring and/or consulting in good faith with Recognized
Employee Organizations, and resolving disputes, regarding wages,
hours, and other terms and conditions of employment, as well as to
promote the improvement of personnel management and employee
relations by providing a uniform basis for recognizing the right
of District employees to join or not to join any organization of
their choice and be represented by such organization in their
employment relationship with the District. It is also the purpose
of this Chapter to fully comply with the provisions of the Meyers-
Milias Brown Act (Gov. Code, § 3500.5 et seq.) and to provide
orderly procedures for the administration of employer-employee
relations.
5.02 DEFINITIONS
A.District: The Otay Water District.
B.Board of Directors or Board: The Board of Directors of
the District.
C.Employee: Any person employed by the District other than
elected officials.
D.Employee Organization: A lawful organization that
includes employees of the District and that has as one
of its primary purposes representing those employees in
their employment relations with the District.
E.Recognized Employee Organization: An employee
organization that has been formally acknowledged by the
District pursuant to this Chapter as the sole employee
organization representing the employees in an
appropriate unit. A recognized employee organization has
the exclusive right to meet and confer in good faith on
behalf of the employees within such unit concerning
matters within the scope of representation, and thereby
assumes a corresponding obligation of fairly
representing such employees.
5-2
F. Representation Unit: A group of District employee
classifications that have a common community of
interest, established pursuant to this Chapter.
G. Meet and Confer: The free exchange of information,
opinions and proposals in good faith between
representatives of the District and a recognized
employee organization with the goal of reaching
agreement on matters within the scope of representation.
H. Consult or Consultation: Verbal or written communication
for the purpose of presenting and obtaining views or
advising of intended actions in a good faith effort to
reach a consensus, and as distinguished from meeting and
conferring in good faith regarding matters within the
scope of the meet and confer process as required by
applicable law.
I.Proof of Employee Support: An unambiguous written
statement that an employee wishes to designate an
employee organization as the recognized employee
organization for his/her representation unit, or that an
employee wishes to cease having an employee organization
be the recognized employee organization for his/her
representation unit. This statement must appear on the
same page as and under which an employee’s printed name,
classification, and signature appear, and must have been
signed within the year preceding its submission.
J.General Manager: The General Manager of the District.
K. Terms not defined herein shall have the meanings as set
forth in the Meyers-Milias Brown Act.
5.03 DISTRICT AUTHORITY
A.The District has the sole right and exclusive authority
to direct the affairs of, manage, and maintain the efficiency of
the District, to set standards of services to be offered to the
public, and to control the organization and operation of the
District. The District also has the sole and exclusive authority
to take any actions which the District deems desirable to conduct
its affairs including, but not limited to, directing its work force
(including scheduling and assigning work and overtime); hiring,
firing, discharging, promoting, demoting, transferring, or
5-3
disciplining employees, consistent with and pursuant to the
authority of Water Code section 71362; determining the methods,
means and personnel by which District operations are to be
conducted; layoffs for budgetary considerations or lack of work;
subcontracting work; maintaining efficiency of employees; taking
all necessary actions to carry out its mission in emergencies; and
exercising complete control and discretion over its organization
and the technology of performing its work consistent with the
provisions of this Chapter and the Meyers-Milias Brown Act. The
foregoing authority of the District is descriptive, not
exhaustive.
B.Except as otherwise stated, all powers and obligations
described in this Chapter are hereby delegated to the General
Manager. The General Manager may delegate these powers and
obligations to other District managers as he/she deems necessary.
5.04 EMPLOYEE RIGHTS
Each employee has the following rights which he/she may
exercise in accordance with the Meyers-Milias Brown Act:
1. The right to form, join and participate in the
activities of employee organizations of the
employee's own choosing for the purpose of
representation on matters of the employee's
relations with the District, or to refuse to join
or participate in the activities of any employee
organization.
2. The right to be free from interference,
intimidation, restraint, coercion, discrimination
or reprisal by the District, other employees, or
employee organizations with respect to the
employee's membership or non-membership in any
employee organization, or with respect to any
lawful activity associated therewith which is
within the scope of representation.
3. The right to represent himself or herself
individually in his or her employee relations with
the District, to the extent allowed by law.
Whenever a District employee desires to represent
himself or herself in consulting with District
management during regular hours of work, the
employee shall first request and obtain permission
to take time off to do so.
5-4
5.05 ESTABLISHMENT OF REPRESENTATION UNITS
A.The General Manager shall determine the appropriate
composition of a representation unit by considering the following
factors:
1.The effect of the proposed unit on the operations
of the District.
2.The proposed unit’s compatibility with the primary
responsibility of the District and its employees to
serve the public effectively and economically.
3.The ability to provide effective representation to
employees based on a recognized community of
interest, within the broadest feasible grouping of
classifications sharing an identifiable community
of interest.
B.In considering whether classifications share an
identifiable community of interest, the following factors shall be
considered:
1. Similarity of the work performed, required
qualifications, level of responsibility, and
general working conditions.
2. History of representation in the District, except
that no representation unit shall be deemed
appropriate solely on the basis of the extent to
which employees in the proposed unit have
organized.
3. Consistency with District administrative
organization.
4. Number of employees and classifications, and the
effect on the administration of employer-employee
relations created by the fragmentation of
classifications and/or increase in number of
representation units.
5. Effect on the classification structure and impact
on the stability of the employer-employee
relationship of dividing related classifications
among two or more representation units.
5-5
6.Supervisory employees shall not be placed in a
representation unit with non-supervisory
employees.
7.Management employees shall not be placed in a
representation unit with non-management employees.
8.Confidential employees shall not be placed in a
representation unit with non-confidential
employees.
9.Professional employees shall not be required to be
included in the same unit with non-professional
employees.
C.After notice to and consultation with affected employee
organizations, the Human Resources Manager shall allocate new
classifications or positions, delete eliminated classifications or
positions, and retain, reallocate or delete classifications in
accordance with this Section.
5.06 CERTIFICATION OF EMPLOYEE ORGANIZATIONS
A. Recognized Employee Organizations – Requirements: An
employee organization that wishes to become the recognized
employee organization of a representation unit or proposed
representation unit shall file with the General Manager a petition
for certification as a recognized employee organization. The
petition shall include:
1.The name mailing address and electronic mailing
address of the employee organization.
2.The names and titles of its officers.
3.A designation of one person, including his/her
address, to whom notice to the organization may be
sent for any purpose.
4.The names of persons who are authorized to act as
representatives of the organization in any
communications with the District.
5. A statement that the employee organization has, as
one of its primary purposes, the responsibility of
5-6
representing employees in their employment
relations with the District.
6. A statement whether the employee organization is a
chapter of, or affiliated directly or indirectly in
any manner, with a local, regional, state,
national, or international organization, and, if
so, the name and address of each such other
organization.
7.A statement that the employee organization agrees
to comply with the provisions of this Chapter.
8.Certified copies of the employee organization’s
constitution and bylaws.
9.A statement that the organization does not restrict
membership based on race, color, creed, national
origin, political affiliation, sex, disability,
age, or any other classification prohibited by
state or federal law.
10.A list of all District employees who are
represented by the organization and their job
classifications or position titles.
11. A statement that the employee organization has in
its possession proof of employee support as herein
defined to establish that a majority of the
employees in the unit have designated the employee
organization to represent them in their employment
relations with the District. Such written proof
shall be submitted for confirmation to the General
Manager or to a mutually agreed upon disinterested
third party.
12.A request that the District formally acknowledge
the petitioner as the recognized employee
organization of a representation unit of District
employees.
B. Processing Of Recognition Petition:
Upon receipt of a petition that proposes a new representation
unit, the General Manager shall determine whether:
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1.There has been compliance with the requirements of the
recognition petition, and
2.The proposed representation unit is an appropriate unit.
If the representation unit is appropriate and the proof of
support is found to be valid, the General Manager shall accept the
petition and give notice of the request for recognition filing
thereof to all District employees and shall take no action on said
request for thirty (30) days thereafter.
Recognized employee organization status shall be granted if
the proof of support shows that a majority (50% plus one) of the
employees in the representation unit or proposed representation
unit desire the representation. However, if another labor
organization has previously been lawfully recognized as a
recognized employee organization of all or part of the same unit,
or if more than one labor organization has been proposed as the
recognized employee organization, determination of the recognized
employee organization shall be made by the State Mediation and
Conciliation Service, who shall review the proof of support to
verify the status of the employee organization. The General
Manager shall engage the State Mediation and Conciliation Service
to conduct an election within 30 days of the foregoing notice, or
as soon thereafter as the State Mediation and Conciliation Service
can conduct it, among the eligible members of the representation
unit.
If the General Manager does not accept the petition, he/she
shall notify the petitioning employee organization of the reasons
therefore in writing. No petition shall be accepted affecting a
representation unit or proposed representation unit for which,
within the preceding 12 months, a certification or decertification
election was conducted.
C. Election Procedure:
1. When an election is required pursuant to this
Section, it shall be conducted by secret ballot in
accordance with the procedures and regulations of
this section. Eligible voters shall be those
employees in the representation unit whose names
appear on the payroll immediately prior to the date
which ended at least fifteen (15) days before the
date of the election, including those shown as on
vacation or authorized leaves of absence, and who
are employed by the District in the same unit on
the date of the election. If the State Mediation
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and Conciliation Service declines to conduct the
election, the Board of Directors will adopt rules
for the conduct of election. There shall be no
more than one valid election under this Section
pursuant to any petition in a 12-month period
affecting the same unit.
2. The General Manager shall declare the results of
the election in accordance with the following:
a.When a majority of the eligible employees
voting at the election vote to certify an
organization, the General Manager shall
certify the organization as the recognized
employee organization of the representation
unit.
b.When two organizations appear on the ballot
and no organization receives a majority of the
votes cast, the General Manager shall declare
that no organization will be the recognized
employee organization of the unit.
c.When three or more organizations appear on the
ballot and no organization receives a majority
of the votes cast, the General Manager shall
order a runoff election between the two
organizations receiving the greatest number of
votes, the rules governing an initial election
being applicable to a run-off election.
d.If less than a majority of eligible employees
voted, the General Manager shall declare the
election void and no further election shall be
held based on the petition.
Half of the cost incurred in conducting a certification
election shall be borne by the District, and the other half shall
be divided equally among and be paid by the employee organizations
appearing on the ballot.
D.Current Information:
The information contained in the petition shall be kept
current by the recognized employee organization. The General
Manager may, from time to time, require verification by the
recognized employee organization of any information contained in
the petition (and current supplements thereto), including
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submission of such written proof as the recognized employee
organization has that it has been designated by the listed
employees to represent them.
5.07 EMPLOYEE ORGANIZATIONS' RIGHTS
A.The District recognizes the right of any recognized
employee organization to govern its internal affairs. A recognized
employee organization may represent its members in disputes and
grievance matters. A recognized employee organization may not
present a grievance or dispute in its own name or on behalf of
itself. The scope of representation includes all matters relating
to employment conditions and employee relations, including, but
not limited to, wages, hours and other terms and conditions of
employment. However, the scope of representation shall not include
the merit, necessity, or organization of any service or activity
provided by law or established by the District. If the General
Manager and the recognized employee organization reach agreement,
they shall jointly prepare a written memorandum of understanding
which shall not be binding on the District until it is ratified by
the Board of Directors.
B. Officers and/or representatives of recognized employee
organizations may petition the General Manager, or designee, in
writing for access to work facilities and work locations outside
of regular working hours. The petition shall identify where they
wish to have access and the purpose for which access is sought.
The General Manager shall not unreasonably refuse such petition
and will provide to persons granted access an appropriate escort
and rules and regulations governing access to District property,
consistent with Board of Directors Policy No. 13.
5.08 CONFERENCES
The General Manager or designee shall, upon written request,
meet and confer in good faith regarding wages, hours and other
terms and conditions of employment with the representatives of any
recognized employee organization and shall consider fully such
presentations as are made on behalf of employees who are members
of such recognized employee organization. Such meetings and
conferences shall be held within a reasonable time upon written
request, which shall set forth the matter(s) desired to be
presented. The General Manager may utilize other staff of the
District to assist him/her and to attend conferences with him/her.
In the event that any Memorandum of Understanding (MOU) exists
with a procedure different than as stated above, the Memorandum of
Understanding shall prevail.
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Meet and confer sessions for future memoranda of
understanding shall commence on a date so that negotiations may be
completed, if possible, prior to the end of the existing MOU.
5.09 IMPASSE PROCEDURE
If, after a reasonable period of time of meeting and
conferring, a recognized employee organization and the General
Manager fail to reach agreement on matters within the scope of
representation, either party may declare the existence of an
impasse. Upon declaration of impasse, the District and a
Recognized Employee Organization may mutually ask the California
State Conciliation Service to assist the parties in reconciling
differences through mediation. All mediation proceedings shall be
private. The mediator shall make no public recommendation, nor
take any public position at any time concerning the issues. All
mediation costs shall be borne equally by the District and the
recognized employee organization.
A Recognized Employee organization may request to the Public
Employment Relations Board (PERB) to submit the impasse to fact-
finding, pursuant to Government Code sections 3505.4 through
3505.7, no sooner than 30 days, but no more than 45 days, following
the declaration of impasse. Fact-finding panel recommendations
are only advisory, not binding. All mutually incurred costs for
fact-finding shall be borne equally by the District and the
recognized employee organization (i.e. cost for the services of
the panel chairperson).
After applicable mediation and fact-finding procedures have been
exhausted, the General Manager may but need not implement its last,
best, and final offer, but not earlier than 10 days after the
factfinders’ written findings of fact and recommended terms of
settlement have been submitted to the parties pursuant to
Government Code section 3505.5 and following a public hearing
regarding the impasse. Any legislative action by the Board of
Directors on the matters in dispute shall be final and binding.
5.10 DECERTIFICATION PROCEDURE
A.An employee may present to the General Manager a petition
to decertify the recognized employee organization for his/her
representation unit. No action may be taken on a petition that is
submitted within 12 months of the date of initial certification of
a recognized employee organization or of any election to certify
or decertify such organization.
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B.A decertification petition must be declared by the duly
authorized signatory under penalty of perjury to be true, correct,
and complete and include the following:
1. The name, mailing address, electronic mailing
address, and telephone number of the petitioning
employee and a designated representative authorized
to receive notices or requests for further
information;
2. The title of the representation unit;
3. The name of the incumbent recognized employee
organization for the representation unit sought to
be decertified;
4. If another organization is proposed to become the
recognized employee organization, the name of such
organization and the name, mailing address,
electronic mailing address, and telephone number of
its agent;
5. An allegation that the incumbent recognized
employee organization no longer represents a
majority of the employees in the appropriate unit,
and any other relevant and material facts relating
thereto;
6. Proof of support from at least 30 percent of the
employees in the representation unit who:
a.no longer wish to be represented by the
incumbent recognized employee organization;
and/or
b.wish to be represented by a different employee
organization.
C.Within five business days of receiving a decertification
petition, the General Manager shall serve a copy of the petition
on the recognized employee organization.
The General Manager shall verify that proof of support for
decertification and/or certification of a new recognized employee
organization contains the signatures of at least thirty percent
(30%) of the employees in the representation unit. Verification
shall consist of confirming that each person identified in a proof
of support is in the representation unit and that his/her signature
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is genuine. Upon verifying proof of support or lack thereof, the
General Manager shall so notify the petitioner, the recognized
employee organization, and, where applicable, the agent of the
proposed new recognized employee organization in writing.
If the General Manager verifies proof of support of at least
30 percent (30%) of the representation unit for more than one
proposed new recognized employee organization, each such
organization shall be placed on the ballot.
D.Upon verifying appropriate proof of support, the General
Manager shall schedule an election, to be conducted no earlier
than 21 calendar days and no later than 42 calendar days after
verification.
At least 15 calendar days before the scheduled date of the
election, General Manager shall post in one or more conspicuous
places frequented by members of the representation unit a copy of
the decertification petition, notice of the date, time, and place
of the election, and a brief statement of the purpose of the
election. The notice shall remain posted until the day after the
election.
E.If appropriate proof of support was verified for a
proposed new recognized employee organization, the ballot shall
state the following:
1.Shall the [recognized employee organization]
continue to be the recognized employee organization
for the [name of representation unit] unit?
____ Yes ([recognized employee organization]
continues to be the recognized employee
organization)
____ No ([recognized employee organization] ceases
to be the recognized employee organization)
{use when there is only one proposed new representative}
2. If the [recognized employee organization] ceases to
be the recognized employee organization, shall the
[proposed new recognized employee organization]
become the recognized employee organization for the
[name of representation unit] unit?
____ Yes
____ No
{use when there is more than one proposed new
representative}
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2.If the [recognized employee organization] ceases to
be the recognized employee organization, please
choose one of the following options:
____ [proposed new recognized employee organization
#1] becomes the recognized employee organization
____ [proposed new recognized employee organization
#2] becomes the recognized employee organization
____ [proposed new recognized employee organization
#3 (if applicable)] becomes the recognized employee
organization
____ No representative
Where more than one proposed new representative appears on
the ballot, the order in which each proposed new representative
appears shall be determined by lot.
If the election is only to decertify the recognized employee
organization, the ballot shall state the following:
Shall the [recognized employee organization] continue to
be the recognized employee organization for the [name of
representation unit] unit?
____ Yes ([recognized employee organization] continues
to be the recognized employee organization)
____ No ([recognized employee organization] ceases to be
the recognized employee organization)
F.Elections shall be conducted under the following
guidelines:
1.The recognized employee organization may have a
representative present at all polling places and
during the counting of ballots. The representative
shall only observe activities and may not advocate
for a particular vote or comment on the tabulation
of votes while tabulation is in progress.
2.The proposed new recognized employee
organization(s), if any, may have a representative
present at all polling places and during the
counting of ballots. The representative shall only
observe activities and may not advocate for a
particular vote or comment on the tabulation of
votes while tabulation is in progress.
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3.Other than the actual act of voting, no activity
shall be conducted within 100 feet of a polling
place that advocates for a particular vote.
4.A recognized employee organization shall be
decertified if a majority of the representation
unit members voting vote to decertify.
5.The votes to certify a proposed new recognized
employee organization shall be tabulated only if a
majority of those voting vote to decertify the
existing recognized employee organization. If the
certification votes are tabulated, the proposed new
recognized employee organization shall be certified
if a majority of the representation unit members
voting vote to certify or, if there is more than
one new employee organization proposed, the
organization receiving the most votes of the
representation unit members voting shall be
certified.
6.No later than 10:00 a.m. on the day following the
election, the General Manager shall post the
results of the tabulation of votes at the same
location(s) at which notice of the election was
posted.
7.A member of the representation unit, an agent of
the recognized employee organization, or an agent
of the proposed new recognized employee
organization may protest the tabulation results
within 24 hours of posting of the results. To
protest the tabulation results, a person must
deliver to the General Manager a letter setting
forth all bases for protest. The only acceptable
bases for protest are:
a.Error or fraud in tabulating the ballots
b.Prohibited advocacy at or within 100 feet
of a polling place
c.A ballot cast by a person who was
ineligible to vote
d.Multiple ballots cast by one person
8.The General Manager shall promptly investigate all
protests, if any, before accepting the tabulation
results. The General Manager may only reject the
tabulation results if one of the bases for protest
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exists and he/she concludes that the outcome of the
election was affected thereby. If the General
Manager does not accept the tabulation results,
he/she shall schedule a new election.
G.The election results shall be final upon acceptance of
the tabulation results by the General Manager following a rejection
of any protests or, if no protests are received, following the
expiration of the 24 hour protest period. If the recognized
employee organization is decertified, the District shall cease to
recognize the organization as the representative for the
representation unit as of the date the results are final. If a
new organization has been certified as the recognized employee
organization, the District shall thereafter recognize that
organization as the representative of the representation unit. A
new recognized employee organization shall be bound by any
memoranda of understanding then in place for the representation
unit.
5.11 INDIVIDUAL REPRESENTATION
A. Any individual may present a concern relating to working
conditions to the General Manager pursuant to the administrative
procedures of the District, if any, and have such concern fairly
considered, without the participation of a recognized employee
organization. The individual may be represented by any person of
his/her choosing..
B. If an employee or group of employees who are members of
a recognized employee organization present a concern to the General
Manager, he/she shall notify an affected recognized employee
organization of such concerns within three (3) days of receiving
it.
C.The right to individual representation provided above is
not intended to nor shall it confer a right to bargain or negotiate
individual terms and conditions of employment.
5.12 EMPLOYER-EMPLOYEE COMMUNICATIONS
A. The General Manager shall make available space on a
bulletin board or other reasonable means of communication to a
recognized employee organization, so that it may communicate with
its members. No employee organization literature may be
distributed in work areas, nor may any person solicit employees
during working time. The General Manager shall communicate to all
employees and all recognized employee organizations the contents
of this Chapter.
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B. Recognized employee organizations may use District
facilities for meetings of District employees, provided such
meetings are held outside of regularly scheduled working hours for
the employees in attendance, space permitting. Recognized
employee organizations must obtain permission from the General
Manager or designee to use District facilities, as discussed in
Section 5.07(B), above.
5.13 INFORMATION REQUESTS
A recognized employee organization may request that the
General Manager provide documents or information that are
necessary and relevant to their representation rights, such as the
preparation or processing of a grievance, for consulting, or for
meeting and conferring. The District shall not, however, be
required to provide information in a particular form requested or
desired by the requestor.
5.14 INTERPRETATION
This Chapter shall be administered and construed as follows:
A. Nothing in this Chapter shall be construed to deny to
any person, employee, organization, the District, or any
authorized officer, body or other representative of the
District, the rights, powers and authority granted by
federal or state law.
B. This Chapter shall be interpreted so as to carry out the
purposes set forth in Section 5.01.
5.15 AMENDMENTS
After consulting with recognized employee organizations, the
Board may from time to time amend this Chapter.
5.16 SEVERABILITY
If any provision of this Chapter, or the application of such
provision to any persons or circumstances, is held invalid, the
remainder of this Chapter, or the application of such provision to
persons or circumstances other than those as to which it is held
invalid, shall not be affected thereby.
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OTAY WATER DISTRICT
CONFLICTS OF INTEREST CODE
DIVISION I DISTRICT ADMINISTRATION
CHAPTER 5 PERSONNEL PRACTICES
SECTION 6 CONFLICT OF INTEREST CODE
The Political Reform Act (Government Code section 81000, et seq.)
requires state and local government agencies to adopt and promulgate
conflict of interest codes. The Fair Political Practices Commission
has adopted a regulation (2 Cal. Code of Regs. Sec. 18730) that
contains the terms of a standard conflict of interest code, which can
be incorporated by reference in an agency’s code. After public notice
and hearing, the standard code may be amended by the Fair Political
Practices Commission to conform to amendments in the Political Reform
Act. Therefore, the terms of 2 California Code of Regulations Section
18730 and any amendments to it duly adopted by the Fair Political
Practices Commission are hereby incorporated by reference. This
regulation and the attached Appendix, designating positions and
establishing disclosure requirements, shall constitute the Conflict of
Interest Code of the Otay Water District (District).
6.01 DEFINITIONS
The definitions contained in the Political Reform Act of 1974
(Government Code Sections 81000 et seq.), regulations of the Fair
Political Practices Commission (2 Cal. Code of Regs. Sections 18100,
et seq.), and any amendments to the Act or regulations, are
incorporated by reference into this Conflict of Interest Code.
6.02 DESIGNATED EMPLOYEES
The persons holding positions listed in the Appendix are
designated employees. It has been determined that these persons make
or participate in the making of decisions which may foreseeably have a
material effect on financial interests.
The General Manager or his/her designee shall have the authority
to designate any person holding a position within the District as a
person designated to provide disclosures regardless of whether or not
the position that the person holds is included in the Appendix if, in
the view of the General Manager or his/her designee, the person has
the potential to make or participate in the making of decisions which
may foreseeably have a material effect on financial interests.
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6.03 DISCLOSURE CATEGORIES
This Code does not establish any disclosure obligation for those
designated employees who are also specified in Government Code Section
87200 if they are designated in this code in that same capacity, or if
the geographical jurisdiction of this agency is the same as or is
wholly included within the jurisdiction in which those persons must
report their financial interest pursuant to Article 2 of Chapter 7 of
the Political Reform Act, Government Code Sections 87200, et seq.1 In
addition, this code does not establish any disclosure obligation for
any designated public officials who are designated in a conflict of
interest code for another agency, if all of the following apply:
(A)The geographical jurisdiction of this agency is the same as
or is wholly included within the jurisdiction of the other agency;
(B)The disclosure assigned in the code of the other agency is
the same as that required under Article 2 of Chapter 7 of the
Political Reform Act, Government Code Section 87200; and
(C)The filing officer is the same for both agencies.
Such persons are covered by this Code for disqualification
purposes only. With respect to all other designated employees, the
disclosure categories set forth in the Appendix specify which kinds of
financial interests are reportable. Such a designated employee shall
disclose in his or her Statement of Economic Interest those financial
interests he or she has which are of the kind described in the
disclosure categories to which he or she is assigned in the Appendix.
It has been determined that the financial interests set forth in a
designated employee’s disclosure categories are the kinds of financial
interests which he or she foreseeably can affect materially through
the conduct of his or her office.
6.04 STATEMENTS OF ECONOMIC INTERESTS: PLACE OF FILING
All officials and employees required to submit a Statement of
Economic Interest (employees in Designated Positions) shall file their
statements with the General Manager, or his or her designee. The
District shall make and retain a copy of all statements filed by
Designated Positions and forward the originals of such statements to
the Executive Office of the Board of Supervisors of San Diego County.
1 Designated employees who are required to file statements of economic interest under
any other agency’s Conflict of Interest Code or under Article 2 for a different
jurisdiction, may expand their statement of economic interests to cover reportable
interest in both jurisdictions, and file copies of this expanded statement with both
entities in lieu of filing separate and district statements, provided that each copy
of such expanded statement filed in place of an original is signed and verified by
the designated employee as if it were an original. See Government Code Section
81004.
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All retained statements, originals or copies shall be available for
public inspection and reproduction. (Cal. Gov’t Code § 81008).2
The General Manager, or his or her designee may file Statements
of Economic Interests electronically in accordance with the provisions
of Government Code Section 87500.2.
6.05 STATEMENTS OF ECONOMIC INTERESTS: TIME OF FILING
(A)Initial Statements. All designated employees employed by
the agency on the effective date of this code, as originally adopted,
promulgated, and approved by the code reviewing body, shall file
statements within 30 days after the effective date of this code.
Thereafter, each person already in a position when it is designated by
an amendment to this code shall file an initial statement within 30
days after the effective date of the amendment.
(B)Assuming Office Statements. All persons assuming designated
positions after the effective date of this code shall file statements
within 30 days after assuming the designated positions, or if subject
to State Senate confirmation, 30 days after being nominated or
appointed. If a person assumes an office between October 1 and
December 31 and files an assuming office Statement of Economic
Interests, that person need not file an annual Statement of Economic
Interests pursuant to Section 87203 until one year later than the date
specified in subsection C below.
(C)Annual Statements. All designated employees shall file
statements no later than April 1.
(D)Leaving Office Statements. All persons who leave designated
positions shall file statements within 30 days after leaving office.
(E) Military Service.If a person reports for military service
as defined in the Servicemember's Civil Relief Act, the deadline for
the annual statement of economic interests is 30 days following his or
her return to office, provided the person, or someone authorized to
represent the person's interests, notifies the filing officer in
writing prior to the applicable filing deadline that he or she is
subject to that federal statute and is unable to meet the applicable
deadline, and provides the filing officer verification of his or her
military status.
2 See Government Code section 81010 and 2 Cal. Code of Regs. section 18115 for the
duties of filing officers and persons in agencies who make and retain copies of
statements and forward the originals to the filing officer.
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6.06 STATEMENTS FOR PERSONS WHO RESIGN PRIOR TO ASSUMING OFFICE
Any person who resigns within 12 months of initial appointment,
or within 30 days of the date of notice provided by the filing officer
to file an assuming office statement, is not deemed to have assumed
office or left office, provided he or she did not make or participate
in the making of, or use his or her position to influence any decision
and did not receive or become entitled to receive any form of payment
as a result of his or her appointment. Such persons shall not file
either an assuming or a leaving office statement.
(A)Any person who resigns a position within 30 days of the date
of a notice from the filing officer shall do both of the following:
1.File a written resignation with the appointing power; and
2.File a written statement with the filing officer declaring
under penalty of perjury that during the period between
appointment and resignation he or she did not make,
participate in the making, or use the position to influence
any decision of the agency or receive, or become entitled to
receive, any form of payment by virtue of being appointed to
the position.
6.07 CONTENTS OF AND PERIOD COVERED BY STATEMENTS OF ECONOMIC
INTERESTS
(A)Contents of Initial Statements
Initial statements shall disclose any reportable investments,
interests in real property and business positions held on the
effective date of the code and income received during the 12 months
prior to the effective date of the code.
(B)Contents of Assuming Office Statements
Assuming office statements shall disclose any reportable
investments, interests in real property and business positions held on
the date of assuming office or on the date of appointment, and income
received during the 12 months prior to the date of assuming office or
the date of being appointed, respectively.
(C)Contents of Annual Statements
Annual statements shall disclose any reportable investments,
interests in real property, income and business positions held or
received during the previous calendar year provided, however, that the
period covered by an employee’s first annual statement shall begin on
the effective date of the code or the date of assuming office,
whichever is later.
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(D)Contents of Leaving Office Statements
Leaving office statements shall disclose reportable investments,
interest in real property, income and business positions held or
received during the period between the closing date of the last
statement filed and the date of leaving office.
6.08 MANNER OF REPORTING
Statements of economic interest shall be made on forms prescribed
by the Fair Political Practices Commission and supplied by the agency,
and shall contain the following information:
(A)Investments and Real Property Disclosure
When an investment or an interest in real property3 is required to
be reported4, the statement shall contain the following:
1.A statement of the nature of the investment or interest;
2.The name of the business entity in which each investment is
held, and a general description of the business activity in
which the business entity is engaged;
3.The address or other precise location of the real property;
4.A statement whether the fair market value of the investment
or interest in real property equals or exceeds two thousand
dollars ($2,000), exceeds ten thousand dollars ($10,000),
exceeds one hundred thousand dollars ($100,000), or exceeds
one million dollars ($1,000,000).
(B)Personal Income Disclosure
When personal income is required to be reported5, the statement
shall contain:
3 For the purpose of disclosure only (not disqualification), an interest in real
property does not include the principal residence of the filer.
4 Investments and interests in real property which have a fair market value of less
than $2,000 are not investments and interests in real property within the meaning of
the Political Reform Act. However, investments or interests in real property of an
individual include those held by the individual’s spouse and dependent children as
well as a pro rata share of any investment or interest in real property of any
business entity or trust in which the individual, spouse and dependent children own,
in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater.
5 A designated employee’s income includes his or her community property interest in
the income of his or her spouse but does not include salary or reimbursement for
expenses received from a state, local or federal government agency.
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1.The name and address of each source of income aggregating
$500 or more in value or $50 or more in value if the income
was a gift, and a general description of the business
activity, if any, of each source;
2.A statement whether the aggregate value of income from each
source, or in the case of a loan, the highest amount owed to
each source, was one thousand dollars ($1,000) or less,
greater than one thousand dollars ($1,000), greater than ten
thousand dollars ($10,000), or greater than one hundred
thousand dollars ($100,000);
3.A description of the consideration, if any, for which the
income was received;
4.In the case of a gift, the name, address and business
activity of the donor and any intermediary through which the
gift was made; a description of the gift; the amount or
value of the gift; and the date on which the gift was
received. A gift includes forgiveness of a debt or a rebate
or discount of a debt owed6;
5.In the case of a loan given or received, the annual interest
rate and the security, if any, given for the loan and the
term of the loan.
6.Gov. Code section 82030 defines income and specifically
excludes:
(a)Any loan or loans from a commercial lending
institution which are made in the lender's regular
course of business on terms available to members of
the public without regard to official status.
(b)Any loan from or payments received on a loan made to
an individual's spouse, child, parent, grandparent,
grandchild, brother, sister, parent-in-law, brother-
in-law, sister-in-law, nephew, niece, uncle, aunt,
or first cousin, or the spouse of any such person,
provided that a loan or loan payment received from
any such person shall be considered income if he or
she is acting as an agent or intermediary for any
person not covered by this paragraph.
(c)Any indebtedness created as part of a retail
installment or credit card transaction if made in
the lender's regular course of business on terms
6 2 Cal. Code of Regs. section 18940
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available to members of the public without regard to
official status.
(C)Business Entity Income Disclosure
When income of a business entity, including income of a sole
proprietorship, is required to be reported7, the statement shall
contain:
1.The name, address, and a general description of the business
activity of the business entity;
2.The name of every person from whom the business entity
received payments if the filer’s pro rata share of gross
receipts from such person was equal to or greater than
$10,000.
(D)Business Position Disclosure
When business positions are required to be reported, a designated
employee shall list the name and address of each business entity in
which he or she is a director, officer, partner, trustee, employee or
in which he or she holds any position of management, a description of
the business activity in which the business entity is engaged, and the
designated employee’s position with the business entity.
(E)Acquisition or Disposal During Reporting Period
In the case of an annual or leaving office statement, if an
investment or an interest in real property was partially or wholly
acquired or disposed of during the period covered by the statement,
the statement shall contain the date of acquisition or disposal.
6.09 PROHIBITION ON RECEIPT OF HONORARIA
A.No designated public official shall accept any honorarium from
any source if the member or employee would be required to report the
receipt of income or gifts from that source on his or her statement of
economic interests.
Subdivisions (a), (b), and (c) of Government Code Section 89501 shall
apply to the prohibitions in this section.
7 Income of a business entity is reportable if the direct, indirect, or beneficial
interest of the filer and the filer’s spouse in the business entity aggregates a 10
percent or greater interest. In addition, the disclosure of persons who are clients
or customers of a business entity is required only if the clients or customers are
within one of the disclosure categories of the filer.
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This section shall not limit or prohibit payments, advances, or reim-
bursements for travel and related lodging and subsistence authorized
by Government Code section 89506.
6.10 PROHIBITION ON RECEIPT OF GIFTS IN EXCESS OF AMOUNT
ESTABLISHED BY LAW8
A.No designated public official shall accept gifts with a total
value of more than the maximum amount established by law, in any
calendar year, from any single source, if the member or employee would
be required to report the receipt of income or gifts from that source
on his or her statement of economic interests.
Subdivisions (e), (f), and (g) of Government Code section 89503 shall
apply to the prohibitions in this section.
6.11 LOANS TO PUBLIC OFFICIALS
A.No elected officer of a state or local government agency shall,
from the date of his or her election to office through the date that
he or she vacates office, receive a personal loan from any officer,
employee, member, or consultant of the state or local government
agency in which the elected officer holds office or over which the
elected officer’s agency has direction and control.
B.No public official who is exempt from the state civil service
system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section
4 of Article VII of the Constitution shall, while he or she holds
office, receive a personal loan from any officer, employee, member, or
consultant of the state or local government agency in which the public
official holds office or over which the public official’s agency has
direction and control. This subdivision shall not apply to loans made
to a public official whose duties are solely secretarial, clerical, or
manual.
C.No elected officer of a state or local government agency shall,
from the date of his or her election to office through the date that
he or she vacates office, receive a personal loan from any person who
has a contract with the state or local government agency to which that
elected officer has been elected or over which that elected officer’s
agency has direction and control. This subdivision shall not apply to
loans made by banks or other financial institutions or to any
indebtedness created as part of a retail installment or credit card
8 Designated Persons are prohibited from accepting gifts from any single source in a
calendar year with a total value in excess of designated amounts. See Govt. Code §
89503, sub-divisions (e), (f) and (g). [Note: Pursuant to Gov. Code § 89503(f), the
FPPC adjusts the gift limit every odd-numbered year to reflect changes in the
Consumer Price Index; the gift limit for the 2021 and 2022 calendar years is set at
$520; therefore the gift limit will be updated in January 2023 and every odd year
thereafter, until further notice. See also 2 CCR § 18940.2]
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transaction, if the loan is made or the indebtedness created in the
lender’s regular course of business on terms available to members of
the public without regard to the elected officer’s official status.
D.No public official who is exempt from the state civil service
system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section
4 of Article VII of the Constitution shall, while he or she holds
office, receive a personal loan from any person who has a contract
with the state or local government agency to which that elected
officer has been elected or over which that elected officer’s agency
has direction and control. This subdivision shall not apply to loans
made by banks or other financial institutions or to any indebtedness
created as part of a retail installment or credit card transaction, if
the loan is made or the indebtedness created in the lender’s regular
course of business on terms available to members of the public without
regard to the elected officer’s official status. This subdivision
shall not apply to loans made to a public official whose duties are
solely secretarial, clerical, or manual.
E.This section shall not apply to the following:
1.Loans made to the campaign committee of an elected officer
or candidate for elective office.
2.Loans made by a public official’s spouse, child, parent,
grandparent, grandchild, brother, sister, parent-in-law, brother-in-
law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or
the spouse of any such persons, provided that the person making the
loan is not acting as an agent or intermediary for any person not
otherwise exempted under this section.
3.Loans from a person which, in the aggregate, do not exceed
five hundred dollars ($500) at any given time.
4.Loans made, or offered in writing, before January 1, 1998.
6.12 LOAN TERMS
A.Except as set forth in subdivision (B), no elected officer of a
state or local government agency shall, from the date of his or her
election to office through the date he or she vacates office, receive
a personal loan of five hundred dollars ($500) or more, except when
the loan is in writing and clearly states the terms of the loan,
including the parties to the loan agreement, date of the loan, amount
of the loan, term of the loan, date or dates when payments shall be
due on the loan and the amount of the payments, and the rate of
interest paid on the loan.
B.This section shall not apply to the following types of loans:
1.Loans made to the campaign committee of the elected officer.
-2010
2.Loans made to the elected officer by his or her spouse,
child, parent, grandparent, grandchild, brother, sister, parent-in-
law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or
first cousin, or the spouse of any such person, provided that the
person making the loan is not acting as an agent or intermediary for
any person not otherwise exempted under this section.
3.Loans made, or offered in writing, before January 1, 1998.
C.Nothing in this section shall exempt any person from any
other provision of Title 9 of the Government Code.
6.13 PERSONAL LOANS
A.Except as set forth in subdivision (B), a personal loan received
by any designated public official shall become a gift to the
designated public official for the purposes of this section in the
following circumstances:
1.If the loan has a defined date or dates for repayment, when
the statute of limitations for filing an action for default has
expired.
2.If the loan has no defined date or dates for repayment, when
one year has elapsed from the later of the following:
a.The date the loan was made.
b.The date the last payment of one hundred dollars ($100)
or more was made on the loan.
c.The date upon which the debtor has made payments on the
loan aggregating to less than two hundred fifty dollars ($250) during
the previous 12 months.
B.This section shall not apply to the following types of loans:
1.A loan made to the campaign committee of an elected officer
or a candidate for elective office.
2.A loan that would otherwise not be a gift as defined in this
title.
3.A loan that would otherwise be a gift as set forth under
subdivision (A), but on which the creditor has taken reasonable action
to collect the balance due.
4.A loan that would otherwise be a gift as set forth under
subdivision (A), but on which the creditor, based on reasonable
business considerations, has not undertaken collection action. Except
in a criminal action, a creditor who claims that a loan is not a gift
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on the basis of this paragraph has the burden of proving that the
decision for not taking collection action was based on reasonable
business considerations.
5.A loan made to a debtor who has filed for bankruptcy and the
loan is ultimately discharged in bankruptcy.
C.Nothing in this section shall exempt any person from any other
provisions of Title 9 of the Government Code.
6.14 DISQUALIFICATION
No designated employee shall make, participate in making, or in
any way attempt to use his or her official position to influence the
making of any governmental decision which he or she knows or has
reason to know will have a reasonably foreseeable material financial
effect, distinguishable from its effect on the public generally, on
the official or a member of his or her immediate family or on:
(A)Any business entity in which the designated employee has a
direct or indirect investment worth $2,000 or more;
(B)Any real property in which the designated employee has a
direct or indirect interest worth $2,000 or more;
(C)Any source of income, other than gifts and other than loans
by a commercial lending institution in the regular course of
business on terms available to the public without regard to
official status, aggregating $500 or more in value provided
to, received by or promised to the designated employee
within 12 months prior to the time when the decision is
made;
(D)Any business entity in which the designated employee is a
director, officer, partner, trustee, employee, or holds any
position of management; or
(E)Any donor of, or any intermediary or agent for a donor of, a
gift or gifts aggregating to the maximum amount established
by law, or more, in value provided to, received by, or
promised to the designated employee within 12 months prior
to the time when the decision is made.
6.15 LEGALLY REQUIRED PARTICIPATION
No designated public official shall be prevented from making or
participating in the making of any decision to the extent his or her
participation is legally required for the decision to be made. The
fact that the vote of a designated public official who is on a voting
body is needed to break a tie does not make his or her participation
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legally required for purposes of this section.
6.16 DISQUALIFICATION OF STATE OFFICERS AND EMPLOYEES
In addition to the general disqualification provisions of Section
6.14, no state administrative official shall make, participate in
making, or use his or her official position to influence any
governmental decision directly relating to any contract where the
state administrative official knows or has reason to know that any
party to the contract is a person with whom the state administrative
official, or any member of his or her immediate family has, within 12
months prior to the time when the official action is to be taken:
(A)Engaged in a business transaction or transactions on terms
not available to members of the public, regarding any
investment or interest in real property; or
(B)Engaged in a business transaction or transactions on terms
not available to members of the public regarding the
rendering of goods or services totaling in value $1000 or
more.
6.17 DISCLOSURE OF DISQUALIFYING INTEREST
When a designated public official determines that he or she
should not make a governmental decision because he or she has a
disqualifying interest in it, the determination not to act may be
accompanied by disclosure of the disqualifying interest.
6.18 ASSISTANCE OF THE COMMISSION AND COUNSEL
Any designated employee who is unsure of his or her duties under
this code may request assistance from the Fair Political Practices
Commission pursuant to Government Code Section 83114 and 2 CCR
Sections 18329 and 18329.5 or from the attorney for his or her agency,
provided that nothing in this section requires the attorney for the
agency to issue any formal or informal opinion.
6.19 VIOLATIONS
This code has the force and effect of law. Designated employees
violating any provision of this code are subject to the
administrative, criminal, and civil sanctions provided in the
Political Reform Act, Government Code Sections 81000 – 91015. In
addition, a decision in relation to which a violation of the
disqualification provisions of this code or of Government Code Section
87100 or 87450 has occurred may be set aside as void pursuant to
Government Code Section 91003.
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6.20 PROHIBITED TRANSACTIONS
Members of the Board of Directors and Designated Employees shall
comply with the Prohibited Transactions policy, annexed hereto as
Exhibit A, pursuant to California Government Code Sections 1090, et
seq.
6.21 INCOMPATIBLE ACTIVITIES
Members of the Board of Directors, District officers, and all
other District employees shall comply with the Incompatible Activities
policy, annexed hereto as Exhibit B, pursuant to California Government
Code Sections 1126, et seq.
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APPENDIX
OTAY WATER DISTRICT
CONFLICT OF INTEREST CODE
DESIGNATED POSITIONS
DESIGNATED EMPLOYEES’
TITLE OR FUNCTION__DISCLOSURE CATEGORIES ASSIGNED
Members of the Board of Directors 1, 2, 3, 4, 5, 6
General Manager 1, 2, 3, 4, 5, 6
District Secretary 6
Assistant Chief of Finance 1, 2, 5, 6, 7
Chief of Administrative Services 1, 2, 3, 4, 5, 6, 7
Chief Financial Officer 1, 2, 5, 6, 7
Chief of Engineering 1, 2, 3, 4, 6, 7
Chief of Water Operations 1, 2, 3, 4, 6, 7
Associate Civil Engineer 1, 2, 3, 4, 7
Communications Officer 6
Customer Service Manager 2, 5, 7
Environmental Compliance
Specialist 1, 2, 3, 4, 7
Engineering Manager 1, 2, 3, 4, 7
Field Services Manager 1, 2, 3, 4, 7
Finance Manager 2, 5, 7
GIS Manager 3, 6, 7
Human Resources Manager 3, 6
IT Manager 3, 6, 7
Network Engineer 3, 6, 7
-2015
Purchasing and Facilities Manager 2, 6
Safety and Security Specialist 1, 2, 3, 4, 6
Senior Procurement and Contracting Analyst 6
Senior Civil Engineer 1, 2, 3, 4, 7
System Operations Manager 1, 2, 3, 4, 7
Utility Services Manager 1, 2, 3, 4, 7
Consultant/New Positions9 1, 2, 3, 4, 5, 6
District Officials who manage public investments, as defined by 2 Cal.
Code of Regs. § 18701 (b) are not subject to the District's Conflict
of Interest Code except with respect to its disqualification
provisions. They must file disclosure statements under Government
Code § 87200 et seq. [2 CCR § 18730(b)(3)] These positions are listed
above for informational purposes only.
Individuals holding the positions listed below are officials who
manage public investments and who must file their disclosure
statements under Government Code Section 87200:
Members of the Board of Directors
General Manager
Chief Financial Officer
Asst. Chief Financial Officer
Financial Consultants
Individuals holding the above-listed positions may contact the Fair
Political Practices Commission for assistance or written advice
regarding their filing obligations if they believe that their position
has been categorized incorrectly. The Fair Political Practices
9 Consultants/New Positions are included in the list of designated positions and shall disclose pursuant
to the broadest disclosure category in the code, subject to the following limitation:
The General Manager may determine in writing that a particular consultant or new position, although a
“designated position,” is hired to perform a range of duties that is limited in scope and, thus, not
required to fully comply with the disclosure requirements in this section. Such written determination
shall include a description of the consultant’s or new position’s duties and, based upon that description,
a statement of the extent of the disclosure requirements. The written determination is a public record
and shall be retained for public inspection in the same manner and location as this Conflict of Interest
Code (Gov. Code section 81008)
Consultants are required to file disclosure statements where they: (a) conduct research and arrive at
conclusions with respect to rendition of information, advice, recommendation or counsel independent of
control and direction of the agency or any agency official other than normal contract monitoring; and (b)
possess no authority with respect to any agency decision beyond the rendition of information, advice,
recommendation or counsel.
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Commission makes the final determination whether a position is covered
by Government Code Section 87200.
Government Code Section 87200 requires that individuals holding the
above-listed positions shall, each year at a time specified by
commission regulations, file a statement disclosing their investments,
their interests in real property and their income during the period
since the previous statement filed. The statement shall include any
investments and interest in real property held at any time during the
period covered by the statement, whether or not they are still held at
the time of filing.
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APPENDIX, CONTINUED
DISCLOSURE CATEGORIES
The disclosure categories listed below identify the types of
investments, business entities, sources of income, or real property
which the designated employee must disclose for each disclosure
category to which he or she is assigned.
Category 1:All investments and business positions in, and sources
of income from, all business entities that do business or own real
property in the District, plan to do business or own real property in
the District within the next year or have done business or owned real
property in the District within the past two years.
Category 2:All interests in real property which are located in
whole or in part within, or not more than two (2) miles outside the
boundaries of the District.
Category 3:All investments and business positions in, and sources
of income from, business entities subject to the regulatory, permit or
licensing authority of the Designated Employee’s Department, will be
subject to such authority within the next year or have been subject to
such authority within the past two years.
Category 4:All investments, business positions, and sources of
income from, business entities that are engaged in land development,
construction or the acquisition or sale of real property in the
District, plan to engage in such activities in the District within the
next year or have engaged in such activities in the District within
the past two years.
Category 5:All investments and business positions in, and sources
of income from, business entities that are banking, savings and loan
or other financial institutions.
Category 6:All investments and business positions in, and sources
of income from, business entities that provide services, supplies,
materials, machinery, or equipment of a type purchased, leased, used,
or administered by the District.
Category 7:All investments and business positions in, and sources
of income from, business entities that provide services, supplies,
materials, machinery, or equipment of a type purchased, leased, used,
or administered by the Designated Employee’s Department.
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EXHIBIT A
Prohibited Transactions for Specified Personnel
Members of the Board of Directors (“Members”) shall comply with this
Prohibited Transactions policy pursuant to California Government Code
§§ 1090, et seq.
Members shall not be financially interested in any contract made by
them in their official capacity, or by any body or board of which they
are members. Members shall not be purchasers at any sale or vendors
at any purchase made by them in their official capacity. Members
shall not be deemed to be interested in a contract entered into by a
body or board of which they are members if the Member has only a
remote interest in the contract and if the fact of that interest is
disclosed to the body or board of which the Member is a member and
noted in its official records, and thereafter the body or board
authorizes, approves, or ratifies the contract in good faith by a vote
of its membership sufficient for the purpose without counting the vote
or votes of the Board of Directors member with the remote interest.
“Remote interest” shall be defined as in California Government Code
§ 1091(b).
Members shall not be considered to be financially interested in a
contract if their interest is including, but not limited to, any of
the following (Government Code § 1091.5):
1.That of an officer in being reimbursed for his/her actual
and necessary expenses incurred in the performance of an official
duty;
2.That of a recipient of public services generally provided by
the public body or board of which he/she is a member, on the same
terms and conditions as if he or she were not a member of the
board;
3.That of a landlord or tenant of the contracting party if
such contracting party is the federal government or any federal
department or agency, this state or an adjoining state, any
department or agency of this state or an adjoining state, any
county or city of this state or an adjoining state, or an public
corporation or special, judicial or other public district of this
state or an adjoining state unless the subject matter of such
contract is the property in which such officer or employee has
such interest as landlord or tenant in which even his/her
interest shall be deemed a remote interest within the meaning of,
and subject to, the provisions of Government Code 1091;
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4.That of a spouse of an officer or employee of a public
agency if his/her spouse’s employment or office-holding has
existed for at least one year prior to his/her election or
appointment;
5.That of a non-salaried member of a nonprofit corporation,
provided that such interest is disclosed to the board at the time
of the first consideration of the contract, and provided further
that such interest is noted in its official records;
6.That of a non-compensated officer of a nonprofit, tax-exempt
corporation, which, as one of its primary purposes, supports the
functions of the board or to which the board has legal obligation
to give particular consideration, and provided further that such
interest is noted in its official records;
For purposes of this paragraph, an officer is
“noncompensated” even though he or she receives reimbursement
from the nonprofit, tax-exempt corporation for necessary travel
and other actual expenses incurred in performing the duties of
his or her office.
7.That of compensation for employment with a governmental
agency, other than the governmental agency that employs the
officer or employee, provided that the interest is disclosed to
the board at the time of consideration of the contract, and
provided further that the interest is noted in its official
records;
8.That of an attorney of the contracting party of that of an
owner, officer, employee or agent of a firm which renders, or has
rendered, service to the contracting party in the capacity of
stockbroker, insurance agent, insurance broker, real estate
agent, or real estate broker if these individuals have not
received and will not receive remuneration, consideration, or a
commission as a result of the contract and if these individuals
have an ownership interest of less than 10 percent in the law
practice or firm, stock brokerage firm, insurance firm or real
estate firm.
In addition, Members shall not be deemed to be interested in a
contract made pursuant to competitive bidding under a procedure
established by law if their sole interest is that of an officer,
director, or employee of a bank or savings and loan association with
which a party to the contract has the relationship of borrower or
depositor, debtor or creditor (Government Code § 1091.5).
Authority:
California Government Code §§ 1090, et seq.
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EXHIBIT B
Incompatible Activities Policy
District officers, members of the Board of Directors, and all other
District employees (collectively, “district personnel”) shall comply
with this Incompatible Activities policy pursuant to California
Government Code §§ 1125, et seq.
District personnel shall not engage in any employment, activity, or
enterprise for compensation which is inconsistent, incompatible, in
conflict with, or inimical to his or her duties as a member of the
Board of Directors, or with the duties, functions, or responsibilities
of his or her appointing power or the agency by which he or she is
employed.
The outside employment, activity, or enterprise of district personnel
is prohibited if it: (1) involves the use for private gain or
advantage of his or her local District time, facilities, equipment and
supplies; or the badge, uniform, prestige, or influence of his or her
local District office or employment or, (2) involves receipt or
acceptance by district personnel of any money or other consideration
from anyone other than the District for the performance of an act
which district personnel, if not performing such act, would be
required or expected to render in the regular course or hours of their
local District employment or as a part of their duties as a local
District officer or employee or, (3) involves the time demands as
would render performance of his or her duties as a local district
personnel member less efficient.
Nothing in this policy shall be interpreted to prohibit any outside
employment, activity, counsel, or enterprise on behalf of another
governmental entity, subject to common law and professional conflict
of interest rules.
Copies of this regulation shall be posted in prominent places at the
District Office. District personnel who violate this regulation may
be subject to discipline as set forth in the applicable Code of
Ordinances and Policies. Board of Directors members who violate this
section may be subject to censure. Disciplinary appeals by district
personnel shall be handled pursuant to applicable Code of Ordinances
and Policies.
Authority:
California Government Code §§ 1125, et seq.
9-1
CHAPTER 6 MISCELLANEOUS ADMINISTRATION PROCEDURES
SECTION 9 ANNEXATIONS AND DETACHMENTS
9.01 REQUIREMENT OF ANNEXATION FOR SERVICE
Except as provided elsewhere in this Code, whenever
utility service is requested for land outside the bounda-
ries of an improvement district, the land to be serviced
must first be annexed to an improvement district(s). If
the land is located outside the boundaries of the District,
the land must also be annexed to the District.
9.02 ANNEXATIONS TO OR DETACHMENTS FROM IMPROVEMENTS
DISTRICTS
An owner or owners of land within the District desir-
ing to annex to or detach land from an improvement district
within the District must file a petition for such proceed-
ing with the District. Annexation proceedings shall be
conducted pursuant to Chapter I (commencing with Section
72670) of Part 11, Division 20 of the California Water
Code. Detachment or exclusion proceedings shall be
conducted pursuant to Part 8.5 (commencing with Section
72080) of Division 20 of the California Water Code.
If the land proposed to be annexed is outside the
boundaries of the territory served by the Metropolitan
Water District of Southern California and the territory
served by the San Diego County Water Authority, and no
local sources of water are available to serve such land,
the District will require that the land be annexed to those
entities as well.
9.03 ANNEXATIONS TO OR DETACHMENTS FROM THE DISTRICT
THROUGH LAFCO
1. Application Process Options
An owner or owners desiring to annex land to or to detach
land from the District may either
(i) file a petition directly with the Local Agency
Formation Commission (LAFCO) for the annexation
or detachment or
(ii) request the District file a petition with LAFCO
for such annexation or detachment. Any such
proceeding for annexation or detachment, which is
deemed a change of organization or reorganization
pursuant to the Cortese-Knox-Hertzberg Local
Government Reorganization Act of 2000, shall be
initiated, conducted and completed pursuant to
Title 6, Division 1 (commencing with Section
9-2
56000) of the California Government Code.
By annexing to the District the owners and representatives
of the annexing land agree, on behalf of themselves and all
future owners and occupants of the annexed lands, to comply
with all laws, statutes, policies, plans, conditions and
requirements applicable to the services provided by the
District to such lands, including without limitation any
conservation or local supply use requirements.
2. Board Approval Process for a request the District
file the LAFCO petition
a. The Board, or any standing committee of the Board
reviewing an annexation request will consider the
request at the next regular meeting taking place
no earlier than 60 days after the receipt by the
District of the request for the annexation and
all accompanying required information.
b. A request for annexation shall include:
(1) A legal description and a detailed map of
the area proposed to be annexed, clearly
indicating the metes and bounds of the area and
the gross and net acreage for the area with
sufficient documentation to support the gross and
net acreage specified;
(2) A certificate from the assessor of the
county within which the area proposed to be
annexed is situated setting forth the assessed
valuation of each parcel included within the
area;
(3) Identification of the ownership of each
parcel included within the area proposed to be
annexed;
(4) For each parcel included in the area
proposed to be annexed, a description of:
• The present use of each of the parcels
• Existing or proposed development plans
• An estimate of the total annual and peak
demands for water service, including an
estimate of the proportion of those demands
to be supplied by Otay Water District
9-3
• Any infrastructure requirements for
servicing the proposed annexation area
• A plan for implementing all current water
use efficiency and restrictions
• All appropriate California Environmental
Quality Act (CEQA), and if applicable,
National Environmental Policy Act (NEPA)
documents
• Payment of all applicable fees.
c. The Water District shall consider its current and
planned water supplies, the above-listed
information, whether annexing the property would
diminish the District’s ability to serve its
current obligations.
d. The Otay Water District will submit a petition to
LAFCO for annexation or detachment following
District approval of the request for annexation
or detachment and upon payment of all applicable
fees by the owners and representatives of the
annexing or detaching land.
9.04 FEES AND CHARGES FOR ANNEXATIONS OR DETACHMENTS
A petitioner requesting an annexation to or detachment
from the District or within the District shall pay the
following applicable fees and charges:
A. Administrative Processing Fees
1. District Processing Fee. A District processing fee
(see Appendix A, Section 9 for fee) shall be paid
to the District for each annexation or detachment
proceeding, regardless of the number of parcels
involved, provided all parcels are included in one
proceeding. This fee shall constitute the "base
rate" on March 3, 1997. The base rate shall be
adjusted annually for fluctuations in the Consumer
Price Index (Urban Wage Earners and Clerical
Workers - Los Angeles) and subsequent cost-of-
living adjustment (COLA).
2. Additional Processing Fees or Charges. The peti-
tioner shall pay all processing fees and charges
due LAFCO, the State Board of Equalization and any
other applicable government agency.
3. Concurrent Annexations to or Detachments from the
District and an Existing Improvement District.
9-4
No additional processing costs or fees will be
charged to a petitioner for an annexation to or
detachment from an existing improvement district
when the proceeding is part of an annexation to
or detachment from the District.
4. Payment of Fees and Charges. The District
processing fees and charges shall be paid to the
District at the time the petition for such
proceeding is filed. Where a petition is filed
with LAFCO, the District shall notify LAFCO that
payment of all required fees and charges to the
District shall be a condition for District
approval of the annexation or detachment.
B. Water Annexation Fees. The annexation fee (see
Appendix A, Section 9) shall constitute the "base
rate" on June 7, 2017). The base rate shall be
adjusted on the first day of each calendar quarter
for fluctuations in construction costs, as measured
by the Engineering News Record Construction Cost
Index for the Los Angeles Region. The ENR
Construction Cost Index of 11,555.03 on April 1,
2017 shall be deemed the "base index." The
adjustment shall be in an amount equal to the
percentage change in the ENR Construction Cost
Index from the base index for the period from April
1, 2017 to the date of payment.
1. No water annexation fee shall be required for
existing and future agricultural water service
furnished by the District under the COMMERCIAL
AGRICULTURAL category of Section 25 of the Code.
2. Non-permanent irrigation water service furnished by
the District under Section 30 of the Code shall be
available without payment of a water annexation
fee.
3. Open Space to be Annexed. Open space lands shall
not be excluded from annexations of land to a
water improvement district.
4. Water Meter Type Exclusions. Annexation fees
shall be collected on all water meters sold
except for construction water meters, water tank
truck meters, nonpermanent irrigation water
meters, and outside user meters, all as defined
elsewhere in this Code.
5. Effective Date. Annexation fees shall be col-
lected on all lands annexing into the Otay Water
District boundaries on or after March 5, 1997.
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6. Basis for Determination. For annexations of land
into the Otay Water District boundaries, the
petitioner shall pay an annexation fee. The fee
shall be paid at the time of petition to be
annexed. There shall be no water annexation fee
charged for parcels already within District
boundaries that are applying to be annexed into a
water ID.
For permanent water meters, except for commercial
agricultural meters, the annexation fee shall be
determined on the basis of the demand to be placed
on the District-wide water system. The fee will be
determined on the basis of the size of the water
meter required, as set forth in Section 27 of the
Code. The fee shall be determined by multiplying
the demand factor for the meter size, as set forth
in Section 28 of the Code, by the annexation fee
per EDU. See Appendix A, Section 9 for fees.
C. Sewer Annexation Fees
1. Improvement District Annexation. All annexation
for sewer service shall be into Improvement
District No. 18 on or after December 16, 1998.
2. Open Space to be Annexed. Open space lands shall
not be excluded from annexations of land to a
sewer improvement district.
3. Effective Date. Annexation fees shall be
collected on all lands annexing to a sewer
improvement district on or after December 16,
1998.
4. Basis for Determination. For annexations of land
to a sewer improvement district within the Dis-
trict, the petitioner shall pay an annexation
fee. The fee shall be determined on the basis of
the demand to be placed on the District sewer
system. The fee shall be paid at the time of
sewer service connection request or General
Manager's approval of plans, whichever occurs
earlier. The extent of the demand will be
determined on the basis of each equivalent
dwelling unit (EDU) of service which is to be
connected to the District sewer system. The
number of EDUs prescribed in Section 53 of the
Code shall be the basis for computation of the
amount of the annexation fee. The fee will be
determined by multiplying the number of EDUs by
9-6
the annexation fee per EDU. See Appendix A,
Section 9 for fees.
This annexation fee shall constitute the "base
rate" on June 7, 2017. The base rate shall be
adjusted on the first of each calendar quarter
for fluctuations in construction costs as
measured by the Engineering News Record
Construction Cost Index for the Los Angeles
Region. The ENR Construction Cost Index of
11,555.03 (as of April 1, 2017) shall be deemed
the "base index." The adjustment shall be in an
amount equal to the percentage change in the ENR
Construction Cost Index from the base index for
the period from April 1, 2017 to the date of
payment.
D. Detachment Fees
For each detachment of land from an improvement
district, the petitioner shall pay such fees as
the General Manager determines are appropriate
for the detachment. Determinations shall be made
by the General Manager on a case-by-case basis.
9.05 TAXATION OF PROPERTY AFTER ANNEXATION TO IMPROVEMENT
DISTRICT
Where property is annexed by a petitioner, other than
a tax-exempt agency, the property in the annexed area shall
be subject to taxation after the 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 the annexation. The Board of Directors shall
provide as a condition of the annexation that the annexed
area shall be subject to taxation as if the property had
always been a part of the improvement district.
9.06 OTHER CONDITIONS OF ANNEXATION
1. By annexing to the District the owners and
representatives of the annexing land agree, on
behalf of themselves and all future owners and
occupants of the annexed lands, to comply with
all laws, statutes, policies, plans, conditions
and requirements applicable to the services
provided by the District to such lands, including
without limitation any conservation or local
supply use requirements.
2. Proposals which create an unannexed area entirely
surrounded by an annexed area shall not be
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approved unless the Board determines that the
Water District’s interests will not be adversely
affected by the existence of the encompassed
area.
3. An annexed area shall be subject to all
applicable water use efficiency guidelines.
9.07 ANNEXATION OF TRIBAL LANDS
Annexation of Tribal Lands may be approved where an
agreement with the Tribal government to assure
implementation and annexation conditions and requirements
has been signed, in accordance with Water Code section
71611.5(b). The agreement shall include, among other items,
payment to the Water Authority in lieu of taxes,
assessments, and other charges from which the tribal lands
would otherwise be exempt, and a tribal government waiver
of sovereign immunity from suit for the purposes of
enforcement of the contractual agreement. The waiver of
sovereign immunity from suit for the purposes of
enforcement of the contractual agreement shall specify that
suit shall proceed in either the Superior Court of the
State of California, or the proper jurisdiction of the
Federal Court, whichever is proper, and be subject to
California and/or Federal law.
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SECTION 10 APPLICATION FOR WAIVER OR MODIFICATION OF
ORDINANCE REQUIREMENTS
10.01 FILING OF PETITION
Any person may present a petition to the Board of
Directors requesting that the Board consider a waiver or
modification of requirements of a section of an ordinance
set forth in this Code. The petition for waiver or modifi-
cation shall be in writing on forms furnished by the Dis-
trict. A fee as set forth in Appendix A, 10.01 shall be
paid at the time of submission of the petition requesting
the waiver or modification.
10.02 REVIEW BY BOARD OF DIRECTORS
The grant or denial of such waiver or modification
shall be determined solely by the Board of Directors. Any
such waiver or modification shall be effective only upon
such Board approval which shall set forth the terms and
conditions thereof. Each waiver or modification shall be
limited to the person and property involved in the applica-
tion.
21-1
DIVISION II DISTRICT OPERATIONS
CHAPTER 1 WATER SERVICE
SECTION 21 RULES AND REGULATIONS FOR WATER SERVICE
Water service shall be furnished to customers only in
accordance with the rules and regulations set forth in this Code
of Ordinances or as otherwise authorized by the Board of
Directors.
22-1
SECTION 22 DISTRICT WATER SYSTEMS
22.01 CONTROL AND OPERATION OF SYSTEMS
All District water systems and appurtenances thereto shall
be under the management and control of the General Manager. The
District system shall include all piping components and
appurtenances, up to and including the water meter. No person,
other than an employee or agent of the District, shall have any
right to operate any part of a District water distribution system
or any other District facility. As provided in Division IV, any
person who tampers or interferes with the Districts systems or
facilities, or causes or permits any such act, shall be
responsible for any injury or damage caused thereby or resulting
therefrom.
22.02 INSTALLATION OR REMOVAL OF METERS
Installation or removal of water meters and connection to
and disconnection from a District water system shall be made only
by district employees.
22.03 TURN-ON OR TURN-OFF OF WATER SERVICE
Except as otherwise specifically authorized by the General
Manager, only District employees shall be permitted to turn water
on or off at any connection or valve of a District water system
or to operate any device that will regulate the flow of water
within the system. The customer owns and is solely responsible
for the installation, inspection, replacement, maintenance and
repair of any pipes or other facilities installed from the meter,
including the ball valve, to and around the property.
22.04 INSPECTION OF CUSTOMER PREMISES
Authorized District personnel shall have unrestricted access
at reasonable hours to all premises to which the District is
furnishing water in order to inspect the supply system, meters,
or measuring devices, and to determine whether the customer is
complying with the rules, regulations and ordinances of the
District concerning the taking, using or wasting water.
23-1
SECTION 23 NON-RESPONSIBILITY OF DISTRICT
23.01 INTERRUPTIONS OF WATER SERVICE
District does not guarantee continuous delivery of water
on demand. From time to time, it may be necessary for the
District to shut off the flow of water in any of its water
systems. Except in emergencies, such stoppages will not be
made without prior notice to the customers involved. The
District shall not assume any responsibility for loss or
damages which may occur due to interruption of water service.
23.02 PRIVATELY-OWNED WATER LINES
The District assumes no responsibility for the delivery
of water through privately-owned pipelines or systems, nor
shall it assume any responsibility for damages resulting from
the operation of any such system even though water may be
received from a district water distribution system.
23.03 WATER PRESSURE REGULATION
A.Customer Responsibility. The District shall
assume no responsibility for water pressure
regulation within a customer's service area. The
customer shall be responsible for providing adequate
safeguard measures for the customer's water system
wherever pressure regulation is necessary.
B.Requirements for Installation in New Construction.
Customers making application for water service for
new construction for residential, commercial or
industrial use shall be required to install an
appropriate pressure regulation device for such
service.
23.04 CROSS-CONNECTIONS AND BACKFLOW DEVICES
State Regulations for Cross-Connections
The California State Water Resources Control Board has
issued regulations related to cross-connections, outlined in
the Cross-Connection Control Policy Handbook (CCCPH), for the
purpose of safeguarding drinking water supplies by preventing
backflow into public water systems.
It is unlawful for any person, firm, or corporation at
any time to make or maintain, or cause to be made or main-
tained, temporarily or permanently, for any period of time
whatsoever, any cross-connection between plumbing pipes or
water fixtures being served with water by the District water
department and any other source of water supply; or to main-
tain any sanitary fixtures or other appurtenances or fixtures
23-2
which, by reason of their construction, may cause or allow
backflow of water or other substances into the water supply
system of the District and/or the service of water pipes or
fixtures of any consumer of the District.
A.Definitions: For a complete listing, see the
California State Water Resources Control Board’s Cross-
Connection Control Policy Handbook.
1.Air-Gap Separation or “AG”: The term "air-gap
separation" means a physical vertical separation of
at least two (2) times the effective pipe diameter
between the free-flowing discharge end of a potable
water supply pipeline and the flood level of an open
or non-pressurized receiving vessel, and in no case
less than one (1) inch.
2.Approved Backflow Prevention Device: The term
"approved backflow prevention device" shall mean
devices which have passed laboratory and field
evaluation tests performed by a recognized testing
organization which has demonstrated their competency
to perform such test to the State Water Resources
Control Board and the Otay Water District.
3.AWWA Standard: The term "AWWA Standard" means an
official standard developed and approved by the
American Water Works Association (AWWA).
4.Backflow: The term "backflow" means an undesired or
unintended reversal of flow of water and/or other
liquids, gases, or other substances into a public
water system’s distribution system or approved water
supply.
5.Backflow Prevention Assembly or “BPA”: The term
“backflow prevention assembly” means a mechanical
assembly designed and constructed to prevent
backflow, such that while in-line it can be
maintained and its ability to prevent backflow, as
designed, can be field tested, inspected and
evaluated.
6.Cross-Connection: The term "cross-connection" means
any actual or potential connection or structural
arrangement between a public water system, including
a piping system connected to the public water system
and located on the premises of a water user or
available to the water user, and any source or
distribution system containing liquid, gas, or other
substances not from an approved water supply.
23-3
7.Cross-Connection Control Specialist: A “cross-
connection control specialist” means a person who is
certified as a cross-connection control specialist.
8.Double Check Valve Backflow Prevention Assembly or
“DC”: The term "double check valve backflow
prevention assembly" means an assembly consisting of
two independently-acting internally-loaded check
valves, with tightly closing shut-off valves located
at each end of the assembly (upstream and downstream
of the two check valves) and fitted with test cocks
that enable accurate field testing of the assembly.
9.Hazard Assessment: The term “hazard assessment”
means an evaluation of a user premises designed to
evaluate the types and degrees of hazard at a user’s
premises.
10.Reduced Pressure Principle Backflow Prevention
Assembly or “RP”: The term "reduced pressure
principle backflow prevention assembly" means an
assembly with two independently acting internally-
loaded check valves, with a hydraulically operating
mechanically independent differential-pressure
relief valve located between the check valves and
below the upstream check valve. The assembly shall
have shut-off valves located upstream and downstream
of the two check valves, and test cocks to enable
accurate field testing of the assembly.
11.Reduced Pressure Principle Detector Backflow
Prevention Assembly or “RPDA”: The term “reduced
pressure principle detector backflow prevention
assembly” means a reduced pressure principle
backflow prevention assembly that includes a bypass
with a water meter and reduced pressure principle
backflow prevention assembly, with the bypass’ water
meter accurately registering flow rates up to two
gallons per minute and visually showing a
registration for all rates of flow.
12.User’s Service Connection: The term "user’s service
connection" means either the point where a water
user’s piping is connected to a water system or the
point in a water system where the approved water
supply can be protected from backflow using an air-
gap or backflow prevention assembly.
13.User Supervisor: The term “user supervisor” means a
person designated by a water user to oversee a water
23-4
use site and responsible for the avoidance of cross-
connections.
B.General Provisions
1.Unprotected cross-connections with the public
water supply are prohibited.
2.Whenever backflow protection has been found
necessary, the District will require the water
user to install an approved backflow prevention
device, by and at his/her expense, for continued
services or before a new service will be granted.
3.Wherever backflow protection has been found
necessary on a water supply line entering a water
user's premises, then all water supply lines from
the District's mains entering such premises,
buildings, or structures shall be protected by an
approved backflow prevention device. The type of
device to be installed will be in accordance with
the requirements of this Ordinance and all devices
will be appropriate for the highest level of
hazard found on the premises.
C.Where Protection is Required
1.Each service connection from the District water
system for supplying water to premises having an
auxiliary water supply shall be protected against
backflow of water from the premises into the
public water system.
2.Each service connection from the District water
system for supplying water to any premises on
which any substance is handled in such fashion as
may allow its entry into the water system shall
be protected against backflow of the water from
the premises into the public system. This
includes commercial accounts, fire service
accounts, irrigation accounts, multi-family
dwellings, multi-story buildings, complex piping,
and locations where the handling of process
waters and waters originating from the District
water system may be subjected to deterioration in
sanitary quality.
D.Type of Protection Required
23-5
1.The type of protection that shall be provided to
prevent backflow into the approved water supply
shall be commensurate to the degree of hazard
that exists on the consumer's premises. The type
of protective device that may be required (listed
in increasing levels of protection) includes:
double check valve backflow prevention
assemblies, reduced pressure principle backflow
prevention assemblies (RP), and an air-gap
separation (AG). The water user may choose a
higher level of protection than that required by
the District. The minimum types of backflow
protection required to protect the approved water
supply at the user's water connection to premises
with varying degrees of hazard are given in
Appendix D of the Cross-Connection Control Policy
Handbook. Situations which are not covered in
Appendix D shall be evaluated on a case-by-case
basis, and the appropriate backflow protection
shall be determined by the District.
E.Approved Backflow Prevention Devices
1.Only lead-free backflow prevention assemblies
which have been approved by the District shall be
acceptable for installation by a water user
connected to the District's potable water system.
2.Where repairs on existing lead containing
backflow prevention assemblies are required,
replacement parts must be lead-free. Where lead
free replacement parts are not available, the
entire backflow prevention assembly must be
replaced with a lead-free assembly.
3.The District will provide to any affected
customer, upon their request, a list of approved
backflow prevention devices.
F.Backflow Prevention Device Installation
1.Backflow prevention devices shall be installed in
the manner prescribed in Article 3 of the Cross-
Connection Control Policy Handbook. Location of
the devices should be as close as practical to
the user's point of service connection. The
District shall have the final authority in
determining the required location of a backflow
prevention device.
23-6
a.Air-gap Separation (AG) - The air-gap
separation shall be located on the user's
side of, and as close to, the service
connection as is practical. All piping
from the service connection to the
receiving tank shall be above grade and be
entirely visible. No water use shall be
provided from any point between the
service connection and the air-gap separa-
tion. The water inlet piping shall
terminate a distance of at least two (2)
pipe diameters of the supply inlet, but in
no case less than one inch above the
overflow rim of the receiving tank.
b.Reduced Pressure Principle Backflow
Prevention Device (RP) - The approved
reduced pressure principle backflow
prevention device shall be installed on
the user's side of the service connection
at a distance consistent with the
District's Standard Drawings and
Specifications. The device shall be
installed a minimum of twelve inches (12")
but not more than twenty-four inches (24")
above grade, measured from the bottom of
the relief valve and with a minimum of
twelve inches (12") side clearance, and
twenty-four inches (24”) of clearance on
the side of the assembly containing the
test cocks. The device shall be installed
so that it is readily accessible for
maintenance and testing. Water supplied
from any point between the service
connection and the RP device shall be
protected in a manner approved by the
District. Additionally, materials and
installation shall conform to water agency
standards which can be found at
www.sdwas.org.
G.Backflow Prevention Device Testing and Maintenance
1.The owners of any premises on which, or on
account of which, backflow prevention devices
are installed shall have the devices tested by a
person who has demonstrated their competency in
testing of these devices to the District and has
been approved by the District. Backflow
prevention devices must be tested at least
23-7
annually and immediately after installation,
relocation, or repair. The District may require
a more frequent testing schedule if it is
determined to be necessary. No device shall be
placed back in service unless it is functioning
as required. An online testing result
submission, through the District’s backflow
compliance program, shall be made within five
(5) working days each time a device is tested,
relocated, or repaired. Backflow prevention
devices shall be serviced, overhauled, or
replaced whenever they are found to be defective
or observed to not be in proper working order.
All costs of testing, repair, and maintenance
shall be borne by the water user.
2.Initial testing after installation and subse-
quent retesting shall be performed using the USC
Manual of Cross-Connection Control 10th edition
(or current) approved testing procedures.
3.The District will supply affected water users
with a list of persons acceptable to the
District to test backflow prevention devices.
The District will notify affected customers by
mail when annual testing of a device is needed
and will also supply users with the necessary
testing information to be submitted each time a
device is tested or repaired.
H.Backflow Prevention Device Removal
1. Written approval must be obtained from the
District before a backflow prevention device is
removed, relocated, repaired or replaced.
a.Removal: The use of a device may be
discontinued and device removed from
service upon presentation of sufficient
evidence to the District to verify that a
hazard no longer exists or is not likely
to be created in the future. Sites with
wells are required to keep a backflow
prevention assembly in place until a well
deconstruction permit is completed with
the County Department of Environment
Health and Quality and a well
deconstruction inspection report can be
provided.
23-8
b.Relocation: A device may be relocated
following confirmation by the District
that the device is lead free and that the
relocation will continue to provide the
required protection and satisfy
installation requirements. Any lead
containing devices will require a complete
replacement in lieu of relocation. A
retest of the backflow prevention assembly
will be required following the relocation.
c.Repair: A device may be removed for
repair, provided the water use is either
discontinued until repair is completed and
the device is returned to service, or the
service connection is equipped with other
backflow protection approved by the
District. A retest will be required
following the repair of the device.
d.Replacement: A device may be removed and
replaced provided the water use is
discontinued until the replacement device
is installed and tested. All replacement
devices must be approved by the District
and must be commensurate with the degree
of hazard involved.
I. User Supervisor
1.At premises where it is necessary, in the
opinion of the District, a user supervisor shall
be designated by and at the expense of the water
user. This user supervisor shall be responsible
for the monitoring of internal backflow
prevention devices and for avoidance of cross-
connections within the premises. In the event
of contamination or pollution of the drinking
water system due to an on-premise cross-
connection, the District shall be notified as
soon as possible but no later than 24 hours
after the observance of the unprotected cross
connection by the user supervisor so appropriate
measures may be taken to overcome the
contamination.
2.The water user shall inform the District of the
user supervisor's required information,
including certification, a current contact phone
number, and current email address. Contact
23-9
information shall be provided on an annual basis
or whenever a change occurs.
3.The user supervisor is responsible for the
avoidance of cross-connections during the
installation, operation and maintenance of the
water user’s pipelines and equipment. The user
supervisor must be trained on the fluids used
and backflow protection for the premises and
must inform the District of changes in piping.
4.The user supervisor must meet the qualification
and training requirements described in the
District’s cross-connection control plan.
J. Administrative Procedures
Hazard Assessments
1.The District shall review all requests for new
services to determine if backflow protection is
needed. Plans and specifications must be
submitted to the District upon request for
review of possible cross-connection hazards as a
condition of service for new service
connections. If it is determined that a
backflow prevention device is necessary to
protect the public water system, the required
device must be installed before service will be
activated. An initial hazard assessment of each
premise must be completed before service is
provided to the site.
2.The District may require an on premise hazard
assessment to evaluate cross-connection hazards.
The District will transmit a written notice
requesting an inspection appointment to each
affected water user. Any customer who cannot or
will not allow an on premise inspection of their
piping system shall be required to install a
reduced pressure principle backflow prevention
assembly in accordance with the CCCPH Appendix
D.
3.The District may, at its discretion, require a
periodic re-assessment for cross-connection
hazards of any premises to which it serves
water. Re-assessments will occur whenever
there is a usage type change at a site, when an
ownership change occurs(excluding single family
23-10
residential sites), when the District believes
that activities on the site present a higher
level of hazard than when previously assessed,
if backflow from a user’s premises occurs, and
periodically on the timelines identified in the
District’s cross connection control plan. The
District will transmit a written notice
requesting an inspection appointment to each
affected water user. Any customer who cannot
or will not allow an on-premise inspection of
their piping system shall be required to
install a reduced pressure principle backflow
prevention assembly in accordance with the
CCCPH Appendlix D.
K.Customer Notification - Device Installation and/or
Repair (Corrective Action)
1.The District will notify the water user of the
survey findings, listing corrective action to
be taken if required. A period of 30 days will
be given to complete all corrective action
required including installation of backflow
prevention devices.
2.A second notice will be sent to each water user
who does not take the required corrective
action prescribed in the first notice within
the 30-day period allowed. The second notice
will give the water user a 14-day period to
take the required corrective action and will
generate the assessment of a fee in accordance
with Appendix A of this Ordinance. If no
action is taken within the 14-day period, the
District may terminate water service to the
affected water user until the required
corrective actions are taken.
3.A third and final notice will be sent to each
water user who fails to take the requisite
corrective action detailed in the second notice
within the 14-day period allowed. The third
notice will indicate the date of service
termination and will generate the assessment of
a fee in accordance with Appendix A of this
Ordinance.
4.Only passing test results from a certified and
District-approved tester/installer received
electronically through the District’s backflow
23-11
compliance tester’s portal within the allotted
time period will constitute compliance with the
above requirements.
L. Customer Notification - Testing
1.The District will notify each affected water
user when it is time for the backflow preven-
tion assembly installed on their service
connections to be tested. This written notice
shall give the water user 50 days to have the
device tested and will supply the water user
with the necessary testing information to be
used when submitting testing results to the
District.
2.A second notice shall be sent to each water
user who does not have their backflow preven-
tion device tested by the response due date
prescribed in the first notice. The second
notice will give the water user an additional
14 days to have their backflow prevention
device tested. If no action is taken within
the 14-day period, the District may terminate
water service to the affected water user until
the subject device is tested.
3.A third notice will be sent to each water user
who fails to have their backflow prevention
device(s) tested as required in the second
notice within the 14-day period allowed. The
third notice will indicate the date of service
termination (10 days after the receipt of the
notice) and will generate the assessment of a
fee in accordance with Appendix A of this ordi-
nance.
4.Α hand delivered notice may be provided to the
property, where possible, to each water user
who fails to have their backflow prevention
device(s) tested as required in the third
notice within the 10-working day period
allowed. The hand delivered notice will
indicate the date of service termination,
typically with 48-hours, and will generate the
assessment of a fee in accordance with Appendix
Α of this Ordinance. The District would make
the final determination if a hand delivered
notice will be provided as a final measure to
23-12
achieve backflow testing compliance prior to
service interruption.
5.Submittal of passing test results by a District
approved tester, through the District’s
backflow compliance tester’s portal, within the
allotted time period will constitute compliance
with the above requirements.
M. Water Service Termination
A.General
When the District encounters water uses that rep-
resent a clear and immediate hazard to the potable
water supply that cannot be immediately abated, the
District shall institute the procedure for
discontinuing the District water service. A
reconnection fee will be assessed in accordance with
Appendix A of this Ordinance. Where a disconnection
of District water service is required, the District
will make the final determination of which, if not
all, services entering a site will be subjected to
disconnection.
B.Basis for Termination
Conditions or water uses that create a basis for
water service termination shall include, but are not
limited to the following items:
1.Refusal to install a required backflow pre-
vention device;
2.Refusal to test a backflow prevention device;
3.Refusal to repair a faulty backflow prevention
device;
4.Refusal to replace a faulty backflow prevention
device;
5.Observed bypassing or alteration of a backflow
prevention device;
6.Direct or indirect connection between the
public water system and a sewer line, including
treated sewage;
23-13
7.Unprotected direct or indirect connection
between the public water system and a system or
equipment containing pollutants or
contaminants;
8.Unprotected direct or indirect connection
between the public water system and an auxil-
iary water system; and/or
9.Any situation which presents an immediate
health hazard to the public water system.
Additional remedies for failure to comply with cross-
connection requirements are referenced in Section 72 of the
Code of Ordinances and may be prosecuted as set forth in
Section 73.01 of this Code.
N.Water Service Termination Procedures
The District has absolute discretion to determine
the corrective action required and referenced in
Sections 72 and 73 of this Code.
1.For conditions 1, 2, 3, or 4, the District will
terminate service to a customer's premise after
two (2) written notices have been sent
specifying the corrective action needed and the
time period in which it must be done. If no
action is taken within the allowed time period
water service may be terminated.
2.For conditions 4, 5, 6, 7, 8, or 9, the
District will take the following steps:
a.Make reasonable effort to advise the water
user of intent to terminate water service;
b.Terminate water supply and lock service
valve. The water service will remain
inactive until corrections of violations
have been approved by the District.
O. Requirements for addition to or renewal on the Otay
Water District list of approved backflow prevention
device testers
A.Each applicant (tester) desiring initial
addition to the District’s List of Approved
Backflow Prevention Device Testers shall submit
a fee in accordance with Appendix A of this
Ordinance. Fees must be made in an acceptable
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form of payment to the District. Along with
the fee, a current mailing address, email
address, phone number, and signed copy of the
backflow prevention assembly tester’s code of
conduct must be furnished. Those applicants
not meeting all qualifications specified herein
will have current fees returned.
B.Applicants shall hold a valid and current
certification from the American Water Works
Association (AWWA) California Nevada Section,
the American Backflow Prevention Association
(ABPA), or the American Society of Sanitary
Engineering (ASSE). After July, 1 2027,
acceptable organizations must be accredited by
the American National Standards Institute
(ANSI) in accordance with ISO/IEC 17024 and be
recognized by the State Water Resources Control
Board as a certifying organization. Testing
shall be performed using the most current test
procedures from the University of Southern
California foundation for Cross-Connection
Control and Hydraulic Reasearch. Evidence of
said certification shall be furnished to the
District at the time of application, at the
time of renewal, and at any time the District
requests verification. Certification alone
does not constitute District approval.
C.Each applicant shall furnish evidence to show
the availability of the necessary tools and
equipment to properly test and/or repair such
devices. Test kits shall be recalibrated
annually and evidence of this shall be
electronically submitted and maintained by the
tester in the District’s backflow compliance
program.
D.Tester applicants must agree to comply with the
Otay Water District’s backflow prevention
assembly tester’s code of conduct. Each new
applicant must provide a signed a copy of the
tester’s code of conduct prior to being added
to the District's List of Approved Backflow
Prevention Device Testers. Testers currently
listed must sign a new tester’s code of conduct
on a four-year interval, as substantive changes
occur, and/or as determined by the District.
Testers who fail to provide a signed tester’s
code of conduct form will be removed from the
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list and will have to apply as a new tester
during the next open enrollment period.
E.The tester shall be solely responsible for the
competency and accuracy of all tests and
reports prepared and submitted to the District.
The District reserves the right at any time to
require testers to perform repeat testing in
the presence of a District staff member should
the submitted results not appear to be accurate
or if the device shows signs of requiring
repairs at the time that passing results are
received.
F. Any tester found to be falsifying testing
results or modifying backflow prevention
assemblies in a manner other than how approval
was received from either the University of
Southern California Foundation for Cross-
Connection Control and Hydraulic Research or
ASSE International, will be removed from the
District's List of Approved Backflow Prevention
Device Testers for a minimum of three years and
will be reported to the tester’s certifying
organization.
G.The list of approved testers will be furnished
upon request to any District customer requiring
such service. The list of approved testers
will be updated on a bi-annual basis.
H.The testers listed will remain listed for as
long as their credentials, gauge calibrations,
and testers code of conduct all remain current
in the District’s backflow compliance program.
Testers are required to update their
credentials and gauge calibrations through the
backflow compliance program’s electronic
testers portal. Testers that do not update
their credentials will not be able to submit
testing results and will be removed from the
list after 45 days of being overdue for a
credential update. Any tester that falls off
of the list will need to reapply as a new
tester at the next open enrollment period and
will not be added back to the list until the
next bi-annual update occurs.
I.The District reserves the authority to revoke,
suspend, or remove any tester from the list of
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approved testers for improper conduct, testing,
repairs, and/or reporting at any time. Current
District staff members and their associated
companies cannot be added to the list or
perform testing services for backflow
prevention assemblies that are tracked in the
District’s backflow compliance program.
FEES
A.A second notice for required corrective action
will result in a service fee, per backflow
device as outlined in Appendix A.
B.A third notice (termination of service notice)
will result in a service fee per backflow
device followed by the assessment of a
reconnection fee if such action is required as
outlined in Appendix A.
C.A reconnection fee per service is required for
service to be resumed as outlined in Appendix
A.
D.Applicants for addition to the list of approved
backflow prevention device testers in the Otay
Water District will submit an initial filing
fee as outlined in Appendix A.
23.05 WATER SERVICE FOR STEAM BOILERS
Customers using District water to supply steam boilers
are required to provide adequate storage of water for boiler
use for a minimum period of 12 hours.
23.06 ELECTRICAL GROUND CONNECTIONS
The connection of electrical ground wire to water pipes
is prohibited. The District shall assume no responsibility
for any loss or damage resulting from such a connection.
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SECTION 24 CERTAIN SERVICE LIMITATIONS
24.01 NON-SERVICE AREAS
A.Except as provided in Section 25 of this Code, no
customer may use or permit the use of water:
1.for any property other than that described in the
application for service;
2.for any property outside of the boundaries of an
improvement district; or
3.for property outside the boundaries of the District.
B.Water service shall not be supplied to more than one
parcel through one meter, except for master meters when approved
by the General Manager. A "parcel" shall be deemed to mean land
or property identified as a parcel by the County Tax Assessor.
24.02 (RESERVED)
24.03 (RESERVED)
24.04 FIRE HYDRANTS AND CERTAIN OTHER FACILITIES
A.No person may withdraw water from any fire hydrant,
blow-off valve, or other connection to the facilities of this
District, unless an agreement has been entered into with the
District for such withdrawal. Such agreement shall provide that
all withdrawals shall be made through a meter.
B.The provisions of paragraph A shall not apply to
withdrawals of water made from fire hydrants or other facilities
for fire department purposes or to withdrawals made by other
governmental agencies with prior District approval.
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25 SECTION 25 CONDITIONS FOR WATER SERVICE
25.01 SERVICE AREA
Water service shall be furnished by the District only to
property within (annexed to) a water improvement district within
the District’s service area. Water service to property located
outside an improvement district may be furnished only upon prior
approval of the Board of Directors. Temporary water service to
property located outside an improvement district may be
furnished, in accordance with Section 25.03 D.15., upon the
approval of the General Manager.
25.02 DEFINITION OF "HCF" AND "UNIT OF WATER"
As used in the Code the terms "HCF" and "unit of water" are
interchangeable and each shall mean 100 cubic feet or 748
gallons of water.
25.03 DEFINITIONS OF WATER SERVICE CATEGORIES, WATER RATES, CHARGES
AND FEES
Water service furnished by the District shall be under the
categories of services and at the rates, charges and fees as set
forth in Appendix A, Section 25.
All District water rates, charges and fees are subject to Board
approval of rate increases beginning January 1, 2023 and
periodically thereafter through December 31, 2027. The
increases shall be the amount sufficient to cover pass-through
costs from wholesale water and energy suppliers, and increases
in overall non-supplier costs, in addition to increases in pass-
through costs, not to exceed the annual increase in the Consumer
Price Index-U for the San Diego-Carlsbad Area as of January 31
of the preceding year.
Five-year periodic pass–through rate increases or decreases from
District wholesalers – All District water rates, charges and
fees are subject to periodic rate changes from the District’s
public agency wholesalers for a five-year period beginning
January 1, 2023 through December 31, 2027.
A.Set-up Fees for Accounts A set-up fee shall be charged for
each account transferred to another customer. See Appendix
A, 25.03 A. for charges. A deposit will be required of all
customers who do not own the property to be served. See
Appendix A, 25.04 A. for deposit amounts.
B. Monthly Fixed MWD & CWA Charges Each potable water service
customer shall pay a monthly MWD and CWA fixed system
charge, as set forth in Appendix A, 25.03 B. Proceeds of
the charge will be used to pay for operating and
maintenance costs, including the following: MWD Readiness-
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to-Serve Charge, CWA Infrastructure Access Charge, Customer
Service Charge, Emergency Storage Charge, Fixed
Transportation Charge, and Supply Reliability Charge. The
MWD & CWA charge is based on the size of the water meter(s)
in service with the exception of upsizing the meter for
individually metered residential fire service, as described
in Section 38.03 of the Code. The MWD & CWA charge shall
start upon installation of the meter.
C. Monthly Fixed System Charges Each water service customer
shall pay a monthly fixed system charge, as set forth in
Appendix A, 25.03 C. Proceeds of the charge will be used
to pay for water system replacement, maintenance, and
operation expenses. The system charge is based on the
customer class and the size of the water meter(s) in
service. For individually metered residential fire
service, as outlined in Section 38.03 of the Code, the size
and fee would be set based on water use requirements
without additional fire capacity. The system charge shall
start upon installation of the meter.
D.Categories of Water Service The definitions and rates and
charges for water service furnished by the District shall
be as follows:
1. DOMESTIC RESIDENTIAL WATER
(a)Defined as: Water service for single residential
and individually metered attached households as
well as other domestic uses (other than that
provided for in Paragraph 2.(a)).
(b) Base Rate: The tiered base rates of water
furnished under this category shall be set forth
in Appendix A, 25.03 D.1.(b).
(c) Monthly system charge: The monthly system charge
for water service is set forth in Appendix A,
25.03 C.1.
2. MULTI-RESIDENTIAL WATER
(a)Defined as: Master metered water service for
multiple residential households, for example,
duplexes, townhomes, apartments, and mobile
homes.
(b)Base Rate: The tiered base rates of water
furnished for each dwelling unit in this category
shall be as set forth in Appendix A, 25.03
D.2.(b).
(c) Monthly system charge: The monthly system charge
for water service is set forth in Appendix A,
25.03 C.2.
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3. BUSINESS AND COMMERCIAL WATER
(a)Defined as: Potable water service for commercial
and industrial establishments.
(b)Base Rate: The base rate for water furnished
under this category shall be determined as set
forth in Appendix A, 25.03 D.3.(b).
(c) Monthly system charge: The monthly system charge
for water service is set forth in Appendix A,
25.03 C.3.
4.NON-PUBLIC IRRIGATION AND COMMERCIAL AGRICULTURE USING
POTABLE WATER
(a)Non-public irrigation is potable water service
provided solely for irrigation of landscape or
landscaping, as defined in Section 0.02 of this
Code.
(b) Commercial agricultural engaged in the growing or
raising of livestock, in conformity with
recognized practices of husbandry, for the
purpose of commerce, trade or industry, or
agricultural horticultural or floricultural
products and produced,
(i) for human consumption or for the market,
or
(ii) for the feeding of fowl or livestock
produced for human consumption or for the
market, or
(iii) for feeding fowl or livestock for the
purpose of obtaining their products for
human consumption or for the market, such
products to be grown or raised on a
parcel of land having an area of not less
than one acre utilized exclusively
therefore.
(c)Base Rate: The base rate for water furnished
under this category shall be determined as set
forth in Appendix A, 25.03 D.4.(c).
(d) Monthly system charge: The monthly system charge
for water service is set forth in Appendix A,
25.03 C.4.
5.PUBLICLY-OWNED WATER
(a)Defined as: Potable water service for publicly-
owned establishments and/or entities exempt from
District property taxes.
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(b)Base Rate: The base rate for water furnished
under this category shall be determined as set
forth in Appendix A, 25.03 D.5.(b).
(c) Monthly system charge: The monthly system charge
for water service is set forth in Appendix A,
25.03 C.5.
6.PUBLIC IRRIGATION WATER
(a)Defined as: Potable water service provided
solely for irrigation of publicly-owned landscape
or landscaping as defined in Section 0.02 of this
Code and/or entities exempt from District
property taxes.
(b)Base Rate: The base rate for water furnished
under this category shall be determined as set
forth in Appendix A, 25.03 D.6.(b).
(c) Monthly system charge: The monthly system charge
for water service is set forth in Appendix A,
25.03 C.6.
7.CONSTRUCTION WATER
(a)Defined as: Potable water service for
construction or for temporary purposes pursuant
to Section 31 of this Code.
(b) The rates for water furnished under this category
is set forth in Appendix A, 25.03 D.7.(b).
(c) Monthly system charge: The monthly system charge
for water service is set forth in Appendix A,
25.03 C.7.
8.RECYCLED WATER – NON-PUBLIC IRRIGATION, CONSTRUCTION,
AND CERTAIN NON-IRRIGATION PURPOSES
(a)Defined as: Non-potable and recycled water service
provided for irrigation of landscaping, as defined
in Section 0.02 of the Code, and certain non-
irrigation purposes, other than domestic use, in
compliance with federal, state, and local laws and
regulations regarding use of recycled water.
(b)The provisions of this Code, relating to use of
recycled water, set forth in Section 26 of the Code,
including but not limited to cross-connections and
backflow protective devices, shall be strictly
enforced in connection with the use of recycled
water.
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(c)Base Rate: The base rate for water furnished
under this category shall be determined as set
forth in Appendix A, 25.03 D.8.(c).
(d) Monthly system charge: The monthly system charge
for recycled water service is set forth in
Appendix A, 25.03 C.8.
9.RECYCLED WATER - COMMERCIAL
(a)Defined as: Non-potable and recycled water service
provided for commercial customers, as defined in
Section 0.02 of the Code, and certain non-irrigation
purposes, other than domestic use, in compliance
with federal, state and local laws and regulations
regarding use of recycled water.
(b)The provisions of this Code, relating to use of
recycled water, set forth in Section 26 of the Code,
including but not limited to cross-connections and
backflow protective devices, shall be strictly
enforced in connection with the use of recycled
water.
(c)Base Rate: The base rate for water furnished
under this category shall be determined as set
forth in Appendix A, 25.03 D.9.(c).
(d) Monthly system charge: The monthly system charge
for recycled water service is set forth in
Appendix A, 25.03 C.8.
10.RECYCLED WATER – PUBLIC IRRIGATION
(a)Defined as: Non-potable and recycled water service
provided for irrigation of publicly-owned
landscaping, as defined in Section 0.02 of the Code,
and/or entities exempt from District property taxes,
and certain non-irrigation purposes, other than
domestic use, in compliance with federal, state and
local laws and regulations regarding use of recycled
water.
(b)The provisions of this Code, relating to use of
recycled water, set forth in Section 26 of the Code,
including but not limited to cross-connections and
backflow protective devices, shall be strictly
enforced in connection with the use of recycled
water.
(c)Base Rate: The base rate for water furnished
under this category shall be determined as set
forth in Appendix A, 25.03 D.10.(c).
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(d) Monthly system charge: The monthly system charge
for recycled water service is set forth in
Appendix A, 25.03 C.8.
11. POTABLE INTERIM BUSINESS AND COMMERCIAL WATER
(a) Defined as: Potable water service provided by
the District on a temporary basis to business and
commercial customers in Improvement District 7
(ID 7) pursuant to individual agreements.
(b)If capacity fees have not been paid by the
customer, the rates for water furnished under
this category is set forth in Appendix A, 25.03
D.11.(b).
(c)If the customer has paid equivalent capacity and
annexation fees, the rates and charges for water
furnished under this category shall be the rates
set forth in Appendix A, 25.03 D.3.(b).
(d)The applicable monthly system charge shall be the
same rates charged to customers in the same
category of service on a permanent meter basis
per Appendix A, 25.03 C.3.
(e)Conversion to Permanent Service. At such time as
use expires, the customer shall be required to
pay all unpaid fees in effect at the time the
permanent use is implemented.
12.POTABLE INTERIM NON-PUBLIC IRRIGATION AND COMMERCIAL
AGRICULTURE WATER
(a) Defined as: Potable water service provided by
the District on a temporary basis to non-public
irrigation and commercial agriculture customers
in Improvement District 7 (ID 7).
(b)If capacity fees have not been paid by the
customer, the rates for water furnished under
this category is set forth in Appendix A, 25.03
D.12.(b).
(c)If the customer has paid capacity and annexation
fees, the rates and charges for water furnished
under this category shall be the rates set forth
in Appendix A, 25.03 D.4.(c).
(d)The applicable monthly system charge shall be the
same rates charged to customers in the same
category of service on a permanent meter basis
per Appendix A, 25.03 C.4.
(e) Conversion to Permanent Service. At such time as
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use expires, the customer shall be required to
pay all unpaid fees in effect at the time the
permanent use is implemented.
13. TANK TRUCKS
(a)Defined as: Water service provided for the
filling of tanks on motor vehicles transporting
water used for other than earth grading purposes,
which service shall be made only through a
portable meter issued by the District to a
customer specifically for use in accordance with
the provisions herein for such service.
(b)The rate for metered water furnished under this
category is reflected in Appendix A, 25.03.D.13.
(b), plus a monthly system charge at the rate set
forth in Appendix A, 25.03 C.4.
(c)Requirements for Use of Water Meter
(1)To receive such service, the customer must
make a deposit for the use a water meter
furnished by the District. The fee is set
forth in Appendix A, 31.03 A.1.
(2)Upon termination of the service, the Dis-
trict will refund the amount of deposit
remaining after making the following
deductions:
(i)Cost of repairing or replacing the
meter, fire hydrant and/or any fittings
damaged or lost while in use; and
(ii)Unpaid charges for water or other
applicable charges.
(3)Prior to the end of each six month period
following issuance of a meter under this
section, or at the request of the District,
whichever is earlier, the customer shall
return the meter to the District for
inspection, repair, or calibration as deemed
necessary by the District.
(4)Payment for water service under this cate-
gory shall be made as follows:
(i)The bill shall be based on the amount
of water actually used, which shall be
determined by the District’s reading of
the meter or by a report made by the
customer to the District in the manner
prescribed by the District.
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(ii) Where the actual amount of water used
cannot be determined as provided in
(i), the District will issue a bill
based on a District estimate of the
amount of water used, as determined by
the District. Such estimates shall be
reconciled with actual amounts used
when the customer returns the meter to
the District as provided in paragraph 3
above.
(iii)Payments shall be made as specified on
the bill.
14.WATER SERVICE OUTSIDE DISTRICT BOUNDARIES
(a)Defined as: Water service for real property
outside the service area of the District.
(b)This service will be provided only upon prior
approval of the General Manager when there is a
surplus of water over and above the existing
needs for service in the District. This service
is temporary and may be terminated upon written
notice from the District. Customers for this
service are sometimes referred to as "outside
users."
(c)Customers applying for this category of service
shall pay an application fee as set forth in
Appendix A, 25.03 D.14.(c).
(d)The rate for metered water furnished under this
category shall be charged the rate as described
in Appendix A, 25.03 D.14.(d), plus a monthly
system charge at the rate set forth in Appendix
A, 25.03 C.5.
(e)Customers requesting only fire service or a fire
hydrant under this category shall be charged a
capacity fee based on one (1) EDU for a permanent
meter in the improvement district from which the
fire service derives its flow, plus a monthly
system charge at the rate set forth in Appendix
A, 25.03 D.16.(c).
15.WATER SERVICE OUTSIDE AN IMPROVEMENT DISTRICT
(a)Defined as: Water service for property located
within the boundaries of the District, but not
within a water improvement district. Customers
for this service are sometimes referred to as
"outside users."
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(b)Customers applying for this service shall pay an
application fee as set forth in Appendix A, 25.03
D.15.(b). The District will review the
application to determine whether the land to be
served should be annexed to an improvement
district. If it is determined that annexation is
not practical, the Board of Directors may
authorize service as an outside user. This
service will be reviewed periodically until it is
determined that the property must be annexed to
an improvement district or that service must be
terminated.
(c) The rate for metered water furnished under this
category is as set forth in Appendix A, 25.03
D.15.(c), plus a monthly system charge as set
forth in Appendix A, 25.03 C.5.
(d)Upon approval of the Board of Directors, a cus-
tomer, who has paid all construction costs for
facilities necessary to serve the customer's
property in lieu of annexation to a water
improvement district, shall be exempt from the
provision for this category of service.
16.SERVICE FOR FIRE PROTECTION
(a)Defined as: Water service provided by the Dis-
trict solely to feed fire hydrants or fire
sprinkler systems from lines or laterals con-
nected to District water mains.
(b)The District will not make a charge for the
quantity of water used for fire protection
purposes.
(c)The monthly system charge for this category
of service is set forth in Appendix A, 25.03
D.16.(c) for each connection to a District water
main made for fire protection service.
17.WATER SERVICE UNDER SPECIAL AGREEMENTS
(a)Defined as: Water service provided under express
agreements approved by the Board of Directors for
service to golf courses and other entities, which
service may be curtailed or interrupted by the
District under conditions provided in such
agreements.
(b)For water service under this category the base
rate shall be determined on a case-by-case basis.
E.Energy Charges for Pumping Water
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In addition to water rates and other charges provided for
in this Section 25.03, customers shall be charged an energy
pumping charge based on the quantity of water used and the
elevation to which the water has been lifted to provide
service.
1.Potable Water Energy Pumping Charge: The energy
pumping charge for potable water shall be made at the
rate set forth in Appendix A, 25.03 E.1.
2.Recycled Water Energy Pumping Charge: The energy
pumping charge for recycled water shall be made at the
rate set forth in Appendix A, 25.03 E.2.
25.04 DEPOSITS BY LESSEES OR NON-OWNERS OF PROPERTY
A.AMOUNT OF DEPOSIT
The customer's deposit shall be applied to reduce or
satisfy any delinquent payment or other amount due the
District at the time of termination of water service to
the customer. Any portion of the deposit remaining, after
satisfaction of the amount due, shall be refunded to the
customer that made the deposit.
The deposits listed per Appendix A, 25.04 A. may be waived
for a new residential applicant where the applicant
demonstrates credit worthiness based upon prior utility
payments or a non-delinquent water account for one year or
other similar evidence of credit.
B.REFUND OF DEPOSIT
Where funds have been on deposit for twelve months in a
domestic service account and there has been no more than
one delinquent payment on that account during that period,
the District will apply a credit to the water account in
the amount of the deposit.
C.LETTER OF CREDIT
A letter of credit, in a form approved by the General
Manager or Department Head of Finance, may be submitted to
the District to satisfy the deposit requirements.
25.05 SERVICE TO SUBSEQUENT CUSTOMERS
After a water meter has been installed for a customer and all
fees and charges have been paid, water service may be furnished
to a subsequent customer through the water meter installed
without payment of further charges, except for the set-up fee
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for transferred accounts, payment of delinquent charges for the
applicant's service or other deposits that may be required by
this Code.
25.06 PUBLIC NOTIFICATION AND LEGAL OBJECTION PROCESS FOR RATE CHANGES
California law requires that certain changes to retail water and
sewer fees and charges be adopted in accordance with procedures
outlined in Article XIII D, of the California Constitution,
commonly referred to as “Proposition 218." Additionally, the
Otay Water District has established a formal process, an
exhaustion of administrative remedies procedure (“exhaustion
procedure”) consistent with Assembly Bill No. 2257 (2024)
(chaptered at Government Code sections 53759.1 and 53759.2). The
exhaustion procedure allows ratepayers to raise legal objections
regarding proposed water or sewer rate increases. This process
ensures that ratepayers have an opportunity to voice legal
objections to a proposed property-related fee, charge, or
assessment (“fee”) for water or sewer service, and provides an
opportunity for the District to address or resolve any legal
objections before the Board of Directors makes a final decision
on whether to adopt a proposed fee pursuant to Proposition 218.
The exhaustion procedure outlined below provides a structured
framework and requires ratepayers to participate in the pre-
adoption legal objection process in order to preserve the legal
right to bring forward any judicial action or proceeding against
the District regarding the fee structure.
A. GENERAL DISTRICT REQUIREMENTS PER THE EXHAUSTION PROCEDURE
1.District will notify the public of the amount of the
proposed fee by way of the Proposition 218 notice
mailed to all customers and/or owners of record,
2.Make the District’s written basis for the proposed fee
(including any cost of service report) publicly
available (including on the District’s website),
3.Provide 45 days for any ratepayer to review the
proposed fee and its basis and make any legal
objection,
4.Require any such objection to be in a writing to the
District that specifies the grounds for alleged
noncompliance with Proposition 218, and
5.Require the District to consider and respond in
writing to timely submitted objections prior to the
close of the protest hearing required under
Proposition 218.
B. BOARD ACTIONS AND PUBLIC PARTICIPATION
1. The District Board hereby adopts the exhaustion of
administrative remedies procedure contained in
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Government Code section 53759.1(c), as further
described below.
2.In connection with the District’s consideration of
water or sewer rate increases, the District Board
hereby directs the staff to take the following
actions:
(a)Public Hearing Date. Establish a date certain for
a public hearing on any proposed water or sewer
rates, at which hearing the staff shall present a
summary of any written legal objections from the
public during the objection period and responses
from staff to those objections. The Board may
consider any protests to the proposed fee
increases on the same or a different date, but
only after considering all objections and
responses. The Board may continue the hearing
from time-to-time in order to provide additional
time for consideration of, and responses to, any
timely-submitted legal objections and/or
protests.
(b)Cost of Service Report. Make available to the
public the written basis for the proposed fee or
assessment (the “Cost of Service Report”) by:
(i) posting it on the District’s website,
(ii) making it available at the headquarters
of the District, and
(iii) mailing it to any property owner upon
request.
(c)Objection Period. Establish a time frame for an
“objection period” of not less than 45 days
between mailing of the notice described below and
the public hearing, during which period the
public may submit a written legal objection to
any aspect of the Cost of Service Report.
(d)Public Notice. Notify the public in writing of the
availability of the Cost of Service Report in the
notice sent pursuant to subdivision (c) of
Section 4 or paragraph (1) of subdivision (a) of
Section 6 of Article XIII D of the California
Constitution, and include in that notice:
(i) a prominently displayed statement that
all written legal objections must be
submitted within the written objection
period and that a failure to timely
25-13
object in writing bars any right to
challenge that fee or assessment through
a legal proceeding; and
(ii) a prominently displayed description of
all substantive and procedural
requirements for submitting an objection
to the proposed fee or assessment; and
(iii) the process for submitting protests.
3.In connection with the District’s consideration of
water or sewer rate increases, the District Board will
determine at the hearing:
(a)Whether the written legal objections and the
District’s response warrant clarifications to the
proposed fee or assessment or the Cost of Service
Report.
(b)Whether to reduce the proposed fee or assessment.
(c)Whether to further review the Cost of Service
Report and proposed fee or assessment before
making a determination on whether clarification
or reduction is needed.
(d)Whether to proceed with the protest hearing or
ballot tabulation hearing required under Section
4 or 6 of Article XIII D of the California
Constitution.
4.This exhaustion procedure will apply to any proposed
water or sewer fees for which notice is provided
pursuant to Proposition 218.
5.Pursuant to Government Code sections 53759.1 and
53759.2, a person or entity will be prohibited from
bringing a judicial action or proceeding that alleges
non-compliance with Proposition 218 for any new,
increased, or extended fee adopted by the District,
unless that person or entity has timely submitted to
the District a written legal objection to that fee
that specifies the grounds for the alleged non-
compliance.
25.07 PROCESS TO REQUEST A VARIANCE FROM ANY APPLICABLE WATER FEES AND
CHARGES
A request for a variance or exception to any water-related fee
or charge may be filed with the District. The request must be
accompanied by photographs, drawings, or other supporting
documentation, including a written statement from the applicant
demonstrating that a variance or exception is justified due to
unusual circumstances applicable to the property. The General
25-14
Manager, or their designee, will review and act upon the request
within thirty (30) days after a completed application package
has been received. The applicant requesting the variance shall
be notified of the decision in writing. Any approved change will
commence on the next water billing cycle.
26-1
SECTION 26 WATER RECYCLING PLAN AND IMPLEMENTING PROCEDURES
26.01 FINDINGS
The state policies regarding use of recycled water are
in the best interest of the Otay Water District. The
majority of jurisdictions in San Diego County have adopted
measures to promote water reclamation. This ordinance is
necessary to protect the common water supply of the region
which is vital to public health and safety, and to prevent
endangerment of public and private property.
San Diego County is highly dependent on limited imported
water for domestic, agricultural and industrial uses. The
reliability of the supply of imported water is uncertain.
By developing and utilizing recycled water, the need for
additional imported water can be reduced. In light of these
circumstances, certain uses of potable water may be
considered unreasonable or to constitute a nuisance where
recycled water is available.
26.02 USE OF RECYCLED WATER
A.District Policy: It is the policy of the Dis-
trict that recycled water shall be used within the
jurisdiction wherever its use is financially and
technically feasible, and consistent with legal
requirements, preservation of public health,
safety and welfare, and the environment.
A customer’s recycled water service must at all
time be in compliance with any requirements of
service, including but not limited to the
requirements established under this Section 26,
the District’s Rules and Regulations for Recycled
Water Use, the California Water Code, commencing
with Section 13520, the California Health and
Safety Code, Section 116555, the California Code
of Regulations, Titles 17 and 22, and Water Agency
Standards.
B.Required Use for Greenbelt Purposes: Pursuant to
Section 13550 of the California Water Code, no
customer of the District shall make, cause, use or
permit the use of potable water supplied by the
District for greenbelt uses, including, but not
limited to, cemeteries, golf courses, parks and
highway landscaped areas, when, following notice
and a hearing, the District finds that recycled
water is available for such greenbelt uses and
that the following conditions are met:
1.the recycled water is of adequate quality;
26-2
2.the recycled water may be furnished to such
areas at a reasonable cost, comparable to or
less than the cost of supplying potable
domestic water;
3.the State Department of Health Services has
determined that such use would not be detri-
mental to public health; and
4.the use of recycled water will not adversely
affect downstream water rights, will not
degrade water quality.
The findings may include terms and conditions
under which recycled water shall be used. In
addition, the District may assist the customer in
obtaining any permits or approvals required for
the use of recycled water.
26.03 DEFINITIONS
The following terms are defined for purposes of this
ordinance:
A.Agricultural Purposes: Agricultural purposes
include the growing of field and nursery crops,
row crops, trees, and vines and the feeding of
fowl and livestock.
B.Artificial Lake: A human-made lake, pond, lagoon,
or other body of water that is used wholly or
partly for landscape, scenic or noncontact recre-
ational purposes.
C.Commercial Office Building: Any building for
office or commercial uses with water requirements
which include, but are not limited to, landscape
irrigation, toilets, urinals and decorative foun-
tains.
D.Recycled Water Distribution System: A piping
system intended for the delivery of recycled water
separate from and in addition to the potable water
distribution system.
E.Greenbelt Areas: A greenbelt area includes, but
is not limited to golf courses, cemeteries, parks
and landscaping.
F.Industrial Process Water: Water used by any
industrial facility with process water require-
ments which include, but are not limited to, rins-
ing, washing, cooling and circulation, or con-
struction, including any facility regulated for
26-3
industrial waste or other objectionable discharge
under District Code of Ordinances Sections 52.04,
52.05 and 52.06.
G.Off-Site Facilities: Water facilities from the
source of supply to the point of connection with
the on-site facilities, normally up to and includ-
ing the water meter.
H.On-Site Facilities: Water facilities under the
control of the owner normally downstream from the
water meter.
I.Potable Water: Water which conforms to the fed-
eral, state and local standards for human consump-
tion.
J.Recycled Water: Recycled water means water which,
as a result of treatment, is suitable for a direct
beneficial use or controlled use that would not
otherwise occur. (See Water Code Section
13050(n).)
K.Recycled Water Use Permit: A recycled water
permit means a permit issued by the District
approving and conditioning recycled water service
for a particular site.
L.Recycled Water Site Supervisor: A person
responsible for the safe and efficient
installation, operation and maintenance of a
recycled water use site, including but not limited
to compliance with all applicable permits,
enforcement of the recycled water producer’s rules
and regulations and the prevention of potential
hazards, such as cross-connections. The Recycled
Water Site Supervisor must be certified by an
approved Recycled Water Site Supervisor
Certification Training Class offered within the
County of San Diego and must have evidence of
valid certification at all times while acting as
Recycled Water Site Supervisor.
M.Temporary Recycled Water Use Permit: Temporary
recycled water use permit means a permit issued by
the District, at its discretion, to allow
temporary use of recycled water pending issuance
of a recycled water use permit or pending renewal
of such permit following suspension or termination
due to a violation of the provisions of this
Section.
N.Waste Discharge: Waste Discharge means water
deposited, released or discharged into a sewer
26-4
system from any commercial, industrial or residen-
tial source which contains levels of any substance
or substances which may cause substantial harm to
any water treatment or reclamation facility or
which may prevent any use of reclaimed water
authorized by law.
26.04 WATER RECLAMATION MASTER PLAN
A.General: The General Manager shall prepare and
adopt a Water Recycling Master Plan to define,
encourage, and develop the use of recycled water
within the District's boundaries. The Master Plan
shall be updated not less often than every five
years.
B.Contents of the Water Recycling Master Plan: The
Master Plan shall include, but not be limited to,
the following:
1.Plants and Facilities. Evaluation of the
location and size of present and future
recycling treatment plants, distribution
pipelines, pump stations, reservoirs, and
other related facilities, including cost
estimates and potential financing methods.
2.Recycled Water Service Areas. A designation,
based on the criteria set forth in Section
26.02 and the information derived from
Section 26.04B.1. and this Section 26.04B.2.
of the areas within the District that can or
may in the future use recycled water in lieu
of potable water. Recycled water uses may
include, but are not limited to, the irriga-
tion of greenbelt and agricultural areas,
filling of artificial lakes, and appropriate
industrial and commercial uses.
3.Designate Tributary Areas. For each water
reclamation facility identified in the Master
Plan, designate proposed tributary areas.
Within such areas, discharges to the sewage
system shall be subject to permitting, moni-
toring and control measures to protect public
health, safety and public and private prop-
erty. Designation of tributary areas shall
be adopted by ordinances, and may be included
in the Master Plan. Prior to designation of
tributary areas, appropriate notice shall be
given to property owners and residents of the
area.
4.Quality of Water to be Recycled. For each
water reclamation treatment facility, evalu-
26-5
ate water quality with respect to the effect
on anticipated uses of recycled water to be
served by each treatment facility. Evaluate
sources of waste discharge and sewer inflow
that may, directly or cumulatively, substan-
tially contribute to adverse water quality
conditions in recycled water.
5.Tributary Protection Measures. Develop rec-
ommended control measures and management
practices for each designated tributary area
to maintain or improve the quality of
recycled water. Such control measures may
include capital improvements to the sewer
collection system and waste discharge
restrictions for industrial, commercial and
residential discharges.
6.Mandatory Recycled Water Use. For each
recycled water service area, evaluate whether
greenbelt irrigation, agricultural
irrigation, commercial office buildings,
filling of artificial lakes, or industrial
processes shall be limited to the use of
recycled water. As appropriate, mandate
construction of recycled water distribution
systems or other facilities in new and exist-
ing developments for current or future
recycled water use as a condition of any
development approval or continued water ser-
vice if future reclamation facilities are
proposed in the Master Plan that could ade-
quately serve the development, in accordance
with the procedures described in Section
26.05. Identify resources and adopt measures
to assist water users in the financing of
necessary conversions.
7.Rules and Regulations for Recycled Water Use.
Establish general rules and regulations
governing the use and distribution of
recycled water.
8.Public Awareness Program. Establish a com-
prehensive water reclamation public awareness
program.
9.Coordination Among Agencies. An examination
of the potential for initiating a coordinated
effort between the District and other
regional agencies to share in the production
and utilization of recycled water.
26.05 PROCEDURES
26-6
A.Existing Potable Water Service.
1.Preliminary Determination. Based upon the
Master Plan, upon the designation of each
recycled water service area or the commence-
ment of the design of new recycled water
facilities, the General Manager shall make
preliminary determinations as to which exist-
ing potable water customers shall be con-
verted to the use of recycled water. Each
water customer shall be notified of the basis
for a determination that conversion to
recycled water service will be required, as
well as the proposed conditions and schedule
for conversion.
2.Notice. The notice of the preliminary deter-
mination, including the proposed conditions
and time schedule for compliance, and a
recycled water permit application shall be
sent to the water customer by certified mail.
3.Objections; Appeals. The water customer may
file a notice of objection with the District
within thirty (30) days after any notice of
determination to comply is delivered or
mailed to the customer, and may request
reconsideration of the determination or modi-
fication of the proposed conditions or sched-
ule for conversion. The objection must be in
writing and specify the reasons for the
objection. The preliminary determination
shall be final if the customer does not file
a timely objection. Staff (Engineering
Department) shall review the objection and
shall confirm, modify or abandon the prelimi-
nary determination. Upon issuance of a final
determination in writing by Staff, customer
may appeal the determination upon written
application to the Board of Directors after
the final determination made by the Staff
(Engineering Department). The customer’s
written application to the Board of Directors
to appeal the final determination must be
received within thirty (30) days of the
customer receiving the final determination.
B.Development and Water Service Approvals.
1.Conditions. Upon application by a developer,
owner or water customer (herein referred to
as "applicant") for a tentative map, subdivi-
sion map, land use permit or other develop-
26-7
ment project as defined by Government Code
Section 65928 or for new or altered water
service, the District Staff shall review the
Master Plan and make a preliminary determina-
tion whether the current or proposed use of
the subject property is required to be served
with recycled water or to include facilities
designed to accommodate the use of recycled
water in the future. Based upon such deter-
mination, use of recycled water and provision
of recycled water distribution systems or
other facilities for the use of recycled
water, and application for a permit for such
use may be required a condition of approval
of any such application, in addition to any
other conditions of approval for service.
2.Alterations and Remodeling. On a case-by-
case basis, upon application for a permit for
the alteration or remodeling of multifamily,
commercial or industrial structures
(including, for example, hotels), the Dis-
trict Staff shall review the Master Plan and
make a preliminary determination whether the
subject property shall be required to be
served with recycled water or to include
facilities designed to accommodate the use of
recycled water in the future. Based upon
such determination, use of recycled water and
provision of recycled water distribution
systems or other facilities for the use of
recycled water, and application for a permit
for such use, may be required as a condition
of approval of the application.
3.Notice of Determination. A notice of the
basis for the preliminary determination,
proposed conditions of approval and schedule
for compliance shall be provided to the
applicant prior to approval of the develop-
ment application or application for water
service.
4.Requested Service. On a case-by-case basis,
upon application for a permit to use recycled
water on a property not covered by Sections
26.05.A.1, 26.05.B.1, or 26.05.B.2 above, the
General Manager shall review the Master Plan
and make a determination whether the subject
property shall be served with recycled water.
Based upon such determination, the
application for the permit shall be accepted
and processed subject to Section 26.05.C.
26-8
C.Recycled Water Permit Process. Upon a final
determination by the General Manager that a prop-
erty shall be served with recycled water, or
adoption of a condition of development approval or
water service requiring use or accommodation of
the use of recycled water, the water customer
owner or applicant shall obtain a recycled water
permit.
1.Permit Conditions. The permit shall specify
the design and operational requirements for
the applicant's water distribution facilities
and schedule for compliance, based on the
rules and regulations adopted pursuant to
Section 26.04.B and shall require compliance
with both the California Department of Health
Services Wastewater Recycling Criteria (see
California Code of Administrative Regula-
tions, Title 22), and requirements of the
Regional Water Quality Control Board.
2.Plan Approval. Plans for the recycled and
non-recycled water distribution systems for
the parcel shall be reviewed by the District
Engineer and a field inspection conducted
before the plans are approved.
3.Meter Permit Issuance. Upon completion of
construction and approval by the District and
the County Department of Environmental Health
the meter permit shall be issued. Recycled
water shall not be supplied to a property
until inspection by the District determines
that the applicant is in compliance with the
permit conditions.
4.Recycled Water Use Permit Issuance. If the
site has a certified Recycled Water Site
Supervisor, a Recycled Water Use Permit will
be issued by the District. If the site does
not have a certified Recycled Water Site
Supervisor identified, a Temporary Recycled
Water Use Permit may be issued, for a maximum
of 120 days, to allow the site to receive
recycled water while a proposed Recycled
Water Site Supervisor is being certified.
Failure to secure a certified Recycled Water
Site Supervisor for the site under a
Temporary Recycled Water Use Permit may
result in discontinuation of recycled water
service to the site.
D.Temporary Use of Potable Water. At the discretion
of the General Manager, potable water may be made
26-9
available on a temporary basis, until recycled
water is available. Before the applicant receives
temporary potable water, a water reclamation per-
mit, as described in Section 26.05.C, must be
obtained for new on-site distribution facilities.
Prior to commencement of recycled water service,
an inspection of the on-site facilities will be
conducted to verify that the facilities have been
maintained and are in compliance with the recycled
water permit and current requirements for service.
Upon verification of compliance, the applicant
shall be notified of the corrective actions
necessary and shall have at least thirty (30) days
to take such actions prior to initiation of
enforcement proceedings.
E.Recycled Water Rate. The rate charged for
recycled water shall be established by Ordinance
of the Board of Directors.
F.Certified Recycled Water Site Supervisor
Requirements.
1.Each Approved Recycled Water Use Site is
required to have a Certified Recycled Water
Site Supervisor. It is the responsibility of
the recycled water use site owner or property
designee to assure a Certified Recycled Water
Site Supervisor is assigned to the recycled
water use site.
2.Each approved recycled water use site shall
maintain and report annually proof of
Recycled Water Site Supervisor certification,
a current address, and a 24-hour emergency
contact phone number for the assigned
Recycled Water Site Supervisor on a form
approved by the Otay Water District. Failure
to report the prescribed Recycled Water Site
Supervisor information annually may result in
discontinuation of recycled water service to
the site.
3.Recycled Water Site Supervisors shall hold a
valid and current certification from a
Recycled Water Site Supervisor Certification
Training Course recognized by the San Diego
County Health Department and approved by Otay
Water District. Evidence of said
certification shall be available on site and
upon request by the District. Certification
26-10
alone does not constitute District approval.
Recertification of the Recycled Water Site
Supervisor is required every five years.
4.The Recycled Water Site Supervisor shall be
solely responsible for communications with
the property owner or property designee for
all on site recycled water issues.
5.Periodic inspection of the Approved Recycled
Water Use Site may be made by the District to
verify conformance with the approved Recycled
Water Use Permit. If at any time the Otay
Water District conducts an inspection of a
recycled water use site and the Recycled
Water Site Supervisor’s certification is
expired or it has been determined that the
recycled water use site has failed to meet
the requirements of the permit, recycled
water service to the site shall be
discontinued until the recycled water site is
brought back into compliance with the
approved Recycled Water Use Permit.
6.The District reserves the right to recommend
removal of a Recycled Water Site Supervisor
if it has been determined upon inspection
that the Recycled Water Site Supervisor’s
actions have placed the public at risk
through improper conduct, testing, repairs,
unapproved modifications, and/or reporting
with respect to an Approved Recycled Water
Use Site.
26.06 REGULATION OF WASTE DISCHARGE TO SEWERAGE SYSTEMS
A.Intent. The District recognizes that to maintain
adequate wastewater quality for water reclamation
treatment processes, and to protect public and
private property, restrictions may be required on
certain industrial, commercial and residential
waste discharges to a sewerage system that is
located within a designated tributary area of an
existing or planned reclamation facility.
B.Adopted Tributary Protection Measures. Waste dis-
charges to the sewerage system from any indus-
trial, commercial or residential source may be
26-11
restricted or prohibited upon a finding, following
a noticed public hearing, that the type or class
of discharge involved is capable of causing or may
cause substantial damage or harm to any sewage
treatment or reclamation facility or to any sig-
nificant user or users or potential user or users
of recycled water within an area which has been
planned for recycled water service. Prohibitions
for certain discharges and guidelines for accept-
ability of wastes are set forth in District Code
of Ordinances Sections 52.04, PROHIBITIONS AGAINST
DISCHARGE OF OBJECTIONABLE WASTES, which prohibits
discharge of certain items into the District sewer
system, including, but not limited to, brine dis-
charge from on-site self-regenerating water sof-
tener units; 52.05, GUIDELINES TO DETERMINE
ACCEPTABILITY OF WASTES; and 52.06, DISCHARGE OF
INDUSTRIAL WASTE.
26.07 SANCTIONS. In addition to the remedies
established under Division IV of this Code, the
following sanctions and remedies apply to
violations of the provisions of this Section.
A.Public Nuisance. Discharge of wastes or the use
of recycled water in any manner in violation of
this ordinance or of any permit issued hereunder
is hereby declared a public nuisance and shall be
corrected or abated as directed by the General
Manager. Any person creating such a public nui-
sance is guilty of a misdemeanor.
B.Injunction. Whenever a discharge of wastes or use
of recycled water is in violation of this ordi-
nance or otherwise causes or threatens to cause a
public nuisance, the District may seek injunctive
relief as may be appropriate to enjoin such
discharge or use.
C.Permit Suspension or Revocation. In addition to
any other provision of this Code or state statute
or rule authorizing termination of water service,
the General Manager may suspend or revoke a permit
issued hereunder if a violation of any provision
of this ordinance or the Rules and Regulations for
Recycled Water Use is found to exist or if a
discharge of wastes or use of recycled water
causes or threatens to cause a nuisance. If a
permit is revoked, the General Manager may, at its
discretion, issue the recycled water user a
temporary recycled water permit for up to 120 days
to allow service to continue while corrective
measures are completed.
26-12
D.Penalty. Any owner and/or operator who violates
this ordinance shall, for each day of violation,
or portion thereof, be subject to an
administrative fine as described in Section 72.05.
26.08 VALIDITY
If any provision of this Section 26 or the application
thereof to any person or circumstance is held invalid, the
remainder of Section 26 and the application of such provi-
sions to other persons or circumstances shall not be
affected thereby.
27-1
SECTION 27 REQUIREMENTS AND LIMITATIONS FOR OBTAINING
WATER SERVICE
27.01 REQUIREMENT FOR WATER/SEWER PERMIT AND PAYMENT OF
FEES, CHARGES, AND DEPOSITS
A.Requirement for Water/Sewer Permits. Water
meters shall not be installed nor water service furnished
until an application, in the form of a water/sewer permit,
has been executed by the customer at the District office.
B.Requirement for Payment of Fees, Charges, and
Deposits. Payment of all required fees, charges, and
deposits shall be made by the customer at the time the
water meter is purchased. A customer requesting water
service shall pay the fees, charges, and deposits as set
forth in Section 28 of this Code.
C.Requirement for a Building Permit. A customer
requesting permanent water service shall be required to
present a valid building permit for the property issued by
the appropriate governmental agency, except that a building
permit is not required by a customer requesting permanent
water service to: 1) install and maintain landscaping prior
to the construction of a building; 2) perform mass grading
operations; or 3) to satisfy conditions imposed by other
government agencies, including a single meter for grading
four lots or less which are part of the same parcel map.
Government agencies shall be exempt from the requirement of
presenting a valid building permit.
D.Requirement for a Service Lateral. The customer
requesting water service shall either have an existing
service lateral or purchase a new lateral installation at
the time of the meter purchase.
E.Commercial Parcels – 5,000 square feet or Larger
Irrigated Landscape. When a customer requests water
service on a parcel of land with irrigated landscape equal
to 5,000 square feet or more, a separate meter will be
required for irrigation purposes on the site.
F.Recycled Water Service Areas. In areas
designated as recycled water service areas, the customer
may be required to install a separate recycled water
service lateral and meter to supply irrigation to the
parcel.
G.Second Meter for Indoor Use.Any customer who
obtained a single meter prior to October 17, 1990, a second
meter for indoor use may be obtained, without paying water
capacity fees, San Diego County Water Authority fees, and
applicable zone charges on the second meter, if the
following criteria are met:
27-2
1.The additional meter is solely for the
purpose of isolating current domestic
(indoor) water use from that used for
outdoor landscaping. The additional meter
shall be on a separate lateral.
2.All costs of on-site plumbing changes,
including approved back-flow prevention
devices, will be the responsibility of the
customer.
3.The customer acknowledges that adding a
second meter will result in a second water
bill and associated monthly system fee.
4.The customer will be required to pay all
fees and charges prior to meter
installation.
H.Water Service Use Changes Resulting in Increased
System Utilization. The use of a water service shall be
limited to the type and size authorized by the original
water meter permit. The property owner shall make a
supplementary water permit application to the District
before adding or subtracting any additional equivalent
dwelling units; adding or subtracting buildings; modifying
existing buildings; or changing occupancy type. The
property owner shall be responsible for all additional
fees, as may be applicable resulting from the changes
included in the supplementary water permit application.
1.If the supplementary water permit
application requires a larger meter, the
property owner will be responsible for all
costs associated with the upsize of the
existing meter in the manner provided in
Section 33.05 paragraph C.
2.Periodic inspections of the premises may be
made by the District to verify conformance
with the approved permit. The District may
also perform periodic inspections if actual
use is greater than estimated use as
included in the original water meter permit.
If it is determined by periodic inspections
that the type and size authorized by the
original water meter permit has been
exceeded, the property owner will be
responsible for all costs associated with
the upsize of the existing meter in the
27-3
manner provided in Section 33.05 paragraph
C.
27.02 SIZE OF WATER METER
A water meter shall be sized to ensure that the
maximum demand (in gallons per minute) will not exceed 80%
of the manufacturer's recommended maximum flow rate, as
shown in Section 27.03. In no case shall the water meter
size be less than ¾-inch. The size of the water meter and
service lateral required for water service shall be
determined by the General Manager as follows:
A.Detached Single-Family Residential Dwelling Unit.
The customer may submit calculated maximum demand (in
gallons per minute), provided that maximum demand must be
no more than twenty four (24) gallons per minute for a ¾-
inch meter.
B.Apartments, Condominiums, Mobile Home Parks, and
other Multiple Family Residential Dwelling Units with
Individual Meters. The calculated maximum demand shall be
per Section 27.02A.
C.Business, Commercial, Industrial, Apartments,
Condominiums, Mobile Home Parks, and other Multiple-Family
Residential Dwelling Units. The customer shall submit
building plans signed by a licensed building architect.
The plans shall list the number of fixture units, the
parcel size (in acres), and the calculated maximum demand
(in gallons per minute) to be placed on each water meter.
D.Irrigation. The customer shall submit irrigation
plans signed by a licensed landscape architect. The plans
shall indicate the calculated maximum demand (in gallons
per minute) to be placed on each water meter and the total
area to be irrigated (in square feet). The plans must also
be in compliance with the requirements of Section 27.05.
E.Other. In the case of other types of service not
included above, the customer shall submit information as
requested by the General Manager. Any customer may request
and purchase a separate meter to isolate landscaping from
indoor use.
F.Requirement for Multiple Meters. The General
Manager may require multiple meters when it is in the best
interest of the District. Buildings that contain a mix of
commercial units and multiple-family residential dwelling
units are required to isolate commercial water use from
multiple-family residential water use through separate
master meters.
G.Phased Projects. Should the developer choose to
phase a multi-family project and determines the use of a
27-4
smaller meter is practical within the initial phase, they
must provide fixture unit calculations for review and
approval by the District for each phase of development,
including the build-out of the project. The developer
shall provide a letter to the District stating they
acknowledge the initial meter is temporary and they
understand that they must purchase a larger meter, paying
all applicable meter upsize fees when they connect future
phases to this system. At Plan Review and Submittal the
developer shall show fixture count and meter size for each
of the phases to final build-out.
27.03 MANUFACTURERS RECOMMENDED MAXIMUM FLOW RATE FOR
DISTRICT METERS
Customers are cautioned to control the rates of flow
of water through District meters. Operation of a meter at
flows in excess of the manufacturer's recommendations will
cause severe damage to operating parts. Rated capacities
for meters used in this District are as follows:
ORDINARY METERS
Meter Size Manufacturer's
Recommended Maximum Rate in U.S. Gallons
in Inches per Minute
3/4 30
1 50
1-1/2 100
2 160
3 500
4 1000
6 2000
8 3400
10 5000
27.04 RESALE OR DISTRIBUTION OF WATER
No customer may resell or redistribute any portion of
the water furnished by the District except as provided
below:
A.Use of Sub Meters for Resale or Redistribution of
Water. Owners or operators of mobile home parks,
apartments, condominium complexes, industrial complexes,
and land used for agricultural purposes may resell water
furnished by the District through the use of a sub metering
system under the following conditions:
1. Owners and operators shall comply with State
law (California Code of Regulations Section
4090) prohibiting any surcharge on the water
rate;
27-5
2. The water system on the private property
side of the master meter, including the sub
meters, shall be solely the responsibility
of the owner or operator; and
3. The owner or operator shall clearly
delineate on the bill that any cost
associated with the sub meters is a cost
imposed by the property owner or operator
and not by Otay Water District.
B.Ratio Utility Billing Systems. To the extent
permitted under law, owners or operators of multi-unit
structures where sub meters have not been installed may
elect to implement a Ratio Utility Billing System (RUBS) or
alternative billing system to determine proportionate
shares of water charges and bill tenants accordingly.
27.05 CONSERVATION AND LOCAL SUPPLY USE REQUIREMENTS
The requirements below apply to all new residential
and commercial developments or redevelopments. The
landscape requirements also apply to any re-landscaping
that is subject to review by the District, the County of
San Diego, City of Chula Vista, or the City of San Diego.
A. Indoor Fixtures and Appliances. All water
fixtures and appliances installed, including the ones in
the following list, must be high-efficiency:
•Toilets and urinals
•Faucets
•Showerheads
•Clothes Washers
•Dishwashers
“High-efficiency” means fixtures and appliances that
comply with the most efficient specifications under the EPA
WaterSense® or Energy Star programs,1 as in effect at the
time installation commences.
B.Landscape requirements. Only “Smart” irrigation
controllers2 may be installed and only low-water use plants
1 Certified EPA WaterSense® products, and Energy Star products, are at
least 20% more efficient than the applicable federal standards.
2 Smart Irrigation Controller means a controller that uses real time,
soil moisture or weather data to automatically adjust irrigation run-
times. Furthermore, to qualify as a Smart Irrigation Controller, the
device must be certified by the Irrigation Association and/or the EPA
WaterSense® program.
27-6
may be used in non-recreational landscapes. All landscapes
must also be designed and managed consistent with
requirements of the local agency within which the property
is located, be it the County of San Diego, the City of
Chula Vista, or the City of San Diego.
1.Installed smart irrigation controllers shall
be properly programmed/scheduled according
to the manufacturer’s instructions and/or
site specific conditions based on soil type,
plant type, irrigation type, weather, and/or
reference evapotranspiration data.
2. Two irrigation schedules shall be prepared,
one for the initial establishment period of
three months or until summer hardened, and
one for the established landscape which
incorporates the specific water needs of the
plants and turf throughout the calendar
year. The schedules shall be continuously
available on site to those responsible for
the landscape maintenance and posted at the
smart controller.
3. Any Covenants, Conditions, and Restrictions
(CC&Rs) pertaining to a new
subdivision/development shall not limit or
prohibit the use and maintenance of low
water use plant materials and the use of
artificial turf, and shall require property
owners to design and maintain their
landscapes consistent with applicable City
and County regulations.
4.Dedicated irrigation meters shall be
installed in:
•All parks and common areas with 5,000
square feet or more of irrigated
landscape; and
•Commercial sites with 5,000 square feet or
more of irrigated landscape
5.In compliance with Section 23.03 of this
Code of Ordinance, pressure regulators must
be installed when and where appropriate to
maximize the life expectancy and efficiency
of the irrigation system.
27-7
C.New commercial developments must install separate,
dual-distribution systems for potable and recycled water.
D.The requirements of this Section shall not be
interpreted in any way to limit the owner’s obligation to
comply with any other applicable federal, state, or local
laws or regulations.
28-1
SECTION 28 CONNECTION FEES AND CHARGES FOR POTABLE OR RECYCLED WATER
SERVICE
28.01 COLLECTION OF FEES AND CHARGES
A.Fees and Charges to be paid by the Customer.
The following fees and charges shall be paid by the
customer to connect to a District water system for potable
water or recycled water service; these are in addition to
the fees and charges in Section 9 and 25.Fees and charges
shall include, but not be limited to, District fees, San
Diego County Water Authority fees, and charges for work
performed by District personnel on behalf of the customer.
These charges may include the installation by District
personnel of a water service lateral, and inspections
required due to the requirement of a backflow device.
These charges may also include a meter fee, installation
fee (where laterals exist), lateral fee, meter box fee, and
excavation permit fee.
B.Basis for Determination of Connection Fees and Charges.
The fees and charges shall be determined as follows:
For permanent water meters, including potable or
recycled irrigation service, the total water
connection fee shall be determined on the basis of the
demand to be placed on the District water system.The
extent of demand will be determined on the basis of
the size of the water meter, as set forth in Section
27 of the Code.For individually metered residential
fire service, as outlined in Section 38.03 of the
Code, the size and fee would be set based on water use
requirements without additional fire capacity.The
water connection fee will be determined by multiplying
the demand factor for the meter size, as set forth
below, by the total of the District-wide capacity fee.
Meter Size Demand Factor
3/4"1
1 2-1/2
1-1/2"5
2"8
3"16
4"25
6"50
8"80
10"115
28-2
1.The District-wide capacity fee shall constitute the
"base rate."For fees or charges after June 7, 2017,
the base rate shall be adjusted on the first day of
each calendar quarter for fluctuations in construction
costs, as measured by the Engineering News Record
Construction Cost Index for the Los Angeles Region.
The ENR Construction Cost Index of 11,555.03(as of
April 1, 2017) shall be deemed the "base index."The
adjustment shall be in an amount equal to the percent-
age change in the ENR Construction Cost Index from the
base index for the period from April 1, 2017 to the
date of payment.(See Appendix A, Section 28 for
fees.)
28.02 INSTALLATION CHARGES FOR WATER METER AND WATER SERVICE LATERALS
The determination of the water meter or service lateral
size shall be based upon the information provided by the
customer as detailed in Section 27 of the Code.The meter fees
and installation charges are set forth in Appendix A, Section
28.
Where a new water lateral is required, a customized,
written estimate of the District's costs will be prepared.
The customer shall deposit the estimated costs with the
District prior to commencement of the work. If actual costs
incurred by the District are less than the amount deposited, the
District shall refund the excess to the customer.If the actual
costs incurred exceed the amount deposited, the customer shall
reimburse the District for the additional costs.
A.The meter fees and installation charges shall be set
effective September 1, 2012, and then adjusted in the same
manner as capacity fees as described in Section 28.01 B.1
above (See Appendix A, Section 28 for fees).
28.03 METER FEE REFUND
A.If a water meter/service has been paid for but not
installed, a customer may receive a refund of the
District’s capacity fee and charges.If San Diego County
Water Authority capacity fees have been paid to San Diego
County Water Authority, the customer shall request a refund
from San Diego County Water Authority.
B.If the customer wants to change the meter/service size,
they will be credited with the number of equivalent
dwelling units they have previously purchased and will be
refunded any balance per Section 28.03 A, above.If
additional equivalent dwelling units are required, the
customer will be charged based on 28.01 and 28.02.
28-3
C.If a water meter/service has been previously paid and
installed, and the customer requests a different meter
size, the customer shall pay for the new meter and
installation fees, plus any differential in capacity
fees as described in Section 28.03 B above.
30-1
SECTION 30 NON-PERMANENT IRRIGATION WATER SERVICE.
30.01 Definition of Non-Permanent Irrigation Water Service.
This is water service furnished to establish and main-
tain revegetated native plants for a period not to exceed five
years. The service shall be an extension of a permanent irriga-
tion system with the meter sized only for the permanent irriga-
tion portion. Non-permanent irrigation water service shall be
available without payment of capacity fees.
30.02 Conditions for Non-Permanent Irrigation Water Service.
Non-permanent irrigation water service shall be fur-
nished under the following conditions:
1)Water used in the non-permanent irrigation water
service area must be delivered through an exten-
sion of a permanent irrigation meter sized only
for the permanent irrigation, a quick coupler
device and must be applied with hoses and hand
held devices.
2)The non-permanent irrigation area shall not be
considered in the allocation calculation for irri-
gation water penalties.
3)The customer shall notify the District in writing
to use water for non-permanent irrigation water
service.
4)The customer shall request approval from the
District, in writing, when the non-permanent
irrigation water service has ceased.
5)Irrigation must cease after five years.
6)Requirement to irrigate must be from a governmen-
tal agency and proof of such presented to the Dis-
trict.
7)The non-permanent irrigation area shall be con-
tiguous to the permanent irrigation meter service
area.
31-1
SECTION 31 CONSTRUCTION WATER SERVICE
31.01 DEFINITION OF CONSTRUCTION SERVICE
Construction water service is water service provided for a
limited period of time not to exceed 365 days, and used for
temporary purposes such as construction, hydrotesting water
systems, vegetation of slopes, and other uses noted in this
section.Construction water service shall not be provided to
residential dwellings or commercial business enterprises, which
are covered under Section 60 of this Code.
31.02 REQUIREMENT OF CONSTRUCTION METER FOR SERVICE
Construction water service may be provided after
installation of a construction meter pursuant to a customer's
written application for such service.Temporary water service
by means of a "jumper" or other unauthorized connection to the
District water system is prohibited and subject to penalties as
set forth in Section 72.
A.Size and Location.
1.The size and location of construction meters will
be determined solely by the District.
2.For construction water service from a fire hydrant, a
construction meter will be required.The meter
will be installed by the District with a District
supplied reduced pressure principle backflow device
(RP). Only one 2½-inch fire hydrant port per fire
hydrant shall be occupied by a construction meter at
one time.
3.For construction water service from a tee installed
below a fire hydrant, blow off greater than 4-inch,
or other lateral greater than 4-inch in size, a meter
of at least 4-inches in size will be required. The
meter will require the installation and testing of a
reduced pressure principle backflow device (RP)
provided by the customer. After the initial test, the
RP device will be subjected to repeat testing
annually by the customer and any time the device is
depressurized. All testing results must be submitted
to the District.
B.Construction water service from a fire hydrant shall
be limited to the following applications:
1.Filling of water trucks and drop tanks.
2.General construction requirements, such as backfill
and compaction, gunite and stucco application, and
block wall building.
31-2
3.Flushing of storm drains and sewer lines.
4.Filling, hydrotesting, chlorination, and flushing of
newly constructed potable and reclaimed water lines.
5.Filling, flushing, hydrotesting, and the initial
operational coverage testing of reclaimed water
irrigation systems.Service provided for this
application shall be limited to a maximum of 60
days.
6.Operation of landscape irrigation for the
establishment of vegetation on slopes or other planted
areas.Service provided for this application shall be
limited to a maximum of 180 days.
C.Construction service to construction trailers or
other temporary construction buildings may be
provided as follows:
1.Through a construction meter connected to the fire
hydrant nearest to the lot the trailer is placed on.
2.Where Item 1 above is not possible, through a
construction meter connected to appurtenances other
than a fire hydrant, such as a blow off.
D.If any unauthorized connection, disconnection or relocation
of a construction meter, or other connection device is made
by other than District employees, District may discontinue
further water service to the entire project and impose
penalties as set forth in Section 72.
E.Extensions to the time limits referenced in this section
may be made by the General Manager.Requests for time
extensions shall be made by the customer in writing.
F.Recycled Construction Water Service may be provided
as follows:
1.Through an irrigation meter connection to a 2-inch
recycled service lateral for the parcel proposed to be
irrigated with recycled water.
2.Through a 3-inch or larger meter connected to an
appropriate recycled appurtenance as approved by Otay
Water District.
3.Permitted use of construction recycled water shall
be limited to construction site dust control and
soil hydration as approved by Otay Water District.
31-3
4.Use of construction recycled water shall be in
accordance with the requirements of Section 26 “Water
Recycling Plan and Implementing Procedures” of the
Code of Ordinances.
31.03 FEES AND CHARGES FOR CONSTRUCTION METERS
A.Construction Water Service.Construction water service
shall be furnished to the property owner or the owner’s
authorized agent only and shall be provided under the
following conditions:
Requirement of Deposit.At the time application is
made for construction service, the customer shall
deposit with the District the amount set forth in
Appendix A, 31.03 A.1.
1.Delinquency.No construction meters shall be
furnished to any person with a delinquent account
with the District.
2.Refund of Deposit or Additional Payment.Upon
cancellation or termination of the construction
service, the District will refund the amount of
deposit remaining after making the following
deductions:
a)cost of installing, moving, and removing the
meter;
b)cost of repairing or replacing the meter, RP
device, fire hydrant, and/or any fittings
damaged or lost while in use; and
c)unpaid charges for water used or other applicable
charges.
3.Construction Meter Set-up & Removal.The charges to
set- up and remove a construction meter are set forth
in Appendix A, 31.03 A.4.
4.Construction Meter Move Fee.If a meter needs to
be moved from one location to another see Appendix
A., 31.03 A.5.
B.Rates for Construction Water Service.The minimum
category of service for Construction Water Service from a
hydrant shall be a meter size of 4-inches.Payment for
construction water service shall be in accordance with
rates and charges set forth in Section 25.03.
31.04 PAYMENT OF CAPACITY AND ANNEXATION FEES FOR CONSTRUCTION
METERS
31-4
A.Customers, whose property has been annexed into an
Improvement District, may elect to pay the capacity and
annexation fees in addition to the deposit amount shown in
Appendix A, 31.03 A.1.
B.Capacity and annexation fees for this type of water service
shall be calculated in accordance with Sections 9 and 28.
C.Payment for this type of water service shall be in
accordance with the rates and charges set forth in Section
25.03 D.7.
D.Customers electing this type of water service shall be
credited the number of equivalent dwelling units they have
previously purchased when the meter(s) is returned to the
District.The credit shall be applicable to permanent
meters purchased within the same subdivision or development
where the construction meter was used.
33-1
SECTION 33 GENERAL REGULATIONS FOR USE OF WATER METERS
33.01 FURNISHED AND INSTALLED ONLY BY DISTRICT
Water meters used for service from a District water
distribution system shall be furnished and installed by the
District. Meters will be furnished only for use for a specific
parcel of land. Master meters and meters for irrigation purposes
may be furnished for more than one specific parcel of land upon
the approval by the District. The Fees and charges are set forth
in Appendix A, 28.02.
33.02 OWNERSHIP OF METERS
The District shall retain title to all meters installed
within the District. Payment by a customer of installation fees,
capacity fees, meter charges, connection charges or any other
fees or charges shall not transfer ownership of a meter from the
District to the customer.
33.03 RELOCATION OF METERS
With prior District approval, water meters may be moved at
the request of the owner from one location to another location on
the same parcel or within the same tract owned by the customer
upon payment of an amount determined by the District.
33.04 METER TURN-OFF REQUESTED BY CUSTOMER
At the request of the customer, a water meter may be turned
off and locked without charge; provided, however, the system
charge shall continue to apply.
33.05 REMOVAL OF METERS
A.Abandonment of Service. The District may remove any
water meter where the customer has abandoned water
service through that meter.
B.Permanent Removal of Meters for Agricultural or
Irrigation Service. When service is no longer
required, meters for agricultural and irrigation
service may be removed upon the request of a lessee who
paid the fees and charges (or upon request of the owner
if the lease has expired), or upon the request of the
owner if the fees were paid by the owner.
C.Request for Removal of a Water Meter After
Installation. If, after installation of a water meter,
a request is made by a customer for the removal of that
water meter from service, the customer shall be
credited with the number of Equivalent Dwelling Units
("EDU") for that meter size. If thereafter a request
is made for the installation of the same size water
33-2
meter at the same location, no capacity fee shall be
due. If the customer’s request is for a larger meter,
all capacity fees and charges per 28.01 and 28.02 shall
be due and payable for all EDUs, less the EDU credit
for the meter previously removed. No refund shall be
due or payable for any portion of a capacity fee
previously paid. The customer shall pay any expenses
incurred by the District for removing and replacing the
meters.
D.Removal of Meters for Delinquent Payment of Water
System Charges. If an owner/customer remains
delinquent in the payment of water charges or system
charges after written notice of delinquency from the
District, the District may remove the owner/customer's
water meter. Refer to Section 72 for additional
information regarding the procedure for removal of the
meters. The fees and charges are set forth in Appendix
A, 72.04 A.1.
If the request for such service is made more than six
months after removal of the meter, the request shall be
processed as a new order for service and all applicable
fees and charges for a new service (except for capacity
fees) shall be due and payable.
33.06 READING OF METERS
Meters shall be read once each calendar month.
Meters are read each time a meter is "turned-on" or "turned-
off" and when water service is established as a new account.
33.07 ADJUSTMENT FOR METER INACCURACIES
A.Customer Request for Meter Test. A customer may
request that the meter for the customer's service be
tested for accuracy upon making a deposit with the
District. The deposit is set forth in Appendix A, 33.07
A. per meter size.
B.Results of Meter Test. If upon testing, the meter does
not register outside the standard meter accuracy
percentages as set by the AWWA M6 manual, the deposit
shall be retained by the District. If the meter tested
registers outside the standard meter accuracy
percentages as set by the AWWA M6 manual, the meter
will be replaced by the District and the deposit shall
be returned to the customer. No adjustment in billing
shall be made for excess registration during any period
prior to 120 days before the request for the test.
C.Failure of Meter to Register During Service. Should
any meter in service fail to register during a billing
33-3
period, a bill will be issued by the District for the
estimated amount of water used during the period of the
meter failure, based on prior use under that account.
34-1
SECTION 34 ISSUANCE AND PAYMENT OF WATER BILLS
34.01 ISSUANCE, DUE DATE, AND FINAL PAYMENT DATE OF
STATEMENT OF CHARGES FOR SERVICE
A.Issuance of Statements. Statements for water
service or other charges will be mailed or presented
as soon as practicable after the water meter has
been read and the applicable charges have been
determined.
B.Due Date. Each statement issued by the District for
such charges shall be due and payable on the date of
mailing or other presentation to the customer.
C.Final Payment Date. All charges in each statement
must be paid on or before the final payment date
shown on the statement, which shall be at least 20
calendar days following the date of mailing or
presentation of the statement.
D.Payment of Charges.
1.Place of Payment. Payments shall not be
credited to a customer's account until cash, check,
credit card, draft, electronic funds transfer, money
order, or any other acceptable form of payment that
will be honored by the bank has been received by the
District at the District business office during
regular office hours. Deposit of payment in the
mail or at a location other than the District
business office shall not be credited to a
customer's account until it is received at the
business office.
2.Returned Check Charges. A returned payment
charge (see Appendix A, 34.01 D.2. for charge) shall
be added to a customer's account in each instance
where payment has been made to the District with a
check, draft, credit card or any other acceptable
form of payment that has not been honored upon
presentment to the bank upon which it is drawn.
34.02 DELINQUENT ACCOUNTS
A.If full payment of a statement for a water service
account is not received at the District business
office on or before the final payment date, the
account shall become delinquent, a late payment
charge will be assessed and the customer’s service
may be terminated, the water may be turned off and
locked. Please see Policy 54, Discontinuation of
34-2
Water Service for Delinquent Accounts for additional
information.
B.Reinstatement of Service. Reinstatement of
service will occur during normal business hours of
Monday through Friday 8:00am and 5:00pm. Water
service terminated for delinquency may not be
reinstated until all amounts due and payable,
including late payment charges and lock charges,
have been paid at the District business office, or
unless credit arrangements satisfactory to the
District have been made. Accounts that have payments
received at the District office after 4:30pm may not
have service restored until the next business day.
C.Meter Lock Charge. A lock charge will be
assessed to any account that has been terminated for
non-payment. The charge to terminate service is set
forth in Appendix A, 34.02 C.
SECTION 35 (Repealed and consolidated into 72)
36-1
SECTION 36 LOCATION OF WATER LINES AND EASEMENTS
36.01 LOCATION OF WATER LINES
A.In Public Right-of-Way or Easements. Water
lines constructed by or for this District shall be
constructed within public road or street right-of-ways,
except where the District has expressly authorized the
construction to be made within permanent right-of-way
easements.
B.Physical Location.
1.A water line constructed within a public road or
street right-of-way shall normally be located
within the easterly or southerly half of the
right-of-way.
2.A water line constructed within an easement
shall normally lie along the centerline of said
easement if the easement will not contain other
utility lines. If other utility lines are
allowed in the water pipeline easement, the
water pipeline shall be located within the
easterly or southerly half of the easement
right-of-way.
36.02 DISTRICT WATER LINE EASEMENTS
A.Width of Easements. District minimum require-
ments for width of an easement for a water line shall be
20 feet; provided, however, in exceptional cases, the
General Manager may accept a permanent easement less than
20 feet in width on condition that the landowner grants to
the District an adequate temporary easement for
construction purposes together with a right of access to
the permanent easement for purposes of maintenance and
repair of the water line to be installed.
B.Easements in Subdivisions. The centerline of an
easement for a water line within a subdivision or "lot-
split" shall be parallel to at least one of the sidelines
of the lot or parcel in which the easement is located.
The entire width of the easement, as measured at right
angles to the said parallel sideline, shall be located
within the said lot or parcel.
36-2
C.Easements in Unsubdivided Land. The centerline
of an easement for a water line in unsubdivided lands
shall, whenever practicable, be parallel to one of the
sidelines of the parcel of land in which the easement is
located. The entire width of the easement, as measured at
right angles to the said parallel sideline, shall like
within the said parcel.
36.03 ENCROACHMENT IN DISTRICT EASEMENTS
A.Enforcement Against Encroachments. The General
Manager is authorized and directed to institute on behalf
of the District any legal action necessary to prevent or
remove encroachment by others in, over, or upon District
easements and right-of-ways.
B.Allowance of Encroachments. The General Manager
may allow encroachment in, over, or upon a District ease-
ment or right-of-way if he determines that the
encroachment will not interfere with operation of the
District's water or sewer systems and will not interfere
with the maintenance, repair and replacement of such
systems. However, such encroachment shall not be allowed
until the property owner requesting the encroachment
executes an encroachment agreement, approved by the
District. The agreement shall provide, among other
conditions, that (i) the cost of removing and replacing
the encroachment shall be borne solely by the owner, and
(ii) the District will not waive any rights as to its use
of said easement or right-of-way, including, but not
limited to, the right to enter upon said easement at any
time for the purpose of making repairs, modifications, or
replacement of any pipeline or road, and (iii) the
encroachment will be removed upon 30-days written notice
from the District to the owner. The General Manager may
grant an extension of such period; however, the extension
must be in writing and signed by the General Manager.
The Manager's authority to allow such encroachment
shall extend to improvements that are removable and which
do not exceed the Manager’s monetary authority as set
forth in subsection (D) of Section 2.01. All other
encroachments must be approved by the Board of Directors.
36-3
36.04 CONCURRENT USE OF DISTRICT EASEMENTS
A.By Governmental Agencies. The Manager is
authorized to enter into agreements for concurrent use of
District easements by other governmental agencies or
public utilities, provided such use does not interfere
with the District's utilization of the easement.
B.By Private Persons or Entities. Concurrent use
of District easements by persons or entities other than
governmental agencies or public utilities must be approved
by the Board of Directors.
37-1
SECTION 37 FIRE HYDRANTS
37.01 CHARGES FOR INSTALLATION
Upon application for installation of one or more fire
hydrants the customer shall pay such charges as shall be
determined on the basis of actual costs incurred by the District
in performing the work. At the time of application for the
installation, the District will estimate the total costs to be
incurred in performing the work. The customer shall deposit the
estimated amount with the District prior to commencement of the
work. If actual costs incurred by the District are less than
the amount deposited, the District shall refund the balance of
the deposit to the customer. If the costs incurred exceed the
amount deposited, the customer shall reimburse the District for
the additional costs.
37.02 USE OF DISTRICT FIRE HYDRANTS
A.For Training and Fire Fighting
1.The District will allow municipalities and fire
agencies to use District fire hydrants for training
and fire fighting purposes; provided, however, the
District reserves the right to revoke such
authorization if the privilege has been abused by
misuse or excessive use of water.
2.The District intends to provide water necessary for
fire fighting, subject to limitations due to normal
maintenance and operation of the water system;
provided, however, the District makes no guarantee
that it will supply an unlimited amount of water to
any hydrant in the District or that it will, at all
times, maintain such hydrants in an operating
condition.
B.For Other Purposes. Unless otherwise authorized by the
General Manager, the use of fire hydrants for other than
training and fire fighting purposes is prohibited. Any person
violating the provisions of this Section shall be subject to
criminal and civil action as prescribed by the law.
38-1
SECTION 38 SERVICE FOR FIRE PROTECTION SYSTEMS
38.01 SERVICE FOR COMMERCIAL OR INDUSTRIAL PURPOSES
The District will provide water service for fire pro-
tection systems for commercial or industrial developments
within the District. Such service shall be available only
in accordance with the rules and regulations provided in
this Code.
38.02 RULES AND REGULATIONS FOR FIRE HYDRANT AND/OR
FIRE SPRINKLER SERVICE FOR COMMERCIAL OR
INDUSTRIAL PURPOSES, OR MULTI-FAMILY RESIDENCES,
ON PRIVATE PROPERTY
A.All fire hydrant and/or fire sprinkler service
mains installed for commercial or industrial
purposes, or multi-family residences, on
privately-owned land shall be owned and
maintained by the land owner; except for fire
hydrants installed for developments where the
District has accepted an easement for such
service mains.
B.Where service is provided for fire hydrant or
fire sprinkler service on privately-owned land
under Paragraph A above, the service shall be
provided by the District at the property line of
the land to be served. The property owner or
developer shall be responsible to construct and
maintain the remainder of the facilities to pro-
vide fire protection to the property. Each such
facilities installation shall include a reduced
pressure principle detector backflow prevention
assembly (RPDA) device installed in accordance
with District specifications, and tested annually
in accordance with Section 23.04.G. of this code.
The RPDA device shall be installed on the fire
main located on the customer side of the property
line.
C.Water furnished for fire hydrant or fire sprin-
kler service shall be used only for fire protec-
tion purposes. Water service for domestic, busi-
ness, commercial or irrigation purposes, or
multi-family residences, shall be furnished only
after a meter or meters have been installed on
laterals connected to the District main in the
street pursuant to requirements of this Code.
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D.Upon application for installation of one or more
fire service connections to an existing District
water main, the customer shall pay such charges
as shall be determined on the basis of actual
costs incurred by the District in performing the
work. At the time of application for the instal-
lation, the District will estimate the total
costs to be incurred in performing the work. The
customer shall deposit the estimated amount with
the District prior to commencement of the work.
The work shall be performed by the District under
a District Water/Sewer Order. If actual costs
incurred by the District are less than the amount
deposited, the District shall refund the balance
of the deposit to the customer. If the costs
incurred exceed the amount deposited, the cus-
tomer shall reimburse the District for the addi-
tional costs. Where the fire service connection
is to be made to a water main to be constructed
in a street by the owner or developer, the costs
for such connection shall be covered under the
standard developer's agreement with the District
for installation of the water facilities for the
development project.
E.Water for fire protection services shall be pro-
vided in accordance with District fees and
charges set forth in Section 25.03 D.16.(c) of
this Code.
F.The District shall have no responsibility for the
proper function of the fire service system or for
the availability of water from its mains for fire
protection in the event of emergency. While the
District undertakes at all times to have adequate
supplies available in its system for ordinary
uses, it is not a guarantor of continual service
in quantities adequate for all purposes however,
and each customer shall specifically agree that
as a condition of the fire service connection
contracted for that the District shall incur no
liability or be subject to any damages resulting
from a failure or malfunctioning of the fire
sprinkler lateral or fire sprinkler system or
from a lack of water in adequate quantity or
pressure to make it fully effective.
38.03 SERVICES FOR INDIVIDUALLY METERED RESIDENTIAL
FIRE PROTECTION
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When a single-family residential water meter is
required to provide standby capacity for a fire
sprinkler system, the capacity charge may be
determined according to the size of the meter
necessary to meet the water use requirements for
the property. Additional capacity fees for
upsizing the single-family residential meter to
meet fire flow requirements will be waived.
Standby capacity to provide water for a fire
sprinkler system is required when (1) the fire
sprinkler system is required by law, including
any requirement imposed as a condition of
development, permit, or occupancy, and (2) the
fire chief, fire marshal, or building official of
the city, county, or special district responsible
for fire protection service to the property has a
requirement for additional meter size due to fire
protection. The determination, under this
section, shall be made at the time the meter is
first obtained, or at the time a meter is
replaced with one of greater size due to the
later installation of a fire protection system.
When a separate meter is required, water for fire
protection services shall be provided in
accordance with District fees and charges set
forth in Section 25.03 D.16.(c) of this Code.
38.04 FIRE SPRINKLER SERVICE FOR COMBINED MULTI &
SINGLE FAMILY SITES
A.Master metered residential sites that contain
both multi-family and single-family units, as
designated by the fire department with
jurisdiction, shall design and install the multi-
family portion of the project in accordance with
Section 38.02 (A through F). Portions of the site
designated as single-family shall design and
install fire sprinklers as required by the fire
agency with jurisdiction. The District requires
all single-family residential homes to abide by
the rules set forth in Section 38.05.
38.05 RULES AND REGULATIONS FOR SINGLE-FAMILY
RESIDENTIAL PROPERTIES WITH FIRE PROTECTION
SYSTEMS
A.The District requires single-family residential
homes with fire sprinklers to include an above-
grade double check valve backflow prevention
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assembly unless all the following criteria are
met:
1.The user premises has only one service
connection to the PWS;
2.A single service line onto the user premises
exists that subsequently splits on the property
for domestic flow and fire protection system
flow, such that the fire protection system may be
isolated from the rest of the user premises;
3.A single, water industry standard, water
meter is provided to measure combined domestic
flow and fire protection system flow;
4.The fire protection system is constructed of
piping materials certified as meeting NSF/ANSI
Standard 61; and
5.The fire protection system’s piping is looped
within the structure and is connected to one or
more routinely used fixtures (such as a water
closet) to prevent stagnant water.
B. The District highly encourages the use of a
passive purge system, as described in section
38.05, for all new single-family residential
sites.
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SECTION 39.DROUGHT RESPONSE CONSERVATION PROGRAM
39.01 DECLARATION OF NECESSITY AND INTENT
(a)This Section establishes water management
requirements that are in addition to any permanent water
waste prohibitions and are necessary to conserve water,
enable effective water supply planning, assure reasonable
and beneficial use of water, prevent waste of water,
prevent unreasonable use of water, prevent unreasonable
method of use of water within the District in order to
assure adequate supplies of water to meet the needs of the
public, and further the public health, safety, and welfare,
recognizing that water is a scarce natural resource that
requires careful management not only in times of a water
shortage, but at all times.
(b)This Section establishes regulations to be
implemented during times of declared water shortages or
declared water shortage emergencies. It establishes six
levels of drought response actions to be implemented in
times of shortage, with increasing restrictions on water
use in response to worsening drought conditions and
decreasing available supplies.
(c)The Level 1 condition drought response measures
are voluntary and will be reinforced through local and
regional public education and awareness measures that may
be funded in part by the District. Beginning at the level 2
Water Shortage Response Condition, the District may
implement water shortage pricing. During drought response
condition Levels 2 through 6, all conservation measures and
water-use restrictions become mandatory and become
increasingly restrictive in order to attain escalating
conservation goals.
(d)During a Drought Response Level 2 condition or
higher, the water conservation measures, and water use
restrictions established by this ordinance are mandatory
and violations are subject to criminal, civil, and
administrative penalties and remedies specified in Section
72 of this ordinance.
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39.02 DEFINITIONS APPLICABLE TO THE PROGRAM
(a)The following words and phrases whenever used in
this Section shall have the meaning defined in this sub-
section:
1.“Grower” refers to those engaged in the
growing or raising, in conformity with recognized
practices of husbandry, for the purpose of commerce,
trade, or industry, or for use by public educational
or correctional institutions, of agricultural,
horticultural or floricultural products, and produced:
(1) for human consumption or for the market, or (2)
for the feeding of fowl or livestock produced for
human consumption or for the market, or (3) for the
feeding of fowl or livestock for the purpose of
obtaining their products for human consumption or for
the market. “Grower” does not refer to customers who
purchase water subject to the Water Authority’s
Permanent Special Agricultural Water Rate programs.
2.“Water Authority” means the San Diego County
Water Authority.
3.“Metropolitan” means the Metropolitan Water
District of Southern California.
4.“Permanent water use efficiency measures”
means any permanent water use efficiency measure
adopted by the District Board of Directors.
5.“Person” means any natural person,
corporation, public or private entity, public or
private association, public or private agency,
government agency or institution, school district,
college, university, or any other user of water
provided by the District.
6.“WSCP” means the Water Authority’s Water
Shortage Contingency Plan or the District’s Water
Shortage Contingency Plan, as specified, in existence
on the effective date of this ordinance and as
readopted or amended from time to time, or an
equivalent plan of the Water Authority to manage or
allocate supplies during shortages.
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39.03 APPLICATION
(a)The provisions of this Section apply to any
person in the use of any water provided by the
District.
(b)This Section is intended solely to further the
conservation of water. It is not intended to
implement any provision of federal, State, or local
statutes, ordinances, or regulations relating to
protection of water quality or control of drainage or
runoff. Refer to the local jurisdiction or Regional
Water Quality Control Board for information on any
storm water ordinances and storm water management
plans.
(c)Nothing in this Section is intended to affect or
limit the ability of the District to declare and
respond to an emergency including an emergency that
affects the ability of the District to supply water.
(d)The provisions of this Section do not apply to
use of water from private wells or to recycled water.
(e)Nothing in this Section shall apply to use of
water that is subject to a special supply program,
such as the Water Authority Permanent Special
Agricultural Water Rate programs. Violations of the
conditions of special supply programs are subject to
the penalties established under the applicable
program. A person using water subject to a special
supply program and other water provided by the
District is subject to this Section in the use of the
other water.
At all times, the following practices shall be in effect:
1.Prevent water waste resulting from
inefficient irrigation, such as runoff or overspray.
Similarly, stop water flows onto non-targeted areas,
such as adjacent property, non-irrigated areas,
hardscapes, roadways, or structures;
2.Serve and refill water in restaurants and
other food service establishments only upon request;
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3.Offer guests in hotels, motels, and other
commercial lodging establishments the option of not
laundering towels and linens daily;
4.Use only re-circulated water in fountains or
other decorative water features;
5.Wash automobiles with a hose equipped only
with a positive shut-off nozzle;
6.Irrigating ornamental turf on public street
medians only with recycled water;
7.Repair all water leaks within forty-eight
(48) hours of notification by the District unless
other arrangements are made with the General Manager
or designee;
8.Irrigation is not allowed during a rainstorm
or for forty-eight (48) hours after one-quarter inch
or more of rainfall is measured at Lindbergh Field;
9.No washing down of paved surfaces, including
but not limited to sidewalks, driveways, parking lots,
tennis courts, or patios, except when it is necessary
to alleviate safety or sanitation hazards.
39.04 DROUGHT RESPONSE LEVEL 1
(a)A Drought Response Level 1 condition applies when
the Water Authority notifies its member agencies that due
to drought or other supply reductions, there is a
reasonable probability there will be supply shortages and
that a consumer demand reduction of up to ten (10) percent
is required in order to ensure that sufficient supplies
will be available to meet anticipated demands. The General
Manager shall declare the existence of a Drought Response
Level 1 and take action to implement the Level 1
conservation practices identified in this Section.
(b)During a Drought Response Level 1 condition, the
District will increase its public education and outreach
efforts to emphasize increased public awareness of the need
to implement the water conservation practices noted above
and the following water conservation practices. The same
water conservation practices become mandatory if the
District declares a Level 2 Drought Alert condition:
39-5
1.Irrigate residential and commercial
landscape before 10 a.m. and after 6 p.m. only.
Customers are to water no more than three days a week
using the suggested watering schedule as found on the
District’s web page. New plantings and newly seeded
areas are exempt for thirty (30) days.
2. Use a hand-held hose equipped with a
positive shut-off nozzle or bucket to water landscaped
areas including trees and shrubs located on
residential and commercial properties that are not
irrigated by a landscape irrigation system.
3. Irrigate nursery and commercial grower’s
products before 10 a.m. and after 6 p.m. only.
Watering is permitted at any time with a hand-held
hose equipped with a positive shut-off nozzle, a
bucket, or when a drip/micro-irrigation
system/equipment is used. Irrigation of nursery
propagation beds is permitted at any time. Watering
of livestock is permitted at any time.
4.Wash vehicles, including but not limited to
motorcycles, farm equipment, trailers, boats and boat
engines and motorhomes using a bucket and a hand-held
hose with positive shut-off nozzle, mobile high
pressure/low volume wash system, or at a commercial
site that re-circulates (reclaims) water on-site.
Vehicle washing is limited to once per week.
5.Use recycled or non-potable water for
construction purposes when available.
39.05 DROUGHT RESPONSE LEVEL 2
(a)A Drought Response Level 2 condition applies when
the Water Authority notifies its member agencies that due
to cutbacks caused by drought or other reduction in
supplies, a consumer demand reduction of up to twenty (20)
percent is required in order to have sufficient supplies
available to meet anticipated demands. The District Board
of Directors shall declare the existence of a Drought
Response Level 2 condition and implement the mandatory
Level 2 conservation measures identified in this Section of
the ordinance.
39-6
(b)All persons using District water shall comply
with Level 1 water conservation practices during a Drought
Response Level 2 condition, and shall also comply with the
following additional conservation measures:
1.Limit residential and commercial landscape
irrigation to no more than three (3) assigned days per
week on a schedule established by the General Manager
or designee and posted by the District. This section
shall not apply to commercial growers or nurseries.
2.Limit lawn watering and landscape irrigation
using sprinklers to no more than ten (10) minutes per
watering station per day. This provision does not
apply to landscape irrigation systems using water
efficient devices, including but not limited to
weather-based controllers, drip/micro-irrigation
systems, and stream rotor sprinklers.
3.Water landscaped areas, including trees and
shrubs located on residential and commercial
properties, and not irrigated by a landscape
irrigation system on the same schedule set forth
above, by using a bucket, hand-held hose with positive
shut-off nozzle, or low-volume non-spray irrigation.
4.Stop operating fountains or similar
decorative water features unless recycled water is
used.
39.06 DROUGHT RESPONSE LEVEL 3 – DROUGHT CRITICAL
CONDITION
(a)A Drought Response Level 3 condition applies when
the Water Authority notifies its member agencies that due
to increasing cutbacks caused by drought or other reduction
of supplies, a consumer demand reduction of up to thirty
(30) percent is required in order to have sufficient
supplies available to meet anticipated demands. The
District Board of Directors shall declare the existence of
a Drought Response Level 3 condition and implement the
Level 3 conservation measures identified in this Section.
(b)All persons using District water shall comply
with Level 1 and Level 2 water conservation practices
39-7
during a Drought Response Level 3 condition and shall also
comply with the following additional mandatory conservation
measures:
1.Limit residential and commercial landscape
irrigation to no more than two (2) assigned days per
week on a schedule established by the General Manager
or designee and posted by the District. This section
shall not apply to commercial growers or nurseries.
2.Water landscaped areas, including trees and
shrubs located on residential and commercial
properties, and not irrigated by a landscape
irrigation system on the same schedule set forth
above, by using a bucket, hand-held hose with a
positive shut-off nozzle, or low-volume non-spray
irrigation.
3.Stop washing vehicles except at commercial
carwashes that re-circulate water, or by high
pressure/low volume wash systems. If a commercial car
wash cannot accommodate the vehicle because of the
vehicle size or type, such as RVs, horse trailers,
boats, and commercial vehicles, customers will be
allowed to wash vehicles using a bucket and a hand-
held hose with positive shut-off nozzle, mobile high
pressure/low volume wash system.
(c)Upon the declaration of a Drought Response Level
3 condition, the District will suspend consideration of
annexations to its service area.
(d) The District may establish a water allocation for
property served by the District using a method that does
not penalize persons for the implementation of conservation
methods or the installation of water saving devices. If
the District establishes a water allocation, it shall
provide notice of the allocation by including it in the
regular billing statement for the fee or charge or by any
other mailing to the address to which the District
customarily mails the billing statement for fees or charges
for on-going water service. Following the effective date
of the water allocation as established by the District, any
person that uses water in excess of the allocation shall be
subject to a penalty for each billing unit of water in
excess of the allocation. The penalty for excess water
39-8
usage shall be cumulative to any other remedy or penalty
that may be imposed for violation of this Section.
39.07 DROUGHT RESPONSE LEVEL 4
(a)A Drought Response Level 4 condition applies when
the Water Authority notifies its member agencies that due
to increasing cutbacks caused by drought or other reduction
of supplies, a consumer demand reduction of up to forty
(40) percent is required in order to have sufficient
supplies available to meet anticipated demands. The
District Board of Directors shall declare the existence of
a Drought Response Level 4 condition and implement the
Level 4 conservation measures identified in this Section.
(b)All persons using District water shall comply
with Level 1, Level 2, and Level 3 water conservation
practices during a Drought Response Level 4 condition and
shall also comply with the following additional mandatory
conservation measures:
Stop filling or re-filling ornamental lakes
or ponds, except to the extent needed to
sustain aquatic life, provided that such
animals are of significant value and have
been actively managed within the water
feature prior to declaration of a water
shortage response level under this Section.
(c) The District may establish a water allocation
for property served by the District using a method that
does not penalize persons for the implementation of
conservation methods or the installation of water saving
devices. If the District establishes a water allocation,
it shall provide notice of the allocation by including it
in the regular billing statement for the fee or charge or
by any other mailing to the address to which the District
customarily mails the billing statement for fees or
charges for on-going water service. Following the
effective date of the water allocation as established by
the District, any person that uses water in excess of the
allocation shall be subject to a penalty for each billing
unit of water in excess of the allocation. The penalty
for excess water usage shall be cumulative to any other
remedy or penalty that may be imposed for violation of
this Section.
39-9
39.08 DROUGHT RESPONSE LEVEL 5
(a)A Drought Response Level 5 condition applies when
the Water Authority notifies its member agencies that due
to increasing cutbacks caused by drought or other reduction
of supplies, a consumer demand reduction of up to fifty
(50) percent is required in order to have sufficient
supplies available to meet anticipated demands. The
District Board of Directors shall declare the existence of
a Drought Response Level 5 condition and implement the
Level 5 conservation measures identified in this ordinance.
(b) All persons using District water shall comply
with conservation measures required during Level 1, Level
2, Level 3, and Level 4 conditions and shall also comply
with the following additional mandatory conservation
measures:
1.Stop all landscape irrigation, except crops
and landscape products of commercial growers and
nurseries. This restriction shall not apply to the
following categories of use unless the District has
determined that recycled water is available and may be
lawfully applied to the use.
A.Maintenance of trees and shrubs that
are watered on the same schedule as noted above,
by using a bucket, hand-held hose with a positive
shut-off nozzle, or low-volume non-spray
irrigation;
B.Maintenance of existing landscaping
necessary for fire protection as specified by the
Fire Marshal of the local fire protection agency
having jurisdiction over the property to be
irrigated;
C.Maintenance of existing landscaping for
erosion control;
D.Maintenance of plant materials
identified to be rare or essential to the well-
being of rare animals;
E.Maintenance of landscaping within
active public parks and playing fields, day care
39-10
centers, school grounds, cemeteries, and golf
course greens, provided that such irrigation does
not exceed two (2) days per week according to the
schedule established under the District’s Level 3
Condition;
F.Watering of livestock; and
G.Public works projects and actively
irrigated environmental mitigation projects.
2.Repair all water leaks within twenty-four
(24) hours of notification by the District unless
other arrangements are made with the District.
(c)The District may establish a water allocation for
property served by the District that does not penalize
persons for the implementation of conservation methods or
the installation of water saving devices. If the District
establishes a water allocation, it shall provide notice of
the allocation by including it in the regular billing
statement for the fee or charge or by any other mailing to
the address to which the District customarily mails the
billing statement for fees or charges for on-going water
service. Following the effective date of the water
allocation as established by the District, any person that
uses water in excess of the allocation shall be subject to
a penalty for each billing unit of water in excess of the
allocation. The penalty for excess water usage shall be
cumulative to any other remedy or penalty that may be
imposed for violation of any provision of this Section.
(d)Upon the declaration of a Level 5 condition, no
new potable water service shall be provided, no new
temporary meters or permanent meters shall be provided and
no statements of immediate ability to serve or provide
potable water service (such as, will serve letters,
certificates, or letters of availability) shall be issued,
except under the following circumstances:
1.A valid, unexpired building permit has been
issued for the project; or
2.The project is necessary to protect the
public’s health, safety, and welfare; or
39-11
3.The applicant provides substantial evidence
of an enforceable commitment that water demands for
the project will be offset prior to the provision of a
new water meter(s) to the satisfaction of the
District.
This provision shall not be construed to preclude the
resetting or turn-on of meters to provide continuation of
water service or to restore service that has been
interrupted for a period of one (1) year or less.
39.09 DROUGHT RESPONSE LEVEL 6
(a)A Drought Response Level 6 condition applies when
the Water Authority Board of Directors declare a water
shortage emergency pursuant to California Water Code
Section 350 and notifies its member agencies that Level 6
requires a demand reduction of more than fifty (50) percent
in order for the District to have maximum supplies
available to meet anticipated demands. The District shall
declare a Drought Emergency in the manner and on the
grounds provided in California Water Code Section 350.
(b)All persons using District water shall comply
with conservation measures required during Level 1, Level
2, Level 3, Level 4, and Level 5 conditions and shall also
comply with the following additional mandatory conservation
measures:
1.Stop all landscape irrigation, except crops
and landscape products of commercial growers and
nurseries. This restriction shall not apply to the
following categories of use unless the District has
determined that recycled water is available and may be
lawfully applied to the use.
A.Maintenance of existing landscaping
necessary for fire protection as specified by the
Fire Marshal of the local fire protection agency
having jurisdiction over the property to be
irrigated;
B.Maintenance of existing landscaping for
erosion control;
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C.Maintenance of plant materials
identified to be rare or essential to the well-
being of rare animals;
D.Watering of livestock; and
E.Public works projects and actively
irrigated environmental mitigation projects.
39.10 PROCEDURES FOR DETERMINATION AND NOTIFICATION OF
DROUGHT RESPONSE LEVEL
(a) The existence of a Drought Response Level 1
condition may be declared by the General Manager upon a
written determination of the existence of the facts and
circumstances supporting the determination. A copy of the
written determination shall be filed with the Clerk or
Secretary of the District and provided to the District
Board of Directors. The General Manager may publish a
notice of the determination of existence of Drought
Response Level 1 condition in one or more newspapers
including a newspaper of general circulation within the
District. The District will also post notice of the
condition on their website.
(b)The existence of Drought Response Level 2, Level
3, Level 4, or Level 5 conditions may be declared by
resolution of the District Board of Directors adopted at a
regular or special public meeting held in accordance with
State law. The mandatory conservation measures applicable
to Drought Response Level 2, Level 3, Level 4, or Level 5
conditions shall take effect on the tenth (10) day after
the date the response level is declared. Within five (5)
days following the declaration of the response level, the
District shall publish a copy of the resolution in a
newspaper used for publication of official notices. If the
District establishes a water allocation, it shall provide
notice of the allocation by including it in the regular
billing statement for the fee or charge or by any other
mailing to the address to which the District customarily
mails the billing statement for fees or charges for on-
going water service. Water allocation shall be effective
on the fifth (5) day following the date of mailing or at
such later date as specified in the notice.
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(c) The existence of a Drought Response Level 6
condition may be declared in accordance with the procedures
specified in California Water Code Sections 351 to 352. The
mandatory conservation measures applicable to Drought
Response Level 6 conditions shall take effect on the tenth
(10) day after the date the response level is declared.
Within five (5) days following the declaration of the
response level, the District shall publish a copy of the
resolution in a newspaper used for publication of official
notices.
(d) The District Board of Directors may declare an
end to a Drought Response Level by the adoption of a
resolution at any regular or special meeting held in
accordance with State law.
39.11 HARDSHIP VARIANCE
(a)If, due to unique circumstances, a specific
requirement of this ordinance would result in undue
hardship to a person using agency water or to property upon
which agency water is used, that is disproportionate to the
impacts to District water users generally or to similar
property or classes of water uses, then the person may
apply for a variance to the requirements as provided in
this Section.
(b)The variance may be granted or conditionally
granted, only upon a written finding of the existence of
facts demonstrating an undue hardship to a person using
agency water or to property upon with agency water is used,
that is disproportionate to the impacts to District water
users generally or to similar property or classes of water
use due to specific and unique circumstances of the user or
the user’s property.
1.Application. Application for a variance
shall be a form prescribed by the District and shall
be accompanied by a non-refundable processing fee in
an amount set by resolution of the District Board of
Directors.
2.Supporting Documentation. The application
shall be accompanied by photographs, maps, drawings,
and other information including a written statement of
the applicant.
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3.Required Findings for Variance. An
application for a variance shall be denied unless the
approving authority finds, based on the information
provided in the application, supporting documents, or
such additional information as may be requested, and
on water use information for the property as shown by
the records of the District, all of the following:
A.That the variance does not constitute a
grant of special privilege inconsistent with the
limitations upon other District customers;
B.That because of special circumstances
applicable to the property or its use, the strict
application of this ordinance would have a
disproportionate impact on the property or use
that exceeds the impacts to customers generally;
C.That the authorizing of such variance
will not be of substantial detriment to adjacent
properties and will not materially affect the
ability of the District to effectuate the purpose
of this chapter and will not be detrimental to
the public interest;
D.That the condition or situation of the
subject property or the intended use of the
property for which the variance is sought is not
common, recurrent, or general in nature.
4.Approval Authority. The General Manager
shall exercise approval authority and act upon any
completed application no later than ten (10) days
after submittal and may approve, conditionally
approve, or deny the variance. The applicant
requesting the variance shall be promptly notified in
writing of any action taken. Unless specified
otherwise at the time a variance is approved, the
variance applies to the subject property during the
term of the mandatory drought response.
5.Appeals to District Board of Directors. An
applicant may appeal a decision or condition of the
General Manager on a variance application to the
District Board of Directors within ten (10) days of
the decision upon written request for a hearing. The
39-15
request shall state the grounds for the appeal. At a
public meeting, the District Board of Directors shall
act as the approval authority and review the appeal de
novo by following the regular variance procedure. The
decision of the District Board of Directors is final.
39.12 VIOLATIONS AND PENALTIES
(a)Any person, who uses, causes to be used, or
permits the use of water in violation of this ordinance is
guilty of an offense punishable as provided herein;
(b)Each day that a violation of this ordinance
occurs is a separate offense;
(c)Administrative fines may be levied for each
violation of a provision of this ordinance as identified in
Section 72 of this code;
(d)Violation of a provision of this ordinance is
subject to enforcement through installation of a flow-
restricting device in the meter;
(e)Each violation of this ordinance may be
prosecuted as a misdemeanor punishable by imprisonment in
the county jail for not more than thirty (30) days or by a
fine not exceeding $1,000, or by both as provided in Water
Code Section 377 and Section 72 of this code;
(f)Willful violations of the mandatory conservation
measures and water use restrictions as set forth in Section
11.0 and applicable during a Drought Response Level 6
condition may be enforced by discontinuing service to the
property at which the violation occurs as provided by Water
Code Section 356 and Section 72 of this code;
(g)All remedies provided for herein shall be
cumulative and not exclusive.
40-1
SECTION 40. STATE DROUGHT RESPONSE
40.01 DECLARATION OF NECESSITY AND INTENT
This Section establishes water management requirements
in response to and in an effort to comply with State mandates
related to ongoing drought conditions throughout the State.
In particular, because of variations in conservation efforts
and water supply levels and sources throughout the State,
restrictions necessary for a concerted statewide effort may
not correlate with the water shortage conditions and
prerequisites for restrictions under the District’s Water
Shortage Response Program set forth in Section 39, above.
The District nonetheless recognizes the benefits of
widespread conservation efforts for the good of the State as
a whole and intends to exercise its best efforts to comply
with applicable regulations and mandates.
40.02 CONSERVATION REGULATIONS RELATED TO EXECUTIVE
ORDER B-29-15
a)In addition to the requirements of any Water
Shortage Response Level declaration by the District, the
District hereby incorporates by reference as if fully set
forth herein the emergency regulation for statewide urban
water conservation adopted by the State Water Resources
Control Board (the “Water Board”) on May 5, 2015 via
Resolution No. 2015-0032 in response to Executive Order B-
29-15 issued by the Governor on April 1, 2015 (the “Emergency
Regulation”), including, but not limited to, the requirements
of section 864 of title 23 of the California Code of
Regulations and the required potable water production
reduction mandated for the District pursuant to section 865
of title 23 of the California Code of Regulations.
b)To the extent there are any inconsistencies between
the restrictions and mandates of the Emergency Regulation and
any requirements of the District’s Water Shortage Response
Level due, for example, to the District not experiencing water
shortage conditions justifying further restrictions required
by the Emergency Regulation, the more stringent requirement
shall apply.
c)Pursuant to Water Code section 1058.5, the
Emergency Regulation shall remain in effect for up to 270
days unless the Water Board determines that it is no longer
necessary due to changed conditions, or unless the Water Board
40-2
renews the regulation due to continued drought conditions as
described in Water Code section 1058.5. The District Board
of Directors may declare an end to the application of the
Emergency Regulation by the adoption of a resolution at any
regular or special meeting held in accordance with State law
provided, however, that the Emergency Regulation will
automatically cease to apply upon expiration of the Emergency
Regulations as set forth above.
d)To the extent the San Diego County Water Authority
requires restrictions in addition to and as a result of the
Emergency Regulation and/or Executive Order B-29-15, the
General Manager is authorized to take action to implement the
restrictions and conservations practices required.
50-1
CHAPTER 2 SEWER SERVICE
SECTION 50 RULES AND REGULATIONS FOR SEWER SERVICE
Sewer service shall be furnished to customers only in
accordance with the rules and regulations set forth in this Code
of Ordinances or as otherwise authorized by the Board of
Directors.
51-1
SECTION 51 DISTRICT SEWER SYSTEM
51.01 CONTROL AND OPERATION OF SYSTEM
The District sewer system and appurtenances thereto
shall be under the management and control of the General
Manager. No person, other than an employee or agent of the
District, shall have any right to operate any part of a
District sewer system. As provided in Division IV, any
person who tampers or interferes with the Districts systems
or facilities, or causes or permits any such act, shall be
responsible for any injury or damage caused thereby or
resulting therefrom.
51.02 CONNECTIONS AND DISCONNECTIONS TO SEWER SYSTEM
Connection to and disconnection from a District sewer
main shall be made only by District employees. Connection
to and disconnection from a sewer lateral shall be made by
the customer subject to inspection and approval of the
District.
51.03 INSPECTION OF CUSTOMER PREMISES
Authorized District personnel shall have unrestricted
access at reasonable hours to all premises served by
District sewers for inspection and testing purposes, and to
determine whether the customer is complying with the rules,
regulations and ordinances of the District concerning sewer
services.
51.04 (RESERVED)
51.05 PERMIT REVOCATED OR SUSPENDED
The General Manager will give at least five (5) days
notice prior to suspending or revoke a permit, stating the
reason for the proposed action and, if determined to be
reasonable by the General Manager, providing a reasonable
time to correct the violation. Notice shall be given to
the holder of the permit, at the address for such person on
file with the District.
52-1
SECTION 52 WASTE DISPOSAL
52.01 DEFINITIONS OF "SEWER SYSTEM," "SEWAGE" AND
"INDUSTRIAL WASTES"
A.As used in this Section 52, the following words
shall have the meanings set forth below:
1."sewer system" means all land, facilities and equip-
ment utilized by the District in the collection,
transportation, pumping, treatment and final dis-
posal of sewage.
2."sewage" means the spent water of a community, which
may be a combination of liquid and water carried
wastes from residences, commercial buildings, indus-
trial plants and institutions.
3."industrial wastes" means liquid wastes from indus-
trial processes, as contrasted to domestic or sani-
tary wastes.
52.02 FEDERAL AND STATE STATUTES AND REGULATIONS APPLICA-
BLE TO DISTRICT SEWER SERVICE
The Federal Water Pollution Control acts and the Califor-
nia Porter-Cologne water Quality Control Act of 1969 provide
for the protection of the quality of water in the nation and
the State of California. These laws set guidelines for the
quality of domestic and industrial waste discharges to a pub-
lic sewer. Local public agencies are required to establish
local ordinances to prohibit certain substances and limita-
tions on acceptable constituents.
52.03 ENFORCEMENT OF DISTRICT RULES AND REGULATIONS
The General Manager shall enforce rules and regulations
set forth in this Code relating to District sewer service.
The General Manager shall be authorized to take such action as
he deems necessary for preservation of public health or
safety, or for the protection of public or private property.
The General Manager may suspend sewer service to any customer
using the District sewer system in a manner that would endan-
ger the public health or safety, or public or private prop-
erty. In suspending such service, the Customer's connection
to the District sewer system may be severed. If danger is
imminent, the General Manager may act immediately to suspend
sewer service coincident with giving notice or warning to the
customer.
52-2
52.04 PROHIBITIONS AGAINST DISCHARGE OF OBJECTIONABLE
WASTES
It shall be unlawful for any person to discharge or per-
mit the discharge of any substance into the District sewer
system that could cause a public nuisance or hazard to life,
or that could be harmful to the District sewer system or its
wastewater reclamation facilities or processes. Discharge of
the following into the District sewer system is expressly pro-
hibited:
gasoline, cleaning solvent, fuel, oil;ashes, sand, cinders, rocks;tar, plastics, other water insoluble viscous materi-
als;mineral oils, lubricating oils;feathers, hair;rags, sanitary napkins, disposable diapers;broken glass, metal, wood and plastic shavings;unground garbage;swimming pool drainwater;wastes which contain or result in the production of
toxic, corrosive and explosive gases;animal or dairy waste;cesspool and septic tank wastes;or any other substance, material or liquid that
could be harmful to the District sewer system.
52.05 GUIDELINES TO DETERMINE ACCEPTABILITY OF WASTES
The following provisions and the values set forth herein
are not to be regarded or construed as regulating or limiting
the quantity or characteristics of any specific wastes which
may be received into the sewer system, but such shall serve as
a guide in implementing this Section for regulation of the use
of the District sewer system and for determination of accept-
ability of waste into the sewer system. In considering the
following sewage characteristics, the dilution effect of the
sewage at the point of discharge or any affected part of the
system, and whether or not unusual attention or expenses would
be required to handle such material in the sewer system, shall
be taken into consideration:
A.The discharge into the District sewer system of any
water or waste having an average daily flow greater than one
percent (1%) of the average daily flow at the sewage treatment
plan shall be subject to review.
B.The temperature of industrial waste discharged into
the sewer system should not exceed 140 degrees Fahrenheit.
C.Industrial wastes having a grease and oil concentra-
tion in excess of 200 ppm will be considered on a case-by-case
52-3
basis to determine if the sewer system can safely receive said
wastes.
D.Industrial discharge of toxic or radioactive wastes
into the sewer system will be considered on a case-by-case
basis.
E.Industrial discharge of wastes having a biochemical
oxygen demand (BOD) in excess of 300 ppm will be considered on
a case-by-case basis to determine if the sewer system can
safely receive said wastes.
F.Industrial discharge of wastes having suspended sol-
ids in excess of 300 ppm will be considered on a case-by-case
basis to determine if the sewer system can safely receive said
wastes. To make such determination, the following procedures
shall apply:
1.Where warranted, installation of an appropriate man-
hole for purposes of sampling the final industrial
waste discharge may be required.
2.The source to be used for the chemical and bacterio-
logical analysis shall be the "Standard Methods for
the Examination of Water and Sewage," latest edi-
tion, approved by the Joint Committee of the Public
Health Association, Federation of Sewage and Indus-
trial waste Association and American Water Works
Association.
52.06 DISCHARGE OF INDUSTRIAL WASTE
Any person or governmental agency desiring to discharge
industrial wastes into the District sewer system shall obtain
a permit from the District for the discharge of said wastes.
The District may require installation of on-site facilities by
the discharger for purposes of pretreatment of sewage before
industrial waste can be discharged into the District sewer
system.
53-1
(1)See Appendix A, Section 53 for fees, rates, and charges.
SECTION 53 CONDITIONS FOR SEWER SERVICE
53.01 CONDITIONS FOR ACQUISITION OF SEWER SERVICE CAPACITY
Sewer service capacity may be acquired only for service to a
specific address, parcel of land, or a land development project
covered by an approved map.An approved map shall mean a
recorded final map, a recorded parcel map or a tentative sub-
division map that has been approved by the County or by a City,
as applicable.
A.District Acceptance of Sewer Facilities for Russell Square
Area - Under an Agreement with Cal Dorado Development,
Inc., dated June 28, 1981, the District accepted title to a
sewer pump station, force main and appurtenances for a
sewage system to provide sewer service to the residential
dwelling units to be constructed within the parcels of land
in San Diego County Tentative Parcel Map 17150.Under an
Agreement with Cal Dorado Development, Inc., dated June 18,
1981, the District agreed to provide service to such
parcels on the terms and conditions contained therein.On
October 1, 1984, pursuant to Resolution No. 2139, the
District Board of Directors accepted title to the
facilities.
53.02 SERVICE AREAS
Sewer service shall be furnished by the District only to
property located in Improvement District No. 18 (ID 18) and the
Russell Square Sewer Service Area.Sewer service to property
located outside such areas may be furnished only upon annexation
to ID 18 and payment of all applicable annexation fees. (See
Appendix A, Section 9)
A.Designation of Russell Square Sewer Area - The geographical
area described on the District Map entitled "Russell Square
Sewer Service Area," dated October 11, 1988, on file with
the District Secretary, constitutes the Russell Square
Sewer Service Area.
53.03 ACQUISITION OF SEWER CONNECTIONS FOR SERVICE
Effective October 1, 2014, two separate sewer capacity fees have
been established to ensure sewer customers do not pay for
facilities twice. The first capacity fee applies to parcels
within an ID that paid prior tax debt. The second capacity fee
applies parcels outside an ID that have not paid the tax debt.
The sewer capacity fees shall constitute the "base rate."For
fees or charges after June 7, 2017, the base rate shall be
adjusted on the first day of each calendar quarter for
fluctuations in construction costs, as measured by the
Engineering News Record Construction Cost Index for the Los
Angeles Region.The ENR Construction Cost Index of 11,555.03
53-2
(1)See Appendix A, Section 53 for fees, rates, and charges.
(as of April 1, 2017) shall be deemed the "base index."The
adjustment shall be in an amount equal to the percentage change
in the ENR Construction Cost Index from the base index for the
period from April 1, 2017 to the date of payment.
1.Sewer Capacity Fee within an ID
All new sewer connections for parcels within a sewer ID
shall pay a capacity fee (1) for each Equivalent Dwelling
Unit (EDU) of sewer service provided.The capacity fee is
due at the time an application for sewer service is
requested.The number of EDUs for the connection shall be
as set forth in Section 53.08 of the Code.
2.Sewer Capacity Fee outside an ID
All new sewer connections for parcels not within a sewer ID
(requiring to be annexed into a sewer ID18 per Code Section
9.04 C.) shall pay a capacity fee (1) for each Equivalent
Dwelling Unit (EDU) of sewer service provided.The
capacity fee is due at the time an application for sewer
service is requested.The number of EDUs for the
connection shall be as set forth in Section 53.08 of the
Code.
B.Russell Square Pump Station
1.Sewer Connection Fee
A connection fee (1) for each Equivalent Dwelling Unit
(EDU) of sewer service provided through Russell Square
Pump Station shall be collected.The connection fee
is due at the time an application for sewer service is
submitted.The number of EDUs for the connection
shall be as set forth in Section 53.08 of the Code.
The connection fee shall be used by the District
solely for the maintenance, repair or replacement of
the Russell Square Pump Station.
(a)Exempt Parcels - The connection fee shall not
apply to connections for sewer service to the
parcels within the Tentative Parcel Map 17150.
Such exempt parcels are currently identified as
Assessor Parcel Nos. 497-011-41, 497-011-42, 497-
011-44, 497-011-46 and 497-011-47.
2.Monthly Sewer Service Charge
A monthly sewer service charge (1) to cover normal
operational costs of the Russell Square Pump Station
and force mains shall be collected.This charge shall
be reviewed by the Board of Directors from time to
time to assure that such charges cover the costs for
operation of the sewer facilities.
53-3
(1)See Appendix A, Section 53 for fees, rates, and charges.
In addition, the customer for such service shall pay the monthly
service charge (1) for sewer service set forth in Section 53.10 A
and B of the Code.
53.04 CHARGES FOR INSTALLATION OF SEWER LATERALS
Upon application for construction of one or more sewer laterals,
the customer shall deposit with the District the estimated costs
to be incurred by the District in connection with the instal-
lation of the facilities required, as determined by the
District.Upon completion of the work, the District shall
calculate the actual costs incurred by the District in
performing the work.If actual costs are less than the amount
deposited, the District shall refund the balance of the deposit
to the customer.If actual costs exceed the amount deposited,
the customer shall reimburse the District for the additional
costs.
53.05 PAYMENT OF FEES
All fees prescribed in the Code shall become owing, due and
payable at the time application is made to connect a premise to
the sewer system of the District.The fees shall be paid to the
District prior to the issuance of any permit authorizing the
connection of such premise to the District sewer system.If the
proposed connection cannot be made, the fee may be refunded when
approved by the General Manager.
53.06 SEWER SERVICE USE CHANGES RESULTING IN INCREASED SYSTEM
UTILIZATION
The use of a sewer connection shall be limited to the type and
number of EDUs authorized by the original wastewater discharge
permit.Before adding any additional equivalent dwelling units,
buildings, modifying existing buildings, or change of occupancy
type, the property owner shall make a supplementary wastewater
permit application to the District for such change in use and
pay additional sewer annexation fees per EDU, if necessary, as
may be applicable.Periodic inspection of the premises may be
made by the District and if actual use is greater than estimated
use, an assessment for additional annexation fees shall be
assessed. (1)
53.07 WASTEWATER DISCHARGE PERMIT ISSUANCE AND LIMITATION
A.A wastewater discharge permit shall be required for any
property for which a request is made to discharge into the
District sewage system.
B.Every wastewater discharge permit shall expire by
limitations and shall become null and void, if the
construction or work authorized by such permit is not
commenced within 120 days from date of issuance of such
53-4
(1)See Appendix A, Section 53 for fees, rates, and charges.
wastewater discharge permit or if the construction or work
authorized by such wastewater discharge permit is suspended
or abandoned for a period of 120 days at any time after the
work is commenced.
C.Before such work can be recommenced, a new wastewater
discharge permit application must be filed with the
District.The District may reactivate the previous
wastewater discharge permit provided that wastewater
quantity and type is the same as the wastewater discharge
allowed under the original permit, and provided further that
such suspension and abandonment has not exceeded one year.
Fees paid for the previous wastewater discharge permit may
be credited toward the total permit fees required on the new
permit application.Reactivation of the previous wastewater
discharge permit shall be subject to District sewer capacity
being available at the time of new application and subject
to any additional costs or charges imposed during the period
of such suspension or abandonment.
53.08 BASIS FOR DETERMINATION OF EQUIVALENT DWELLING UNITS (EDUs)
The number of EDUs for sewer service shall be determined on the
following basis:
A.Residential Facilities
EDUs Description
1
Single-family residence (Includes manufactured homes
and mobile homes which are on private lots.)
A secondary structure with a kitchen is considered an
additional EDU
Each individual living unit in apartments, multi-
family housing and residential condominiums
Each individual space in mobile homes and trailer
Parks
53-5
(1)See Appendix A, Section 53 for fees, rates, and charges.
B.Commercial/Industrial Facilities
1.Food Service Establishments
EDUs Description
3
Take-out restaurants with disposable utensils, no
dishwasher and no public restrooms
Take-out restaurants with disposable utensils, no
dishwasher and no public restrooms
Miscellaneous food establishments – ice cream shops,
yogurt shops, bakeries (sales on premise only)
Take-out/eat-in restaurants with disposable utensils,
but with seating and public restrooms
Restaurants with reusable utensils, seating and public
restrooms (0-18 seats)
o Add 1.0 EDU for each additional 6 seat unit, or
portion thereof
2.Hotels and Motels
EDUs Description
.38 Per living unit without kitchen
.60 Per living unit with Kitchen
3.Commercial, Professional, Industrial Buildings and
Establishments not specifically listed herein
EDUs Description
1.2 For first 1,000 square feet AND
+0.7 For each additional 1,000 square feet or portion thereof
Applies to any office, store or industrial condominium or
Establishments
1.2
+0.7
For first 1,000 square feet AND
For each additional 1,000 square feet of gross building
floor area.Portions less than 1,000 sq. ft. will be
prorated.
Applies to situations where the occupancy type or usage
is unknown at the time of application for service.This
shall include, but not be limited to, shopping centers,
industrial parks and professional office buildings.
1.0 Self-service laundry per washer
53-6
(1)See Appendix A, Section 53 for fees, rates, and charges.
4.Convalescent Homes
EDUs Description
0.7/bed Skilled nursing care facilities, psychological
hospitals, convalescent hospitals; licensed by the
applicable Governmental Agency.
0.5/bed Community Care Facilities with 16 or more beds licensed
by the applicable Governmental Agency.
1.0 Community Care Homes with six or fewer total residents,
including resident staff and housekeepers (to be the
same EDU as a single family residence).
C.Other commercial, industrial and other types of business
establishments not included in 53.08 B.1 through 53.08 B.4
If the establishment is not included in 53.08 B.1 through
53.08 B.4 or if the EDUs specified in 53.08 B.1 through
53.08 B.4 are not representative of actual flow due to the
number of employees or type of operation, the number of
EDUs shall be determined in each case by the list of
commercial strengths as defined by the State Water
Resources Control Board (SWRCB) or by the General Manager
and shall be based upon the estimated volume and type of
wastewater discharge into the sewer.
Examples of commercial, industrial and other business
establishments include, but are not limited to, bottling
works, supermarkets, markets, deli/markets, convenience
stores, hospitals, laundries (other than self-service
laundries), automobile service stations, mortuaries, day-
care centers, bars and pool halls.
53.09 TRANSFER, ASSIGNMENT, OR RESALE OF SEWER CONNECTION RIGHTS
EDU sewer connection rights obtained by a customer may not be
sold, transferred, or assigned separately from ownership of the
real property for which they were obtained, unless otherwise
stated in an agreement with the District.
53.10 DEFINITIONS OF RESIDENTIAL AND MULTI-RESIDENTIAL SEWER SERVICE
RATES, CHARGES AND FEES
All District sewer rates, charges, and fees are subject to Board
approval of rate increases to residential and multi-residential
sewer services billed on or after January 1, 2021 and may apply
to sewer services as early as the beginning of December 2020 and
periodically thereafter through December 31, 2025. The
increases shall be the amount sufficient to cover cost increases
53-7
(1)See Appendix A, Section 53 for fees, rates, and charges.
related to operation and maintenance, but not to exceed 10% per
year.
Five-year Periodic Pass-through Rate Increases or Decreases from
District Wholesalers - All District sewer rates, charges, and
fees are subject to periodic rate changes from the District’s
public agency wholesalers for a five-year period beginning
January 1, 2021 through December 31, 2025.
Set-up Fees for Accounts - A set-up fee (1) shall be charged for
each account transferred to another customer.
Three-year Winter Average - Sewer rates shall be based on the
average of the customer’s “Three-Year Winter Average” water
consumption, measured in units of hundred cubic feet (HCF). The
winter average period is January through April. The three-year
winter average is calculated by adding the four months of water
consumption and dividing the resulting amount by four for each of
the preceding three years and then taking the average of those
three years. This average is then reduced by a 15% usage
discount, recognizing that not all water used flows into the sewer
system. The sewer rate is multiplied by the “Three-Year Winter
Average” calculation for each customer (after the above noted 15%
discount) and this amount is added to the monthly fixed sewer
system charge applicable to the size of meter. The resulting
amount shall be charged on a monthly basis and fixed for an entire
calendar year, until a new “Three-Year Winter Average” is
determined for the following year.
The sewer rate is multiplied by the “Three-year Winter Average”
calculation for each customer (after the above noted 15%
discount) and this amount is added to the monthly fixed sewer
system charge applicable to the size of meter.The resulting
amount shall be charged on a monthly basis and fixed for an
entire calendar year, until a new “Three-year Winter Average” is
determined for the following year. (1)
A.Residential Rate Charges
1.Defined as:Sewer service for individually metered
residential households.
2.The monthly sewer bill is calculated by adding the
system charge plus the sewer rate as described in
Section 53.10 above.
3.The maximum “Three-year Winter Average” for
individually metered residential customers is 30
units (after the 15% discount).
4.Monthly Residential Sewer Charges without three years of
Consumption History: The average residential sewer rate
shall be determined by calculating the total monthly
sewer rate for all residential customers and dividing it
53-8
(1)See Appendix A, Section 53 for fees, rates, and charges.
by the number of residential customers. The monthly
average residential sewer rate is then added to the
monthly fixed sewer system charge which shall then be
used to determine the total monthly amount for
residential customers with less than three months of
winter usage, customers using well water or other
unmetered water. New customers with less than three
years of history but more than three months of winter
usage in any given year, will have their “Three-Year
Winter Average” determined by the average of the winter
water usage for the total number of years they have been
customers of record.(1)
B.Multi-Residential Rate Charges
1.Defined as:Sewer service for master metered water
service for multi-residential households including for
example; duplexes, townhomes, apartments, and mobile
homes.
2.The monthly sewer bill for the complex is calculated by
adding the monthly fixed sewer system charge based on
meter size, plus the sewer rates multiplied by the
three-year winter average, for the entire complex. (1)
Note: There is no cap on consumption for multi-
residential customers.
3.Monthly Multi-Residential Sewer Charges without
Consumption History:The multi-residential sewer rate
shall be determined by calculating the total monthly
sewer rate for all multi-residential customers and
dividing it by the number of multi-residential dwelling
units.The monthly sewer rate per dwelling unit is
multiplied by the new customer’s number of dwelling
units and this shall be added to the monthly fixed
sewer system charges, based on meter size, to determine
the monthly rate.This is applicable to new complexes
that do not have a prior winter consumption history.(1)
New multi-residential customers with less than three
years of history but more than three months of winter
usage in any given year, will have their “Three-Year
Winter Average” determined by the average of the winter
water usage for the total number of years they have
been customers of record.
53.11 DEFINITIONS OF COMMERCIAL AND INDUSTRIAL SEWER SERVICE RATES,
CHARGES AND FEES
All District sewer rates, charges, and fees are subject to Board
approval of rate increases to commercial and industrial sewer
services billed on or after January 1, 2021 and may apply to
sewer services as early as the beginning of December 2020 and
periodically thereafter through December 31, 2025.The
53-9
(1)See Appendix A, Section 53 for fees, rates, and charges.
increases shall be the amount sufficient to cover cost increases
related to operation and maintenance, but not to exceed 10% per
year.
Five-year Periodic Pass-through Rate Increases or Decreases from
District Wholesalers - All District sewer rates, fees, and
charges, are subject to periodic rate changes from the
District’s public agency wholesalers for a five-year period
beginning January 1, 2021 through December 31, 2025.
Set-up Fees for Accounts - A set-up fee (1) shall be charged for
each account transferred to another customer.
Average Annual Consumption - The Average Annual Consumption,
measured in units of hundred cubic feet (HCF).The annual
consumption period is January through December of the preceding
year divided by the number of months of consumption.This
average is reduced by a 15% usage discount which recognizes that
not all water used flows into the sewer system.
Sewer Rate - The rate (1) is determined by the commercial
customer’s sewer strength category in which they are assigned
(low strength, medium strength or high strength).
Monthly Fixed Sewer System Charges - The monthly fixed sewer
system charge is determined by the commercial customer’s water
meter size. (1)
Strength Factor - The State Water Resources Control Board
(SWRCB) has grouped commercial customers into various categories
and has identified Strength Factors for each of these business
categories. The standard of measure for Strength Factors is the
typical sewer strength of a single‐family residence which has
strength factor of 1.
A.Commercial Rate Charges
1.The monthly sewer bill for commercial sewer customers
is calculated by multiplying the average annual
consumption, reduced by 15%, by the sewer rates based
on strength plus the monthly fixed sewer system
charges based on the customer’s water meter size. (1)
2.For new commercial sewer customers without consumption
history, staff shall make a determination of the
average annual consumption to be used until a year’s
consumption data can be collected.The determination
shall be based on the prior owner or tenant of the
sewer connection, or based on the most similar type of
current business operation.If the customer does not
agree with staff’s recommendation, the customer may
request an adjustment in writing, and direct it to the
General Manager.
53-10
(1)See Appendix A, Section 53 for fees, rates, and charges.
B. Industrial and Other Users
1.Charges determined by the Board of Directors on a
case-by-case basis.
Monthly fixed sewer system charges shall commence upon
installation of the water meter to serve the premises
receiving the sewer service, upon connection to the District
sewer system, upon start of occupancy of the premises to be
served, or one year after the date the application for sewer
service is filed.If a sewer service connection has been
obtained and if sewer service will not be used until
sometime after installation of the water meter, commencement
of the sewer system charge may be deferred until the later
date only upon prior approval of the General Manager.
C.Commercial User Classifications
Commercial sewer service customers are subject to periodic
inspection of the premises by the District for verification
of proper sewer strength classification.In addition to
such periodic inspections, strength classifications will be
reviewed periodically, at the discretion of the District.
If warranted following a periodic inspection, periodic
classification review, or a change in the nature of a
customer’s business and/or use of the property, customers
may be reclassified to reflect their current business
operations and proper sewer strength, at the discretion of
the District and consistent with the standards set forth
herein and in the State Water Resources Control Board
(SWRCB) listing for sewer strength.
1. Low-Strength Commercial = 1.0 Strength Factor
Car wash
General office and buildings
Barber and beauty shops
Department, retail stores and general commercial
Hospitals and convalescent homes
Public Laundromats and dry cleaners
Professional office or office building
Warehouse
Bars without dining facilities
Churches
Schools (Elementary, junior & High Schools, Colleges)
Other uses having a similar strength as determined by
the District
2. Medium-Strength Commercial = 2.0 Strength Factor
Hotels without dining facilities or cooking facilities
53-11
(1)See Appendix A, Section 53 for fees, rates, and charges.
Auto repair/sales shop and service station
Shopping centers
Other uses having a similar strength as determined by
the District
3. High-Strength Commercial = 4.0 Strength Factor
Bakery or bakery with deli
Hotel with dining facilities
Restaurants and bars with food
Grocery stores with onsite butcher and/or bakery
Other uses having a similar strength as determined by
the District
53.12 ISSUANCE AND PAYMENT OF SEWER BILLS
A.Issuance of Statements:Statements for sewer service or
other charges will be mailed monthly or as soon as
practical, after the applicable charges have been
determined.
B.Due Date:Each statement issued by the District for such
charges shall be due and payable on the date of mailing or
other presentation to the customer.
C.Final Payment Date:All charges in each statement must be
paid on or before the final payment date shown on the
statement, which shall be at least 20 calendar days
following the date of mailing or presentation of the
statement.
D.Place of Payment:Payments shall not be credited to a
customer’s account until cash, check, credit card, draft,
electronic funds transfer, money order or any other
acceptable form of payment that will be honored by the bank
has been received by the District at the District business
office during regular office hours.Deposit of payment in
the mail or at a location other than the District business
office shall not be credited to a customer’s account until
received at the business office.
E.Returned Check Charges:A returned payment charge (see
Appendix A, Section 34 for charge) shall be added to a
customer’s account in each instance where payment has been
made to the District with a check, draft, credit card or any
other acceptable form of payment that has not been honored
upon presentment to the bank upon which it is drawn.
53.13 DELINQUENT ACCOUNTS
A.Requirement of Deposit Due to Repeated Delinquencies:If
payments on a customer account have become delinquent five
or more times, the General Manager, Chief Financial Officer,
or any person delegated by the General Manager, shall be
53-12
(1)See Appendix A, Section 53 for fees, rates, and charges.
authorized to require the customer to make a deposit with
the District, in cash or any other form satisfactory to the
General Manager.The deposit amount shall be established at
the discretion of the General Manager and the Chief
Financial Officer, but shall not exceed two times the
highest bill during the twelve (12) months preceding the
date of demand for a deposit.
B.Handling of Deposit:A deposit shall not earn interest and
shall only be applied to reduce or satisfy amounts due the
District in the event of termination of service.A deposit
does not constitute payment for service bills and the
customer shall be required to comply with bill payment
requirements to continue receiving service.
C.Refund of Deposit:A deposit required under this Section
shall be refunded to the customer as provided in Section
25.04 B of the Code.
53.14 PROCESS TO REQUEST A VARIANCE FROM ANY APPLICABLE SEWER
FEES AND CHARGES
A request for a variance or exception to any sewer-related fee
or charge may be filed with the District. The request must be
accompanied by photographs, drawings, or other supporting
documentation, including a written statement from the applicant
demonstrating that a variance or exception is justified due to
unusual circumstances applicable to the property. The General
Manager, or their designee, will review and act upon the request
within thirty (30) days after a completed application package
has been received. The applicant requesting the variance shall
be notified of the decision in writing. Any approved change will
commence on the next sewer billing cycle.
54-1
SECTION 54 DEPOSIT BY LESSEES OR NON-OWNERS OF PROPERTY
54.01 AMOUNT OF DEPOSIT
When an application is made by a customer who does not own
the land to be served, the customer must have payment of sewer
service bills guaranteed in advance in writing by the owner of
the property or the customer must make a cash deposit amounting
to three times the monthly rate for the category of sewer
service being requested. The customer's deposit shall be
applied to reduce or satisfy any delinquent payment or other
amount due the District at the time of termination of sewer
service to the customer. Any portion of the deposit remaining
after satisfaction of the amount due shall be refunded to the
customer that made the deposit.
54.02 REFUND OF DEPOSIT
Where funds have been on deposit for twelve months and
there has been no more than one delinquent payment on the
account during that period, the District will refund the deposit
to the customer.
54.03 LETTER OF CREDIT
A letter of credit, in a form approved by the General
Manager or Controller, may be submitted to the District to
satisfy the deposit requirements of this Section 54.
55-1
SECTION 55 ISSUANCE AND PAYMENT OF SEWER BILLS
55.01 ISSUANCE, DUE DATE AND FINAL PAYMENT DATE OF STATEMENT
OF CHARGES FOR SERVICE
A.Charges Combined in Statement for Water Services.
The monthly sewer service charges shall be added to the
customer's monthly statement for water service charges, where
applicable, and said charge shall be an inseparable part of the
statement for water service. The period of sewer service for
each month will coincide with the period for which the statement
for water services is issued. Sewer service provided for a
period of less than one month shall be prorated on the basis of
a 30-day month.
B.Statements for Sewer Services Only. Where a customer
receiving sewer service does not receive water service from this
District, the statement for sewer services shall be issued
monthly to the customer.
C.Terms and Conditions for Issuance of Statements,
Payments of Charges and Delinquent Accounts. The provisions of
Section 34 of this Code pertaining to water service shall also
apply to the issuance of statements for sewer service charges,
payment of sewer service charges and delinquent sewer accounts.
56-1
SECTION 56 LOCATION OF SEWER LINES AND EASEMENTS
56.01 LOCATION OF SEWER LINES
A.In Public Right-of-Way or Easements. Sewer lines
constructed by or for this District shall be constructed within
public road or street right-of-ways, except where the District
has expressly authorized the construction to be made within
permanent right-of-way easements.
B.Physical Location.
1.A sewer line constructed within a public road or
street right-of-way shall normally be located along
the centerline of the right-of-way.
2.A sewer line constructed within an easement shall
normally lie along the centerline of said easement if
the easement will not contain other utility lines. If
other utility lines are allowed in the sewer easement,
the location of the sewer line must have prior
District approval.
56.02 DISTRICT SEWER LINE EASEMENTS
A.Width of Easements. District minimum requirements for
width of an easement for a sewer line shall be 20 feet;
provided, however, in exceptional cases, the General Manager may
accept a permanent easement less than 20 feet in width on
condition that the landowner grants to the District an adequate
temporary easement for construction purposes together with a
right of access to the permanent easement for purposes of
maintenance and repair of the sewer line to be installed.
B.Easements in Subdivisions. The centerline of an
easement for a sewer line within a subdivision or "lot-split"
shall be parallel to at least one of the sidelines of the lot or
parcel in which the easement is located. The entire width of
the easement, as measured at right angles to the said parallel
sideline, shall be located within the said lot or parcel.
C.Easements in Unsubdivided Land. The centerline of an
easement for a sewer line in unsubdivided lands shall, whenever
practicable, be parallel to one of the sidelines of the parcel
of land in which the easement is located. The entire width of
the easement, as measured at right angles to the said parallel
sideline, shall lie within the said parcel.
56.03 ENCROACHMENT IN DISTRICT EASEMENTS
A.Enforcement Against Encroachments. The General
Manager is authorized and directed to institute, on behalf of
the District, any legal action necessary to prevent or remove
56-2
encroachment by others in, over, or upon District sewer
easements and right-of-ways.
B.Allowance of Encroachments. The General Manager may
allow encroachment in, over, or upon a District easement or
right-of-way if he determines that the encroachment will not
interfere with operation of the District's water or sewer
systems and will not interfere with the maintenance, repair and
replacement of such systems. However, such encroachment shall
not be allowed until the property owner requesting the
encroachment executes an encroachment agreement, approved by the
District. The agreement shall provide, among other conditions,
that (i) the cost of removing and replacing the encroachment
shall be borne solely by the owner, (ii) the District will not
waive any rights as to its use of said easement or right-of-way,
including, but not limited to, the right to enter upon said
easement at any time for the purpose of making repairs,
modifications, or replacement of any pipeline or road, and (iii)
the encroachment will be removed upon 30-days written notice
from the District to the owner. The General Manager may grant
the extension of such period; however, the extension must be in
writing and signed by the General Manager.
The Manager's authority to allow such encroachment shall
extend to improvements that are removable and which do not
exceed $2,500 in value. All other encroachments must be
approved by the Board of Directors.
56.04 CONCURRENT USE OF DISTRICT EASEMENTS
A.By Governmental Agencies. The Manager is authorized
to enter into agreements for concurrent use of District
easements by other governmental agencies or public utilities,
provided such use does not interfere with the District's
utilization of the easement.
B.By Private Persons or Entities. Concurrent use of
District easements by persons or entities other than
governmental agencies or public utilities must be approved by
the Board of Directors.
60-1
SECTION 60 UTILITY FACILITIES FOR SUBDIVISIONS AND PARCEL
MAP DEVELOPMENTS
60.01 INSTALLATION BY THE DISTRICT
The District will not construct facilities to provide
utility service to land being divided for a subdivision or
parcel map development, except where facilities are con-
structed as part of the Capital Improvement Program for the
utility system of an improvement district.
60.02 INSTALLATION BY DEVELOPERS
Developers of land shall provide, at their own expense,
all facilities required for utility service within the area to
be developed. In order to obtain required services it may be
necessary for a Developer, in some instances, to also provide
certain off-site facilities or to provide for oversizing of
the facilities which are to become part of the District sys-
tem. In such event, the Developer may be entitled to reim-
bursement of certain costs for such off-site or oversizing
facilities as provided in Policy 26 of this Code.
60.03 ISSUANCE OF AVAILABILITY LETTERS FOR WATER AND/OR
SEWER SERVICE
Upon request, the General Manager will provide a written
statement (sometimes referred to as "availability" or "will-
serve" letters) advising whether water and/or sewer service is
available and, if not, whether such service could be made
available, for a proposed development project within the Dis-
trict. A charge (see Appendix A, 60.03) will be made for each
statement furnished by the District.
60.04 REQUIREMENT FOR A SUBAREA MASTER PLAN (SAMP)
In some instances, a Subarea Master Plan (SAMP) may be
necessary to establish the water, recycled water and sewer
system facilities for adequate District service within and to
a proposed subdivision project. A SAMP shall be required when
any of the following situations have occurred:
A.No previous SAMP was prepared and the complexity of
the proposed subdivision requires integration into
the District Water Resources Master Plan.
B.The Developer is seeking to modify the requirements
of the District’s Water Resources Master Plan.
C.The previously submitted SAMP for the proposed sub-
division is no longer representative of the current
development proposal.
60-2
D.The previously submitted Developer SAMP for the pro-
posed subdivision project is over two years old.
E.The General Manager has determined a SAMP is
required.
The Developer may elect to have the SAMP performed by a
private Engineering firm and submitted to the District for
approval by the General Manager. The Developer may request
the District to prepare the SAMP and deposit with the District
the estimated cost of the SAMP. Prior to implementation, the
SAMP shall be reviewed and approved by the General Manager.
Approval of the SAMP shall occur prior to approval of any Con-
struction Agreement for a Developer’s improvement plans by the
General Manager.
60.05 REQUIREMENT FOR A TENTATIVE MAP
A.The Developer shall file with the District a tenta-
tive map of the proposed subdivision or parcel map
project.
B.The Developer shall deposit with the District a sum
determined by the General Manager to cover the
estimated cost of plan checking and engineering
services.
C.The General Manager will review the tentative map
and return it to the Developer indicating thereon
the water and/or sewer system that will be required
for the development.
60.06 REQUIREMENT OF EASEMENT OR RIGHT-OF-WAY FOR UTILITY
FACILITIES
Whenever the plans, as approved, provide for any portion
of the utility facilities to be constructed in other than a
dedicated public street or road, the Developer shall grant or
cause to be granted an easement or right-of-way to the Dis-
trict in the form specified by the General Manager. Whenever
facilities are terminated at a point short of the boundary of
the parcel owned by the Developer, a permanent easement, in
accordance with Section 36.02, shall be granted to District in
order to provide for future extension of the facility to
adjoining parcels of land. This requirement shall also apply
to those cases where the County or a city requires the Devel-
oper to provide a one foot buffer between the subdivision or
lot-split boundary and the adjoining property.
60.07 REQUIREMENT FOR ANNEXATION
A.The Developer desiring service to properties which
lie outside the District or outside an Improvement
District shall request annexation. The Developer
60-3
shall request such annexation in writing to the
General Manager.
B.The Engineering Department shall provide an annexa-
tion packet outlining the required information and
charges as detailed in Chapter 6, Section 9 of this
Code.
C.Annexation shall occur prior to approval of any Con-
struction Agreement for the Developer’s improvement
plans by the General Manager.
60.08 REQUIREMENT FOR APPROVED PLANS AND CONSTRUCTION
AGREEMENT
A.Developer shall prepare detailed engineering draw-
ings for construction of the proposed system shown
on the tentative map and submit such drawings to the
District for review and approval. Each system shall
provide for water service and/or sewer service,
where applicable, to each lot in a subdivision and
to each parcel in a parcel map development. The
utility system proposed shall not be detrimental in
any way to operation of the District utility system
and shall conform to the requirements of the
approved SAMP.
B.The General Manager shall review the construction
drawings and either accept, reject, or revise them
for compliance with District standards and
specifications. Upon approval of the drawings, the
General Manager shall return them to the Developer
with the following: (i) District estimates for
construction costs and the amount of additional Dis-
trict deposit; (ii) the required standard District
agreement for installation of water or sewer
facilities; and (iii) the amount of security
required to guarantee performance of the agreement.
C.Developer shall return to the District the revised
drawings, if required, the executed subdivision
construction agreement, together with the required
deposits and security, either cash, surety bond, or
letter of credit, acceptable to the General Manager,
and the grant of easements or rights-of-way that may
be required. If such are complete, and the proposed
subdivision has been annexed into an Improvement
District, the Construction Agreement for the project
will be authorized by the General Manager.
D.Upon approval of the construction agreement by the
General Manager, the Developer shall submit the
mylar construction plans for signature by the
General Manager.
60-4
60.09 REQUIREMENT FOR DISTRICT INSPECTION
A.Upon receipt by the General Manager of the approved
plans, and prior to beginning construction of the
facilities, the Developer shall schedule a pre-
construction meeting with the General Manager.
B.Upon completion of the pre-construction meeting, the
Developer shall commence construction of the
facilities and complete the same in accordance with
the standard construction agreement, the approved
plans, and the District’s Standard Specifications for
Water, Sewer, and Reclaimed Water Facilities and the
instructions given at the pre-construction meeting.
C.During the construction of the facilities, they
shall be subject, at all times, to inspection by the
District’s Quality Control Division.
60.10 REQUIREMENTS FOR USE OF UTILITIES FOR OCCUPANCY
PRIOR TO DISTRICT ACCEPTANCE
The Developer may purchase and obtain permanent water
meters and sewer services for occupancy in the project prior
to acceptance of the project by the General Manager, subject
to the conditions stated below:
A.Water Meter
1.The purchase of permanent meter(s) shall be in
accordance with Sections 27 and 28 of this
Code, and:
a.There shall be sufficient funds in the
Developer's District account to cover
District expenses.
b.Per Section 60.06 above, the Developer
shall have in effect a valid construction
agreement with the District.
2.Prior to installation of any meter(s) the
Developer shall meet the following conditions:
a.The water system shall be hydrostatically
tested, disinfected, pass a District bac-
teriological examination, be connected to
the District's existing system with a per-
manent connection(s), and be installed in
accordance with the District specifica-
tions and requirements prior to the use of
the system.
60-5
b.The meter box(es) shall be set to final
grade and the installation shall be com-
plete per the District's standard specifi-
cations.
B.Sewer Connection
1.For acquisition of each sewer service connec
tion, the Developer shall meet the following
conditions:
a.There shall be sufficient funds in the
Developer's District account to cover
District expenses.
b.Pay all fees and charges for each
connection requested, and identify the
parcel for which the sewer service is
being provided.
2.Prior to connection(s) of any sewer services,
the sewer system shall be constructed and
complete in accordance with District
specifications and requirements.
C.Prior to the installation of the last purchased
meter or connection of the last sewer service, the
project shall be referred to the General Manager for
acceptance. In order to be accepted, all aspects
of a project shall be complete per Section 60.11
below.
60.11 REQUIREMENT FOR FINAL ACCEPTANCE BY THE GENERAL
MANAGER
A.Upon completion of the facilities, with only minor
outstanding construction items remaining, a
preliminary walk-through inspection and punch list
of any outstanding items will be prepared. It shall
be the responsibility of the Developer to assure any
outstanding items are completed in a timely manner.
B.Upon completion of construction of the facilities in
accordance with District specifications and
requirements, a final inspection, completion of all
outstanding punch list items, submittal and
acceptance of the mylar record drawings, submittal
and acceptance of the soils compaction report, and
when all Developer accounts with the District have
been made current, the facilities shall be referred
to the General Manager for acceptance.
60-6
60.12 REQUIREMENT FOR ONE YEAR WARRANTY PERIOD
A.Upon acceptance by the General Manager, the District
shall own and operate the facilities.
B.The Developer shall guarantee the facilities against
defects in materials or workmanship for a minimum
period of one (1) year from the date of acceptance
by the Board of Directors. The method of guarantee
shall be a warranty bond, or other means acceptable
to the General Manager, in the amount of twenty-five
(25) per cent of the District’s estimated value of
the project.
C.Defects in materials or workmanship discovered dur-
ing the one (1) year warranty period shall be
repaired by the Developer and at the sole expense of
the Developer. Any collateral damage caused by a
defect in materials or workmanship during the
warranty period, including District expenses, shall
be borne solely by the Developer. This section does
not limit the developer's liability for latent or
patent defects.
62-1
SECTION 62 EXTENT OF SYSTEMS FOR SUBDIVISIONS AND PARCEL
MAPS
62.01 LOCATION AND SCOPE OF SYSTEM
Water and/or sewer systems for subdivision and parcel map
developments shall be installed in all public streets so that
each lot of the subdivision or parcel of the parcel map can be
served with a water lateral and, where applicable, a sewer
lateral. To provide for future line extensions, pipelines
installed within public streets must be constructed to the
subdivision boundary and pipelines not installed within a public
street must be installed in a District easement or right-of-way
and must extend across the frontage of the parcel or parcels to
be served.
62.02 REQUEST FOR VARIANCE
Each request for a variance of any requirement of Section
62.01 must be submitted to the Board of Directors in accordance
with Section 10 of this Code. In approving any request for
variance the Board of Directors may impose any condition it
deems necessary to protect existing systems and to assure
adequate service to present or future property owners or
customers.
70-1 Adopted 02/03/2010
ARTICLE IV PROHIBITED ACTIVITIES; REMEDIES AND ENFORCEMENT
Statement of purpose; Findings. Under existing law, state
and local agencies engage in water resource planning, protection
and conservation. This Article condenses and clarifies the
enforcement mechanisms for violations of this Code of Ordinance
and the activities that are prohibited in connection with the
District’s services, property, facilities and systems.
The Board of Directors finds that the enforcement of this
Code and the protection of the District’s property and
facilities is an important public service and is vital to the
protection of the public’s health, safety and quality of life.
The procedures herein are in addition to any other procedures or
legal remedies available to the District.
No limitation on Authority. The Board of Directors has
determined that there is a need to use a combination of
administrative and other remedies to gain compliance. This
Article is not intended, nor shall it be interpreted, to limit
or amend any discretionary power or right of the District under
any other provision of this Code, federal, state or local law,
policy or practice.
CHAPTER 1 GENERAL PROVISIONS
SECTION 70 DEFINITIONS
70.01 REFERENCE TO ARTICLE
This Article of the Code of Ordinances shall be known as
the “Prohibited Activities, Remedies and Enforcement Article”
and is sometimes referred to as the “prohibited activities” or
“enforcement” provisions.
70.02 DEFINITIONS
As used in this Article, the following words have the
meaning set forth below:
“Assessor’s office” means the office of the San Diego
County Assessor/Recorder/County Clerk or any successor office
established by the County of San Diego to maintain records of
parcel ownership.
“Benefiting” means to receive or use a service on a parcel
owned, used, leased, developed or occupied by or for the person
to whom the benefit is imputed.
“Damages” or “actual damages” means any cost or expense
(including staff time, inspection, testing, permitting,
70-2 Adopted 02/03/2010
attorneys fees and other consultant fees and costs) incurred by
the District in connection with a violation, including without
limitation costs or expenses relating to: investigating the
violation; redesigning, removing, repairing or replacing any
facilities or systems; removing, destroying and disposing of any
equipment or material used for the violation; cleaning-up any
resulting pollution or contamination; completing and filing
appropriate reports and notices; payment of penalties, fees,
damages, fines or other amounts charged by any governmental or
regulatory agency, and any related costs including litigation or
settlement of any action against the District.
“District facilities” or “District systems” or “system”
means and refers to any and all pipelines, reservoirs and
appurtenant facilities comprising the District’s potable water
system, sewer system, recycled water system, laboratories,
offices, pumps, equipment and engines.
“District property” means rights-of-way, easements, real
property owned in fee simple, occupied or leased by the
District, licenses, fixed and mobile equipment owned, occupied
or operated by the District, and all District facilities.
“District service” or “service” means the furnishing of
water, sewer, fire protection, recycled water or any other
service the District provides to its customers.
“Divert” means to change, alter, or affect the course or
path of any District service.
“Parcel” means any real property located within the
District.
“Re-connection” means the commencement of service to a
customer or other person after such service has been reduced,
suspended or terminated.
“Reduction of service” means installing a device that
limits the flow of water or availability of service to a parcel,
person or location to a minimum amount required by law or
determined by the District.
“Recycled water system” means the recycled water system
operated by the District under applicable law, including
applicable provisions of this Code, the California Water Code,
commencing with Section 13520, the California Code of
Regulations, Title 17, Division 1 and Title 22, and Water Agency
Standards.
“Responsible party” means a person receiving or benefiting
from service or any person who violates any provision of this
70-3 Adopted 02/03/2010
Code or engages in a prohibited activity. Responsible party
also means the owner or manager of a parcel, business or
property benefiting from any service.
“Suspension of service” means installing a lock temporarily
on the meter.
“Tamper” or “tampering” means to activate, injure, damage,
block, interfere with, rearrange, contaminate, pollute, or in
any form altering any District service, property or system
without express consent of the District.
“Tenant” means a person or business lawfully occupying,
controlling or using a parcel owned by another person.
“Termination of service” means removing the meter or
disconnecting service facilities.
“Unauthorized connections” means connecting or reconnecting
to, diverting, using or benefiting from, any District service
without the prior written consent of the District or without
compliance with the conditions of any such consent.
“Vandalizing” means to deface, discolor, graffiti, paint,
trash, invade, damage, disable, shut off or destroy any portion
of any District service, facilities or property.
“Violation” means any failure to comply with any provision
of this Code; or engaging in any prohibited activity with
respect to District services, facilities, property, or rights-
of-way. Each day during which a violation commences or
continues shall constitute a separate violation.
“Willful violation” means repeating or continuing a
violation after notice; or any first time violation relating to
a voluntary, knowing and purposeful act or omission.
71-1 Adopted 02/03/2010
SECTION 71 VIOLATIONS; PROHIBITED ACTIVITIES
In addition to the prohibited practices described in
any other sections of this Code or by law, all persons and
entities are specifically prohibited from doing, or aiding
or abetting any person in, any of the following:
A.Installing or benefiting from any unauthorized
connection to any District system;
B.Refusing or failing to pay for services, in full,
when bills are due;
C.Entering, improving, purchasing, trading,
selling, borrowing, using or otherwise benefiting from any
District property or service without authorization from the
District or without following authorized procedure;
D.Vandalizing, tampering with, or threatening any
portion of the District systems, services, facilities or
property, including but not limited to taking any action to
prevent any meter or other equipment device from accurately
performing its function;
E.Failing or refusing to install, maintain in good
repair and working condition, or test any portion of any
facilities required by the District in connection with a
service, including any safety or prevention device or any
measuring device;
F.Knowingly permitting leaks or other wastes of
water or recycled water or leaks or spills of sewage or
other discharge;
G.Preventing District staff from accessing any
facilities connected to a service, including but not
limited to meters located on private property, or in any
manner threatening or interfering with any District staff
performing his or her duties;
H.Using or allowing the use of service for more
than one parcel through one meter (except for master meters
approved by the General Manager under Section 24.01) or
supplying, reselling, using or permitting the use of any
service by any other parcel, except as permitted under
Section 27.04 of this Code or in writing by the District;
71-2 Adopted 02/03/2010
I.Using or permitting the use of any District
service for property outside the boundaries of an
improvement district or not subject to District taxes,
without prior written consent of the District;
J.Using or attempting to use or connect to any fire
hydrant within the District without proper authorization as
required by Section 24.04 of this Code; or
K.Violating or refusing to comply with any
condition of service under this Code or with any law or
regulation applicable to the use of any such service;
including violating any conditions of any permit required
for service or to regulate waste, such as a waste discharge
permit under Sections 26 or 52 of the Code, or failing or
refusing to obtain, maintain or comply with any required
permit.
72-1
SECTION 72 PENALTIES AND DAMAGES
72.01 GENERAL
A.User and Owner Responsibility. Each person
receiving service, or that owns a property that receives
service, agrees to pay the District any applicable fees and
charges. Such persons are also responsible for all costs and
damages in connection with any violation of this Code relating
to their service.
B.District Not Liable. The District shall bear no
liability for any cost, damage, claim or expense incurred by
District or any responsible party or third party on behalf of
the District arising from or related to any violation
including, but not limited to, costs, damages, claims, or
expenses arising from any corrective action of the District.
Such corrective actions include, but are not limited to, the
removal, confiscation, disposition or use of any device,
equipment, improvement or material encroaching on any
District property or used in connection with any other
violation.
C.District Obligation to Collect Damages. Pursuant
to Government Code Section 53069.6, the District shall take
all practical and reasonable steps, including appropriate
legal action, if necessary, to recover civil damages for the
negligent, willful, or unlawful damaging or taking of
property of the District.
D.Assessment of Damages. Actual damages resulting
from any violation, including late payment or failure or
refusal to pay for service and any interest thereon, may be
assessed and collected as part of a customer’s monthly bill
to the extent allowed by law. The District will separately
invoice any actual damages not assessed on a monthly bill,
including any damages assessed against any responsible person
who is not a customer.
E.Unpaid or Partially Paid Bills. Bills issued by
the District are due in full as provided in such bills.
Failure to timely pay bills in full may lead to a reduction,
suspension, or termination of service, as provided in Section
72.02(B), below, in Policy 54 of this Code, or pursuant to
other provisions of this Code or applicable law. In addition,
if bills remain unpaid, in full or in part, the District may
72-2
lien the delinquent real property and may
assess damages and penalties established by District or
otherwise authorized by law.
72.02 VIOLATIONS AND GENERAL PENALTIES FOR VIOLATIONS
A.Notice of Violation. Notice and a reasonable
period of time to correct the violation(s) will be given
prior to the termination, reduction or suspension of service
or the imposition of any administrative fine. However, the
District may, without notice, correct any condition or
violation that endangers the health or safety or impairs any
District service, facility or property or is otherwise
determined by the District to require immediate action.
1.Investigative Procedures. If a possible
violation is identified, observed or reported, the District
will contact the allegedly responsible party to investigate.
If the violation is in fact occurring, District staff will
issue a notice of violation or otherwise inform the
responsible party that corrective actions must be taken
within a period of time deemed reasonable by the District,
taking into consideration the nature of the violation and the
potential damage that can arise if the violation continues.
2.Content of Notice of Violation. The notice
will describe the violation(s), indicate the actions that
must be taken, and indicate the date by which those actions
must be taken. Unless immediate action is required, the
notice will provide a reasonable time for the violation(s) to
be corrected. The notice will also specify the amount of any
delinquency, actual damages or other amounts due the
District, if any, and the telephone number of a representative
of the District who can provide additional information.
3.No Notice Required; District Action. If the
District determines that immediate or prompt correction of
the violation is necessary to prevent waste or to maintain
the integrity of the water supply, systems or facilities of
the District, or for the immediate protection of the health,
safety or welfare of persons or property, or for any other
compelling reason, the District will take any action deemed
necessary (including suspension, reduction or termination of
service; locking or removal of meters; or repairs of any
improvements) and a notice will be left at the affected parcel
specifying any further corrective actions required. Any
costs incurred by District and any applicable fines will be
the responsibility of the responsible party.
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4.Notice; Failure to Comply. The
responsible party will be given an opportunity to correct the
violation(s) and to provide verbal, written and pictorial
exculpatory evidence. If such evidence does not exonerate
the responsible party and if the violation(s) are not
corrected to the satisfaction of the District within the time
provided, the District may assess costs, penalties, and
administrative fines and may take any other action or pursue
any other remedy available. Furthermore, if the violation(s)
concern any service requirement or facility, or if required
to prevent waste or to protect the integrity of the system or
the health and safety of the public, the District may suspend,
reduce or terminate service to the extent permitted by law.
B.Service Termination, Suspension or Reduction;
Removing or Locking Meters. Service may be reduced, suspended
or terminated for failure to pay for service or in connection
with a violation of this Code or applicable law. Termination,
suspension or reduction of service will proceed as follows:
1.Notice Prior to Termination, Suspension or
Reduction of Service. Except as provided in Paragraph A,
above, or in other provisions of this Code or applicable law,
not less than ten (10) days notice will be given prior to the
date service will be reduced, suspended or terminated;
provided that, where service is terminated due to failure to
comply with the terms of an amortization agreement, under
Policy 54 of this Code, five (5) days’ prior notice is
required. The notice will be delivered to the affected parcel
and, if the owner of record does not reside in the affected
parcel, a copy of the notice will be forwarded to the owner’s
address on record with the assessor’s office via any available
means, such as personal delivery, certified mail return
receipt requested, email, fax or overnight mail.
2.Termination for failure to pay for service.
The District may discontinue any or all service due to failure
to pay the whole or any part of a bill issued by the District.
In connection with termination of water service, the
provisions of Section 60373 of the Government Code, or any
other appropriate provision of law, or as set forth in Policy
54 of this Code of Ordinance, will be followed. In connection
with sewer, Section 71672 of the California Water Code or
other applicable requirements will be followed.
C.Reconnection or Reinstatement of Service, Unlocking
or Reinstalling Meters. If service is reduced, suspended or
terminated for any reason, each of the following conditions
72-4
applicable to the situation must be satisfied
or arrangements satisfactory to the General Manager or a
designee must be made before service is reinstated:
1.Outstanding amounts for service bills,
including any service charges for benefits derived from the
violation, must be paid;
2.All required deposits (including any security
deposits), actual damages, fines, costs, charges, and
penalties must be paid;
3.Any amounts due for the removal, locking,
servicing, repair or replacement of meters or other
facilities required for service must be paid at the rates in
effect at the time of reinstatement, as set forth on Appendix
A to this Code or other schedule of fees then in effect;
4.All violations and related damages or
conditions must have been corrected and/or repaired and
evidence satisfactory to the District to that effect and
demonstrating that it is safe to reinstate service, must have
been provided to and approved by the District; and
5.If the service was in the name of a tenant,
the District may require that the service account is placed
in the name of the owner and that the owner assume
responsibility for the service.
D.Owner Responsibility for Account. In addition to
owners’ obligations under subsection (A) of section 72.01 and
subsection (C)(5) of Section 72.02, above, and any other
remedies provided by this Code or by applicable law, Owners
may be required to deliver to the District a form of
acknowledgement or authorization for service to a tenant. If
the property has a history of tenants who do not pay their
final balances, the District reserves the right to demand
that the property owner take responsibility for services to
the tenant-occupied parcel. The District also reserves the
right to demand that the property owner take responsibility
for services to the tenant-occupied parcel if any of the
following occur: (i) a tenant engages in any violation, (ii)
the District has reduced, suspended or terminated any service
to a tenant three (3) times within any twenty-four (24) month
period, or (iii) the tenant has been delinquent five (5) or
more times. The General Manager or a designee shall develop
procedures to implement these requirements.
72-5
Pursuant to Water Code Section 25806, the
District may place a lien on the property for unpaid bills by
a tenant. The District will make a good faith effort to
notify an owner if a tenant-occupied account is delinquent,
however, it is ultimately the owner’s responsibility to check
with the District for any outstanding balances when a tenant
vacates the property. For more information on property liens,
see Policy 54.
E.Right of Access to Customer’s Premises;
Interference. If any person refuses to consent to an
investigation of a possible violation or prevents or refuses
to allow access to District staff or authorized
representatives to any premises or facility during an
investigation or in connection with any termination,
reduction or suspension of service, the District may seek an
injunction or a warrant, as provided in Section 71601 of the
Water Code.
F.Other Remedies. In addition to the actions
contemplated in this Section, the District may seek other
remedies authorized or required by any applicable law,
including imposing an administrative fine, pursuant to
Section 72.06, or pursuing other available civil or criminal
remedies.
72.03 CERTAIN SPECIFIC OPERATIONAL VIOLATIONS
A.Unauthorized Connections. The District shall bear
no cost or liability for an unauthorized connection. In
addition to other remedies, any unauthorized connection is
subject to a Type II fine, pursuant to Section 72.06 depending
upon the severity, duration and reoccurrence of the violation
and any other factors the District may reasonably take into
consideration. Further, the District may demand that the
unauthorized connection be immediately disconnected. In the
alternative, if the customer refuses to take immediate
action, or if immediate actions are necessary as set forth in
Section 72.02(A)(3), above, the District may immediately
disconnect, remove, confiscate, destroy, or dispose of any
parts installed with or used for the unauthorized connection,
all at the expense of the customer and any other responsible
party. To the extent allowed by law, the District may also
terminate service to any parcel and any person that allows,
uses or benefits from such unauthorized connection.
B.Water Waste. No customer shall knowingly permit
leaks or other wastes of water including, but not limited to,
72-6
allowing runoff on any portion of his or her
property, engaging in non-permitted uses of water, or failing
to take corrective action after notice of any leak or water
waste is given. If the District determines that water waste
is occurring, the District will:
1.Notify the customer that they are in violation
of the District’s Code of Ordinances.
2.Notwithstanding the foregoing, the District
may, without prior notice, repair or replace any District
controlled facilities at the cost of the person(s) identified
as the responsible party.
3.If the water waste is due to a condition within
the customer’s property or facilities, the District may (i)
require the customer to repair or replace the affected
facilities, immediately or within a reasonable time,
depending on the situation; or (ii) if necessary, to prevent
further waste, adjust, lock or remove the meter. If any
repair or replacement required is not completed in a timely
manner, the District may perform the repair or replacement at
the cost of the customer or may terminate service without
further notice.
C.Meter Tampering. In addition to other remedies,
meter tampering is subject to a Type II fine pursuant to
Section 72.06 depending upon the severity, duration,
reoccurrence of the violation, and any other factors the
District may reasonably take into consideration.
Additionally, meter tampering may be prosecuted as a crime
under Section 498 of the California Penal Code, as set forth
in Section 73.01 of this Code.
D.Fire Service Violation. Fire service is subject to
compliance with all provisions of this Code and the law
concerning water service. Failure to comply with such
provisions may result in the reduction, suspension,
termination or disconnection of water service for fire
protection, without any liability to District. Furthermore,
illegal connections or other violations relating to fire
service are subject to either a Type I or Type II fine, at
the option of the District, and may be prosecuted as crimes.
E.Backflow Prevention, Screens and Other Safety
Devices. If service requirements include the installation,
testing and maintenance of backflow prevention devices
(Section 23.04 of this Code), screens or other safety
72-7
operational items, in addition to, or in lieu
of, other remedies provided herein, the District may apply
any of the remedies under Section VI and VII of the District’s
Ordinance No. 386, as amended or renumbered. Furthermore,
violations relating to backflow testing may be prosecuted as
set forth in Section 73.01 of this Code. Violations of
backflow requirements or knowingly filing a false statement
or report required by a local health officer are subject to
either a Type I or Type II fine, at the option of the District,
pursuant to Section 72.06, below.
F.Violation Concerning Recycled Water Service. In
addition to any fine, revocation, suspension or penalty
imposed under Section 26 in connection with any violation of
said Section, including permit suspension or revocation under
Section 26.07.C, the District may (i) suspend or terminate
water and or sewer service to the property, the owner and/or
the operator; (ii) require payment by the owner for any damage
to the District facilities, reimbursement to District of
costs and expenses, or fines imposed on the District in
connection with such violation; or (iii) prosecute the
responsible party under any applicable provision of this
Code, the Water Code or the Penal Code. Additionally, any
violation concerning recycled water service is subject to
either a Type I or Type II fine, at the option of the District,
pursuant to Section 72.06, below.
G.Violation Concerning Sewer Service. In addition to
any other remedy, fine, or penalty provided by this Code or
applicable law, failure to comply with any requirements of
sewer service, including requirements for the preservation of
public health, safety and welfare and including, but not
limited to, the requirements established under Article II,
Chapter 2, Sections 50 to 56.04 of this Code, as hereafter
amended or as supplemented by other District Rules and
Regulations for Sewer Service, the California Health and
Safety Code, the California Code of Regulations, Titles 17
and 22, and Water Agency Standards. Furthermore, may be
prosecuted as set forth in Section 73.01 of this Code.
Additionally, any violation concerning sewer service is
subject to a Type I or Type II fine, at the option of the
District, pursuant to Section 72.06, below.
H.Theft, Fraud, or Misappropriation. In addition to
any other remedy, fine or penalty provided by this Code or
applicable law, any violation involving theft, fraud or
misappropriation of District water, services, or property is
72-8
subject to a Type I or Type II fine, at the
option of the District, pursuant to Section 72.06, below.
72.04 VIOLATIONS OF CONSERVATION OR OTHER WATER USE
RESTRICTION PROVISIONS
The District has established and published
conservation measures set forth in Section 39 of the Code.
Commencing with declared Level 2 conditions, the District
may assess water shortage rates and charges previously
adopted. In addition, after notice of the declared water
shortage level is given as required by law, any person who
uses, causes to be used, or permits the use of water in
violation of such requirements (other than a person who
qualifies for an applicable exemption, if any) may be
assessed damages, penalties, and fines.
A.Additional Provisions Concerning Use Restriction
Violations. In addition to payment of actual damages, the
following may apply to a violation of any water conservation
or water use restriction measure:
1.A change of the account holder shall not cause
the account to revert to pre-violation status unless the
new account holder provides evidence that it is not
related to the violator and had no responsibility for
the prior account.
2.The District may reduce, suspend or terminate
service to any parcel immediately and without further
notice if the violation involves or results in water
waste, as set for in Section 72.03(B), above.
3.Willful violations of mandatory conservation
measures described in Section 39 of this Code may be
enforced by terminating service to the property at which
the violation occurs, as provided by Section 356 of the
California Water Code.
B.Prosecution for Violations of Conservation
Measures. Pursuant to Section 377 and 71644 of the California
Water Code, each violation of the District’s Conservation
Ordinance, set forth in Section 39 of this Code, may be
prosecuted as a misdemeanor, punishable by imprisonment in
the County jail for no more than thirty (30) days or by a
fine, as set forth in subsection (C), below.
72-9
C.Assessment of Fines for Violations
of Conservation or Water Use Restriction Provisions. Any
responsible party who fails to comply with any conservation
or use restriction measure is subject to the assessment of an
administrative Type I fine, added to account, pursuant to
Section 72.06, below.
72.05 VIOLATIONS INVOLVING DISTRICT REAL PROPERTY
A.Removal, Disposition and Costs. The District has
absolute discretion to determine the corrective action
required in connection with any violation involving District
real property, including requiring the owner of any
unauthorized encroachment or improvement to remove it, or
taking action to remove it immediately and without notice.
Any improvements or uses placed within or on any District
property or right of way are subject to the following:
1.Costs and Damages. All costs and damages
shall be the responsibility of the customer and any other
responsible party. Furthermore, the District shall not be
liable for costs to repair or replace any unauthorized
encroachment or improvement, or any property, improvement or
thing used in connection with, supported by or attached
thereto.
2.Burden of proof. The burden shall be on the
user to prove to the District’s satisfaction, the authority,
scope, and extent of any right to access, improve or use the
District’s property. Only written evidence in the form of an
agreement, deed, statute, recorded or official map or plat,
governmental regulation or other official document may be
used to establish such claim of right.
B.Notice. In connection with any improvement or use
that does not constitute a health hazard and does not
interfere with the District’s use of its property, the
District will give written notice of up to sixty (60) days,
at the discretion of the General Manager, to cease, terminate,
eliminate or remove the offending improvement, structure or
use. Any written notice will be given to the responsible
party or posted at the property where the trespass or
encroachment occurs. If the responsible party is not the
owner of any real property affected by the violation, the
District will also give notice to the owner of record at the
address on record with the assessor’s office via personal
delivery, certified mail return receipt requested, or via
overnight mail.
72-10
C.Immediate Action. In connection
with any improvement that constitutes a health hazard or
interferes with the District’s use of any District property,
the District will take any immediate action deemed necessary
by the General Manager.
D.Fines. In addition to all other remedies provided
under this Article or under applicable law, the District may
impose a fine as provided in Section 72.06. Additionally,
the District may impose a fine up to either the amount
specified on any sign prohibiting trespass, or a Type I or
Type II fine, at the option of the District, in connection
with any trespass on District property pursuant to Section
72.06, below.
E.Separate Violation. A separate violation will
accrue for each day after the deadline to cease, terminate,
eliminate or remove the trespass or encroachment, as set forth
in the notice.
72.06 ADMINISTRATIVE FINES
Any administrative fines established herein shall be in
the nature of civil penalties and shall be additional and
cumulative to any other fines, damages or any other charges
established by the District and are also separate from and
cumulative to any other civil or criminal penalty, fine or
remedy. In connection with each violation, the District may
assess a fine up to the amount specified in the schedule of
fines for the type of fine being imposed.
Each day during which a violation is in effect
constitutes a separate violation and violations are
cumulative while the account is in the name of the original
violator or any person that participated in or benefited from
the violation. Except where the violation creates an
immediate danger to public health or safety, the person
responsible for the continuing violation will be provided a
reasonable period of time to correct or otherwise remedy the
violation(s) prior to the imposition of administrative fines.
A.Assessment of Fines for Technical Violations of
Other Code Provisions. Any person who engages in a violation
of any provision of this Code is subject to the assessment of
a separate administrative Type I Fine, unless subject to a
more severe fine as set forth in this Code.
72-11
B.Assessment of Separate Fines.
Nothing in this code or the limits specified per violation
shall prevent the imposition of separate fines for each
separate violation committed during a single act. For
example, in connection with a violation concerning sewer
service that involves a trespass on any portion of the
District’s real property, separate fines may be assessed for
the trespass, the damage to District personal property, the
damage to District real property; the damage to the sewer
system and the activity resulting on all the damages.
C.Types of Fines. The amount for each type of fine
specified below may increase automatically to reflect any
higher amount authorized by law or regulation. The District
has determined to establish two types of fines based on the
nature of the violation, as follows:
1.Type I Fine. Any violation that does not have
the potential to endanger the health or safety of the
public. The fine will not exceed the amount specified
in the Section 36900(b) of the California Government
Code or Appendix A for a first, second, third or each
additional violation of that same ordinance or
requirement within a twelve-month period.
2.Type II Fine. Any violation that has the
potential to endanger public health or safety including,
but not limited to, unauthorized or illegal connections,
meter tampering, water theft, or knowingly filing a
false statement or report required by a local health
officer. The fine will not exceed the amount specified
on Appendix A for each day the violation is identified
or continues.
D.Collection of Fines. Any fines assessed by the
District are payable directly to the District and are due
upon issuance or as otherwise indicated on the notice or bill
and are delinquent 30 calendar days from the due date.
E.Notice of Administrative Fine; Content. Notice of
an administrative fine pursuant to this section will contain
the following information: (i) a brief description of the
violation(s); (ii) the date and location of the violation(s);
(iii) a brief description of corrective action(s) required;
(iv) a statement explaining that each day the violation
continues constitutes a new violation; (v) in the case of
violations creating an immediate danger to public health or
safety, the amount of civil penalty assessed or, in all other
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cases, the amount of civil penalty to be
assessed if the violation(s) is/are not corrected within the
time provided by the notice; (vi) a statement of the procedure
for payment and the consequences of failure to pay; (vii)
contact information for the District employee that should be
contacted to discuss the notice and to whom evidence of
compliance can be provided; and (viii) a brief statement
describing the responsible party’s right to request further
review, pursuant to subsection (F), below.
F.Option for Board Review. Persons receiving a
Notice of Administrative Fine may request Board review. The
request for Board consideration must be in writing, must be
received by the District Secretary within ten (10) calendar
days from the date of the notice and must include contact
information, an explanation of the basis for the request, and
any supporting documentation said person(s) wish to provide
to the Board for review and consideration. District staff
will review the petitioner’s request and will make a
recommendation to the Board in light of its investigation.
The District will provide notice of the date, time, and place
for Board consideration by electronic means, facsimile or
first-class mail sent to the return address indicated on the
written request.
G.Any Fines Assessed Pursuant to the Notice of
Administrative Fines must be timely paid notwithstanding the
filing of a request for Board review.
At the time of Board review, the petitioner may, address
the Board and respond to the charges to show good cause why
the fine should not be imposed; however, the customer is not
entitled to a full judicial-type hearing with cross
examination, sworn testimony, etc. In accordance with the
provisions of Government Code Section 53069.4, the Board’s
determination shall be final and conclusive, and shall be
deemed confirmed, if not appealed within 20 calendar days to
the Superior Court of the County of San Diego.
73-1 Adopted 02/03/2010
SECTION 73 ADDITIONAL DISTRICT REMEDIES
Each day during which a violation commences or continues
shall constitute a separate violation which may be so
prosecuted. In addition to, or on lieu of any damages, fines or
other remedies provided in any other section of this Code, at
the District’s sole and absolute discretion, the District may
enforce any other remedies available to it in law or equity.
73.01 OTHER REMEDIES OF DISTRICT
A.Collection of Unpaid Bills on Tax Roll. Pursuant to
the provisions of the Health and Safety Code, commencing with
Section 5470, the District may cause delinquent charges for
services to be collected on the tax roll in the same manner as
its general taxes.
B.Costs of Suit. Any person who violates any provision
of this Code of Ordinance shall be liable for costs of any civil
suit required to enforce the District’s rights, including but
not limited to reasonable attorney’s fees in accordance with
Civil Code Section 1882.2. The provisions of Civil Code Section
1882 et seq. are incorporated herein by reference. This Article
shall be interpreted so as to be consistent with Civil Code
Sections 1882 et seq.
C.Reward. In accordance with Government Code Section
53069.5, the District may offer and pay a reward, in an amount
determined by the District, for information leading to the
determination of the identity of, and the apprehension of, any
person whose willful misconduct results in injury or death to
any person or who willfully damages or destroys any property of
the District or any property of any other local agency or state
or federal agency located within the boundaries of the District.
The person who has willfully damaged or destroyed such property
shall be liable for the amount of any reward paid pursuant to
this section.
D.Parental liability for Acts of Minors. If a violation
is due to the acts of a minor child, the minor and his or her
parents or guardians, as applicable, shall be jointly and
severally liable to the maximum extent allowed by law, including
parental liability pursuant to Section 1714.1 of the California
Code of Civil Procedure, as hereafter amended or renumbered.
E.Backflow testing; Prosecution. A person is guilty of
a misdemeanor in connection with the violation of any provision
of the California Code of Regulations concerning backflow
testing, including non-compliance with any order to test,
73-2 Adopted 02/03/2010
knowingly filing a false statement or report concerning any
information required by the District or failure to use a person
qualified to conduct the testing. Such misdemeanor is
punishable by a fine of up to $500 or by imprisonment not
exceeding 30 days. Each day of a violation is a separate
offense.
F.Sewer Service Violation; Prosecution. Pursuant to
Section 71689.27 of the Water Code of the State of California,
upon conviction of a violation of any ordinance or provision of
this Code concerning the sewer system the person shall be
punished by being imprisoned in the county jail.
G.Theft of Utility Services, Water or Waterworks;
Prosecution. Pursuant to Sections 498, 624 and 625 of the Penal
Code of the State of California, theft of District facilities or
theft of water or other utility services, including theft
through unauthorized connections, may be prosecuted as a crime.
H.Prosecution of Code Violations. The District may, at
its option, prosecute or cause to be prosecuted any violation of
this Code of Ordinance or any other Ordinance of the District as
a misdemeanor, pursuant to Section 71600 of the California Water
Code.
I.Receipt or Purchase of Stolen Property; Prosecution.
Pursuant to Section 496a of the Penal Code of the State of
California, purchase or receipt of stolen property belonging to
the water system, may be prosecuted as a crime.
J.Junk Dealers and Recyclers; Remedies. To the extent
provided by law, including the provisions of AB844, approved by
the Governor and chaptered in September of 2008, the District
will pursue remedies available through or against any junk
dealer or recycler that purchases any District property without
prior written authorization from District.
73.02 NOTICE TO DISTRICT CONCERNING VIOLATIONS
Any person noticing or discovering an unauthorized
connection to the District’s sewer, water or recycled water
system from a parcel owned or occupied by such person must
notify the District immediately. If the unauthorized connection
affects a parcel owned by the person, he or she must remove the
unauthorized connection immediately and must notify the
District. If the person rents or leases the affected parcel,
the person shall provide the District the name and contact
information of the owner of the parcel.
73-3 Adopted 02/03/2010
73.03 SEVERABILITY
If any portion of any chapter, section, subsection,
paragraph, sentence, clause, or phrase of this Article is for
any reason held invalid or unconstitutional by any court of
competent jurisdiction, such portion shall be deemed a separate,
distinct, independent and severable provision and such holding
shall not affect the validity of the remaining portions hereof.
Section # Code # Fee Description Meter Size
9 9.04 A.1.District Annexation Processing Fee $1,068.96
9.04 B.
Annexation Fees for Water Annexations into Otay
Water District Boundaries
Districtwide
Annexation Fee
3/4" $2,765.62
1" $6,914.05
1-1/2" $13,828.10
2" $22,124.96
3" $44,249.92
4" $69,140.50
6" $138,281.00
8" $221,249.60
10" $318,046.30
9.04 C.4.
Annexation Fees for Annexations to Sewer
Improvement Districts per EDU $1,512.91
10 10.01 Waiver Request $50.00
23 23.04 Backflow Certification
- Third Notification $60.00
- Third Notification (hand delivered)$110.00
- Reconnection $230.00
$40.00
25 25.03 A. Set-up Fees for Accounts $15.00
25 25.03 B.
Monthly MWD & CWA Fixed System
Charges (1)3/4" $23.89
1" $39.82
1-1/2" $79.60
2" $127.34
3" $278.58
4" $501.45
6" $1,114.34
8" $1,910.26
10" $3,024.59
(1) Water billed beginning January 1, 2026, which may include water used December 2025.
Charges
- Initial Filing Fee (New applicants for addition to the list of
approved backflow prevention device testers)
Appendix A
Otay Water District
Section # Code # Fee Description Meter Size
Charges
25 25.03 C.1.
Domestic Residential Monthly Fixed System
Charges (1)3/4" $22.88
1" $28.45
1-1/2" $42.70
2" $59.55
25 25.03 C.2.
Multi-Residential Monthly Fixed System
Charges (1)3/4" $21.11
1" $25.50
1-1/2" $36.79
2" $50.11
3" $105.83
4" $178.32
6" $349.92
8" $540.25
10" $828.43
25 25.03 C.3.
Business and Commercial Monthly Fixed System
Charges (1)3/4" $23.08
1" $28.77
1-1/2" $43.33
2" $60.54
3" $128.65
4" $219.41
6" $441.22
8" $696.80
10" $1,076.28
25 25.03 C.4. 3/4" $20.42
1" $24.35
1-1/2" $34.52
2" $46.46
3" $97.82
4" $163.93
6" $317.90
8" $485.42
10"$741.58
25 25.03 C.5. 3/4" $21.48
1" $26.13
1-1/2" $38.05
2" $52.15
3" $110.25
4" $186.28
6" $367.61
8" $570.63
10"$876.51
(1) Water billed beginning January 1, 2026, which may include water used December 2025.
Publicly Owned Monthly Fixed System
Charges (1)
Non-Public Irrigation and Commercial Agriculture
Monthly Fixed System Charges (1)
Section # Code # Fee Description Meter Size
Charges
25 25.03 C.6. Public Irrigation Monthly Fixed System Charges
(1)3/4" $20.42
1" $24.35
1-1/2" $34.52
2" $46.46
3" $97.82
4" $163.93
25 25.03 C.7. 3/4" $20.99
1" $25.29
1-1/2" $36.39
2" $49.48
3" $104.46
4" $175.87
6" $344.47
8" $530.95
10"$813.67
25 25.03 C.8.3/4" $42.75
1" $57.89
1-1/2" $96.30
2" $141.96
3" $311.13
4" $543.00
6" $1,130.33
8" $1,745.28
10" $2,859.05
25 25.03 D.1.(b) Domestic Residential Water Rates (1)Unit Charge
0-9 $6.66
10-12 $7.23
13 or more $8.03
25 25.03 D.2.(b)
Multi-Residential Water Rates - Per
Dwelling Unit (1)0-9 $6.61
10-12 $7.15
13 or more $7.41
25 25.03 D.3.(b) Business and Commercial Water Rates (1)All Units $7.00
25 25.03 D.4.(c)
Non-Public Irrigation and Commercial Agriculture
Using Potable Water Rates (1)All Units $8.06
25 25.03 D.5.(b) Publicly-Owned Water Rates (1)All Units $7.70
25 25.03 D.6.(b) Public Irrigation Water Rates (1)All Units $8.79
25 25.03 D.7.(b) Construction Water Rates (1)All Units $8.00
(1) Water billed beginning January 1, 2026, which may include water used December 2025.
Construction Monthly Fixed System Charges (1)
Recycled Monthly Fixed System Charges (1)
Section # Code # Fee Description Meter Size
Charges
25 25.03 D.8.(c)Recycled Non-Public Irrigation Water Rates (1)All Units $6.36
25 25.03 D.9.(c)Recycled Commercial Water Rates (1)All Units $5.84
25 25.03 D.10.(c)Recycled Public Irrigation Water Rates (1)All Units $6.48
25 25.03 D.11.(b)
Potable Interim Business and Commercial Water
Rates (1)All Units $14.00
25 25.03 D.12.(b)
Potable Interim Non-Public Irrigation and
Commercial Agriculture Water Rates (1)All Units $16.12
25 25.03 D.13.(b) Tank Trucks Water Rates (1)All Units $8.00
25 25.03 D.14.(c)
Application Fee for Water Service Outside District
Boundaries $500.00
25 25.03 D.14.(d)
Water Rate for Service Outside District
Boundaries (1)All Units $15.40
25 25.03 D.15.(b)
Application Fee for Water Service Outside an
Improvement District $275.00
25 25.03 D.15.(c)
Water Rate for Service Outside Improvement
District (1)All Units $15.40
25 25.03 D.16.(c) Fire Service Monthly Charge 3/4"$3.30
1"$3.38
1-1/2"$3.72
2"$4.27
3"$6.32
4"$9.81
6"$22.40
8"$44.10
10"$76.73
25 25.03 E.1.Energy Charges for Pumping Potable Water (1)
Per 100 ft of lift
over 450 ft per unit $0.092
25 25.03 E.2.
Energy Charges for Pumping Recycled
Water (1)
Per 100 ft of lift
over 450 ft per unit $0.099
(1) Water billed beginning January 1, 2026, which may include water used December 2025.
Section # Code # Fee Description Meter Size
Charges
25 25.04 A.Deposits for Non-Property Owners 3/4"$150.00
1"$250.00
1-1/2"$300.00
2"$450.00
3"$1,000.00
4"$1,350.00
6"$3,300.00
8"$7,000.00
10"$10,000.00
28 28.01 B.1. Capacity Fees and Zone Charge
Districtwide
Capacity Fee
- All IDs excluding Triad 3/4" $14,574.98
1" $36,437.45
1-1/2" $72,874.90
2" $116,599.84
3" $233,199.68
4" $364,374.50
6" $728,749.00
8" $1,165,998.40
10" $1,676,122.70
- TRIAD 3/4" $10,931.23
1" $27,328.08
1 -1/2" $54,656.15
2" $87,449.84
3" $174,899.68
4" $273,280.75
6" $546,561.50
8" $874,498.40
10" $1,257,091.45
28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total
Meter Box/Vault
(if Needed)
- Potable (Non-Irrigation)3/4" x 7.5"$310.51 $147.35 $457.86 $125.10
3/4" x 9"$330.61 $147.35 $477.96 $125.10
1"$400.70 $147.35 $548.05 $125.10
1.5"$651.29 $147.35 $798.64 $283.59
2"$933.23 $147.35 $1,080.58 $283.59
3"$2,908.32 $887.20 $3,795.52 $5,058.88
4"$5,051.29 $887.20 $5,938.49 $5,058.88
6"$8,724.95 $1,401.40 $10,126.35 $5,058.88
8"$10,901.18 $2,148.92 $13,050.10 $7,257.33
10"$15,677.94 $2,148.92 $17,826.86 $7,257.33
Section # Code # Fee Description Meter Size
Charges
28 28.02 Meter Cost Installation Total
Meter Box/Vault
(if Needed)
- Potable/Recycled Irrigation 3/4" x 7.5"$310.51 $147.35 $457.86 $318.81
3/4" x 9"$330.61 $147.35 $477.96 $318.81
1"$400.70 $147.35 $548.05 $318.81
1.5"$651.29 $147.35 $798.64 $318.81
2"$933.23 $147.35 $1,080.58 $318.81
3"$2,012.85 $887.20 $2,900.05 $5,058.88
4"$3,918.71 $887.20 $4,805.91 $5,058.88
6"$7,054.96 $1,401.40 $8,456.36 $5,058.88
8"$9,398.47 $2,148.92 $11,547.39 $7,257.33
10"$13,337.14 $2,148.92 $15,486.06 $7,257.33
- Combined Fire and Domestic 4"$12,017.47 $887.20 $12,904.67 $5,058.88
6"$15,994.21 $1,401.40 $17,395.61 $5,058.88
8"$23,254.42 $2,148.92 $25,403.34 $7,257.33
10"$31,734.61 $2,148.92 $33,883.53 $7,257.33
31 31.03 A.1.Requirement of Deposit for Temporary Meters 3/4"$156.85
1"$184.78
1-1/2"$379.62
2"$2,865.00
4"$1,986.00
6"$2,465.00
- Construction Trailer Temporary Meter 2"$2,685.00
- Tank Truck Temporary Meter
(Ordinance No. 372)2" $1,000.00
31 31.03 A.4.Temporary Meter Install & Removal 3/4" - 4" (on hydrant)$280.00
4" - 6"$1,200.00
8" - 10"Actual Cost
31 31.03 A.5.
Temporary Meter Move Fee
(includes backflow certification)3/4" - 4" (on hydrant) $210.00
4" - 6" $1,200.00
8" - 10"Actual Cost
33 33.07 A.Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$120.00
1-1/2" & 2 "$200.00
3" & Larger $400.00
34 34.01 D.2. Returned Check Charges $25.00
34 34.02 C Meter Lock Charge $70.00
38 38.06 A Fire Flow Fee $600.00
Installation and Water Meter Charges (continued)
Section # Code # Fee Description Meter Size
Charges
53 53.03 A.1.Sewer Capacity Fee within an ID $7,893.01
53 53.03 A.2.Sewer Capacity Fee per EDU outside an ID $10,917.94
53 53.03 B.1.Sewer Connection Fee - Russell Square $7,500.00
53 53.03 B.2.Monthly Sewer Service Charge - Russell Square $200.00
53 53.10 & 11 Set-up Fees for Accounts $15.00
Effective 1/1/26 Effective 1/1/27 Effective 1/1/28 Effective 1/1/29 Effective 1/1/30
53 53.10 Residential Sewer Rates (2)
Rate multiplied by
3-year winter
average units $3.92 $4.12 $4.53 $4.97 $5.46
53 53.10
Residential Monthly Fixed Sewer System
Charges (2).75"$21.60 $22.72 $24.95 $27.40 $30.08
1"$33.32 $35.05 $38.49 $42.26 $46.40
53 53.10 A.4.Residential Sewer Without Consumption History .75"$51.04 $53.66 $58.97 $64.72 $71.08
53 53.10 B.2.Multi-Residential Sewer Rates (2)
Rate multiplied by
3-year winter
average units $3.92 $4.12 $4.53 $4.97 $5.46
53 53.10 B.2.
Multi-Residential Monthly Fixed Sewer System
Charges (2).75" $21.60 $22.72 $24.95 $27.40 $30.08
1"$33.32 $35.05 $38.49 $42.26 $46.40
1.5"$62.60 $65.86 $72.31 $79.40 $87.18
2"$97.74 $102.82 $112.90 $123.96 $136.11
3"$209.02 $219.89 $241.44 $265.10 $291.08
4"$373.02 $392.42 $430.87 $473.10 $519.46
6"$823.99 $866.84 $951.79 $1,045.06 $1,147.48
8" $1,409.68 $1,482.98 $1,628.32 $1,787.89 $1,963.10
10"$2,229.65 $2,345.59 $2,575.46 $2,827.85 $3,104.98
(2) Sewer billed beginning January 1, 2026.
Section # Code # Fee Description Meter Size
Charges
Effective 1/1/26 Effective 1/1/27 Effective 1/1/28 Effective 1/1/29 Effective 1/1/30
53 53.11 Commercial and Industrial Sewer Rates
Rate
multiplied by Low Strength $3.35 $3.52 $3.87 $4.25 $4.67
annual avg.Medium Strength $4.73 $4.98 $5.46 $6.00 $6.59
units High Strength $7.46 $7.85 $8.62 $9.46 $10.39
53 53.11
Commercial and Industrial Monthly Fixed Sewer
System Charges (2).75" $21.60 $22.72 $24.95 $27.40 $30.08
1"$33.32 $35.05 $38.49 $42.26 $46.40
1.5"$62.60 $65.86 $72.31 $79.40 $87.18
2"$97.74 $102.82 $112.90 $123.96 $136.11
3"$209.02 $219.89 $241.44 $265.10 $291.08
4"$373.02 $392.42 $430.87 $473.10 $519.46
6"$823.99 $866.84 $951.79 $1,045.06 $1,147.48
8" $1,409.68 $1,482.98 $1,628.32 $1,787.89 $1,963.10
10"$2,229.65 $2,345.59 $2,575.46 $2,827.85 $3,104.98
60 60.03
Issuance of Availability Letters for Water and/or
Sewer Service $75.00
72 72.04 A.1.
Locking or Removing Damaged or Tampered
Meters
- To Pull and Reset Meter 3/4" - 2" $310.00
- Broken Curbstop or Tabs 3/4" - 1" Actual Cost
- If Customer uses Jumper 3/4" - 1" Actual Cost
- Broken Lock/Locking Device 3/4" - 1" $95.00
- Broken Curbstop or Tabs 1.5" - 2" Actual Cost
- To Pull and Reset Meter 3" Actual Cost
- To Pull and Reset Meter 4" Actual Cost
- To Pull and Reset Meter 6" Actual Cost
- To Pull and Reset Meter 8" Actual Cost
- To Pull and Reset Meter 10" Actual Cost
72 72.05 D. Type I Fine
- First Violation $100.00
- Second Violations $200.00
- Third or each additional violation of that same
ordinance or requirement within a twelve-month
period $500.00
(2) Sewer billed beginning January 1, 2026.
Section # Code # Fee Description Meter Size
Charges
72 72.05 D. Type II Fine $5,000.00
Type III Fine $500.00
Type IV Fine $500.00
State Water
Code
#71630 & Annual Board
Resolution #4142
Water Availability/Standby Annual Special
Assessment Charge $10.00
$30.00
$3.00
$3.00
State Water
Code
#71630 & Annual Board
Resolution #4142
Sewer Availability/Standby Annual Special
Assessment Charge $10.00
$30.00
Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005
Policies
5B Copies of Identifiable Public Records $0.20/page
54 Late Payment Charge
54 Lien Processing Fee $60.00
54 Delinquent Tax Roll Fee $50.00
54 Delinquency Mailed Notice $5.00
54 Delinquency Tag $25.00
5% of Delinquent Balance
Less than one-acre Outside I.D.
and greater than one mile from
District facilities.
Per acre in I.D. 22
Fine up to amount specified per
each day the violation is identified
or continues.
The cost for all other copy sizes is
the direct cost of duplication.
Per acre I.D. 18
8 1/2" x 11"
Per $1000 of assessed value for
I.D. 27
Per acre for outside I.D. & greater
than one mile from District facilities.
Less than one acre
I.D. 18
Less than one-acre all I.D.s &
Outside an I.D.
Fine up to amount specified per
each day the violation is identified
or continues.
Will not exceed per each day the
violation is identified or continues.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICIES
Page 1 of 3
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICIES
I N D E X
Policy Subject
01 Cleaning of Private Sewer Laterals
02 Employee Recognition
03 Detachment of Land from Improvement Districts
04 Quotations for Fees or Charges
05-A Records Retention and Destruction
05-B Records Policy and Procedures - Accessibility
06 Annual Capital Improvement Program Development
07 Conditions for Installment or Deferred Payments to
the District
08 Directors Compensation, Reimbursement of Expenses
and Group Insurance Benefits
09 Land Acquisition
10 Requirement of Approval for a Private Lateral
11 Requests of Developers to Place Covenants on Maps
Being Processed
12 Employment or Termination of Employment of
District Personnel
13 Use of District Boardroom/Meeting Rooms
14 Use of District Vehicles and Car Allowance
15 Use of District Credit Cards, Petty Cash, and
Expenditures Involving District Credit
16 Representation of Employee Organizations at
Meetings of the District Board of Directors
(DELETED)
17 Temporary Water Service for Community Service
Organizations (DELETED)
18 Private or Public Water and Sewer Systems on
Private Property
Page 2 of 3
Policy Subject
19 Smoking, Tobacco and Nicotine Free Campus
20 District Safety Programs (DELETED)
21 Policy for Selection of Professional Consultants
22 Drug Free Workplace Policy and Procedure
23 Provisions for Allowing a Sewage Pump Station to
be Constructed in Lieu of a Gravity Sewer
24 Recruitment, Selection and Employment Policy
25 Reserve Policy
26 District Administration of Reimbursement
Agreements
27 District Investment Policy
28 Joint Use of Land Adjacent to and above Reservoirs
29 Claims Handling Procedure
30 Notice of Request for Customer Records Under the
Public Records Act (REPEALED)
31 Encouraging Disadvantaged Business Enterprise
Firms
32 Employee Suggestion Cash Award Program (DELETED)
33 Redistricting of Directors Division Boundaries
34 Staff Travel and Business Related Expenses Policy
35 Medical Reserve Fund for District Retirees
36 Appointment of Temporary and Contract Employees
(DELETED)
37 Bilingual Program
38 Zero Tolerance for Violence in the Workplace
40 Ethics Policy
41 Employee Compliance with District’s Conflict of
Interest Code
42 Participation in Community Events and
Programs/Sponsorship Opportunities
Page 3 of 3
Policy Subject
43 Recreational Vehicle Storage on Otay Water
District Property (DELETED)
44 Review of Procedures Policy
45 Debt Policy
46 Media Relations Policy
47 Policy Against Discrimination and Harassment and
Complaint Procedure
48 ADA/FEHA Disability Policy
49 Budget Policy (PENDING)
50 Antifraud Policy
51 Identity Theft Red Flags Policy
52 District Administration of Recycled Water Retrofit
Program
53 Informal Bidding Procedures Under the Uniform
Public Construction Cost Accounting Act (Section
22000 et. Seq. of the Public Contract Code)
54 Discontinuation of Water Service for Delinquent
Accounts
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
PRIVATE SEWER LATERALS 01 10/15/84 03/06/19
Page 1 of 2
PURPOSE
To establish policy determining that sewer laterals are the
responsibility of property owners and not the District.
BACKGROUND
The District operates and maintains District sewer mains which
collect sewage from sewer laterals on privately-owned property. A
sewer lateral is the portion of the property owner's sewer line
that connects to the District main, whether in an easement on the
owner's property or in a public right-of-way. Maintenance of
sewer laterals is the responsibility of the owner of the property
that the sewer lateral serves. Maintenance of District sewer mains
and appurtenances, such as manholes, is the sole responsibility of
the District.
POLICY
The District is responsible for operation and maintenance of the
District Sewer. The District has no responsibility for performing
sewer maintenance on any portion of infrastructure not owned by
the District including, but not limited to, a property owner's
sewer lateral or sewer connection to a building. District
personnel are prohibited from performing sewer maintenance on any
sewer lateral without prior authorization from the General
Manager. The General Manager may grant such authorization when it
is deemed to be in the best interest of the District. The
property owner Charges may be charged for such sewer maintenance
at the discretion of the General Manager.
The following Sewer Lateral Maintenance Policy is hereby adopted
by the District’s Board of Directors.
1.If a stoppage is determined to be in the District Sewer, the
property owner shall notify the District immediately.
2.If repair/replacement is necessary to restore sewer service to
the sewer lateral, the property owner shall obtain all permits
prior to performing any such repair/replacement, and the
repair/replacement shall be performed in accordance with the
permitting agency’s requirements at the property owner’s sole
expense.
3.If a sewer lateral must be relocated due to the construction of
projects sponsored by the District, the District will bear the
sewer lateral relocation costs. The District will warranty the
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
PRIVATE SEWER LATERALS 01 10/15/84 03/06/19
Page 2 of 2
relocation of the sewer lateral for one year from the
associated District sponsored project’s acceptance date.
4.If the existing sewer lateral serving the property is not
adequate for the property owner’s needs, because of size,
depth, location or any other factor, the entire cost of any
related corrective work shall be borne by the property owner.
5.A District permit is required for the connection of any sewer
lateral to the District Sewer, or work on the connection point
of any sewer lateral to the District Sewer.
6.Where sewage from a sewer lateral overflows into the street,
the property owner is responsible for immediate abatement of
the overflow condition and remediation of any effects from the
overflow. The cost for such cleaning and for all restoration
work required as a result of an overflow from a sewer lateral
shall be borne by the property owner. In instances where sewer
lateral overflow sewage could reach or enter a storm drain
system or the public right-of-way, and the property owner has
failed to address or abate the overflow condition, the District
may attempt to abate the sewer lateral overflow to prevent
storm water pollution and protect public health. The District
will bill the property owner for all costs associated with
sewer lateral overflow abatement. If it is determined that the
sewer lateral overflow is the result of a stoppage within the
District Sewer, the District will perform an investigation to
determine responsibility for abatement of the overflow
condition and remediation of any effects from the overflow.
Page 1 of 1
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
Policy
Number
Date
Adopted
Date
Revised
EMPLOYEE RECOGNITION 02 06/02/04 07/05/06
I.PURPOSE
To establish a policy for the recognition of the extra efforts,
special accomplishments, volunteer work and outstanding
performance of Otay Water District employees.
II.POLICY
It is the District’s Policy to identify, recognize and celebrate
employees who best demonstrate the values, mission and Strategic
Plan of the District; to recognize outstanding and beyond the call
of duty performance and achievements by Otay Water District
employees; and to raise the standards in the performance of work,
to expand employee safety and to increase excellence and
efficiency in the accomplishment of projects.
III.PROCEDURE
To provide effective recognition of extra efforts and
accomplishments of employees, District staff will develop budget
proposals as part of the regular budget process for Board
approval.
In accordance with Code of Ordinance, Division I, Chapter 1,
Section 2.01 B, the General Manager is authorized to promulgate
Human Resources Policies and Procedures to explain, clarify and
administer this policy.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DETACHMENT OF LAND FROM IMPROVEMENT
DISTRICTS 03 10/15/84 08/10/11
Page 1 of 1
PURPOSE
To provide procedures and conditions for detachment of property
from improvement districts under certain circumstances.
BACKGROUND
Property owners have participated in the formation and development
of improvement districts in anticipation that some day water or
sewer service would be available. However, due to the condition
or location of the property, providing service to certain parcels
may be impossible, impractical, or economically unfeasible, thus
eliminating any benefit to the parcel from remaining in the
improvement district.
POLICY
If a property owner can demonstrate that the property no longer
benefits from remaining in an improvement district, the owner may
petition the District to detach the property from the improvement
district if either of the following conditions exists:
(a)The owner furnishes proof that due to governmental regula-
tions the property cannot be developed, i.e., "Flood Control
Channel," moratorium, etc., which would preclude any develop-
ment.
(b)It is physically impossible or impractical for the property
to receive the particular service furnished by the improve-
ment district.
(c)The cost of facility construction required to serve the prop-
erty is financially unfeasible.
There shall be no refund of property taxes previously paid on the
property being detached.
If, after such detachment the owner desires to re-annex the prop-
erty to an improvement district, the owner must pay all associated
administrative fees be determined in accordance with District
requirements as then in effect.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
QUOTATIONS FOR FEES OR CHARGES 04 10/15/84 08/10/11
Page 1 of 1
PURPOSE
To provide that quotations given for fees and charges (including
annexation fees) shall be firm for a fixed period of time following the
date of issuance.
BACKGROUND
The District frequently receives requests for information regarding
fees or charges for (i) annexation of land to the District or to an
Improvement District, or (ii) connection to District facilities. On
occasion, after giving a quotation, the fees or charges have been
increased before the property owner or developer could complete
arrangements for financing. This created an unforeseen hardship.
POLICY
Responses to requests for information concerning fees or charges will
be furnished by the District in writing.
The amount of such fees, or charges, shall be determined in accordance
with District Ordinances and District Policies.
The fees and charges are subject to change. At the time of annexation
or connection, customers will be responsible to contact Otay Water
District for current fees and charges.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECORDS RETENTION AND DESTRUCTION 05-A 02/03/10 07/01/16
Page 1 of 4
I.PURPOSE
To ensure that necessary records and documents of the Otay Water
District are adequately protected and maintained and to ensure that
records that are no longer needed or are of no value are discarded at
the proper time. This Policy also serves as assistance in providing
management with the information necessary for and aiding of District
employees in understanding their obligations in retaining electronic
documents that are developed during phases of records creation and to
assist in controlling the life cycle of all District records, including
e-mail, Web files, text files, sound and movie files, PDF documents, and
all Microsoft Office or other formatted files.
II.SCOPE
This policy is applicable to all District departments and offices
directly responsible to the General Manager. The objectives of the
Records Retention Policy are:
To ensure that all legal, historical, fiscal, and administrative
requirements are satisfied before records are destroyed.
To conserve District resources, such as space and staff time, by
managing records and removing inactive or obsolete material from
office files.
To maintain a regular, controlled flow of records from offices
to destruction or archive storage.
III.POLICY
This policy represents the District’s policy regarding the
retention and disposal of records, including electronic documents.
Attached as Appendix 1 is a Record Retention Schedule that is approved
as the District’s maintenance, retention and disposal schedule for
physical records and the retention and disposal of electronic documents.
IV.DEFINITION
(a)Public Record – Any writing as set forth in California Government
Code Section 6252, but generally shall include any writing
containing information relating to the conduct of the public’s
business prepared, owned, used or retained by the District,
regardless of physical form or characteristics.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECORDS RETENTION AND DESTRUCTION 05-A 02/03/10 07/01/16
Page 2 of 4
(b)Records Management – The planned and systematic control of business
records from their creation or receipt, through final disposition.
(c) Records Retention Schedule – The document that outlines how long a
document must be kept by law, or longer, if needed for District
operations.
(d) Official Record - The records to which retention schedules apply.
(e)Retention Period – The length of time a record needs to be
maintained to satisfy the purposes for which it was created, and to
fulfill legal, fiscal, and administrative requirements of the
District.
(f) Transitory Records – Records that are of informal communications
produced via a computer (E-mail), routine requests, posted notes or
other temporary medium. Transitory records are designed to have a
limited retention period and as such, are not considered records
unless they are in relation to another document or project.
(g) Abbreviations – The following abbreviations are used in the Records
Retention Schedule:
A = Active Financial Audit
ACT = Active (e.g., while the contract is active or while an
employee is still working for the District)
C = Closed, Expired
CY = Calendar Year
FY = Fiscal Year
L = Life of Facility
P = Permanent
R = Revised, Cancelled, Obsolete, or Superseded
T = Termination, Death
V.ADMINISTRATION
A.General
1.The District’s General Manager is the officer in charge of
the administration of this Policy and the implementation of
processes and procedures to ensure that the Record Retention
Schedule is followed.
2.The General Manager is also authorized to make modifications
to these procedures and to the Record Retention Schedule
from time to time to ensure that it is in compliance with
local, state and federal laws including policies and
procedures, the appropriate documents and record categories
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for the District; work with the District’s General Counsel
to monitor local, state and federal laws affecting record
retention; periodically review the record retention and
disposal program; and monitor compliance with this Policy.
B.Suspension of Record Disposal due to Litigation or Claims
In the event the District is served with any subpoena or
request for documents or any employee becomes aware of a
governmental investigation or audit or the commencement of any
litigation against or concerning the District, such employee
shall inform the General Manager and any further disposal of
documents shall be suspended until such time as the General
Manager, with the advice of counsel, determines otherwise. The
General Manager shall take steps to promptly inform all staff
of any suspension in the further disposal of documents.
C.Records Retention Schedule Organization
1.The Record Retention Schedule is organized by type of
records, description of records, governing authority, and
its retention period.
D. Destruction of Records
All records shown on the Records Retention Schedule shall be
retained for the period indicated on the Records Retention
Schedule and may be destroyed thereafter. The General Manager
or designee of the District is authorized to destroy records
of the District according to the Records Retention Schedule
without further authorization from the Board of Directors.
E.Method of Destruction of Records
Official records at the end of their retention period are
eligible for destruction. A destruction approval report is
used to list eligible records and obtain appropriate
approvals. Official records shall not be destroyed if any
legal action, audit or government investigation involving
those records is identified. Destruction of paper records
shall be by shredding or other legally acceptable method. A
Certificate of Destruction or other accepted form of
documentation shall be prepared and saved permanently within
the District’s Retention Management System. Electronic
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records shall be deleted by removing those records from the
system on which they reside and erasing the data. Deleted
electronic records, including emails are considered to have
been disposed/destroyed once they are deleted from the active
computer system and any storage devices.
CITATIONS
B & P – Business and Professions Code
CCP - Code of Civil Procedures
CCR - Code of California Regulations
CEQA - California Environmental Quality Act
CFR - Code of Federal Regulations
CVC - California Vehicle Code
GC - Government Code
H&S - Health & Safety
LC - Labor Code
OMB - Office Management & Budget
OPS - Opinion Attorney General
OSHA - Occupational Safety & Health Act
PC - Penal Code
USC - United States Code
WC - Water Code
OTAY WATER DISTRICT
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RECORDS POLICY AND PROCEDURES -
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PURPOSE
To set forth the procedures that will facilitate the process for
responding to requests under the California Public Records Act
(“CPRA”).
POLICY
The CPRA permits local agencies to adopt regulations stating the
procedures to be followed when making their records available to the
public. The Otay Water District’s Board of Directors desires to set
forth the procedures by which such records will be made available to
the public. The Board is mindful of the constitutional right of privacy
accorded to individuals and it is the intent of the Board to promulgate
a policy that strikes an appropriate balance between the objectives of
open government and the individual’s right of privacy.
PROCEDURES
Records Available for Inspection and Copying
Except for records exempt from disclosure by express provisions of
law, records available for inspection and copying include any
writing containing information relating to the conduct of the
public’s business that is prepared, owned, used, or retained by
the District, regardless of the physical form and characteristics.
The records do not have to be written but may be in another format
that contains information such as computer tape or disc or video
or audio recording.
“Writing” includes any handwriting, typewriting, printing,
photographing, and every other means of recording upon any form of
communication or representation such as letters, words, pictures,
sounds, or symbols, as well as all papers, maps, magnetic or paper
tapes, photographic films and prints, and electronic mail.
Making a Request for Records
There is no specific form that must be used to request records.
Requests may be made orally or in writing and may be delivered in
person, through the mail, via e-mail or via facsimile. The request
must contain a reasonable description of the desired records.
When an oral request is received, the District may request that
the public records request be confirmed in writing. The District
may also follow-up verbally or in writing to clarify or eliminate
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any confusion concerning a request. Requests must be submitted to
the District Secretary.
Locating and Identifying Records
Public records are open to inspection at all times during regular
District business hours. The District Secretary shall be
responsible for responding to records requests and coordinating
with the various departments within the District to compile
documents and information responsive to such requests.
If a request for records seeks the production of records or
documents that are not in existence at the time the request is
made, the District is not obligated to create a document in order
to respond to the request.
Form of Records Provided
Records will be made available in their original form or by a true
and correct copy. Audio, photographic and computer data, or any
other such records, shall be exact replicas unless the District
determines it is impracticable to provide exact replicas. Any
reasonably segregable portion of a record shall be provided to the
public after deletion of portions that are deemed exempt from
disclosure.
Common Exemptions
Certain categories of documents are generally not subject to
disclosure. These include, but are not limited to: (1) preliminary
drafts of certain documents that are not retained by the District
in the ordinary course of business; (2) records related to pending
litigation; (3)attorney-client communications; (4) personnel
records, medical information, or other similar records the
disclosure of which would constitute an unwarranted invasion of
personal privacy; (5) corporate financial and proprietary
information, including trade secrets; and (6) records protected by
State or Federal law.
Time for Response
Upon receipt of a request for records, the District shall make the
records promptly available to the requestor. When a copy of a
record is requested, the District shall determine within ten (10)
calendar days whether to comply with the request, and shall
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promptly inform the requestor of the District’s decision and
reasons therefor.
In unusual circumstances, as defined in the CPRA, the initial ten
(10) calendar day period to make a determination may be extended
for up to an additional fourteen (14) calendar days. If so, the
District will inform the requestor of the extension, in writing,
within the initial ten (10) day period, setting forth the reasons
for the extension, along with the estimated date of the District’s
further response.
If a written request for information is denied in whole or in
part, the denial shall be in writing and shall contain the reasons
for denial of access to the subject records.
Fees and Charges
The District charges for the direct costs of duplicating records)
and for the direct cost of postage and other delivery methods as
set forth on Appendix A to the District’s Code of Ordinance.
Requestors of electronic records shall pay for production costs,
including the cost to construct the record and the cost of
programming and computer services necessary to produce the copy if
response to the request requires the immediate production of a
record that is otherwise only produced at regularly scheduled
intervals, or if data compilation, extraction, or programming is
required to produce the requested record. However, the District
will not charge for access to electronic data that is accessible
in its existing form (including PDF copies of agenda items that
are provided in the form previously made available on the
District’s website) and that does not require staff to locate,
identify or extract data or to incur other costs to the District.
Responding to Requests for Particular Documents
The following procedures shall apply when responding to requests
for these particular categories of documents:
Disclosure of Litigation Materials
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1.When litigation in which the District is a party is finally
adjudicated or otherwise settled, records of communications
between the District and the adverse party in the litigation shall
be subject to disclosure including the text and terms of any
settlement agreement between the parties.
2.Such disclosure shall not apply to records that are otherwise
privileged under federal or state law, such as attorney-client
communications, or to records sealed by the court or where
disclosure is otherwise limited by the court.
Disclosure of Information Relating to Contracts, Bids and
Proposals
1.Records of contractors’ bids shall be available for
inspection immediately following the opening of bids.
2.Responses to Requests for Proposals, Qualifications or
Quotations and similar submittals shall be regarded as public
records and are available for inspection after District staff’s
recommendation has been made public, unless there are elements in
the proposal which are defined by the proposer as business or
trade secrets and plainly marked as “Confidential,” Trade Secret,”
or “Proprietary.” Although trade secret information may be exempt
from disclosure, the District typically is not in a position to
establish whether the information that a proposer has submitted is
a trade secret. If a request is made for information marked
“Confidential,” “Trade Secret,” or “Proprietary”, the District
will provide the proposer who submitted the information with
reasonable notice to allow the proposer to seek protection from
disclosure by a court or government agency of competent
jurisdiction.
3.When an individual, firm or organization is awarded a
contract, information including financial information which was
submitted to the District during the bid or proposal process from
all proposers will be subject to disclosure unless otherwise
exempt.
Budgetary Information
Budgetary information including bills or records of payments,
which are submitted to the District’s Board or other body having
budgetary authority, shall be subject to disclosure unless the
record is confidential or privileged under State or Federal law.
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Personal Information
Requests for records and documents containing personal information
such as social security numbers, home addresses, home telephone
numbers, financial matters, and medical or employment history,
should be reviewed on a case by case with the District’s General
Counsel. The District may respond to requests for personal
information in one or more of the following ways:
1.delete or redact those portions of the records that include
personal information and make the remaining portion of the record
available for inspection if the remaining portion of the record is
not otherwise exempt from disclosure;
2.notify the party whose personal information is being sought
and provide the party with the opportunity to initiate legal
proceedings or other appropriate process to prevent the release of
such information;
3.seek a judicial determination as to whether or not the
requested personal information should be disclosed; or
4.disclose the information where permitted, allowed or
compelled to do so.
Complaints and Complaint Information
Information regarding complaints shall be made available. However,
specific information about complainants shall be redacted from any
record furnished if necessary in order to protect the privacy
rights and safety of individuals making complaints and to protect
an individual’s right to petition government for redress of
grievances.
Electronic Mail
E-mail shall be treated the same as other written documents. If
the e-mail is kept in the ordinary course of business, it is a
public record unless it falls within some exception to disclosure
under the CPRA.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
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ANNUAL CAPITAL IMPROVEMENT PROGRAM
DEVELOPMENT 06 10/15/84 10/03/18
Page 1 of 2
PURPOSE
To define the policy on the preparation and approval of the
annual Capital Improvement Program.
BACKGROUND
District staff develops and maintains a Water Facilities Master
Plan (WFMP), an Integrated Water Resources Plan (IRP), a Program
Environmental Impact Report (PEIR), and a Strategic Plan that,
collectively, are used to prepare the annual Capital Improvement
Program (CIP) and to identify the CIP projects required for
ultimate buildout. Every five years, the Board certifies the
PEIR and approves the revised WFMP. Annually, staff prepares a
six-year moving window CIP that provides information on budget
assumptions, source of funds, allocation of funds, project
costs, project location, description, justification, scheduling,
etc. The six-year CIP is submitted and presented to the Board
of Directors to obtain approval for staff to proceed with
implementation to plan, design, and construct facilities and
programs necessary to meet the needs of the District.
POLICY
The General Manager, or his designee, shall prepare a proposed
six-year CIP for submission to the Board of Directors for their
review prior to and approval by June 30 of each fiscal year.
The CIP projects shall be reviewed and updated annually to
consider appropriate revisions based on the most recent WFMP,
IRP, Strategic Plan, and market condition information. The
timing of projects shall be based on necessity and availability
of financing. The intent is that new CIP projects will be
installed as development requires the facilities. With regard
to all CIP projects, it is acknowledged that compliance with the
California Environmental Quality Act adds a measure of unpre-
dictability with regard to the timing of CIP projects.
The WFMP, IRP, and the CIP projects shall be divided into two
phases: Phase I - one to six years; and Phase II - seven to
ultimate buildout. CIP project sheets for projects in Phase I
shall be prepared and identify estimated total cost, cash
expenditure timing, location, description, justification,
funding allocation, and schedule. For the Phase II CIP
projects, the CIP shall identify the need for the projects,
along with their estimated total cost and funding allocation.
OTAY WATER DISTRICT
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ANNUAL CAPITAL IMPROVEMENT PROGRAM
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Upon approval by the Board of Directors of the annual six-year
CIP, staff is authorized to proceed with planning, design,
construction, etc. of those projects that have budgets within
the current fiscal year. The General Manager is authorized to
redistribute funds between approved CIP projects as long as the
total project budget is not exceeded and the District has
adequate CIP reserves to fund the project. In addition, the
General Manager is authorized to exceed the budget for specific
CIP projects under the following conditions:
a.For CIP projects less than or equal to that authorized
under Code of Ordinances Section 2.01, Authority of the
General Manager, the cumulative amount of the specific
CIP project expenditures does not exceed that authorized
under Code of Ordinances Section 2.01, Authority of the
General Manager.
b.For CIP projects more than that authorized under Code of
Ordinances Section 2.01, Authority of the General
Manager, the amount being authorized does not exceed the
lesser of 25% of the specific CIP project budget amount
or that authorized under Code of Ordinances Section
2.01, Authority of the General Manager.
c.The total fiscal year CIP budget is not exceeded.
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CONDITIONS FOR INSTALLMENT OR DEFERRED
PAYMENTS TO THE DISTRICT 07 10/15/84 10/06/10
Page 1 of 2
PURPOSE
To establish a policy regarding conditions for making installment
or deferred payments to the District.
BACKGROUND
Occasionally the District receives requests to allow payment of
certain connection charges on an installment or deferred basis.
Approval of these agreements will occur in very limited
circumstances where it is in the District’s best interest that the
agreement be made. In addition, if the District is to consider
such requests, the District must not be in a position of risk of
loss in the event of non-payment.
POLICY
The following procedures, terms and conditions shall apply to
requests and arrangements for payment to the District on an
installment or deferred basis:
1.Requests for installment or deferred payments shall be
reviewed by the District. Each request shall indicate the
terms desired with a maximum term of 12 months. The person
or party making the request shall furnish all financial
information or data deemed necessary by the District to
review the request.
2.The General Manager shall have authority to negotiate and
execute deferral agreements with residential and non-
residential customers where the value of the agreement does
not exceed the General Manager’s signatory authority as
established in Chapter 2, Section 2.01-D of the Code of
Ordinance. In addition, the General Manager will inform the
Board of such executed agreements within his monthly report
to the Board of Directors.
3.Where the value of the proposed agreement exceeds the General
Manager’s authority, the District shall make a recommendation
to the Board of Directors for approval or disapproval, with
reasons for the recommendation.
4.In emergency situations, the General Manager is authorized to
enter into a deferral agreement exceeding his/her authority
to allow a customer to connect to the District system. The
General Manager shall submit all such deferral agreements to
the Board for ratification at the next regularly scheduled
Board meeting.
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CONDITIONS FOR INSTALLMENT OR DEFERRED
PAYMENTS TO THE DISTRICT 07 10/15/84 10/06/10
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5.A minimum down payment of ten percent (10%) of the total
amount to be paid in installments or on a deferred basis is
required and is nonrefundable.
6.Any increases in rates, fees, or charges shall apply to all
connections which have not been made at the time the increase
is adopted, including but not limited to capacity fees and
annexation fees.
7.The only fees that will be considered for deferral are Otay
Capacity Fees and Annexations fees. All labor and materials
costs will not be considered for deferral as this would place
the District in a position of risk in the event of default.
In addition, the District will not make arrangements for
deferral of fees collected by the District on behalf of other
governmental entities. These fees must be paid prior to the
execution of the agreement or payment arrangements must be
obtained from the CWA or MWD by the applicant.
8.For each installment or deferred payment arrangement a
promissory note, payable to the District, shall be executed
to provide for terms of payment of the balance of principal
due, with interest payable monthly at a rate equal to five
percent (5%) per annum over the Federal Reserve Discount
Rate.
9.In addition to execution of a promissory note for the balance
of the payment, the District will consider requiring security
to guarantee payment of the promissory note, such as but not
limited to, a letter of credit, performance bond, lien
contract, certificate of deposit, or other security
satisfactory to the District.
10.An administrative fee for the establishment of a deferral
agreement of $500.00 will be charged for all such agreements.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 4/2/25
Page 1 of 7
Purpose
To provide guidelines for payment of compensation and reimbursement of
expenses to Directors in connection with their attendance at meetings
or the performance of other authorized business, and for group insurance
benefits for Directors.
Background
Members of the Board of Directors (“Directors”) attend regular, adjourned
or special meetings of the Board of Directors (“Board”). In addition,
Directors attend other District meetings, committee meetings,
association meetings, and educational seminars on behalf of the District.
These meetings and seminars are related to District business, water and
wastewater, water and wastewater related issues, and California special
districts. State statutes authorize District payments for attendance
at meetings and reimbursements of expenses incurred. State law also
authorizes the District to provide health and welfare benefits for active
Directors and, in limited circumstances, retired Directors if they served
12 years and were first elected prior to January 1, 1995. The District
is also authorized to offer health and welfare benefits for retired
Directors who commenced office on or after January 1, 1995, if the
recipient participates on a self-pay basis.
Policy
The District will compensate Directors on a per diem basis for attendance
at authorized meetings or functions and will reimburse Directors for
reasonable expenses incurred while traveling on District business to
include, lodging, dining, transportation and related incidentals.
A.Directors’ Per Diem
As provided in Section 1.01 C. of the District Code of Ordinances,
each Director shall receive a per diem in the amount of $181
(effective July 1, 2025) for each day of attendance at meetings of
the Board or for each day of service rendered as a Director by
request or authorization of the Board, not to exceed a total of
ten (10) days in any calendar month. Attendance at any meeting
shown on Exhibit A to this Policy shall be deemed a meeting
requested or authorized by the Board. Attendance at meetings shall
be in accordance with Exhibit A. The President of the Board or the
Board may authorize a Director to attend meetings not listed in
Exhibit A when the President or the Board determines that it is in
the interest of the District that a Director attend, and that such
attendance be compensated, and expenses reimbursed. Director’s
claims for per diem amounts shall be made on a “Board of Directors
Per Diem and Mileage Claim Form” (Exhibit B). The President of the
Board or the Board may approve reimbursement of expenses outside
the per diem limit for a Director if the Director submits receipts
for all the related District business expenses.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
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DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 4/2/25
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The Board President or the Board of Directors may restrict a
Director’s ability to receive a per diem for meeting attendance if
the Director engages in misconduct. Said restriction may apply to
pre-approved meetings as listed on Attachment A of this policy.
(Please see Board Policy 40: Ethics.) Attendance at a meeting that
is not authorized by this policy (pre-approved meetings) or pre-
approved by the President may be approved by the Board for per diem
compensation. Director’s seeking per diem compensation for these
meetings shall request that the item be presented to the Board at
its next regularly scheduled meeting for consideration. The
decision of the Board shall be final.
When travel arrangements require a day earlier arrival or a day
later departure, Directors will be eligible for the $181 per diem
and reasonable expenses associated with the extended stay will be
reimbursed as specified below.
B.Pre-payment of Otherwise Reimbursable Expenses
The Director may request pre-payment of registration,
transportation, and lodging, using the “Board of Directors Travel
Request Form” (Exhibit C). Pre-payments shall be limited to the
Director’s expenses only. No advances shall be made on travel
expenses.
C.Reimbursement of Expenses
Each Director shall be reimbursed for travel expenses to and from
the meetings described in Exhibit A or for any other authorized
District business as follows:
1.Authorization
Travel associated with the attendance of meetings or
functions for Directors shall be approved in advance by the
Otay Water District Board President. To request approval of
travel, the Director should complete a “Board of Directors
Travel Request Form” (Exhibit C) in order to be eligible for
compensation and/or reimbursement. Travel requests will be
reviewed and approved by the Board President or the Board.
2.Transportation
a.Air Transportation
The District will endeavor to purchase airline tickets
in advance, taking advantage of discounts and low
airfares.
b.Automobile
1.Personal Auto: Directors may use their personal
vehicle. The District will reimburse Directors at
the current rate/mile as established by the IRS,
plus tolls, parking, etc., provided, however, if
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
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Date
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DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 4/2/25
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air transportation is available, the total amount
of expense paid shall be limited to the cost of
coach air travel between points traveled by
personal vehicle. Gasoline, collision and
liability insurance, and maintenance will be
provided by the Director and is deemed covered in
the rate/mileage reimbursement.
Directors using personal vehicles on District
business must maintain a valid California driver’s
license and the automobile insurance coverage
required by the State of California, or make
arrangements for a driver who meets the above
requirements.
2.Rental Cars: Directors shall endeavor to use
public transportation, taxi, or a ride-sharing
service whenever possible. In the event that a
rental car is needed for District business, the
District will pre-pay or reimburse Directors for
the rental car expenses. Gasoline expenses
required for District business travel will be
eligible for reimbursement. Such rental car shall
be a compact or mid-size class, unless upgrades
are offered at no additional cost to the District.
c.Miscellaneous Transportation
Whenever practicable, bus, taxi, rail, shuttle, or ride-
sharing service transportation may be used in lieu of,
or in conjunction with, the modes above.
3.Meals and Lodging
a.Meals and Beverages
Whenever travel requires meals, the meals, including
gratuity, shall be reimbursable, provided the Director
presents a receipt along with the “Board of Directors
Expense Claim Form” (Exhibit D) for all meals.
Reimbursements for expense items where a receipt has
been lost will not be paid until the President or the
Board has reviewed and approved the expense item. Meals
are reimbursable based on the Meals and Incidental
Expenses (M&IE) as updated by the U.S. General Services
Administration:
1.Full Day Reimbursement
When a Director is traveling for a full day and no
meals are provided for by other sources, such as
pre-paid registration, the Director may be
reimbursed for meal expenses at the rate provided
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
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EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 4/2/25
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by the M&IE per day, or amounts determined by the
President or the Board to be reasonable for the
occasion or circumstances.
2.Single Meal Reimbursement
When a Director requires reimbursement for a
single meal while traveling, the maximum meal
reimbursement amount shall be at a rate provided
by the M&IE for Breakfast, lunch, and/or dinner,
or amounts determined by the President or the Board
to be reasonable for the occasion or
circumstances.
3.Partial Day Reimbursement
When a Director will be traveling for a partial
day or where a single meal is provided for by other
sources such as pre-paid registration, the maximum
reimbursement amount shall be at the rate provided
by the M&IE per meal, or such other amounts as may
be determined by the President or the Board to be
reasonable for the occasion or circumstances.
4.Taxes
The maximum meal reimbursement amounts are
inclusive of and assume expenses for taxes and
gratuities.
b.Lodging
The District will reimburse Directors or pre-pay
accommodations in single rooms at conference facilities
or in close proximity when applicable. Or, in the
absence of conference accommodations, normal single-
room business, government or commercial class
accommodation may be obtained. Under normal
circumstances, lodging will not be reimbursed for the
night before a conference starts and the night after it
ends. However, in situations where available travel
schedules would require the Director to leave home
before 6:00 AM or return home after 12:00 AM, lodging
for the night before or the night after will be
reimbursable.
4.Entertainment
The District shall not cover any expenses incurred for
recreation or entertainment.
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BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 4/2/25
Page 5 of 7
5.Incidental Expenses
Unavoidable, necessary, and reasonable authorized expenses
will be fully reimbursed by the District. Some examples of
allowable expenses are:
a.Reasonable transportation to local restaurants and to
optional functions that are a part of conference events.
b.Conference and hotel parking fees.
c.Reasonable gratuities.
d.The following expenses are not reimbursable:
1.Alcoholic beverages
2.Parking or traffic violations
3.In-room movies or laundry services
4.Expenses incurred by spouses, family members, or
guests.
6.Directors’ Responsibility
a.Directors must submit a detailed “Board of Directors
Expense Claim Form” (Exhibit D) for reimbursement.
Claim forms should be supported by vouchers and itemized
receipts of expenditures for which reimbursement is
being requested. Receipts must be attached for all
expenses. If a receipt is lost, the lost receipt must
be noted on the “Board of Directors Expense Claim Form”
(Exhibit D) and approved by the President or the Board
before any payment can be made. Claim forms shall be
submitted within 45 calendar days after the expense was
incurred. Expense claims requiring reimbursement to the
District, which are not reconciled within 45 calendar
days, shall be deducted from the next month’s
reimbursement.
b.Expenses will not be reimbursed for meetings that have
been pre-paid and not attended. The President or the
Board may excuse an absence for a meeting. The absent
Director shall provide a verbal or written report at
the next regularly scheduled Board meeting stating the
reason for the absence and, if appropriate, request that
it be excused. Directors will be required to reimburse
the District for any pre-paid expenses for any unexcused
absence. This reimbursement will be made by deduction
from future expenditures.
c.When two (2) or more Directors combine an expense on
one receipt, the Director requesting reimbursement
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 4/2/25
Page 6 of 7
should indicate, on or attached to the Director’s “Board
of Directors Expense Claim Form” the identity of the
other persons sharing expenses. This will facilitate
appropriate allocation of expenses to each participant.
d.Expenses incurred by a Director, other than reimbursable
expenses, including, but not limited to expenses of the
Director’s spouse, family members, or guests are the
responsibility of the Director.
e.Each Director shall provide a brief report on meetings
attended at the expense of the District at the next
regular meeting of the Board of Directors [Government
Code Section 53232.3(d)]. The report may be provided
verbally during the “Directors Reports” section of the
meeting or submitted in writing to the District
Secretary on the “Board of Directors Meetings Attended
Form” (Exhibit E). Written reports will be filed with
the minutes of the meeting and become part of the board
records.
f.All documents related to reimbursable District
expenditures are public records subject to disclosure
under the California Public Records Act. [Government
Code Section 53232.3(d)].
g.The District shall, at least annually, provide a report
to disclose any reimbursement paid by the District
within the immediately preceding fiscal year of at least
$100 for each individual charge for services or product
received. “Individual charge” (as defined in California
Government Code Section 53065.5) includes, but is not
limited to, one meal, lodging for one day,
transportation, or a registration fee.
D.District Group Insurance Benefits
1.Each Director, while serving as a member of the Board of
Directors, shall be entitled to the health and welfare and
life insurance benefits set forth in the Schedule of Benefits
in the District Group Insurance Plan Booklet, which benefits
are furnished by the District at District cost, with
applicable contributions, for active District employees and
Directors. Each active Director shall also be entitled to a
$65,000 term life and accidental death and dismemberment
insurance policy (subject to policy requirements and any
standard age reduction schedule), a $100,000 travel
accidental death and dismemberment policy. In addition to the
foregoing, the District will pay premiums for additional
individual life insurance coverage in an amount of up to
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF
EXPENSES AND GROUP INSURANCE BENEFITS
08 2/20/91 4/2/25
Page 7 of 7
$250,000 for a 20 year term for those active Directors who
apply for such coverage with the District’s provider and meet
the provider’s standard underwriting guidelines and policy
requirements. If coverage at higher amounts or for a longer
term is made available by the provider, each Director may
purchase such additional coverage on a self-pay basis.
2.Each former member of the Board of Directors, who served in
office after January 1, 1981, who was elected to a term of
office that began before January 1, 1995, who is at least 60
years of age, and whose total service at the time of
termination is not less than 12 years, shall be entitled to
the health and welfare and life insurance benefits set forth
in the District Group Insurance Plan Booklet, which benefits
are furnished by the District, at District cost, for retired
Directors.
E. Miscellaneous
1.The General Manager shall submit the District’s
organizational membership list, which the Board shall review
annually in January following reorganization of the Board and
election of a new President.
2.Cell Phone expenses are not considered a reimbursable
expense.
Attachments
Exhibit A: Approved Functions List
Exhibit B: “Board of Directors Per Diem and Mileage Claim Form”
Exhibit C: “Board of Directors Travel Request Form”
Exhibit D: “Board of Directors Expense Claim Form”
Exhibit E: “Board of Directors Meetings Attended Form”
EXHIBIT A
Approved Functions List
Board Policy for payment of per diem compensation and expenses for
Director attendance at District meetings:
The Board reviews its authorization and policy for payment of per
diem compensation for pre-approved meetings annually, in January
following reorganization of the Board and election of a new
President. Below is the current Board policy:
1.The following meetings are pre-approved for all Directors
to attend and receive per diem compensation and expense
reimbursement:
a)Otay Water District Regular and Special Board Meetings
b)Otay committee meetings for committee members only
c)Otay business meetings called by the General Manager or
the Board President, or authorized by the Board
President where individual Directors are requested to
attend
d)Except as otherwise specifically excluded in this
policy, official District functions that take place
during normal business hours where Directors are
requested to attend by either the Board President or
the Board
e)District sponsored events or events where the District
sponsors a table and the Board President or the General
Manager extends invitations to Directors to attend the
event
f)Semi-annual conference of the Association of California
Water Agencies
g)Regularly monthly meeting of Council of Water Utilities
h)Business meetings and conferences of the California
Special District Association held in San Diego County
i)Up to four (4) board meetings of the San Diego County
Water Authority per calendar year
j)Up to one (1) board meeting of the Metropolitan Water
District per calendar year
k)Business or Board Meetings of regional and/or local
Chambers of Commerce, where the District maintains a
membership or whose geographical area includes the
District’s service area, and the meeting includes
discussions that are water and wastewater-industry
related
All other meetings not listed here require pre-approval
by the President or Board for Directors to receive per
diem compensation and/or expense reimbursement.
EXHIBIT A
2.The following meetings are pre-approved for designated Otay
Director representatives or designated alternate. The
District Secretary will maintain an updated list of
designated Director representatives. Any other Director who
wishes to attend these meetings and receive a per diem must
have approval from the President or Board prior to the event
or be designated by the President or Board, as an alternate.
The pre-approval shall include the attendance of the
Director at the commission, committee, board or meeting and
any committee, subcommittee or other official or posted
meeting of the agencies, commissions, committees or boards
listed below:
a)Planning Group and government agency meetings that
fall within the boundaries of each Directors district
(when issues impacting OWD are discussed)
b)Inter-Agency Committee Meeting
c)METRO (TAC/AFFORD) Commission
d)ACWA or CSDA meetings/conferences
e)Water Conservation Garden
f)WateReuse Association
g)South County Economic Development Council
3.The Board President or his designee is pre-authorized to
attend District business meetings with cities and other
agencies to represent Otay Water District and may claim a
per diem and expenses. Any other Director desiring to attend
the same meeting of this nature would require approval to
attend from the President or the Board in order to receive
a per diem and expense reimbursement.
4.When the President or the Board appoints a Director(s) to a
committee, the meeting(s) shall be considered pre-approved
for per diem and expense reimbursement.
5.The following meetings are not eligible for pre-approved per
diem claims:
a)Attending other Districts’ Board meetings, unless there
is a matter on their agenda that is related to Otay
business
b)Otay employee appreciation breakfast, luncheons or
dinners
c)Retirement receptions
d)Otay picnics or dinner-dances or other purely social
events
e) If a per diem reimbursement is offered by another agency
(i.e. San Diego County Water Authority and the Metro
Commission)
f)First Friday Breakfasts unless presenting Otay official
business to the assembly
g)Any political campaign event or function
EXHIBIT A
6.In order to submit a per diem/travel reimbursement the
member must attend at least 50% of the meeting (per day)
and the reimbursement request must be submitted within 45
days of the occurrence, otherwise it may be considered
attended without per diem. The President of the Board will
make the final determination.
7.All other meetings/conferences/tours/seminars/
workshops/functions not listed in this policy must be pre-
approved by the Board President or the Board.
EXHIBIT B
(Director’s Signature)
GM Receipt: Date:
FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $
INSTRUCTIONS ON REVERSE
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER DIEM AND MILEAGE CLAIM FORM
Pay To:Period Covered:
Employee Number:From:To:
ITEM DATE MEETING PURPOSE / ISSUES
DISCUSSED
MILEAGE
HOME to OWD
OWD to HOME
MILEAGE
OTHER
LOCATIONS
Total Meeting Per Diem:$
($181 per meeting)
Total Mileage Claimed:miles
EXHIBIT B
INSTRUCTIONS FOR PREPARATION OF
BOARD OF DIRECTORS PER DIEM CLAIM FORM
1.Record the date, and name or purpose/issues discussed of meeting
attended on behalf of the District.
Note: The District will pay Director's per diem for one meeting/
function per day and the maximum of 10 meetings/functions per month.
If a Director attends more than 10 meetings/functions (10 days), the
District will reimburse for the mileage and any reimbursable out-of-
pocket expenses incurred for these additional meetings.
2.Record number of miles (round trip) driven to attend meeting/function.
The use of personal vehicles in the conduct of official District business
shall be reimbursed at the current Internal Revenue Service rate. The
Director's expense claim should indicate the nature of the trip. If a trip
begins at home, the District will reimburse the mileage from home to
destination and return mileage. District insurance does not cover personal
vehicles while they are being driven on District business. The reimbursement
rate is inclusive of an allowance for insurance costs. The District will
reimburse Directors for the deductible under their personal insurance policy
should they be involved in an accident while on District business. To be
eligible for reimbursement, each Director shall maintain a current California
driver’s license and at least the minimum vehicle liability insurance
required by State law or shall arrange for a driver who meets said standards.
The District will not reimburse the cost of travel of a personal nature taken
in conjunction with travel on official business.
Claim forms shall be submitted within 45 calendar days after the meeting
date. Expense claims requiring reimbursement to the District which are not
reconciled within 45 calendar days, shall be deducted from the next month’s
reimbursement.
No information on the Per Diem Claim Form may be designated as confidential
in nature. All expenses must be fully disclosed on the form.
OTAY WATER DISTRICT
BOARD OF DIRECTORS
TRAVEL REQUEST FORM
Director: Date of Request:
Name and Location of Function:
Date(s) function to be held: -
Date(s) of travel (flight & lodging): -
Sponsoring Organization:
Request for Prepayment of Fees Related to the Function:
Expense Type Not Needed Pre-Payment
Requested
Registration
Airline
Auto Rental
Mileage N/A
Taxi/Shuttle N/A
Lodging
Meals N/A
Other Expenses – Explain Below
Comments:
Explanation of Other Expenses:
Signature of Director
For Office Use Only Below This Line
Date of Board President
Approval:
Expense Type Description Amount Pre-Paid
(Estimate)
Registration
Airline
Auto Rental
Mileage N/A
Taxi/Shuttle N/A
Lodging
Meals N/A
Other Expenses
District Secretary Date Processed
EXHIBIT C
Exhibit E
OTAY WATER DISTRICT
BOARD OF DIRECTORS
EXPENSE CLAIM FORM
Pay To:Period Covered:
Employee Number:From:To:
ITEMIZED REIMBURSEMENT CLAIMED
Date Type of Reimbursement Amount
TOTAL Reimbursement Claimed:$
Director Signature:Date:
GM Receipt:Date:
INSTRUCTIONS ON REVERSE
EXHIBIT D
Exhibit E
INSTRUCTIONS FOR PREPARATION OF
BOARD OF DIRECTORS EXPENSE CLAIM FORM
The necessary expenses incurred while traveling on District business
including common carrier fares (economy class), automobile rental charges,
District business telephone calls, lodging, baggage handling, parking fees,
meals, etc. will be reimbursed when documented on the Director's Per Diem
and Expense Claim Forms. Receipts must be attached for all meal expenses.
If a receipt is lost, the lost receipt should be noted next to the expense
and submitted to the President before any reimbursement can be made.
Receipts are required for the reimbursement of all expenses.
All receipts must have the nature of the expense and the business purpose
noted on the receipt.
The District will not reimburse the cost of travel of a personal nature taken
in conjunction with travel on official business.
Meals shall be reimbursed as per section 3, Meals and Lodging, of this policy
(Policy 8).
Any receipts that include costs of personal travel (e.g., hotel receipt for
employee and spouse) should identify what the cost would have been without
personal travel (e.g., single room rate as opposed to double room rate).
Claim forms shall be submitted within 45 calendar days after the expense was
incurred. Expense claims requiring reimbursement to the District which are
not reconciled within 45 calendar days, shall be deducted from the next
month’s reimbursement.
No information on the Expense Claim Form may be designated as confidential
in nature. All expenses must be fully disclosed on the form.
The following expenses are not reimbursable:
a. Alcoholic Beverages d. Laundry service
b. Parking or traffic violations e. Entertainment or recreation
c. In-room movies f. Expenses incurred by spouses,
family members, or guests.
EXHIBIT D
Exhibit E
Board of Directors Meetings Attended Form
Director Name:Period Covered:
From:To:
Item
No.
Date Meeting Attended Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
-Instructions on Reverse -
Exhibit E
Instructions for the Preparation of the
Board of Directors Meetings Attended Form
1.Enter the period (dates) of the meetings that will be reported on the form.
2.Record the date, name/purpose of meeting, and issues discussed at the meeting(s) attended on
behalf and expense of the District.
Board of Directors Meetings Attended Forms shall be submitted to the District Secretary prior to or
on the date of the next regular board meeting that follows the dates of the meetings reported on this
form. No information on the form may be designated as confidential in nature.
This form will be filed with the minutes of the meeting and become part of the board records.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
LAND ACQUISITION 09 10/15/84 08/10/11
Page 1 of 1
PURPOSE
To establish criteria for acquisition of land for District
facilities.
BACKGROUND
From time to time the District has needed to acquire land for
construction, maintenance, and operation of District facilities.
Occasionally, the District needs to acquire land for expansion of
an existing facility or to obtain land in an area which has been devel-
oped. Acquiring land after development within the area has proven
costly to the District because of increased cost or lack of
availability of land at the desired site.
POLICY
To eliminate the necessity of acquiring additional land at a later
date or of acquiring land after an area has been developed, the
following procedures shall be followed:
1.Prior to acquisition of any land for District facilities
an engineering study shall be performed to determine all future needs
of the District at any site or in any area which is being planned for
development.
2.Land to be acquired shall be of a size to fulfill the
Engineering Department's recommendation of anticipated needs.
3.At the time tentative maps are filed with the District
for large subdivision developments, a determination shall be made by
the District to acquire any land that may be needed for other future
District facilities. If it is determined that the District will need
land, arrangements shall be made with the developer to have a parcel or
parcels of land set aside for future use by the District.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Policy
Number
Date
Adopted
Date
Revised
Subject
REQUIREMENT OF APPROVAL FOR A PRIVATE
LATERAL 10 10/15/84 04/06/16
Page 1 of 2
PURPOSE
To provide conditions for waiver of District ordinances that will
authorize use of a private lateral (also known as a "spaghetti line")
for water or sewer service.
BACKGROUND
The District often receives requests from owners of property for
permission to use a private lateral instead of extending a District
water or sewer main. If it has been determined that it is not practical
or feasible to extend a main, the District will consider approval of the
use of a private lateral.
POLICY
When an application is made for water or sewer service, together with a
request for permission to use a private lateral, District Engineers will
make an evaluation to determine 1) whether District facilities can or
should be extended or 2) whether a private lateral should be used. The
General Manager, or his designee, is hereby authorized to make the
determination on whether the existing District line shall be extended in
accordance with District Ordinances or whether use of a private lateral
will be permitted.
If it is determined that it is not practical to extend District water
facilities and a private lateral for water service should be permitted,
District Engineers shall recommend the size and type of lateral to be
connected to the District water system to assure adequate water service
to the property.
If it is determined that it is not practical to extend District sewer
facilities and a private lateral for sewer service should be permitted,
District Engineers shall recommend the size and type of lateral to be
connected to the District sewer system.
An Agreement for Use of a Private Lateral (“Private Lateral Agreement”)
associated with the property shall be executed by the property owner(s)
and the District prior to the start of the construction of a private
lateral. The Private Lateral Agreement shall also be recorded with the
property. All costs associated with a private lateral will be the
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Policy
Number
Date
Adopted
Date
Revised
Subject
REQUIREMENT OF APPROVAL FOR A PRIVATE
LATERAL 10 10/15/84 04/06/16
Page 2 of 2
responsibility of the property owner. Easements or rights-of-way
required for the private lateral shall also be the responsibility of the
property owner.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Policy
Number
Date
Adopted
Date
Revised
Subject
REQUESTS OF DEVELOPERS TO PLACE COVENANTS
ON MAPS BEING PROCESSED 11 10/15/84
Page 1 of 1
PURPOSE
To establish guidelines regarding requests from property owners or
developers for placement of covenants on maps being processed by the
County in lieu of other security required by the District.
BACKGROUND
When maps are being processed through the County of San Diego, the
District generally imposes certain requirements for providing water or
sewer service to the lots or parcels to be created under the map. The
District requires that a guarantee of performance of these requirements
be made before final approval of the map. Owners or developers often
request that completion of the requirements be delayed until after final
approval of the map by inserting a "covenant" on the map which would
provide that a building permit will not be issued for any of the parcels
or lots on the map until the covenant has been fulfilled. District
experience has been that the use of the covenant is not a satisfactory
guarantee for fulfilling the requirements of its ordinances to provide
service to subdivisions and lot splits in the District.
POLICY
In the processing of subdivision or parcel maps it is the District
policy not to approve covenants placed on maps to fulfill the District
ordinance requirements for providing water or sewer service.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
EMPLOYMENT OR TERMINATION OF EMPLOYMENT OF
DISTRICT PERSONNEL 12 08/21/91 11/06/13
Page 1 of 1
PURPOSE
To establish procedures for the employment or termination of
executive, staff and other personnel.
BACKGROUND
Section 71340 of the California Water Code provides that the Board
of Directors of Municipal Water Districts shall appoint the
following personnel, who are designated as officers of the
District: Secretary, Treasurer, Attorney, General Manager and
Auditor. In addition, the Board may appoint a Deputy Secretary
and a Deputy Treasurer. Each of such officers is to serve at the
pleasure of the Board. Section 71341 of the California Water Code
provides that the Board may appoint such additional assistants and
employees as it deems necessary to operate the District. The
essence of these provisions is set forth in Section 1.02 of the
District Ordinances.
Section 71362 of the California Water Code provides that, subject
to the approval of the Board of Directors, the General Manager
shall have the authority to employ and discharge all employees and
assistants, other than those referred to in Section 71340, at
pleasure, and to prescribe their duties and fix their
compensation. These provisions are set forth in Section 2.01 of
the District Ordinances. All employment at the District is thus
“at-will,” pursuant to Section 71362, and both employees and the
District have the right to terminate employment at any time, with
or without advance notice, and with or without cause.
POLICY
In accordance with the above provisions, the District shall employ or
terminate District personnel as follows:
1.The employment or termination of personnel for the District
position of General Manager, Secretary, Deputy Secretary,
Treasurer, Deputy Treasurer, Attorney, Controller or Auditor,
or the assistant or deputy to any of such positions, shall be
made only by action of the Board of Directors.
2.The General Manager shall employ or terminate personnel for
the District position of Assistant General Manager provided
that, prior to taking final action thereon, the General
Manager shall notify the Board of Directors of his/her
intention to so employ or terminate.
3.The General Manager shall employ or terminate personnel for
all other District positions.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
USE OF DISTRICT BOARDROOM/MEETING ROOMS 13 3/4/85 9/6/23
Page 1 of 3
PURPOSE
To establish rules and procedures for use of the Otay Water District
(District) Boardroom/meeting rooms for purposes other than District
activities.
BACKGROUND
The District Boardroom is primarily utilized for meetings of the
District Board of Directors, public hearings, and other District
activities. On occasion, the District receives requests from outside
agencies or groups to utilize the Boardroom or other meeting room
facilities.
POLICY
Requests for such use shall be made in advance by submitting a
“Application for Use of District Facilities” form, which shall specify
the rules and regulations pertaining thereto. Said rules and
regulations shall include:
1. The District has the right to reject or terminate the
application with or without case.
2. Outside agencies or groups requesting the use of District
facilities must consist primarily of District residents or
customers.
3.Priority of uses:
a.District related meetings have first priority.
b.Government agencies.
c.Non-profit, public benefit and professional groups or
agencies consisting primarily of District residents,
customers, or industry professionals.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
USE OF DISTRICT BOARDROOM/MEETING ROOMS 13 3/4/85 9/6/23
Page 2 of 3
4.The Boardroom shall be available between the hours of 8:00 a.m.
and 9:00 p.m. on weekdays. It shall not be available on weekends
or holidays.
5.No smoking on District property.
6.Sharing of snacks or water is permitted but hosting of meals or
other beverages is not allowed.
7.At District’s discretion, a cleaning deposit of $150 may be
required from groups other than government agencies.
8.The facility user shall agree to defend, hold harmless, and
indemnify the District from any liability arising out of the use
of District property and shall obtain insurance in the amount of
$1,000,000 with the District named as an additional insured.
Governmental entities shall not be required to obtain insurance.
9.The facility user shall be liable for all theft and/or damage to
equipment, furniture, etc., that may occur during their use of
the District’s facilities.
10.No admission fee may be charged by the facility user.
11.No games of chance, lottery, or gambling of any kind shall be
permitted.
12.No illegal activity shall be permitted.
13.Children or minors must be supervised at all times while on Dis-
trict property.
14.No decorations may be affixed to furniture, walls, ceilings, or
fixtures.
15.No animals are allowed except assistance or service dogs.
16.With the exception of the District’s guest Wi-Fi service,
business telephones and computer equipment are not available for
personal use.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
USE OF DISTRICT BOARDROOM/MEETING ROOMS 13 3/4/85 9/6/23
Page 3 of 3
17.Whenever possible, District staff will be present to coordinate,
assist, or escort facility users.
Exhibit: “Application for Use of District Facilities” Form
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
USE OF DISTRICT VEHICLES AND CAR ALLOWANCE 14 07/01/85 10/05/11
Page 1 of 3
PURPOSE
To prescribe rules and regulations for the use of District
vehicles by Directors and employees of the District and the
provision of a car allowance for certain executive employees.
BACKGROUND
Certain District vehicles are made available for use by
designated employees and Directors during business hours and in
some instances during off-duty hours. Executive staff may be
provided a vehicle allowance in lieu of the availability and use
of District vehicles.
POLICY
The following rules shall apply to the use of District vehicles:
1.Executive Management
Certain District vehicles are assigned to specific executive
management employees on a 24-hour basis, including personal
use. These vehicles are provided pursuant to employment
agreements authorized by the Board of Directors or General
Manager. A list of District vehicles assigned to District
employees is maintained by Human Resources.
2.Automobile Allowance
Executive staff consisting of Department Chiefs and
Assistant General Managers may be provided a vehicle
allowance, in lieu of a District vehicle, as determined by
the General Manager. These employees shall be required to
maintain automobile insurance at the minimum levels required
by state law. These employees shall use their personal
vehicles to conduct District business within San Diego
County and may only use District vehicles for business trips
out of San Diego County, or in unusual circumstances (i.e.,
4-wheel drive necessary).
When using their personal vehicles, all operating expenses
are to be borne by these employees.
3.Certain District service vehicles are assigned to specific
management, supervisory, and crew leader positions on a 24-
hour per day basis for emergency purposes. A list of
District service vehicles assigned to District employees is
maintained by Human Resources. Such personnel are
authorized to use the vehicles assigned to them day or night
to respond to District business requirements.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
USE OF DISTRICT VEHICLES AND CAR ALLOWANCE 14 07/01/85 10/05/11
Page 2 of 3
Each person is also authorized to use the vehicle for
transportation to and from his residence and to store the
vehicle at his residence when the vehicle is not being used
for District business. Certain management, supervisory and
crew leaders may also use the vehicle for educational
activities, personal errands during lunch breaks and on
their way to and from work, and for medical appointments
occurring during work hours. Other use of such vehicles is
not authorized. Transportation of non-district personnel
for non-district business requires the approval of the
General Manager or designee. Employees must comply with all
District policies, procedures and must remain sensitive to
the public’s perception of them while using District
vehicles. The transportation of firearms, ammunition,
explosives, hazardous materials, alcoholic beverages or
illegal drugs is strictly prohibited.
Each employee assigned a District vehicle is responsible for
Social Security and income taxes relating to the commuting
value and will comply with Internal Revenue Service
regulations relating to de minimis use.
4.Use of other District vehicles (i.e., pool vehicle) outside
of normal business hours may be made only upon prior
approval of the General Manager or designee.
5.Use of any District vehicle outside of San Diego County may
be made only with the prior approval of the General Manager
or designee.
6.District employees may use District pool vehicles only for
transportation required to perform their official District
duties. Authorization must be obtained from General Manager
or designee to transport non-District personnel in pool
vehicle while on District Business.
7.Only when a District pool vehicle is not available, may Dis-
trict employees, other than those mentioned in paragraph "1"
above, use their own private vehicles for transportation
required to perform their official District duties, and only
if the employee maintains automobile insurance in at least
the minimum amounts required by state law and a valid
California driver’s license. Private motor vehicles may not
be used for any business purpose if the above insurance and
license requirements are not in place. In such instances,
the employee shall receive reimbursement for mileage at the
established IRS rate. Authorization must be obtained from
the General Manager or a designee to transport non-District
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
USE OF DISTRICT VEHICLES AND CAR ALLOWANCE 14 07/01/85 10/05/11
Page 3 of 3
personnel in one’s own private vehicle while on District
Business.
8.The use of tobacco products, as defined in Board Policy No.
19, is prohibited in all District vehicles, including those
assigned to an employee and all vehicles available to
employees for general District business such as pool
vehicles, utility trucks, Vactor trucks, heavy equipment,
etc.
9.While driving, all activities that would distract an
employee from driving a District vehicle safely are
prohibited (i.e., eating and drinking). The use of a cell
phone, while driving, must comply with state law. Text
messaging, email, and other forms of electronic
communication are prohibited in a moving vehicle.
Passengers are also discouraged from the above activities
when they are needed to assist a driver to safely maneuver a
vehicle. Occasional snacks are acceptable as long as it
does not distract the driver or passenger from the primary
task of driving or assisting the driver.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
USE OF DISTRICT CREDIT CARDS, PETTY CASH,
AND EXPENDITURES INVOLVING DISTRICT CREDIT 15 04/07/86 05/07/08
Page 1 of 1
PURPOSE
To prescribe rules and regulations for use of District credit
cards, petty cash and expenditures involving District credit.
BACKGROUND
The General Manager may authorize the issuance of credit cards
only for use in connection with approved District-related
business. In addition, District employees may be authorized to
make petty cash expenditures on behalf of the District.
POLICY
The following rules shall apply to the use of District credit
cards, petty cash and expenditures involving District credit:
1.Credit Cards
a.The General Manager may be issued and may authorize
credit cards to be issued to District employees and to
District Board Secretaries. Credit cards shall be
issued and used in compliance with the District’s
Purchasing Manual and applicable statutes and laws.
2.Petty Cash
a.District petty cash funds shall be used for the
convenience of the operation of the District.
b.Petty cash, to the limit established by the General
Manager, may be obtained from the District Finance
Department only upon completion of the proper form and
approval by the General Manager or his/her designee.
c.Cash advanced must be used or returned as soon a
practical, but not later than 15 days from date issued.
d.Reconciliation of petty cash and expenditures must be
made on the prescribed District form. Receipts for
expenditures must accompany such reconciliation. Occa-
sionally receipts may not be available; and, if so,
such fact must be noted on the reconciliation form and
the reason presented.
e.Petty cash may be utilized to advance monies during
District emergencies.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
REPRESENTATION OF EMPLOYEE ORGANIZATIONS AT
MEETINGS OF THE DISTRICT BOARD OF DIRECTORS 16 05/19/86 02/19/92
Page 1 of 1
POLICY 16 DELETED ON 07/02/03.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
TEMPORARY WATER SERVICE FOR COMMUNITY
SERVICE ORGANIZATIONS 17 05/31/95 06/07/95
Page 1 of 1
POLICY 17 DELETED ON 02/03/10 BY ORDINANCE 523.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
PRIVATE OR PUBLIC WATER AND SEWER SYSTEMS ON
PRIVATE PROPERTY 18 08/17/87 08/10/11
Page 1 of 2
PURPOSE
To establish policy for determining whether water and/or sewer
systems on private property should be private systems or become
part of the District public systems.
BACKGROUND
Private residential and commercial developers with on-site water
and/or sewer systems have requested the District to accept these
systems as public systems to be operated and maintained by the
District. In order to properly operate and maintain the systems
on private property, it is necessary that such systems be
constructed of the same materials and to the same District
Standards and Specifications as required in public streets.
POLICY
Water and/or sewer systems constructed on private property to
solely serve the private property shall be considered private
systems, not subject to District operation and maintenance, unless
the systems are constructed in accordance with this policy and
accepted by the District. Water and sewer systems constructed on
private property, which are to be accepted by the Otay Water
District as part of its public systems, shall be constructed of
the same materials and to the same District Standards and
Specifications as required in public streets. In addition, the
installation of such systems must fulfill the following criteria:
1.Water and/or sewer mains installed in commercial, industrial,
apartment, or condominium complexes must be constructed in a
traveled way with a minimum width of 24 feet, exclusive of
parking and/or structural encroachments. In private
residential developments (PRD), where parking is prohibited
on private streets and graded roadway width is at least 24
feet, the paved utility easement may be reduced to 20 feet as
consistent with the County private street standard or private
street standards of the City of Chula Vista. Where access to
the private street system is limited by a security gate, the
District shall be provided a means of access.
2.Water and/or sewer mains shall be constructed within five
feet of the centerline of the traveled way and shall have a
minimum of six feet horizontal clearance and three feet
vertical clearance between the water and sewer mains.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
PRIVATE OR PUBLIC WATER AND SEWER SYSTEMS ON
PRIVATE PROPERTY 18 08/17/87 08/10/11
Page 2 of 2
3.Water meters, fire hydrants, and any other water or sewer
appurtenances shall be provided appropriate easements
acceptable to the District Engineer.
4.Utility easements shall be included in the full width of the
traveled way in which the utility is installed as consistent
with criteria No. 1.
5.Water systems shall be loop connected to water mains in
public streets, as determined by the District Engineer.
6.Water meters shall be located outside of parking spaces to
allow access to District personnel.
7.Valves shall be located in the traveled way so that access is
always available to District personnel.
8.Fire hydrant locations and access for fire fighting equipment
shall require review and approval by local fire department
officials.
9.Intersections and curves in the traveled way carrying water
and/or sewer mains shall be of sufficient width to
accommodate construction/maintenance equipment.
10.Sewer manholes shall be located so as to allow access at any
time to District personnel and equipment.
The District Engineer will utilize the above criteria in
evaluating a request for a public system on private
residential/commercial developments. No exceptions allowed.
Water and/or sewer systems which do not satisfy the criteria set
forth in this policy shall be designated private systems and must
be in compliance with applicable sections of the District Code of
Ordinances for connection of private systems to the District
public systems.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
Policy
Number
Date
Adopted
Date
Revised
SMOKING, TOBACCO AND NICOTINE FREE CAMPUS 19 03/06/89 09/07/16
Page 1 of 2
PURPOSE
To establish the policy regarding smoking, vaping, and the use of e-
cigarettes, tobacco, and nicotine products on District property. This
policy applies to all employees, consultants, volunteers and visitors
while on District property, in District vehicles, and at areas
designated as District field work sites.
DEFINITIONS
1.“Smoking” means inhaling, exhaling, burning, or carrying any
lighted or heated cigar, cigarette, or pipe, or any other lighted
or heated tobacco or plant product intended for inhalation,
whether natural or synthetic, in any manner or form. “Smoking”
includes the use of an electronic smoking device that creates an
aerosol or vapor, in any manner or in any form, or the use of any
oral smoking device for the purpose of circumventing the
prohibition of smoking.
2.“Tobacco and Nicotine product” means any of the following:
A.A product containing, made, or derived from tobacco or
nicotine that is intended for human consumption, whether
smoked, heated, chewed, absorbed, dissolved, inhaled,
snorted, sniffed, or ingested by any other means, including,
but not limited to cigarettes, cigars, little cigars, chewing
tobacco, smokeless tobacco, dissolvable tobacco, pipe
tobacco, or snuff.
B.An electronic device that delivers nicotine or other
vaporized liquids to the person inhaling from the device,
including, but not limited to, an electronic cigarette,
cigar, pipe, or hookah.
C.Any component, part, or accessory of a tobacco product,
whether or not sold separately.
3.“Use” means any method of consuming Tobacco and Nicotine Products
including, but not limited to, Smoking, inhaling, chewing,
burning, vaping (with or without nicotine), or the use of e-
cigarettes and similar methods and devices.
POLICY
1.The Otay Water District is dedicated to maintaining a safe and
productive working environment for its employees and is committed
to taking appropriate action to eliminate threats to employees'
health and safety posed by Smoking, vaping, e-cigarettes and the
Use of Tobacco and Nicotine Products.
2.This policy prohibits Smoking, vaping (with or without nicotine),
e-cigarettes, and the Use of Tobacco and Nicotine Products within
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
Policy
Number
Date
Adopted
Date
Revised
SMOKING, TOBACCO AND NICOTINE FREE CAMPUS 19 03/06/89 09/07/16
Page 2 of 2
District-controlled properties where employees and other persons
will be exposed to secondhand smoke, vaping and/or smokeless
Tobacco and Nicotine residue. Accordingly, Smoking, vaping, e-
cigarettes and the Use of Tobacco and Nicotine Products is
prohibited on all District-owned property, vehicles and at
District-designated field work sites. Notwithstanding the
foregoing, the Use of nicotine gum and patches intended and used
for smoking-cessation are permissible.
3.No ashtrays or other ash receptacles will be placed in areas where
Smoking, vaping, e-cigarettes or the Use of Tobacco and Nicotine
Products is prohibited. The only exceptions will be outside the
public entrances to District facilities, in order to assist
visitors in discarding of their products.
RESPONSIBILITY
Managers and supervisors are responsible for enforcing this policy in
areas under their control.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DISTRICT SAFETY PROGRAMS 20 12/20/89 07/17/91
Page 1 of 1
POLICY 20 DELETED ON 08/10/11 BY RESOLUTION 4181.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
POLICY FOR SELECTION OF PROFESSIONAL
CONSULTANTS 21 08/01/90 11/01/17
Page 1 of 6
I.PURPOSE
The purpose of this policy is to establish procedures governing the
selection of professional consultants needed for District
Engineering projects.
II.SCOPE
This policy is applicable to selection of Professional Consultants
needed for Engineering projects.
III.POLICY
For the purpose of this policy, “professional consultants” means
any “Firm” qualified and authorized to provide “architectural,
landscape architectural, engineering, environmental, and land
surveying services,” or “construction project management,” or
“environmental services,” as each of those terms or services is
defined in the California Government Code, commencing with Section
§4525, as hereinafter amended or renumbered (the “Professional
Services Provisions”).
This Policy provides a method and procedure pursuant to which
professional consultants in engineering, architectural, landscape
architectural, environmental, land surveying, and construction
management, including plan checking, inspection, and projects
requiring a special expertise, may be retained from the private
sector to augment the District's professional capabilities or for
the performance of specialized services not available to the
District from the existing District workforce.
Services provided to the District by professional consultants may
cover a wide range of professional activity, including, but not
limited to, studies, special reports, design, and related activi-
ties on such projects as pipelines, pump stations, reservoirs,
planning studies, and other expert testimony capabilities.
Pursuant to the Professional Services Provisions, and particularly
the provisions of the California Government Code Section §4526, the
Otay Water District may adopt procedures that assure that
professional services are engaged on the basis of demonstrated
competence and qualifications for the types of services to be
performed and at fair and reasonable prices. Furthermore, maximum
participation of small business firms, as defined in Government
Code Section 14837, and disadvantaged business enterprises (DBEs)
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
POLICY FOR SELECTION OF PROFESSIONAL
CONSULTANTS 21 08/01/90 11/01/17
Page 2 of 6
shall be encouraged. Government Code Section 14837 defines "small
business" as a business in which the principal office is located in
California and the officers of such business are domiciled in
California, which is independently owned and operated and which is
not dominant in its field of operation.
IV.METHOD OF SELECTION OF PROFESSIONAL CONSULTANTS
A.Major Projects - Anticipated Fee Greater than $200,000
1.The District will advertise in at least one local
newspaper of general circulation, on the District’s
webpage, and through CWA’s Small Contractor Outreach and
Opportunities Programs, and any other medium deemed
appropriate by the Project Manager, before a Request for
Proposal (RFP) is issued. Interested parties will be
required to submit a Letter of Interest and a Statement
of Qualifications within the timeframe specified in the
publication. The “Statement of Qualifications” shall be
a written document, shall contain background information
on the firm that is current as of the date of submission
of the statement and must highlight the work, expertise,
and experience that qualify the firm to undertake the
work required by the District, as such work is described
in the publication.
2.All parties who submit Letters of Interest and a Statement
of Qualifications, and are deemed qualified as a result
of the Statement of Qualifications process, will receive
a copy of the RFP. Proposals will only be accepted from
those firms that submitted the Letter of Interest and the
Statement of Qualifications within the timeframe
specified in the publication. The form of the proposal
will be prescribed by the District. If a firm has
submitted a Statement of Qualifications within a calendar
year and the qualifications remain correct and accurate,
then only a Letter of Interest will suffice.
3.The General Manager and the appropriate department
head(s) shall approve the selection criteria and the
associated weighing factor to be used in evaluating the
proposals accepted by the District, in accordance with
Paragraph 2, above. The General Manager, or his/her
designee, shall appoint a review panel of no fewer than
five qualified staff to review and evaluate the
proposals, and to rank the firms in the order from most
qualified to least qualified. The Project Manager may be
part of the review panel, if the General Manager or
his/her designee (other than the Project Manager) opens
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
POLICY FOR SELECTION OF PROFESSIONAL
CONSULTANTS 21 08/01/90 11/01/17
Page 3 of 6
and scores the cost proposal. The review panel will not
be provided any information about the cost proposal score
and will interview only those firms, which in the panel’s
opinion, appear to have the most desirable
qualifications. If, in the opinion of the panel, none of
the firms are qualified, all proposals may be rejected.
In the event of an unusual project, which poses special
problems beyond the scope previously encountered by staff
personnel, the review panel may be augmented by an
unbiased, qualified member of the profession being
considered, so long as he/she has not and will not submit
a proposal.
4.If a firm is rejected on the basis of its proposal, and
is not asked to appear for an interview, the firm may
appeal the decision by submitting a protest to the General
Manager or his/her designee. A copy of the proposal shall
be submitted with the protest. The protest shall be filed
within five business days of the rejection notification.
The protest shall provide a compelling reason why the
firm believes the original proposal contained all
relevant experience or other requested information. If
the General Manager, or his/her designee, concurs with
the appellant, the firm shall be added to the interview
list.
5.Immediately upon conclusion of oral interviews, the
review panel’s oral scores will be combined with the
written proposals scores and shall designate the order of
preference of the candidates.
6.The department head designated by the General Manager, or
his/her designee, shall commence negotiations of an
agreement with the first choice of the review panel for
the extent of service to be rendered and the compensation.
If agreement is not reached within a reasonable time, the
department head shall terminate the negotiations with the
first choice and shall open negotiations with the second
choice of the review panel and so on until a firm is
retained or the list of selected firms is exhausted. Pro-
fessional societies and organizations have published
schedules of fees for professional services, which may be
used as a guide following adjustment to reflect the actual
scope of work expected of the firm selected.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
POLICY FOR SELECTION OF PROFESSIONAL
CONSULTANTS 21 08/01/90 11/01/17
Page 4 of 6
B.Intermediate Projects - Fees of $50,000 to $200,000
1.The process for selecting consultants for intermediate
projects shall be the same as prescribed in Sections IV-A
and V of this policy, with the exception of formal
interviews of the highest ranked consultants, which are
not required and subject to other applicable exceptions
described below.
C.Minor Projects – Fees up to $50,000
1.The process for selecting consultants for minor projects
shall be the same as prescribed in Sections IV-A and V of
this policy, with the exceptions noted below:.
(a)The District will advertise on the District’s
webpage, BidSync, and through any other medium
deemed appropriate by the Project Manager, before a
(RFP) is issued.
(b)The General Manager, or his/her designee, shall
appoint a review panel of no fewer than three
qualified staff to review and evaluate the
proposals, and to rank the firms in the order from
most qualified to least qualified.
(c)Formal interviews of the highest ranked consultants
are not required.
V.PROCEDURAL REQUIREMENTS FOR SELECTION OF CONSULTANTS FOR MAJOR,
INTERMEDIATE, AND MINOR PROJECTS
1.The appropriate department head receives proposals from all
interested parties; which are defined as consultants that have
submitted a Letter of Interest and a Statement of
Qualifications as defined in Section IV-A-1.
2.The evaluating panel shall consider the qualifications and
demonstrated experience of the prospective consultants as well
as the fee proposed by each firm to provide the services as
requested in the RFP. The panel will determine which firm
offers the best value for the work required. Such
determination will be made with due consideration to all
factors, including the qualifications, approach to the scope
of work, and experience of the consultant, relative to the
project as measured in the score matrix. The weight assigned
to each factor under consideration will be reflected in the
score matrix included in the RFP.
3.A review panel is appointed in accordance with this policy.
Review panel member names are not made available to consultants
prior to a call for interview.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
POLICY FOR SELECTION OF PROFESSIONAL
CONSULTANTS 21 08/01/90 11/01/17
Page 5 of 6
4.The first choice of the review panel is called for negotia-
tion. If an agreement cannot be negotiated, the first choice
will be dismissed from further consideration on that par-
ticular project. Following the dismissal of the first choice,
negotiations will commence with the second choice.
5.The District’s Project Manager evaluates and contacts the
references provided by the consultant and evaluates the past
performance, if exists, on District’s projects, as well as
internet search about the company making it part of the
recommendation to the Board.
6.A successful negotiation shall result in presentation by the
department head to the General Manager or his/her designee, of
a professional agreement signed by the selected firm. The
agreement may provide for differing methods of compensation
based upon the type of work to be performed. "Per diem" or
"hourly" compensation is the general rule when specific scope
of work is yet to be determined. This type of compensation
should carry a stated maximum amount, which will not be
exceeded except by prior District approval. Fixed-fee or
cost-plus-fixed-fee compensation is commonly used after scope
of work has been explicitly identified. Compensation is paid
as services are performed rather than in advance.
7. All contracts in excess of the amount authorized by the Board
to the General Manager, or his/her designee, in accordance
with Section 2.01 of the District’s Code of Ordinances, shall
be submitted to the Board for consideration.
8.All agreements for professional services shall provide for the
management phase of the resulting contract. A single Project
Manager shall be designated by the consultant and a liaison
manager shall be designated by the District for purposes of
contract administration.
9.Late responses or untimely responses by prospective candidates
should not be considered for further action. The ability to
respond to a publication or an invitation for consideration in
a timely and responsive manner is essential to a future satis-
factory contract relationship.
10.All proposed contracts shall be reviewed by the District's
Legal Counsel and approved as to form prior to presentation to
the General Manager or his/her designee.
11.The department head shall ensure that other departments, which
have a proper interest in the work under consideration, are
kept informed as to the progress of the work and that user
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
POLICY FOR SELECTION OF PROFESSIONAL
CONSULTANTS 21 08/01/90 11/01/17
Page 6 of 6
decisions and desires are constructively considered within the
constraints of financial and practical limitations.
Page 1 of 21
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DRUG AND ALCOHOL-FREE WORKPLACE POLICY AND
PROCEDURE
Policy
Number
Date
Adopted
Date
Revised
22 9/19/90 11/8/23
A.Policy
The Otay Water District (“District”) has zero tolerance for the use
of controlled substances or the abuse of alcohol. Employees who are
under the influence of a drug or alcohol on the job compromise the
District’s interests and endanger their own health and safety as well
as the health and safety of others. The District prohibits the use,
possession, manufacture, distribution, or being under the influence
of alcohol or controlled substances by any District employee while
on District property or while on duty, except as specified herein.
Violation of this policy is an act of misconduct meriting dismissal
without prior warning or disciplinary action in accordance with the
District’s Discipline Policy and Procedures.
Effective January 1, 2024, the District will abide by California
Assembly Bill 2188 (AB 2188).
1.Non-Discrimination:
a.It is the District’s policy to comply with AB 2188, which
prohibits discrimination against individuals based on the
presence of non-psychoactive cannabis metabolites detected in
employer-required drug screening tests. The District will not
discriminate against employees or job applicants based on
such test results.
b.Exceptions for Safety Reasons: There are limited exceptions
to the off-duty cannabis use policy. The following categories
of employees are not covered by the protection of AB 2188:
•Building and construction trades employees
•Federal contractors
•Federal funding recipients
•Federal licensees required to maintain drug-free
workplaces.
2.Cannabis Use on the Job:
Employees are prohibited from possessing, being impaired by, or
using cannabis while on the job. This includes all work-related
activities and premises. Violation of this policy may result in
Page 2 of 21
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DRUG AND ALCOHOL-FREE WORKPLACE POLICY AND
PROCEDURE
Policy
Number
Date
Adopted
Date
Revised
22 9/19/90 11/8/23
disciplinary action, up to and including termination.
3.Drug and Alcohol-Free Workplace:
a.AB 2188 does not affect the District’s commitment to
maintaining a drug and alcohol-free workplace. All employees
are expected to comply with the District’s existing policies
regarding substance abuse. Violation of these policies may
result in disciplinary action, up to and including
termination.
B.Exceptions
The following exceptions apply to this policy:
1.Events - Authorized Use of Alcohol
The General Manager or their designee, at their discretion, may
authorize the use of alcohol at a District event, subject to any
conditions they elect to impose.
2.Prescription Medications And Over-The-Counter Drugs
Employees are responsible to report to duty free from the effects
of any controlled substance or alcohol. Covered employees must
report the use of prescriptions and over-the-counter drugs that
could have a disabling effect, bares a prescription warning label
or otherwise adversely affect the covered employee’s fitness for
duty or job performance to their immediate supervisor (without
giving the name of prescription/over-the-counter drug).
It is the covered employee’s responsibility to determine from the
physician, pharmacist, or other health care professional whether
or not the prescribed or over-the-counter drugs could affect the
covered employee’s fitness for duty or impair job performance.
Covered employees may be required to provide a written medical
authorization to work from a physician, upon reporting the use
of prescription or over-the-counter drugs. Failure to report the
use of prescription or over-the-counter drugs that have disabling
effects or otherwise affect the covered employee’s fitness for
duty while at work and failure to provide proper evidence of
Page 3 of 21
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DRUG AND ALCOHOL-FREE WORKPLACE POLICY AND
PROCEDURE
Policy
Number
Date
Adopted
Date
Revised
22 9/19/90 11/8/23
medical authorization to work may result in discipline, up to and
including suspension and/or termination. The District may require
a note from the employee’s doctor concerning authorization for a
prescription and/or the possible side effects of the prescribed
drugs. The District shall comply with all applicable laws
concerning the privacy of employees’ medical information.
With respect to an applicant, use of an over-the-counter drug,
or a prescription-only drug under a prescription for the
applicant, in the manner prescribed, will not disqualify the
applicant for employment if they satisfactorily explain such use
upon being informed of a positive test for controlled
substances. The District may require a note from the applicant’s
doctor concerning authorization for a prescription and/or the
possible side effects of the prescribed drugs.
C.Definitions
1.Accident:
a.Any accident, in which an employee is driving on District
business, and is at fault or suspected of having significantly
contributed to an accident. This shall apply to employees
covered under this policy.
b.Any accident, not involving the driving of a District vehicle,
that is reasonably believed by management or credibly reported
by another person to have been caused by an on-duty employee
and which results in serious physical injury.
2.Controlled Substance:
a.Any drug or substance identified by section 40.85 of title 49
of the Code of Federal Regulations or sections 11054-11058 of
the California Health and Safety Code.
b.Any drug or substance.
3.Dilute Specimen: A specimen with creatinine and specific gravity
values that are lower than expected for human urine or a specimen
that is adulterated in any way.
Page 4 of 21
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DRUG AND ALCOHOL-FREE WORKPLACE POLICY AND
PROCEDURE
Policy
Number
Date
Adopted
Date
Revised
22 9/19/90 11/8/23
4.Drug Paraphernalia: This term has the same definition as is used
in section 11364.5(d) of the California Health and Safety Code
and applies only to paraphernalia deemed unlawful under section
11364.5(d).
5.Manager/Management: A District employee who is designated as a
supervisor, manager, or executive.
6.Medical Review Officer (MRO): A person who is a licensed physician
and who is responsible for receiving and reviewing laboratory
results for substance tests and evaluating medical explanations
for certain test results.
7.Negative: A person is considered to have tested negative for a
substance if their substance test does not produce a positive
result.
8.Positive: A person is considered positive for alcohol if they
have an alcohol concentration of 0.04 or greater at the time they
submit to testing. A person is considered positive for a
Controlled Substance if they have any amount of a Controlled
Substance at or above a “cutoff concentration” specified in
section 40.87 of title 49 of the Code of Federal Regulations at
the time they submit to testing.
9.Reasonable Suspicion: A reasonable suspicion exists that a person
may be under the influence of a substance if a trained observer
(who has received the appropriate training to recognize the signs
and symptoms of drug and alcohol use) reasonably comes to the
conclusion that the person may be under the influence of a
substance due to having personally observed, with respect to the
person, some or all of the effects specified in Appendix A of
this policy.
Additionally, a reasonable suspicion exists that a person is under
the influence of a substance if an observer has seen the person
use a substance.
No one factor is sufficient to create a reasonable suspicion, but
an observer may make a reasonable assessment based on the
Page 5 of 21
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DRUG AND ALCOHOL-FREE WORKPLACE POLICY AND
PROCEDURE
Policy
Number
Date
Adopted
Date
Revised
22 9/19/90 11/8/23
quantity, degree, and/or severity of applicable factors.
10.Refusal to Submit to Testing. Each of the following constitutes
a refusal to submit to testing:
a.Failing to immediately report for substance testing when
directed to do so;
b.Failing to complete the testing process (including signing
any forms necessary to authenticate or identify a specimen);
c.Failing to provide an adequate amount of breath, oral fluids,
or urine for a test;
d.Failing to cooperate with any aspect of the testing process,
including but not limited to refusing to wash hands when
directed, being confrontational with testing personnel;
e.Using or wearing a prosthetic device to interfere with the
collection process;
f.Admitting to adulterating or diluting the specimen; or
g.Any act or failure to act that is intended to interfere with
the testing or alter the results of the testing.
11.Safety-Sensitive Duties: Duties, which consist of any of the
following:
Operating any assigned District vehicle or equipment;
Working in “confined spaces” as that term is defined in
District regulations or Cal/OSHA regulations;
Performing maintenance on any vehicle;
Loading, unloading, or attending any District vehicle or
equipment;
Access to sensitive/classified information related to
emergency response, safety, or security duties;
Participation in Hazardous Materials (HazMat) and Confined
Space Operations Rescue Team;
Work performed at elevated or depth locations more than four
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feet (4’) above or below ground; or
Work involving the use or disposal of hazardous chemicals as
that term is defined in District regulations or Cal/OSHA
regulations.
12.Serious Physical Injury: An injury to an employee that causes the
employee to be absent from work following an Accident or which
requires hospitalization of the employee.
13.Substance: Any substance containing alcohol or any Controlled
Substance.
14.Under the Influence: With respect to alcohol, a person is under
the influence at the time they are ordered to submit to testing
if they test Positive for alcohol at the time they submit to
testing. With respect to Controlled Substances, a person is under
the influence at the time they are ordered to submit to testing
if they test Positive for a Controlled Substance at the time they
submit to testing.
D.Testing Procedures
When an employee or applicant is to be tested, the District shall
use the testing procedures that are used for testing under the DOT
Drug and Alcohol Testing Policy, including the procedures for testing
a “split specimen,” as that term is defined in section 40.3 of
title 49 of the Code of Federal Regulations. The service providers
shall comply with section 40.47 of title 49 of the Code of Federal
Regulations except they shall use a non-federal custody and control
form for applicants and employees. Drug Screening Method: As part of
the District’s drug screening process on non-DOT positions, the
District may utilize lab-based oral fluid testing. This method does
not test for THC metabolites, specifically Carboxy-THC. Instead, the
District’s focus is on detecting the parent drug, Delta-9-THC. This
policy is subject to change based on future developments in the law
or regulations, or available drug screening methods.
1.Alcohol Testing
Alcohol testing will be conducted using evidential breath testing
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devices (“EBT”) approved by the National Highway Traffic Safety
Administration. A screening test must be conducted first. If the
result is an alcohol concentration level of less than 0.02, the
test is considered a Negative test. If the alcohol concentration
level is 0.02 or more, a second confirmation test must be
conducted. Alcohol testing shall be accomplished by Breath Alcohol
Technician.
2.Controlled Substance Testing
a.The test must be conducted by analyzing the employee's oral
fluid.
b.The sample shall be tested at a laboratory certified by the
U.S. Department of Health and Human Services.
c.The sample specimen must be split into two bottles labeled as
“primary” and “split” specimen. Both bottles must be sent to
the laboratory.
d.If the primary sample specimen tests Positive for the presence
of illegal Controlled Substances, the employee has 72 hours
from time of notification by the MRO to request the split
specimen be analyzed by a different certified laboratory.
e.The sample shall be tested for the following: marijuana parent
drug, cocaine, opioids, amphetamines, Methamphetamines, MDMA,
Barbiturates, Benzodiazepine, Methadone, and phencyclidine
(“PCP”). All tests will be performed following AB 2188. By
using oral fluids the window of detection becomes less than
urinalysis.
f.If the test is Positive for one or more of the drugs listed
in subsection “e” above, a confirmation test must be performed
using gas chromatography/mass spectrometry analysis.
g.All drug test results will be reviewed and interpreted by the
MRO before they are reported to the District.
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h.With all Positive drug tests, the MRO will contact the
employee to determine if there is a medical explanation for
the Positive test result. If documentation is provided and
the MRO determines that there is a legitimate medical use for
the prohibited drug, the test result will be reported to the
District as Negative.
E.Testing
1.Persons Subject to Substance Screening
All applicants for employment will have a pre-employment drug
test;
All employees reasonably suspected of using Substances while
on duty or on District property or while working while Under
The Influence of Substances;
All employees reasonably suspected of possessing,
manufacturing, or distributing Substances while on duty or on
District property;
Any employee at fault or reasonably suspected of having
significantly contributed to an Accident while on duty;
Any employee who performs Safety-Sensitive Duties whose name
is selected for testing pursuant to the District’s random
testing procedure; or
Any District employee who applies for and is selected for a
position that will require the performance of Safety-
Sensitive Duties. The list of positions requiring the
performance of Safety-Sensitive Duties will be maintained by
Human Resources.
2.Pre-employment, Promotions and Transfer Drug Screening
Pre-employment Drug Screening: The District will conduct
scientifically valid pre-employment drug screenings that do not
screen for non-psychoactive cannabis metabolites. If a positive
result is obtained from this testing, the District may take action
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based on it, in accordance with applicable laws and regulations.
All applicants for employment shall, as part of their pre-
employment process, submit to a drug test or other legally
authorized testing methods as selected by the District for
Substances.
Any District employee who applies for a position that will require
the performance of Safety-Sensitive Duties shall, as a
precondition to appointment to such position, submit to a urine
analysis or other legally authorized testing method as selected
by the District for Substances.
3.Random Testing of Safety-Sensitive Duty Employees
Each year the District shall randomly conduct Substance tests of
employees who perform Safety-Sensitive Duties. Based on the
number of such employees employed by the District on January 1,
the District shall conduct by the following December 31, a
number of tests for Controlled Substances equal to 50 percent of
the total number of employees who perform Safety-Sensitive
Duties, or the minimum amount required by DOT regulations,
whichever is greater. Within the same time period, the District
shall randomly conduct a number of tests for alcohol equal to
10 percent of the same number of safety-sensitive employees, or
the minimum amount required by DOT regulations, whichever is
greater.
The General Manager will contract with a third-party
administrator (TPA) to perform the random selection of employee
names for Substance abuse/alcohol testing. The service provider
must ensure that every Safety-Sensitive employee has an equal
chance of being selected each time a name is randomly drawn and
that any employee whose name is selected is not exempt from having
their name selected in any subsequent drawing in the same year.
The service provider shall provide the selected names to the
Safety and Security Specialist and/or Human Resources Manager,
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or designee, who shall not disclose this information to any other
person except to the employee selected for testing and the
employee’s supervisor at the time that the employee is required
to submit to testing. If the employee is absent from duty on a
date that they have been randomly selected for testing, an
alternate name may be selected or they may be required to submit
to a test immediately upon returning to work, without prior
notice.
Upon being informed that they are required to submit to a random
test, the employee must report to the testing location, as quickly
as possible but no greater than one (1) hour from being informed,
and complete testing directed by personnel at the testing
location. Upon completing testing, the employee shall report back
to duty if their duty day has not yet concluded.
Random testing is separate from the other forms of testing
described in this policy. An employee who submits to a Reasonable
Suspicion or post-Accident test does not satisfy the requirement
that they submit to a random test when ordered.
4.Post-Accident Testing
If any employee is involved in an Accident that under this policy
requires that the employee submit to Substance testing, the
employee’s supervisor shall immediately contact Human Resources
and the Safety and Security Specialist to report the Accident and
the necessity of testing. After consultation with Human
Resources, if it is determined that the employee should be tested,
then the supervisor shall direct the employee to report to the
testing location and complete the test as directed by personnel
at the testing location. The supervisor shall arrange to transport
the employee to the testing location. Upon completing testing,
the employee shall report back to duty if their duty day has not
yet concluded, unless a Reasonable Suspicion exists, based on the
observation of the employee’s supervisor and in consultation with
Human Resources, that the employee was Under the Influence of a
Substance at the time or shortly after the Accident. If such a
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Reasonable Suspicion exists, the employee shall be released from
duty for the remainder of the day. The supervisor, in consultation
with Human Resources, thereafter shall determine on a day-to-day
basis whether to permit the employee to return to duty, until the
results of the test have returned. If an employee has been ordered
to submit to Substance testing for post-Accident testing, and
Reasonable Suspicion exists, the District may place the employee
on leave without pay pending the test results. If the employee’s
test results are Negative, the District shall restore any salary
lost by the employee for the days they were on leave, as though
the employee had reported for duty.
If the employee requires immediate medical assistance due to the
Accident, such that they are unable to report to the testing
location, the supervisor shall coordinate with the TPA and
hospital to conduct the test or require the employee to report
to the testing location as soon as is practicable.
The determination as to whether an employee is involved in an
Accident shall be made by the employee’s supervisor in
consultation with the Safety and Security Specialist and Human
Resources, based on the information available to they/them. If
it cannot be immediately determined whether the employee was
involved in an Accident, the supervisor shall not order the
employee to testing until a determination can be made.
The following criteria apply when conducting drug and alcohol
tests due to an Accident:
a.A breath alcohol test must be administered as soon as
possible. Every effort should be made to ensure that a breath
alcohol test is performed within eight (8) hours following
the Accident. If testing has not occurred within eight (8)
hours, attempts to test should be discontinued. However, if
testing did not occur within eight (8) hours, and Reasonable
Suspicion existed at the time or shortly after the Accident
the employee may resume duties with their next shift that
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begins after the eight (8) hours have passed. Prior to the
employee’s return, management shall observe the employee’s
condition before the employee is allowed to resume duties to
ensure that there is no longer Reasonable Suspicion.
b.A drug screening test should be initiated prior to the 32nd
hour following an Accident.
c.The employee must remain readily available for testing or he
or she will be deemed to have refused the test (see Refusal
to Submit to Testing). This rule does not require the delay
of necessary medical attention for injured persons following
the Accident nor prohibit the employee from leaving the scene
to obtain assistance or necessary emergency medical care.
d.An employee subject to post-Accident testing may not use
alcohol within eight (8) hours following the Accident or
before an alcohol test, whichever comes first.
e.Testing will not be conducted on any deceased employee.
f.The results of a breath test for the use of alcohol or a drug
test for Controlled Substances, conducted by Federal, State,
or local officials having independent authority for the test,
shall be considered to meet the requirements of this policy
provided such results are obtained by the employer, and
conform to the applicable Federal, State or local
requirements.
g.The potentially affected employee will not be allowed to
proceed alone to or from the collection site. Time spent
complying with post-Accident testing is compensable.
h.Documentation of the activity being performed by the employee
that supports the determination to conduct post-Accident
testing should be prepared and signed by the supervisor
requesting the test within 24 hours of the Accident or before
the results of the drug test are released, if possible.
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5.Reasonable Suspicion Testing
If a supervisor, manager, the Safety and Security Specialist,
and/or other personnel has a Reasonable Suspicion that the
employee is Under the Influence of a Substance while on District
property or on duty, they shall consult with Human Resources
about this observation to determine if testing is appropriate.
After consultation with Human Resources, if it is determined that
the employee should be tested, a supervisor shall direct the
employee to immediately report for testing and complete the test
as directed by personnel at the testing location. The supervisor
shall arrange to transport the employee to the testing location.
If the person who advises Human Resources of the Reasonable
Suspicion is not the employee’s supervisor, Human Resources must
immediately notify the supervisor of the Reasonable Suspicion,
and the supervisor shall arrange to transport the employee to the
testing location. The supervisor(s) witnessing the impairment
must document the specific observations upon which the Reasonable
Suspicion is based.
Upon completing testing, the employee shall be released from duty
for the remainder of the day. The supervisor, in consultation
with Human Resources, thereafter, shall determine on a day-to-
day basis whether to permit the employee to return to duty, until
the results of the test have returned. If an employee has been
ordered to submit to Substance testing for Reasonable Suspicion,
the District may place the employee on leave without pay pending
the test results. If the employee’s test results are Negative,
the District shall restore any salary lost by the employee for
the days they were on leave, as though the employee had reported
for duty.
The following criteria apply when conducting drug and alcohol
tests due to Reasonable Suspicion:
a.Alcohol
A breath alcohol test must be administered as soon as
possible. Every effort should be made to ensure that a breath
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alcohol test is performed within eight (8) hours. If testing
has not occurred within eight (8) hours, attempts to test
should be discontinued and the employee may resume duties with
their next shift that begins after the eight (8) hours have
passed. However, prior to the employee’s return, management
shall observe the employee’s condition before the employee is
allowed to resume duties to ensure that there is no longer
Reasonable Suspicion.
b.Controlled Substances
A test for Controlled Substances must be administered as soon
as possible. Every effort should be made to ensure the sample
is performed as soon as possible but no later than 32 hours
of the observation.
c.The employee may not proceed alone to or from the collection
site. The supervisor or other appropriate person making the
observation shall arrange to transport the employee to and
from the testing site.
d.Documentation to support the determination to conduct
Reasonable Suspicion testing should be prepared and signed by
the person who made the determination within 24 hours of the
determination or before the results of the test are released,
whichever is earlier, if possible.
6.Acknowledgment and Consent
Any employee subject to testing under this policy will be asked
to sign a form acknowledging the procedures governing testing,
and consenting to (1) the collection of a sample to determine the
presence of Controlled Substances, and/or Breath for Alcohol and
(2) the release to the District of medical information regarding
the test results. Refusal to sign the agreement and consent form,
or to submit to the drug test, will result in the revocation of
an applicant’s job offer, or will subject an employee to
discipline up to and including termination.
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7.Refusal to Submit to Testing
If an applicant refuses to submit to testing for any Substance,
the applicant is disqualified for employment. If a District
employee who has applied for a position that requires the
performance of Safety-Sensitive Duties refuses to submit to
testing for any Substance, the employee is disqualified for such
position.
If an employee refuses to submit to testing for any Substance,
the District may treat such refusal as an act of insubordination.
The District shall also impose the same disciplinary action of
dismissal for a refusal to test that it would impose for a
Positive test result, so as not to encourage employees to refuse
to test in the hope of avoiding more severe disciplinary action.
The District may immediately place an employee on leave without
pay if the employee refuses to submit for testing.
8.Refusal to Authorize Disclosure of Results of Testing
If an applicant refuses to authorize the disclosure of the testing
results to the District, the applicant is disqualified for
employment. If a District employee who has applied for a position
that requires the performance of Safety-Sensitive Duties refuses
to authorize the disclosure of the test results to the District,
the employee is disqualified for such position.
If an employee refuses to authorize the disclosure of results of
testing to the District, the District will impose the same
disciplinary action of dismissal for a refusal to authorize the
disclosure of results of testing, that it would impose for a
Positive test result, so as not to encourage employees to refuse
to authorize the disclosure of test results in the hope of
avoiding more severe disciplinary action.
9.Positive Test
If an applicant tests Positive for a Controlled Substance, they
shall be disqualified for employment unless they meet the
requirements for the over-the-counter/prescription drug exception
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set forth in Section B(2) of this policy. If a District employee
who has applied for a position that requires the performance of
Safety-Sensitive Duties tests Positive for a Substance, the
employee is disqualified for such position.
If an employee tests Positive for a Substance, the employee shall
not be returned to duty and shall not receive pay during their
absence until the employee requests that the split urine specimen
be tested and the test of that specimen is not Positive for a
Substance.
This unpaid absence shall not be considered a disciplinary or
punitive action against the employee and any record of such
absence shall be maintained separately from the employee’s
personnel file. The absence is for the administrative and safety
interests of the District. This unpaid absence has no effect on
the District’s decision or ability to discipline an employee for
violating this policy.
If the MRO determines that an employee’s specimen is a Dilute
Specimen and the specimen is Positive for a Substance, the
employee shall be considered to have tested Positive for that
Substance. If a Dilute Specimen produces a Negative result then
the employee shall be required to submit to a second Substance
test, in the manner prescribed in section 40.197 of title 49 of
the Code of Federal Regulations.
10.Request for Retest
If an employee tests Positive for any Substance, the employee
may, within 72 hours of being notified of the Positive test
result, request of the MRO that the split specimen be tested. If
the employee does not submit a request within 72 hours, the
employee shall be considered to have waived their right to have
the split specimen tested. The employee shall pay for the cost
of testing the split specimen. If the employee is unable to pay
this cost at the time of the request, the District must ensure
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that the split specimen is tested even if it means that the
District may have to initially bear the cost. The District may
recover the cost from the employee at a later time.
If a split specimen does not produce a Positive result for a
Substance, the District shall restore any salary lost by the
employee as a result of an absence imposed because of the Positive
result on the first specimen. The employee shall be considered
to have not tested Positive for a Substance. The District shall
also reimburse the employee for the cost of the retest if the
employee paid for the retest.
The District may not request that the split specimen be tested.
F.Employee Assistance Programs
The District may refer any employee, including an employee who is
dismissed because of a Positive test for a Substance, to its employee
assistance program. If in any instance the District is required to
lawfully accommodate an employee’s disability related to Substance
abuse, the District shall refer the employee to a Substance abuse
professional.
G.Suspicion of Possession/Distribution/Manufacture of Controlled
Substances
If a supervisor has a Reasonable Suspicion that an employee unlawfully
possesses or is distributing or manufacturing a Controlled Substance
or Drug Paraphernalia on or in District property, or while on duty,
the supervisor must report this suspicion to Human Resources.
1.For purposes of Section G only, “Reasonable Suspicion” means the
following:
a.As to possession, the supervisor or a reporting credible
source must have seen a Substance or item on the person of
the employee, in the employee’s work area, or in or on
District property assigned to the use of the employee that
a reasonable person would believe is a Controlled Substance
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or Drug Paraphernalia, or have seen in any of the same areas
a container that a reasonable person would believe contains
a Controlled Substance or Drug Paraphernalia.
b.As to distribution, the supervisor must have seen the
employee convey to another person a Substance or item that
a reasonable person would believe is a Controlled Substance
or Drug Paraphernalia, or have seen the employee convey a
container to another person that a reasonable person would
believe contains a Controlled Substance or Drug
Paraphernalia, or have received a report of observation of
the same from a credible source.
c.As to manufacture, the supervisor must have observed
conditions that a reasonable person would equate to the
manufacture of a Controlled Substance or Drug Paraphernalia,
which may include the observation of smell, appearance, or
sound. The supervisor must also have observed conditions
that would attribute suspected manufacture to the employee,
such as observing these conditions in the employee’s work
area or in or on District property assigned to the use of
the employee. If the conditions are observed on the person
of the employee, the supervisor must consider whether the
employee reported to duty in such condition instead of
changing to such condition while on duty or have received a
report of observation of the same from a credible source.
2.After a report of a Reasonable Suspicion has been made to Human
Resources, the Human Resources Manager must confer with
management representatives to consider whether the reported
observation constituted Reasonable Suspicion and decide what
steps to take in response to the reported observation.
a.If the decision is to take no further action, the matter will
be dismissed.
b.If the decision is to discuss the observation with the
employee, Human Resources and the supervisor will meet with
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the employee to discuss the observation. If as a result of
the discussion, Human Resources and/or the supervisor believe
that a search is necessary, they will confer with management
representatives to determine whether a search will be
conducted.
c.If the decision is to conduct a search, the search must be
limited to a search of District property, such as the
employee’s work area (including desk drawers and file
cabinets), District vehicle or equipment, and District
facilities. The search may be performed by the Human Resources
representative or another person designated by the Human
Resources representative, which may include the supervisor.
The employee does not need to be present during the search.
If any material is retrieved that appears to bear out the
supervisor’s Reasonable Suspicion, the Human Resources
representative must take possession of the material.
d.If the decision is to conduct a search and the distribution
of Controlled Substances or Drug Paraphernalia is reasonably
suspected, the search may include not only the work
area/equipment of the employee suspected of distributing
Controlled Substances or Drug Paraphernalia, but the work
area/equipment of any employee whom was observed receiving
the item from the employee suspected of distributing
Controlled Substances or Drug Paraphernalia. The receiving
employee is entitled to the same rights as the distributing
employee.
e.Any search of the person of the employee or personally-held
possessions of the employee, such as a briefcase, purse,
pocketbook, backpack or personal vehicle, must be conducted
by a law enforcement officer. If the decision to conduct a
search extends to these areas, Human Resources should contact
law enforcement to request such a search.
3.If the Human Resources representative takes possession of any
material as a result of the search, and the employee does not
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confirm that it is a Controlled Substance or Drug Paraphernalia,
the District shall contact the local law enforcement agency and
will forward the Substance to have the item tested/analyzed to
determine if it is a Controlled Substance or Drug Paraphernalia.
If a law enforcement officer takes possession of an item as a
result of a search, and the employee does not confirm that it is
a Controlled Substance or Drug Paraphernalia, the District shall
follow up with the law enforcement agency to verify the item is
a Controlled Substance or Drug Paraphernalia. The employee shall
not return to duty and shall not receive pay during their absence
until the law enforcement agency has verified that the
tested/analyzed item is not Positive for a Controlled Substance
or Drug Paraphernalia. If the tested/analyzed item does not
produce a Positive result for a Controlled Substance or Drug
Paraphernalia, the District shall restore any salary lost by the
employee as a result of the absence.
H.Disciplinary Action
Disciplinary action for violations of this policy will be taken in
accordance with the District’s Discipline Policy and Procedures.
I.Accommodation of Individuals with Disabilities
Nothing in this policy shall be construed so as to relieve the
District of its lawful obligation to accommodate individuals with
disabilities.
J.Confidentiality
All alcohol and drug-testing records will be treated as confidential.
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APPENDIX A
INDICATION OF DRUG USE
REMEMBER THAT THESE SYMPTOMS ARE ONLY INDICATIONS. THEY MAY BE A SIGN
OF SOMETHING OTHER THAN DRUG OR ALCOHOL USE. THIS LIST IS NOT EXHAUSTIVE.
PHYSICAL
1.Increased pulse rate 10. Nasal sores
2.Weak and rapid pulse 11. Slowed respirations
3.Increased blood pressure 12. Shallow respiration
4.Increased body temperature 13. Cold and clammy skin
5.Constricted pupils 14. Chills and sweats
6.Dilated pupils 15. Cramps
7.Bloodshot eyes 16. Nausea
8.Water eyes 17. Convulsions
9.Runny nose
MENTAL AND EMOTIONAL
1.Increased alertness 10. Disorientation
2.Excitation 11. Visual illusions
3.Anxiety 12. Hallucinations
4.Irritability 13. Paranoia
5 Euphoria 14. Delirium
6.Increased emotionality 15. Irrational fears
7.Impaired attention 16. Panic
8.Impaired memory 17. Depressed mood
9.Altered perceptions
BEHAVIORAL
1.Slurred speech 8.Hyperactivity
2.Staggered gait 9.Agitation
3.Fatigue 10. Argumentative
4.Apathy 11. Hostility
5.Drowsiness 12. Tremors
6.Loss of appetite 13. Insomnia
7.Increased appetite 14.Absenteeism patterns
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
PROVISIONS FOR ALLOWING A SEWAGE PUMP
STATION TO BE CONSTRUCTED IN LIEU OF A
GRAVITY SEWER
23 05/14/97
Page 1 of 3
PURPOSE
To provide guidance in determining provisions for accepting a sewage
pump station by Otay Water District in lieu of a gravity sewer for
serving a land development.
The provisions set forth in this policy describe circumstances and
considerations whereby the Otay Water District will accept a sewage
pump station as a District facility. These provisions are applicable
for serving land areas within the District and land areas annexed to
the District for sewer service.
BACKGROUND
To achieve orderly development of sewerage facilities within the Otay
Water District, the construction of a sewage pump station to serve a
land development shall be considered only under special circumstances
indicated in this policy.
Acceptance of sewerage system facilities by the Otay Water District,
shall be subject to the developer constructing facilities to District
requirements.
Because Operations and Maintenance (O & M) costs are substantially
more for pump station facilities than for gravity sewers, contribution
of funding for future pump station O & M costs is considered a
necessary part of a pump station becoming a part of District
facilities.
POLICY
In order to minimize additional operation and maintenance costs to the
District and to control orderly development of District sewerage
facilities, the following provisions shall be the basis for
considering requests for the District to allow construction of a
sewage pump station in lieu of construction a gravity sewer and for
the District's acceptance of a sewage pump station for Operation and
Maintenance.
1.Sewage pump stations will not be considered an acceptable means
of serving a land area when construction of a gravity sewer system is
possible and would be in the best interest of the District.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
PROVISIONS FOR ALLOWING A SEWAGE PUMP
STATION TO BE CONSTRUCTED IN LIEU OF A
GRAVITY SEWER
23 05/14/97
Page 2 of 3
2.When a gravity sewer cannot be constructed to serve a land area
because of geographic or topographic reasons or other features that
would make its construction detrimental to the public or the
surrounding land area, a pump station may be considered. The proposed
pump station must satisfy the following criteria:
a.The total capital costs for the pump station must be provided by
person(s) or development requesting the pump station.
b.The pump station must have sufficient capacity to serve the
entire drainage basin that may possibly contribute flow to the
pump station, and
c.The pump station design and construction must meet standards
acceptable to the Otay Water District.
3.If the possibility exists that this pump station or project may
be converted to a gravity system in the future, the person(s) or
development requesting this pump station shall provide easements and
install pipelines acceptable to the District for the conversion.
4.In the consideration for a pump station to serve a land area, the
payment of pump station operation and maintenance (O & M) and
replacement costs shall be satisfied by one or more of the following
provisions:
a.A lump sum payment by the person(s) or development requesting the
pump station shall be made to the District in an amount
sufficient to cover the O & M and replacement costs estimated by
the District for the life of the pump station; or
b.A special District connection fee charge to each equivalent
dwelling unit served by the pump station shall be established by
an Otay Water District Ordinance. The special connection fee
shall be based on the estimated O & M and replacement costs for
the life of the pump station; or
c.A special monthly zone service charge collected in accordance
with a special District Ordinance section. The zone service
charge shall be adjusted periodically to provide sufficient funds
for annual O & M and replacement. Because of high administrative
costs, this method of payment should be considered only in
special circumstances where (1) a small number of individual
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
PROVISIONS FOR ALLOWING A SEWAGE PUMP
STATION TO BE CONSTRUCTED IN LIEU OF A
GRAVITY SEWER
23 05/14/97
Page 3 of 3
residences are served and (2) the special zone of service has
been requested mutually by the homeowners served.
The selection of one or more of the above provisions for O & M and
replacement costs shall be recommended by the General Manager after
considering the best interests of the District and the effected
residents. The Otay Board of Directors shall make a final
determination of the acceptable provisions(s) for allowing a sewage
pump station.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECRUITMENT, SELECTION, AND EMPLOYMENT
POLICY 24 11/04/98 05/01/19
Page 1 of 5
PURPOSE
It is the purpose of this policy to provide guidelines for the recruitment
and selection of regular, student intern, temporary and/or contract
employees.
POLICY
It is the policy of the Otay Water District (“District”) to recruit and
select the best qualified Applicants on the basis of job-related standards
of experience, education, training, ability, and merit; to encourage members
of the communities which we serve, to apply for employment opportunities
with the District; to encourage District employees to apply for positions
for which they believe they qualify, to assure that qualified internal
Applicants are given fair and adequate consideration; and to advance regular
District employees when it is determined that they are the best qualified.
EQUAL EMPLOYMENT OPPORTUNITY
The District is an equal opportunity employer. All employees and Applicants
shall receive equal consideration and treatment. The District shall recruit,
hire, and promote the best qualified individuals without regard to race,
color, religion, religious creed including religious dress and grooming
practices, sex (including wages, gender, pregnancy, childbirth, or related
medical condition), national origin, ancestry, age, physical or mental
disability, medical condition, genetic information, marital status, sexual
orientation, military or veteran status, or membership in any other
“protected class” recognized by California, Federal or local laws.
AUTHORITY OF THE GENERAL MANAGER AND EMPLOYMENT AT WILL
Section 2.01 of the District’s Code of Ordinances provides that, pursuant
to Sections 71362 and 71363 of the California Water Code, the General
Manager has the authority to manage and operate the affairs of the
District. This authority includes the employment, discharging and fixing
of compensation for all employees and assistants, except those referred to
in California Water Code Section 71340, at pleasure, and to prescribe
their duties and promulgate specific rules and regulations for such
employees and assistants. All employment at the District is thus “at-
will,” pursuant to Section 71362, and both employees and the District have
a right to terminate employment at any time, with or without advance
notice, and with or without cause.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECRUITMENT, SELECTION, AND EMPLOYMENT
POLICY 24 11/04/98 05/01/19
Page 2 of 5
The General Manager’s authority also includes making appointments of
temporary or contract employees needed to perform District work resulting
from such matters as interim vacancies, peak workload, and special
projects so long as he/she operates within Board-approved budgeted
appropriation levels. Contract or Temporary Appointments are not subject
to amount limits for agreements, contracts, or other documents as defined
in Section 2.01(E) of the District’s Code of Ordinance, or to formal
competition, selection and advertisement requirements identified herein.
DEFINITIONS
A.Applicant: A person applying for a position, including a District
employee who seeks Appointment to a different position.
B.Appointment: The employment of a person in a position, whether on a
regular or temporary basis.
C.Closed/Promotional Recruitment: A recruitment open only to qualified
regular District employees, or open only to qualified regular District
employees in a particular classification, unit or division.
D.Conviction: Any sentence, suspended sentence, probation or other
resolution followed by a verdict, plea (including a no contest plea) or
other finding of guilt. The term “Conviction,” as used herein, shall
not include any conviction that has been otherwise exempted by law.
E.Eligible List: A list of qualified Applicants who remain eligible for
consideration for a position.
F.Employment Announcement: A formal notice by the District of an employment
opportunity.
G.Open/Competitive Recruitment: A recruitment open to all interested
qualified Applicants.
H.Promulgation: The date Human Resources certifies the list of eligible
Applicants for consideration.
I.Qualified Applicant: An Applicant who has passed all elements of the
selection process, is at least 18 years old at the time of Appointment
and remains eligible for Appointment.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECRUITMENT, SELECTION, AND EMPLOYMENT
POLICY 24 11/04/98 05/01/19
Page 3 of 5
J.Recruitment and Selection Plan: A planned process to establish an
adequate pool of qualified Applicants which shall consist of an
open/competitive or a Closed/Promotional Recruitment.
K.Regular Appointment: An Appointment to a regular authorized position
with benefits.
L.Regular Vacancy: A vacancy in an authorized position.
M.Student Intern: An employee who is currently enrolled at or near full-
time status as a student in an accredited community college, college,
or university in an undergraduate or graduate program in good academic
standing.
N.Temporary Appointment: An Appointment made for a specific duration,
generally not to exceed one year. Temporary Appointments may be exempt
from the formal Recruitment and Selection Plan.
RECRUITMENT AND SELECTION PLAN
All Regular Vacancies shall be filled through an Open/Competitive Recruitment
and Selection Plan unless otherwise approved by the General Manager. This
is consistent with best practice and expected to maximize community
participation, competition, diversity, and the number of highly qualified
Applicants available for consideration for employment. However, the General
Manager may authorize a Closed/Promotional Recruitment and Selection Plan
given the requirements of the position and the quality of the internal
Applicant pool.
All Applicants for regular positions shall submit to the same Recruitment
and Selection Plan for that position. The General Manager may approve
revising the Recruitment and Selection Plan in order to better meet the needs
of the District.
A.Notice of Employment Opportunities
Human Resources shall post employment opportunities for Regular Vacancies
consistent with the approved Recruitment and Selection Plan.
The Employment Announcement shall include the following:
1.Classification Title
2.Salary Rate and/or Range
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECRUITMENT, SELECTION, AND EMPLOYMENT
POLICY 24 11/04/98 05/01/19
Page 4 of 5
3.Essential Functions
4.Required Qualifications
5.Skills Exam
6.Application Filing Instructions
7.Equal Employment Opportunity Employer Statement
B.Disqualification of Applicants
Applicants may be disqualified at any time during the process for any of
the following reasons:
1.The Applicant is found to lack any of the minimum job requirements
established for the position.
2.The Applicant has made a false statement of material fact in the
application or has committed fraud or deception in the selection
process or in securing eligibility for Appointment.
3.The Applicant has a history of less than satisfactory employment.
4.The Applicant uses or attempts to use any personal or political
influence to further eligibility.
5.The Applicant has without authorization directly or indirectly
obtained information regarding examinations.
6.The Applicant fails to submit his or her application in compliance
with articulated guidelines or within the prescribed time limits.
7.The Applicant has taken part in the compilation, administration,
or correction of the examinations for the position for which he/she
is an Applicant.
8.Any other reason deemed by the General Manager to protect the best
interests of the District.
C.Examination Content
The Recruitment and Selection Plan shall be job-related in order to
determine the ability of Applicants to perform the duties of the job
classification. The plan may provide for one or more of the following
types of examinations:
1.Review of Employment Application and/or Required Supplementary
Material(s);
2.Written Examination;
3.Physical Agility and/or Performance Skill Examination; or
4.Oral Interview.
D. Eligible Lists
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
RECRUITMENT, SELECTION, AND EMPLOYMENT
POLICY 24 11/04/98 05/01/19
Page 5 of 5
Eligible Lists may be maintained to fill current and future vacancies.
The Eligible List will be valid for up to twelve (12) months from Date of
Promulgation. Human Resources may pull Applicants from any Eligible List
in lieu of posting a position or to augment the Applicant pool for other
similar classifications with related skills and abilities.
E. Conditions of Appointment
Once an Applicant has been offered a conditional offer of employment, the
Applicant shall meet and agree to the terms and conditions of employment
specified for the particular position. Failure of pre-employment
examinations may cause the Applicant to be disqualified for employment.
Conditions of employment may include, but are not limited to the following:
1.Physical Fitness/Medical Examination;
2.Drug/Alcohol Screening;
3.Verification of lawful work status under Immigration rules; and
4.Verification of employment, education, certificates, licenses,
driving, and criminal conviction history including fingerprinting.
F.Evaluation of Criminal Conviction Information
Upon receipt of Criminal Conviction information, the District shall
determine if the information shall disqualify the Applicant. The District
shall make an individualized assessment of whether an Applicant’s criminal
conviction history has a direct and adverse relationship with the specific
duties of the job that justify denying the Applicant the position. The
District may, but is not required to, commit the results of this
individualized assessment to writing. In making the assessment, the
District shall consider all of the following:
(i)The nature and gravity of the offense or conduct.
(ii)The time that has passed since the offense or conduct and
completion of the sentence.
(iii)The nature of the job sought.
Page 1 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
1.0 The District
The Otay Water District is a California municipal water district,
authorized in 1956 by the State Legislature under the provisions
of the Municipal Water District Act of 1911.The District is a
"revenue neutral" public agency; meaning each end user pays their
fair share of the District's costs of water acquisition,
construction of infrastructure, and the operation and maintenance
of the public water facilities.
The District provides water service within its boundaries, and
provides sewer and recycled water service within certain portions
of the District.As such, the District operates three distinct
business segments:
Potable water
Recycled water
Sewer
Each of these business segments has an identifiable customer base.
In addition, the developer community, large and small, makes up a
significant class of customers for each business segment.As a
result, the District has four distinct customer service types:
Developers
Potable water users
Recycled water users
Sewer users
The District has established practices and developed computer
systems that have enabled the District to maintain a clear
separation between the service costs relating to each of its four
customer service types.Regardless of customer class, financial
principles regarding cost allocation and fund accounting are
fundamental to the District’s Reserve Policy.These principles
are derived from the statements of the Governmental Accounting
Standards Board (GASB), and from oversight and advisory bodies
such as the California State Auditor, the Little Hoover
Commission, and the Government Finance Officers Association
(GFOA).These principles have significant impacts on how the
finances of the District are organized and how financial processes
work within the organization.
Page 2 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
1.1 The District’s Use of Financial Resources
All the District’s expenditures fall into two broad categories:
operating costs and capital expenditures.The operating costs
include costs relating to the purchase and delivery of potable and
recycled water, and the transportation and treatment of sewage.
The capital expenditures support the construction of
infrastructure necessary to deliver services.The District uses
various funds to support the operating and capital efforts.
Operations and maintenance are financed only by rates and charges,
also called pay-as-you-go, while capital infrastructure is
financed using two financing methods: pay-as-you-go and debt
issuance (requiring annual debt service).The Capital Improvement
Program (CIP) and the two funding methods support the
construction, betterment, and replacement of infrastructure in all
three business areas: potable, recycled, and sewer.
The District establishes different funds to track revenues
allocated to different activities.Once established, each fund
receives financial resources up to the levels defined in this
policy.Every year, as a part of the annual budget process, the
District’s rate model is updated for each fund with the current
fund balances and the estimated revenues and expenditures for the
next six years.The expenditure requirements and financial
resources are then evaluated to ensure that the existing fund
balances and additional revenues are sufficient within the current
budget cycle and for the next five years to maintain target fund
levels. If a deficit is identified, then options for transfers,
shifting CIP projects, debt issuance(s), cost saving measures,
and/or rate increases are evaluated.
1.2 The District’s Capital Improvement Program (CIP)
The planning, design, and construction costs of all capital
facilities within the three business segments are allocated to
four cost types and corresponding fund categories: New Water
Supply, Expansion, Replacement, and/or Betterment.The allocation
to these four cost types is defined in the District’s Capital
Improvement Program (CIP) and is determined by an engineering
analysis that identifies which type of customer will benefit from
each facility, planned or existing.The costs of the capital
improvements are borne by either existing users or by the
developing areas, or by a combination of the two, as applicable.
Page 3 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
This Reserve Policy protects both the existing users and the
developing areas from incurring unwarranted costs.Developing
areas are not required to finance facilities that are replacement
or betterment and established areas are not required to replace
facilities before they are worn out because of new development.
However, to ensure a fair allocation of costs, each facility has
the potential to be classified into any or all of the four cost
types.In addition to these cost types, there are occasional CIP
projects that may be billable to a third party, if for example a
third party requires a District facility be relocated.
Paragraphs a through d, which follow, describe how the costs of
capital facilities are financed through various fees.
a.New Water Supply
The portion of a new supply project that benefits new users
is financed from the reserves in the New Water Supply Fund
category.These reserves were primarily derived from
proceeds of the new water supply fee. The New Water Supply
Fund is restricted, meaning the amounts credited to this fund
are accounted for separately and are used solely for the
planning, design, and construction of new water supply
expansion facilities. Debt financing may also be a temporary
financial resource to finance new water supply projects. The
District has a Debt Policy (Policy No. 45) that guides the
debt issuance process.Any debt proceeds used for this
purpose would be restricted in nature and tracked separately.
General use reserves may also be placed in the designated New
Water Supply Fund and used for water supply projects.
Effective December 1, 2020, new water supply fee collection
was discontinued. The New Water Supply Fund will continue to
be used to fund qualified projects and to pay the
proportionate share of debt service for new water supply
projects until the monies in the fund are fully depleted.
b.Expansion
The portion of a CIP project that benefits new users is
financed from the reserves in the Expansion Fund category.
These reserves are primarily derived from proceeds of the
“incremental” portion of the capacity fees collected within
developing areas. Capacity fees are accounted for
separately and used for the planning, design, and
construction of expansion facilities. Additionally,
expansion may be financed by the “buy-in” portion of the
capacity fee, which is restricted for CIP purposes, but not
Page 4 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
specifically for expansion. Debt financing can be a
temporary financial resource for expansion projects. General
use reserves may also be placed in the designated Expansion
Fund and used for expansion projects.
c.Replacement
The portion of a CIP project that benefits existing users by
replacing an existing facility is financed from the reserves
in the Replacement Fund category.Replacement of facilities
may be financed with proceeds from the “buy-in” portion of
the capacity fees, general use reserves held in the
designated Replacement Fund, and/or debt proceeds.The
various funding sources available for replacement projects
are anticipated to provide the necessary flexibility to begin
projects while any necessary debt financing is being
obtained.
d.Betterment
Facilities that improve reliability, meet new regulations, or
create increased levels of service are considered betterment
facilities that benefit existing users.The reserves in the
Betterment Fund category are used to finance these projects
or portions of projects.Proceeds of the “buy-in” portion of
the capacity fees may also be used to finance betterment
projects.General use reserves may be placed in the
designated Betterment Fund and used for betterment projects.
1.21 Relocations
Occasionally, a third party requires relocation of a District
facility. If the District has a superior easement the third
party will pay the relocation cost, but only to the extent that
the District does not benefit from the relocation. When
relocation is required, a CIP project may be created which is
wholly or partially financed by a third party.On occasion, the
District will require that its own facilities be relocated.
Depending on the nature of the facilities, the financial resources
for these projects could be from new water supply, expansion,
replacement, betterment, and/or third-party financing. Each
project is individually negotiated with the third party based on
the facts and circumstances of the relocation. Occasionally, the
District will improve the facilities that are being relocated.
When determining how to allocate costs to various funds the
following guideline is suggested: if a project has more than five
years of useful life remaining, an incremental cost view should
Page 5 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
be considered; if the project has less than five years of useful
life remaining, a pro-rata cost approach should be considered.
Also, the likelihood that the District will benefit from an
asset’s life extension should be evaluated prior to allocating
costs.
1.22 Oversizing
If deemed reasonable by the District, in connection with the
construction of backbone facilities, a developer may be required
to oversize new facilities for future development.The developer
is reimbursed for incremental oversizing costs as per Policy
No. 26.These reimbursements are not available for the
distribution system within a development which is an obligation
of the developer.
1.23 Exclusion of Developed Areas from Expansion Costs
Developed areas are assumed to have sufficient supply and capacity
to meet their current requirements as provided by the developers.
In addition, they are considered to have borne capital financial
costs that are at least proportionate to the benefits they have
received from capital facilities.Accordingly, no regional
capital financing costs are allocated to these areas so that they
will not incur any costs for newly developing areas, except for
capital projects that produce district-wide benefit or cost
savings.
1.24 Improvement Districts (IDs)
Improvement Districts (IDs) are established to facilitate the
financing of particular improvements by the specific
beneficiaries.The District has a number of IDs that were
established for General Obligation (GO) debt repayment. All GO
debt has been paid off and it is unlikely that the District will
issue additional GO debt. IDs continue to be used for other
purposes: 1) to distinguish sewer customers from water customers
on the county tax roll; or 2) to place parcels on the county tax
roll for the collection of availability fees.
Over the years, the District moved to a district-wide perspective
of financing improvements.This philosophy is evident by the
district-wide capacity and annexation fees.The District also
uses district-wide water rates.As time goes on, it is expected
that IDs will continue to outgrow their purpose and their use will
diminish.
Page 6 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
1.3 The Purpose of the Policy
Public entities accumulate and maintain reserves to ensure both
financial stability and continuous availability of services.
Financial stability and the resulting improved credit quality
allow the public entity to weather times of uncertainty and the
impact of negative events, both major and minor.Reserves allow
for the ongoing maintenance of property and timely payment of
expenses, even when such expenses exceed money available from a
single fiscal period.Ultimately, the type and level of
reserves are driven by the type and magnitude of uncertainty
faced by the public entity.
A “reserve” has a number of functions, as follows:
Working capital is required to ensure timely payment of
obligations.
A buffer against volatility in revenues.
Liquidity is required to obtain other goods and services
(e.g., bank services).
Designated money to protect creditors.
Money set aside to replace assets at the end of their useful
lives.
Money set aside to repair or replace assets damaged or
destroyed at unanticipated times.
It is important to note that reserves, fund balance, and net
assets are not the same.Fund balance and net assets are
accounting terms and may not always be in the form of cash or
liquid investments.Fund balances and net assets may not always
be reserves unless a designation of all or a portion of fund
balance is made.In addition, the term fund balance was replaced
by net assets as codified by the Governmental Accounting Standards
Board (GASB).
In short, reserves are the liquid assets of the District,
accumulated and maintained for application to finance contingent
future activities, whether known or unanticipated, operating or
capital in nature. The District’s Reserve Policy governs the
management and use of these financial resources.Few policies
have a more significant impact on the financial health and
stability of the District.This policy explains several key
Page 7 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
financial concepts used by the District and provides some
background information on the overall strategies and practices
utilized.The District has a fiduciary obligation to its
customers, to manage and direct the use of public funds for the
purpose of providing water and sewer services in an efficient and
financially sound manner.
1.4 Policy Guidelines
In 2000, the Little Hoover Commission reviewed the levels of
reserve funds for special districts in California and prepared a
report reflecting that special districts were accumulating
unreasonable levels of funds. As a proactive response, the
California Special Districts Association (CSDA) prepared Reserve
Guidelines for its members.The Reserve Guidelines were
significant in noting that reserve levels need to be in context of
the organization’s overall business model and capital improvement
plan.
There are a number of potential events which the District should
consider in the development of reserves:
Economic Uncertainty - performance of the regional economy
and the impact of that performance on demand for water.
Weather - the amount of rainfall and the impact of weather on
the availability and cost of water as well as the demand for
water.
Government Mandates - the impact of federal and state
regulations, particularly environmental regulations.
Tax Changes - limitations on the District’s taxing and
spending powers through the passage of a voter referendum,
the impound of District property taxes, the removal of the
District’s power to levy property taxes, further increases to
Educational Revenue Augmentation Fund (ERAF) contributions,
or changes in calculation methodology.
Operating Costs - increases in operating and maintenance
costs because of inflation, labor agreements, or other
modifications.
Force Majeure - unanticipated expenditures resulting from
natural disasters or intentional acts.
Page 8 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Emergency Maintenance - unanticipated expenditures resulting
from unexpected failure of assets (e.g., rupture in the
primary transmission system).
Unexpected Variation in Cash Flow - the incidence of
additional costs or decreased revenues that require short-
term borrowing in the absence of sufficient financial
resources.
The California State Auditor has, in its oversight role, offered a
number of quality recommendations for the development of reserve
policies as outlined in its report entitled, “California’s
Independent Water Districts: Reserve Amounts Are Not Always
Sufficiently Justified, and Some Expenses and Contract Decisions
Are Questionable,” dated June 2004, Report No. 2003-137.All of
these recommendations have been incorporated into this policy in
an effort to address key issues surrounding the management and use
of District reserves.The detailed objectives as identified by
the State Auditor are as follows:
Distinguish between restricted and unrestricted reserves.
Establish distinct purposes for all reserves.
Set target levels, including minimums and maximums, for the
accumulation of reserves.
Identify the events or conditions that prompt the use of
reserves.
Conform to plans to acquire or build capital assets.
Receive Board approval and that it is in writing.
Require periodic review of reserve balances and rationale for
maintaining them.
Yet, the State Auditor’s report acknowledges that the California
Constitution (Article XIII B, Section 5) is vague in its
provisions governing the accumulation and use of reserves.1
1 California State Auditor, Bureau of State Audits, “California’s Independent Water Districts: Reserve Amounts Are
Not Always Sufficiently Justified, and Some Expenses and Contract Decisions Are Questionable,” dated June 2004,
2003-137; p. 8.
Page 9 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Specifically, the Constitution states that “each entity of the
government can establish contingency, emergency, unemployment,
reserve, sinking fund…or similar funds as it shall deem reasonable
and proper.”2 Similarly, the State’s Water Code does not impose
any requirements as to specific or recommended reserve fund
levels.As a result, the public finance community has yet to
settle on any real objective standards for the level of reserve
funds appropriate for governmental enterprises. This lack of
consensus as to specific standards is indicative of the wide
variance of the financial and operations context for different
districts and different contingencies justifying reserves.
The Government Finance Officers Association (GFOA) in its
“Recommended Practice on Appropriate Level of Unreserved Fund
Balance in the General Fund” (2002) states that in
establishing a policy governing the level of unreserved fund
balance in the general fund, a government should consider a
variety of factors. These include:
The predictability of its revenues and the volatility of
its expenditures (i.e., higher levels of the unreserved
fund balances may be needed if significant revenue
sources are subject to unpredictable fluctuations or if
operating expenditures are highly volatile).
The availability of resources in other funds as well as
the potential drain upon general fund resources from
other funds (i.e., the availability of resources in
other funds may reduce the amount of the unreserved fund
balance needed in the general fund, just as deficits in
other funds may require that a higher level of
unreserved fund balance be maintained in the general
fund).
Liquidity (i.e., a disparity between when financial
resources actually become available to make payments and
the average maturity of related liabilities may require
that a higher level of resources be maintained).
Designations (i.e., governments may wish to maintain
higher levels of the unreserved fund balance to
compensate for any portion of unreserved fund balance
already designated for a specific purpose).
2 California Constitution, Article XIII B, Section 5.
Page 10 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
In the preparation of this policy, each of the CSDA guidelines and
the GFOA recommendations have been considered. In addition, all
seven objectives provided by the State Auditor are specifically
addressed for each reserve.The District wholly supports the
State Auditor’s efforts to bring a high-level of quality to
reserve governance and establish a standard of performance.
The District recognizes that the customer pays for services
provided. Quality management requires that periodic valuations be
performed so that fees and charges can be set at appropriate
levels to recover the cost of service.The District’s Reserve
Policy has been drafted with consideration of the GFOA, CSDA, and
State Auditor’s general guidelines as provided above.
Additionally, the District has adopted the following principles in
the management of its financial resources:
Reserves are held and used only for the purpose for which
they are collected.This is done to maintain equity among
customers.
Each of the service types is tracked separately so that
expenditures and revenues can be monitored and evaluated for
each customer type.This provides the District with the
necessary information to appropriately charge for each of the
services.
Separation of operations and maintenance from capital
expenditures occurs within each of the service types.This
is done because the financing of these expenditures is often
on different timelines or use different reserves.
The District will hold its reserves at responsible and
prudent levels.This policy sets minimum, maximum, and
target levels for each of the various funds.This has been
done so that the District can maintain reserves to meet the
purpose for which the funds were established.The levels are
set by reference to line items in the District’s financial
statements and approved budgets.This allows reserve levels
to adjust to the District’s changing financial circumstances.
Debt financing of facilities provides intergenerational
equity and maintains rates at reasonable levels.This equity
is accomplished with long-term financing which spreads the
cost of facilities over the life of the facilities.The
burden to pay for facilities is then paid by those who use
Page 11 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
them. The District could amass significant reserves by pre-
collecting financial resources in a Replacement Reserve Fund
allowing the District to cash finance all replacements.
However, this would require significant rate increases
burdening the current customers and creating reserve levels
difficult to defend to the ratepayers or other oversight
entities.
These concepts are fundamental to the way the District manages its
funds and have a direct impact on the way rates and charges are
set.The District performs annual budget evaluations and updates
its rate model on an annual basis to monitor and adjust the
various funds, expenditures, and revenue sources. The separation,
tracking, and projecting of the various funds, expenditures, and
revenue sources create the essential information necessary for the
equitable rate structure maintained by the District. The annual
review preserves the balance between services provided and the
fees charged. This review also ensures that reserves will be
available to continue to serve the District’s customers.
Financial Sources
2.0 Developers
a.Meter Installation Charges (General Use)
Meter fees are charges collected for new water service
connections.Fees vary depending upon meter size and type of
service.The costs associated with meter installations are
included in the Operating Expenses section of the budget.
Developers finance these charges.
b.Developer Deposits (General Use)
These deposits are for the engineering and operations
services provided to developers.They are tracked separately
for each developer and any excess amount is returned to the
developer.
c.Water Annexation Fees (General Use)
Annexation fees3 are collected as a condition of annexing
into the District’s potable or recycled water facilities.
Since the existing facilities have been built and maintained
by developers or customers within the District, the
annexation fee is calculated based on the present value of
all property taxes (1% property tax and availability fees)
3 Otay Water District Code of Ordinances, Section 9.
Page 12 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
paid by existing and prior customers.The annexation fee
reimburses existing customers for past contributions so that
all customers have contributed more equally to water
facilities.Proceeds of annexation fees are unrestricted and
may be used for any general fund purpose.
d.Sewer Annexation Fees (General Use)
A sewer annexation fee is collected when property is annexed
into an improvement district (ID). Since the existing
facilities have been built and maintained by developers or
customers within a sewer ID, the annexation fee is calculated
based on the present value of all availability fees paid by
existing and prior customers. The annexation fee reimburses
existing customers for past contributions so that all
customers have contributed more equally to sewer facilities.
Proceeds of the annexation fees are unrestricted and may be
used for any general fund purpose.
e.Water Capacity Fees (Restricted)
Water capacity fees4 are based on the value of existing and
future facilities divided by the number of existing and
future equivalent dwelling units. This method of calculating
capacity fees is called the combined method, where the “buy-
in” portion of the capacity fee covers costs to repay
existing customers for the facilities that they have built,
and where the “incremental” portion of the capacity fee
covers the cost of future expansion facilities. The “buy-in”
portion of the capacity fee is restricted to pay for
planning, design, construction, and financing associated with
expansion, replacement, or betterment of facilities. The
“buy-in” portion may be shifted back and forth between
expansion, betterment, or replacement as the financing needs
change. The “incremental” portion of the capacity fee is
limited to planning, design, construction, and financing
exclusively for expansion facilities (excluding new water
supply expansion).
f.Sewer Capacity Fees (Restricted)
Sewer capacity fees are based on the value of existing and
future facilities divided by the number of existing and
future equivalent dwelling units. This method of calculating
capacity fees is called the combined method, where the “buy-
in” portion of the capacity fee covers costs to repay
4 Otay Water District Code of Ordinances, Section 28
Page 13 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
existing customers for the facilities that they have built,
and where the “incremental” portion of the capacity fee
covers the cost of future expansion facilities. The “buy-in”
portion of the capacity fee is restricted to pay for
planning, design, construction, and financing associated
with expansion, replacement, or betterment of facilities.
The “buy-in” portion may be shifted back and forth between
expansion, betterment, or replacement as the financing needs
change. The “incremental” portion of the capacity fee is
limited to planning, design, construction, and financing
exclusively for expansion facilities.For parcels within a
sewer ID the calculation excludes the tax debt already paid
by these customers, therefore producing a lower fee than for
parcels outside of a sewer ID. The capacity fees are
restricted to pay for planning, design, construction, and
financing associated with the expansion, replacement, or
betterment of facilities.
Facility needs are based on projected land use planning.
Changes in anticipated future land use occur and can alter
projected facility requirements. Thus, both the anticipated
facilities’ needs and their projected costs change over time as
regulatory agencies make changes to land use.The District
periodically reviews the capacity fee calculation to
accommodate such variations. These fees are paid by developers.
The District’s construction of infrastructure occurs prior to the
addition of EDUs.This sequence serves two purposes: 1) it
ensures that the District can serve the pending construction as it
is completed; and 2) it is more efficient to oversize many
facilities at the outset rather than build for the current need
and then reconstruct when the future need is realized.As a
result of this strategy, the District has financed construction
with bond financing as the existing expansion reserves are
depleted.
The water capacity fee is calculated based on the combined
recycled and potable water systems’ needs.This methodology is
used because the two water systems work hand-in-hand. All
capacity fees can be used for either potable or recycled but must
be tracked to distinguish between the “buy-in” and “incremental”
portions as described above.So, while capacity fees are not
restricted separately by potable and recycled, they are tracked
separately.
Page 14 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Meter
Installation
Charges
Developer
Deposits Annexation
Fees
Capacity
Fees
Unrestricted and
Undesignated
(General Use)
Funds
Restricted Funds
DEVELOPERS
Diagram 2.0: Flow of Funds - Developer Sources
2.1 Customers/Users
a.Uniform Rates and Charges (General Use)
Charges to users for water, sewer, and recycled water are
uniform throughout the District for similar customer types.
b.Monthly System Fees (General Use)
This is a fixed revenue source that is charged monthly.The
amount of the charge is based on the customer class and
meter size.
c.Energy Charges (General Use)
The energy pumping fee is a charge per unit of water for each
100 feet of lift, or fraction thereof, above the base
elevation of 450 feet.This charge is placed on the
monthly water bills of all water customers.
d.Penalties (General Use)
Penalties are added to the monthly water and sewer bills for
late charges, locks, etc.
e.Pass-through Fixed Charges (General Use)
A fixed monthly charge to the District’s customers intended
to collect sufficient funds to pass-through the increased
fixed costs from the County Water Authority (CWA) and the
Metropolitan Water District (MWD).
Page 15 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Uniform Rates
and Charges
Monthly
System Fees
Energy
Charges
Special Rates
and Charges
Pass –Through
Fixed Charges Penalties
Special Rates
and Charges
Restricted Funds
Unrestricted and
Undesignated
(General Use) Funds
CUSTOMERS / USERS
f.Special Rates and Charges (General Use)
In addition to the uniform water and sewer charges, the
District has a special sewer rate for the Russell Square lift
station.The Russell Square fee is for construction,
installation, maintenance, or repair of the Russell Square
lift station. This fee is collected in accordance with the
Russell Square sewer charge. (See Code of Ordinances
Section 53.03B.)
g.Special Rates and Charges (Restricted)
In addition to the uniform water charges, the District has a
special rate charged to outside and interim users. Outside
and interim users are charged an additional fee for
temporary capacity. The fee is collected in accordance with
outside and interim service agreements. (See Code of
Ordinances Section 25.)
Diagram 2.1: Flow of Funds - Customer Sources
2.2 County-Collected Taxes and Fees
a.General Levy Property Tax Receipts (1% Property
Tax) (General Use)
In 1978, Proposition 13 limited the levy of ad valorem
property taxes on real property to one percent of the
assessed value of such property.Subsequent legislation,
AB 8, established that the receipts from the one percent levy
were to be distributed to taxing agencies proportionate to
Page 16 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
each agency’s general levy receipts prior to Proposition 13.
Taxes received are for general use.Spending limits for the
District are governed by the 1979 passage of California
Proposition 4, Limitations of Government Appropriations (GANN
limit).Proposition 4 places an appropriation limit on most
spending from tax proceeds.
b.Availability Charges (General Use/Restricted)
The District levies availability charges each year in
developed and undeveloped areas.Current legislation
provides that any amount up to $10 per parcel is general use
and any amount over $10 per parcel is restricted to being
expended in and for the improvement district (ID) within
which it is collected.Accordingly, the District may use
availability charges in excess of $10 toward costs of water
and sewer facilities which are either, expansion,
betterment, or replacement of facilities consistent with the
purpose of the ID in which they are collected. This portion
of the proceeds of availability charges is geographically
restricted and restricted by purpose. As costs are incurred
on these projects the respective IDs are charged, reducing
the reserves. To the extent that availability charges are
not used for the purpose for which they are collected, they
must be returned to the property owners that paid them.The
District has historically used these reserves for the
betterment of capital facilities thus, the restricted
reserves are accounted for in “sub-funds” of the Betterment
Fund (See 2.1 f.).
c.Improvement District General Obligation (GO) Bond
Assessments (Restricted)
The District has historically issued general obligation
(GO) debt and established an ID for the repayment of that
debt. When this financing method is used, the county tax
roll can be used to collect special taxes or assessments
within the ID to pay the debt obligation. The proceeds of
the debt are restricted for the purpose as defined in the
bond documents.
Page 17 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
General Levy
Property Tax
Receipts
Availability
Charges General Obligation
Bond Assessments
Unrestricted and
Undesignated
(General Use)
Funds
Restricted Funds
COUNTY COLLECTED TAXES AND FEES
Diagram 2.2: Flow of Funds – County Collection Sources
2.3 Miscellaneous Income
a.Miscellaneous Rents and Leases (General Use)
Revenues received from the rental and lease of District
property are general use revenues.Not only are these
periodic revenues, but there is also a one-time fee charged
with the setup of each new lease.The District incurs
expenses related to these rents and leases.The one-time
fees are calculated to recover the costs of setting up the
leases.
b.Sewer Billing Fees (General Use)
Sewer billing fees are general use revenues.The District
provides processing and billing services to the City of Chula
Vista and bill and collect from their customers for sewer
service.These fees are to recover the cost the District
incurs to provide this service.
c.Interest Income or Expense Allocation (General Use,
Designated, and Restricted)
Interest income (expense) will be allocated every month based
upon each fund's month-ending balance.In this way, each
fund receives credit for interest earned by that fund and
each fund with a negative balance is charged for the use of
the other fund’s reserves.
Page 18 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Miscellaneous
Rents and Leases
Sewer Billing
Fees
Interest Income or
Expense Allocation
Restricted FundsDesignated Funds
Unrestricted and
Undesignated
(General Use) Funds
MISCELLANEOUS INCOME
Diagram 2.3: Flow of Funds – Miscellaneous Income Sources
2.4 Debt Issuance
a.Loans (General/Restricted Use)
As the District determines that additional financing is
required for a particular purpose, the option of borrowing is
considered.The determination to borrow is made as a part of
the annual rate model update and is evaluated in accordance
with the Debt Policy before it is recommended to the Board
for action.As an option to bond indebtedness, loans are
available to satisfy short-term financing needs.These loans
may or may not be contractually restricted for a particular
purpose.
b.General Obligation (GO) Bonds (Restricted)
As the District becomes more developed it becomes less likely
that general obligation debt will be used as it requires a
vote of the public to be approved.Bond proceeds are
restricted for the construction of those facilities
identified in the GO bond issuance.Occasionally, specific
portions of bond proceeds may be allocated for the repayment
of the principal and interest, also called debt service, on
these bonds.As the District determines that additional
financing is required for a particular purpose, the option of
debt issuance is considered.The determination to issue
debt is made as a part of the annual rate model update and
is evaluated in accordance with the Debt Policy before it is
recommended to the Board for action.
c.Revenue Bonds (Restricted)
Page 19 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
General revenues of the District are pledged as security for
Revenue Bonds (previously Certificates of Participation)
indebtedness. If the District determines that additional
financing is required for a particular purpose, the option of
debt issuance is considered. The determination to issue
debt is made as a part of the annual rate model update and
is evaluated in accordance with the Debt Policy before it is
recommended to the Board for action. This form of financing
has become the industry’s preferred form of financing as it
does not require a vote of the general public.
Diagram 2.4: Flow of Funds – Debt Issuance Sources
2.5 Inter-fund Transfers
Each year in the budgeting process, future fund balance
levels are projected for the next six years. Based on these
projections, transfers are recommended. Reserves may be
transferred between Unrestricted or Designated Funds and the
General Fund (see 4.0 “Funding Levels” and 4.1 “Fund
Transfers”). Reserves may not be transferred to or from any
of the Restricted Funds unless it is between two restricted
funds with a shared purpose.
Fund Types and Categories
Loans General
Obligation Bonds
Revenue
Bonds
Restricted Funds
Unrestricted and
Undesignated
(General Use) Funds
DEBT PROCEEDS
Page 20 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
3.0 General Funds
a.Purpose
The General Fund is neither restricted nor designated. The
District maintains one General Fund for each business
segment (water, sewer, and recycled). This fund holds the
working capital and emergency operating reserves. While
the General Fund has a short-term focus to finance the
District’s annual operations, it is supported by the six-
year rate model. This fund is primarily used to finance the
operations of the District; however, it can be used for any
District purpose.
This fund can be used to supplement the District’s rates and
charges and be a temporary source of revenue to balance the
Operating Budget.This fund can also be used to avoid
spikes in the rates or significant and abrupt increases. It
is an industry practice to have a fund that can be used to
stabilize rates.This would only occur if there was a
temporary need to use reserves to smooth out a rate spike or
to ramp up what would otherwise be a dramatic rate increase.
The General Fund also plays a role in the debt planning of
the District.This fund is viewed by the debt markets as a
commitment by the District to ensure financial stability of
the rates and charges of the District.The District is
anticipated to need a number of debt issuances over the years
and this fund will help the District not only to stabilize
rate fluctuations but also to access low cost financing for
future projects.
b.Sources
The potable and recycled general funds receive meter
installation charges, special rates and charges, uniform
rates and charges, monthly system fees, energy charges,
penalties, pass-through fixed charges, general levy property
tax receipts, water annexation fees, availability charges,
miscellaneous rents and leases, sewer billing fees, interest
income or expense allocation, and loans.
The sewer general fund receives sewer charges, penalties,
availability charges, sewer annexation fees, and interest
income or expense allocation.
c.Funding Levels
Page 21 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
I.Minimum Level – The minimum reserve level for
each business segment of the General Fund is
three months of operating budget expenses
(evaluated separately for each segment).
II.Maximum Level – The maximum reserve level for the
General Fund is nine months of operating budget
expenses.In the event that this fund exceeds the
seven-month level, the excess will be evaluated or
transferred to one or more of the designated funds.
III.Target Level – The target level of reserves is
three months of operating budget expenses.In the
event that the fund drops below the target level,
rate increases or fund transfers would be
considered.
3.1 New Water Supply Fund Category
a.Purpose
The New Water Supply Fund category is to finance the
expansion portion of new water supply projects and is
therefore to be paid by developers. When considering the
reserve level of the New Water Supply category; the New Water
Supply Fund, the New Water Supply Debt Fund, and the
Designated New Water Supply Fund all work in concert and must
be considered jointly.
b.Sources
The New Water Supply Fund received reserves only from the new
water supply fee.Other funds within the new water supply
category of funds received debt proceeds and general use
reserves through a designation to this category. Effective
December 1, 2020, the new water supply fee collection was
discontinued. The New Water Supply Fund will continue to be
used to fund qualified projects and to pay the proportionate
share of debt service of new water supply projects until the
monies in the fund are fully depleted.
Page 22 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Unrestricted and
Undesignated Funding
Designated
New Water
Supply Fund
Designated Funds
Expansion
New Water
Supply Fund
New
Water
Supply
Debt Fund
New Water
Supply Fund
General Fund – Rates and Charges
Debt Fund
Diagram 3.1: New Water Supply Fund
3.2 Expansion Fund Category
a.Purpose
The Expansion Fund category is to finance the expansion
portion of capital projects and therefore is to be paid for
by developers.When considering the reserve levels of the
expansion category, the following funds work in concert and
must be considered jointly: Expansion Fund, Expansion Debt
Fund, Capital Improvement Fund, and the Designated Expansion
Fund. Potable and recycled reserves are considered jointly
while sewer is evaluated separately.
b.Sources
The Expansion Fund is financed by the “incremental” portion
of the capacity fee and restricted special rates and
charges. The other funds in this category may also be
financed by debt proceeds, the “buy-in” portion of the
capacity fee, and the general fund through a designation of
reserves.
c.Funding Levels
Restricted Funds
Restricted Funds
Restricted Funds
Page 23 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
I.Minimum Level – As the District matures, the
CIP will move to purely replacement and
betterment projects.As the District moves
through this life cycle the need for expansion
reserves will decrease and may be reduced to
zero.
II.Maximum Level – The maximum reserve level for the
expansion category of funds is limited to five
years of unfinanced expansion facilities as
described in the District’s CIP Budget.To
determine the unfinanced amount, the total
financing needs must be reduced by the projected
expansion revenues, bond financing, and any
restricted or general fund revenues allocated to
this fund category.If the combined expansion
reserves exceed target levels, the District should
consider reducing capacity fees, reallocating
restricted or designated funds to meet other
purposes, or shifting the timing of expansion
projects.
III.Target Level – The target level is six months of
expansion expenditures. It is important that the
expansion reserves remain at a minimum of six
months of expansion expenditures. This reserve
level allows the District the time necessary to
issue additional debt without depleting expansion
reserves. If the combined expansion reserves
drop below six months of expenditures this would
trigger a transfer of general use reserves, a
bond sale, an adjustment to the timing of
expansion projects, or a reallocation of
restricted reserves. Bond proceeds would be
placed in the Restricted Bond Fund, transfers of
general use reserves would be placed in the
Designated Expansion Fund, and transfers of
restricted reserves would be placed in the
Expansion Capital Improvement Fund.
Page 24 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Diagram 3.2: Expansion Fund Category
(1)For Water Capacity Fees 31.2% goes into the Expansion Fund and 68.8% goes into the
Capital Improvement Fund. For Sewer Capacity Fees 100% goes into the Capital
Improvement Fund.
Page 25 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
3.3 Replacement Fund Category
a.Purpose
The Replacement Fund category is to finance replacement
projects. When considering the reserve levels of the
replacement category of funds, the following funds work
in concert and must be considered jointly: Debt Fund,
Capital Improvement Fund, and the Designated
Replacement Fund. The purpose of these reserves is
to pay for the replacement of capital infrastructure
and capital purchases.These reserves are not to be used
for the replacement of non-capital items.
With the District’s development of its financial systems
and the greater need and ability to separate and track
reserves, the replacement reserves have been separated
into three funds: water, recycled, and sewer.
Projects undertaken solely for the purpose of replacing
major capital equipment or facilities, i.e., where the
cost exceeds $10,000 for capital purchases or $20,000
for infrastructure items, generally these are not
considered normal maintenance.When the cost is below
$10,000, the costs are financed annually as operational
maintenance.As charges are incurred on replacement
projects the reserves are deducted from the respective
Replacement Funds monthly.
b.Sources
The various funds in this category are financed by debt
proceeds, the “buy-in” portion of the capacity fee, and
general fund designations.
c.Funding Levels
I.Minimum Level – The minimum reserve level of this
category of funds is 3% of the historical value of
existing assets as identified in the District’s
current financial statements.Potable, recycled,
and sewer replacement are evaluated separately.
II.Maximum Level – The maximum reserve level of this
category of funds is 6% of existing assets.If the
Page 26 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
combined replacement reserves exceed target levels,
the District should consider transferring the “buy-
in” portion of the capacity fee to meet other
purposes.Another consideration would be to shift
the timing of replacement projects.
III.Target Level – The target reserve level of this
category of funds is 4% of existing assets.In the
event that the reserves fall below the recommended
target level, the District should consider
transferring the “buy-in” portion of the capacity
fee.The District should also consider shifting
the timing of replacement projects or issuing debt
to support the planned level of facility
replacement.The District will act based on the
annual six-year rate model to ensure that at the
end of that planning horizon the reserves exceed
the minimum level and are approaching the target
level.
Page 27 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Diagram 3.3: Replacement Fund Category
(1)For Water Capacity Fees 68.8% goes into the Capital Improvement Fund.
For Sewer Capacity Fees 100% goes into the Capital Improvement Fund.
3.4 Betterment Fund Category
a.Purpose
The Betterment Fund category is to finance the
betterment portion of capital projects with a portion
going to maintenance of the potable, recycled, and sewer
systems. The District maintains separate Betterment
Fund categories, one for each improvement district. An
improvement district is a legally defined geographic
area usually established for the purpose of bond
financing of facilities. The betterment reserves within
Unrestricted and
Undesignated Funding
Sources
Designated
Replacement
Fund
Designated Funds
Replacement
Capital
Improvement
Fund
Restricted Funds
Replacement
Debt FundRestricted Funds
Restricted Funds
Replacement
Fund
Category
Debt
Proceeds
Capacity
Fees (1)Funding Source
General Fund – Rates and Charges
Debt FundCapital
Improvement Fund
Page 28 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
these funds are restricted by law for use within the
improvement district in which the fees were collected
(Water Code 71631.6).However, the legal restriction of
this reserve depends upon the particular revenue source.
(See Section 2.2 b. for a review of the availability
fees).
When considering the reserve levels of the betterment
category of funds, the following funds work in concert
and must be considered jointly: Betterment Fund, Debt
Fund, Capital Improvement Fund, and Designated
Betterment Fund.
b.Sources
The Betterment Fund category receives restricted
revenues through improvement districts from the
availability fees (the first $10 is unrestricted,
while amounts over $10 are restricted) collected
through the county tax roll. Betterment may also be
financed by debt proceeds, the “buy-in” portion of the
capacity fee, as well as the general fund through a
designation of reserves.
c.Funding Levels
I.Minimum Level – As the District matures, the CIP
will move to purely replacement projects.As the
District moves through this lifecycle the need for
betterment reserves will decrease and may be
reduced to zero.
II.Maximum Level – The maximum reserve level for the
betterment category of funds is limited to five
years of unfinanced betterment facilities as
described in the District’s CIP Budget. To
determine the unfinanced amount, the total
financing need must be reduced by the projected
betterment revenues, bond financing, and general
fund designations.If this maximum is exceeded,
then the District should evaluate reductions in the
special water rates and availability fees,
transferring designated reserves to meet other
purposes, or shifting the timing of betterment
projects.
Page 29 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
III.Target Level – The target is six months of
betterment expenditures.It is important that the
betterment reserves remain at a minimum of six
months of betterment expenditures.This reserve
level allows the District the time necessary to
issue additional debt without depleting betterment
reserves.If the combined betterment reserves drop
below six months of expenditures this would trigger
a transfer of general use reserves, a bond sale, or
an adjustment to the timing of betterment projects.
Bond proceeds would be placed in the Betterment
Bond Fund while transfers would be placed in the
Designated Betterment Fund.
Page 30 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Betterment
Fund
Diagram 3.4: Betterment Fund Category
(1)The portion of charges over $10 per parcel is restricted.
(2)For Water Capacity Fees 68.8% goes into the Capital Improvement Fund. For Sewer
Capacity Fees 100% goes into the Capital Improvement Fund.
Betterment
Capital
Improvement
Fund
Availability
Charges(1)
Capacity
Fees(2)
Debt
Proceeds
Betterment
Fund
Category
Betterment
Debt Fund
Designated
Betterment
Fund
General Fund - Rates and Charges
Betterment
Fund
Capital
Improvement
Fund
Bond/Debt
Fund
Funding Source
Restricted Funds
Restricted Funds
Restricted Funds
Unrestricted and
Undesignated Funding
Sources
Restricted Funds
Designated Funds
Page 31 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Diagram 3.5: Fund Targets
Fund or Fund
Category
Actions to Consider if
below Target Target Maximum
New Supply Fund
Category
Bond financing, or
transfer to designated
or CIF
Total of all funds in fund
category = six months
of new supply capital
expenditures
Nexus of cost to fee
Expansion Fund
Category
Capacity fee increase,
bond financing, or
transfer to designated
or CIFs
Total of all funds in fund
category = six months
of expansion capital
expenditures
Five years unfunded
needs
Replacement Fund
Category
Bond financing, or
transfer to designated
or CIFs
Total of all funds in fund
category = 4% of
infrastructure
6% of infrastructure
Betterment Fund
Category
Bond financing, or
transfer to designated
or CIFs
Total of all funds in fund
category = six months
of betterment capital
expenditures
Five years unfunded
needs
Rate Stabilization Fund Fund transfers from
legally available funds
The financial impact of
two consecutive years of
low winter water usage
The financial impact of
three consecutive years
of low winter water
usage
General Fund Rate increase or fund
transfers
Three months of
operating budget
expenses
Nine months of
operating budget
expenses
Additional Restricted Funds
4.0 Capital Improvement Fund
a.Purpose
The Capital Improvement Fund’s (CIF) sole purpose is to
track the “buy-in” portion of the capacity fee and to ensure
these fees are expended solely for the purpose for which they
Page 32 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
were collected. In this case it is to pay for facilities
that were in existence at the time this fee was established.
These fees may be used for expansion, replacement, or
betterment projects or any debt related to these categories.
The water capacity fees may also be used for either the
potable or the recycled systems. As capacity fees are
collected, the “buy-in” portion of the fee is allocated as
needed to one of three CIFs, one in each of the Expansion,
Replacement, and Betterment Fund categories.These reserves
are used to pay debt or offset any negative balance within
these three categories of funds. For sewer, these fees fund
the Expansion, Replacement, or Betterment Fund categories.
These fees may not be used to finance the New Water Supply
category, as there were no new water supply facilities in
existence at the time the new methodology for capacity fees
was established.
b.Sources
The “buy-in” portion of the capacity fee collected after
June 30, 2010 for water or after September 30, 2014 for
sewer.
c.Funding Levels
There are no minimums, maximums, or target levels for these
reserves on an individual basis.The allocation of this
fee to the various CIFs is dependent on the overall reserve
levels within each fund category.
4.1 Debt Reserve Fund
a.Purpose
The Debt Reserve Fund is established to hold the proceeds
from the various debt issuances.There are two types of
debt, General Obligation bonds and Revenue bonds. The
proceeds are transferred to the New Water Supply, Expansion,
Replacement, or Betterment Debt Funds as they are expended
for various facilities within those fund categories. As
repayment of the debt occurs, the balances within these
individual funds are reduced so that the financial impact of
issuing debt is tracked within the category for which the
debt was issued.
b.Sources
Debt proceeds.
Page 33 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
c.Uses
There are no minimums, maximums, or target levels for this
fund on an individual basis. This fund is available on an as
needed basis to fund CIP projects for new water supply,
expansion, replacement, betterment, or maintain levels
defined within the District’s debt agreements. From a
funding level perspective, these reserves are evaluated in
the context of all the various funds within each fund
category.
4.2 Rate Stabilization Fund
a. Purpose
The Rate Stabilization Fund is established for the purpose of
minimizing rate increases in response to one-time events and
therefore stabilizing the rates and charges imposed by the
District to meet covenanted debt service coverage levels.
The Rate Stabilization Fund is not intended to be used to
offset regular rate increases needed to meet inflationary
cost increases in operations.
b. Sources
The District may budget for Rate Stabilization Fund deposits
from the Sewer Fund, amounts in excess of the annual debt
service coming due and payable in the fiscal year, after
payment of operating expenses. The allowable amount that may
be deposited shall not be transferred prior to payment of the
annual debt service obligation.
c. Uses
There is no minimum level for this fund. The maximum level
shall be equal to the financial impact of three (3)
consecutive years of low winter water usage. The target
level for this fund shall be equal to two (2) consecutive
years of low winter water usage. For the purposes of
calculating debt service, amounts transferred from the Rate
Stabilization Fund to the Sewer Fund will constitute Gross
Revenue in the fiscal year the transfer occurs. All interest
Or other earnings on deposits in the Rate Stabilization Fund
will be withdrawn at least annually and will be accounted for
as operating revenue in the Sewer Fund.
Page 34 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Fund Transfers
5.0 Funding Levels
As described in the preceding sections, the District maintains
reserves for its operating and capital activities.These reserves
can be of three types: 1) undesignated or general use reserves, 2)
designated, and 3) restricted for a specific purpose. The
restricted reserves can be restricted geographically and/or by
purpose.The District maintains various funds to track the
various designations and restrictions.The source of the money
for each fund was discussed along with the purpose, source of
funds, and levels.Key characteristics of these funds are the
target levels, minimums, and maximums.The funding levels must
be viewed in the context of the economic environment, political
environment, and in light of the District’s rate model.The
District’s six-year rate model not only shows the current balance
but also shows the trend of the fund balances.Often the trend
of the fund is a greater indicator of financial stability than is
the current balance.
The rate model is updated each year with the budget process and
evaluates each fund over the next six years.The rate model will
take into account the general economic environment, looking at
the development rate, supply rate increases, the possibility of
raising rates, capital infrastructure spending, and strategic
plan initiatives. The fund balances may at times be over or
under the target amount. This is not only acceptable but
expected. The rate model provides an empirical estimate of the
conformance between the projected District’s financial activities
and the guidelines of this policy.
5.1 Fund Transfers
Reserves within the District’s various designated funds come from
interfund transfers of unrestricted general use reserves.It is
important to note that the District has the ability to use
general use reserves for any business purpose. General use
reserves may be transferred to and from any unrestricted fund for
any business need. Designated reserves are general use reserves
which have been set aside for a specific purpose by Board action.
These reserves can only be used for the purpose they were
designated, or with Board action they may be used for any other
business purpose. While general use reserves may be used for any
restricted purpose, they may not be transferred to Restricted
Page 35 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Funds due to the sensitivity of the tracking of restricted
reserves. If reserves are needed for a restricted purpose, they
are transferred to a Designated Fund within the fund category
with that particular purpose. Reserves restricted to a fund
category may only be used within that category and may not be
transferred to another category. For example, the “incremental”
portion of the capacity fee are restricted reserves for a
specific purpose and may not be transferred to another category
as no other category has the same purpose. However, the “buy-in”
portion of the capacity fees are restricted for purposes that are
shared by more than one category of funds and may therefore be
transferred to a restricted fund within another fund category as
long as it shares the same purpose.
In many situations reserve transfers are expected as some fund
categories will exceed their maximums or drop below their
minimums.Only fund categories that are below the stated target
are eligible to receive transferred reserves.Fund categories
that exceed their maximums are first to be considered for
transfers out, followed by funds that exceed their targets.Funds
that exceed their minimums are also available for reserve
transfers out, but only when other options are not available.
The rationale for prioritizing reserve transfers is based on the
immediacy of the need and the availability of reserves from other
funding sources. For example, the General Fund is first to
receive reserves when it drops below its target or minimum levels.
This is because of the immediate and ongoing nature of the
expenditures that are served by this fund.The operation of the
District is the first and foremost objective of the District. On
the other end of the spectrum, the Replacement Fund has a long-
term perspective and will be used to partially finance replacement
assets for many years to come. Debt financing is available to
respond to this long-term, foreseeable, and planned cash flow.
This fund is less likely to have immediate needs and has other
financing options.
When making the determination of when transfers are necessary, all
funds within a fund category work as a group.The combined
balance of the restricted and designated funds are looked at when
determining whether the fund category requires additional funding
from the Restricted Capital Improvement Fund, Restricted Debt
Fund, or the General Fund. Because the Capital Improvement Fund
may finance expansion, replacement, or betterment, reserves may
be transferred between these fund categories, but only back and
forth within its own type of restricted fund.
Page 36 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
As an example, if during the rate model update process it was
determined that the Expansion Funds (designated and restricted)
would drop and stay below the minimum during the six-year
planning horizon, this would trigger a bond issuance, a transfer
of general use reserves, and/or a transfer of restricted reserves.
If in the cash planning process, it was anticipated that the
General Fund would remain above target during the planning
horizon and that the trend did not present a problematic
underfunded status, then General Fund reserves would be
considered available for transfer prior to issuing debt. Also,
if during this period the Betterment Fund category was
anticipated to exceed its maximum, then reserves from either the
Designated Betterment Fund, or the Capital Improvement Fund would
be transferred to the corresponding Expansion Fund prior to a
bond issuance. All funds are evaluated to determine which has
the greatest need or availability of reserves before any reserve
transfer recommendation is presented to the Board.
Page 37 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
GLOSSARY
The Reserve Policy contains terminology that is unique to public
finance and budgeting.The following glossary provides assistance
in understanding these terms.
Annexation Fees:When water service is requested for land outside
the boundaries of the District, the land to be serviced must first
be annexed.For sewer service the land must be annexed into an
improvement district within the District.
Assets:Resources owned or held by Otay Water District that
have monetary value.
Availability Fees:The District levies charges each year in
developed areas to be used for upgrades, betterment, or
replacement and in undeveloped areas to provide a source of
funding for planning, mapping, and preliminary design of
facilities to meet future development.Current legislation
provides that any availability charge in excess of $10.00 per acre
shall be used only for the purpose of the improvement district for
which it was assessed.
Bond:A written promise to pay a sum of money on a specific date
at a specified interest rate.The interest payments and the
repayment of the principal are authorized in a District bond
resolution.The most common types of bonds are General Obligation
(GO) bonds and Certificates of Participation (COPs).These are
frequently used for construction of large capital projects such as
buildings, reservoirs, pipelines and pump stations.
Capital Equipment:Fixed assets such as vehicles, marine
equipment, computers, furniture, technical instruments, etc. which
have a life expectancy of more than two years and a value over
$10,000.
Capital Improvement Program (CIP):A long-range plan of the
District for the construction, rehabilitation and
modernization of the District-owned and operated
infrastructure.
Page 38 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
CWA:The County Water Authority was organized in 1944 under the
State County Water Authority Act for the primary purpose of
importing Colorado River water to augment the local water supplies
of the Authority's member agencies.The Authority purchases
water from the Metropolitan Water District of Southern California
(MWD) which imports water from the Colorado River and the State
Water Project.
Debt Service:The District's obligation to pay the principal and
interest of bonds and other debt instruments according to a
predetermined payment schedule.
Expenditures/Expenses:These terms refer to the outflow of funds
paid or to be paid for an asset, goods, or services obtained
regardless of when actually paid for.(Note: An encumbrance is
not an expenditure).An encumbrance reserves funds to be expended
in a future period.
Fund:An account used to track the collection and use of monies
for a specifically defined purpose.
Fund Balance:The current funds on hand resulting from the
historical collection and use of monies.The difference between
assets and liabilities reported in the District’s Operating Fund
plus residual equities or balances and changes therein, from the
results of operations.
Interest Income:Earnings from the investment portfolio.Per
District Policy Number 25, interest income will be allocated to
the various funds each month based upon each fund’s prior month-
ending balance.
Late Charges/Penalties:Charges and penalties are imposed on
customer accounts for late payments, returned payments, and other
infringements of the District’s Code of Ordinances.
1% Property Tax:In 1978, Proposition 13 limited general levy
property tax rates for all taxing authorities to a total rate of
1% of full cash value.Subsequent legislation, AB 8, established
that the receipts from the 1% levy were to be distributed to
taxing agencies according to approximately the same proportions
received prior to Proposition 13.
Page 39 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Operating Budget:The portion of the budget that pertains to
daily operations that provide basic governmental services.The
operating budget contains appropriations for such expenditures as
personnel, supplies, utilities, materials, travel and fuel, and
does not include purchases of major capital plant or equipment
which is budgeted for separately in the Capital Budget.The
Operating Budget also identifies planned non-operating revenues
and expenses.
Revenue:Monies that the District receives as income.It
includes such items as water sales and sewer fees.Estimated
revenues are those expected to be collected during the fiscal
year.
Russell Square:A sewer lift station constructed in 1983 that
serves four properties in the Russell Square Development.
System Fees:Each water service customer pays a monthly system
charge for water system replacement, maintenance, and operation
expenses.The charge is based on the size of the meter and class
of service.
Tax Collection for Bond Debt:California Water Code Section 72091
authorizes the District, as a municipal water district, to levy ad
valorem property taxes which are equal to the amount required to
make annual payments for principal and interest on General
Obligation bonds approved by the voters prior to July 1, 1978.
Unit:A Unit of water is 100 cubic feet or 748 gallons of water.
Water Rates:Rates vary among classes of service and are measured
in Units.The water rates for residential customers are based on
an accelerated block structure.As more Units are consumed, a
higher Unit rate is charged.Effective in 2009, all non-
residential customers are charged for water based on a tiered rate
structure in which water rates are based on meter size and amount
of Units consumed.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Policy
Number
Date
Adopted
Date
Revised
Subject
DISTRICT ADMINISTRATION OF
REIMBURSEMENT AGREEMENTS 26 02/10/93 06/01/16
Page 1 of 9
PURPOSE
This policy establishes guidelines for how the District will
administer reimbursement agreements for facilities, both Master
Plan and Non-Master Plan. It also describes when and how the
District will participate in the cost of such Regional
Facilities.
BACKGROUND
Policy 26 requires that a development which creates the need for
new facilities must bear all costs to construct and finance the
on-site, in-tract and off-site water, wastewater, and recycled
water systems.
“On-site” facilities are defined as those pipelines, pump
stations and reservoirs required within a development’s project
boundaries. “Off-site” facilities are those facilities located
outside a project's boundary that are required to serve the
project. “In-tract” facilities are defined as those non-
regional facilities that serve only the project being
constructed. In-tract facilities are the sole responsibility of
the developer/property owner until the facilities and all
required property easements are dedicated to, and accepted by,
the District pursuant to authority granted by the Board to the
General Manager.
The District's Master Plan includes all Regional Facilities
anticipated to be necessary to provide service throughout the
District. The District's capacity fees have been calculated to
pay for the cost of all the Regional Facilities identified in
the Water Facilities Master Plan including the
developer/property owner’s portion of such facilities. The
District does not subsidize development but it does undertake
responsibility to ensure that those Regional Facilities located
within a development are constructed and that the costs
associated with the construction of said facilities is fairly
distributed among all users.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Policy
Number
Date
Adopted
Date
Revised
Subject
DISTRICT ADMINISTRATION OF
REIMBURSEMENT AGREEMENTS 26 02/10/93 06/01/16
Page 2 of 9
POLICY
A.Master Plan Regional Facilities-Reimbursement by the
District: The District may reimburse the developer/property
owner for construction and design costs on both on-site and off-
site Regional Facilities identified in the Master Plan, if the
project meets the following guidelines:
1.The project must be in the District’s approved five-year
Capital Improvement Program (CIP) at the time of the
request, and the construction and design costs shall not
exceed the CIP budget amount without prior Board approval.
2.The District has approved a Sub-Area Master Plan (SAMP)
that defines all In-tract, Off-Site, and On-Site facilities
required to serve the Development and includes any required
fire flow calculations, maps, and modeling upon which the
non-regional facilities are clearly described. As part of
the SAMP approval, the District will determine whether the
non-Regional Facilities need to be upsized to meet a
regional need. If needed, the District will require the
developer/property owner to upsize the non-Regional
Facilities to meet the regional need. These Regional
Facilities will be included in the approved SAMP. The
incremental increase between the non-Regional to Regional
Facilities will be the basis for the reimbursement
agreement. The District will amend the Water Facilities
Master Plan based upon the facilities included in the
Development’s SAMP.
3.The developer/property owner makes an irrevocable offer to
dedicate to the District the facilities and any easements
required for the operation and maintenance of the
facilities, which offer is accepted by the General Manager,
and all applicable language and documentation for the
dedication(s) is prepared and recorded, all in the manner
authorized by the Board.
4.The developer/property owner enters into an Agreement for
Construction of a Water System or Sewer System with the
District.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Policy
Number
Date
Adopted
Date
Revised
Subject
DISTRICT ADMINISTRATION OF
REIMBURSEMENT AGREEMENTS 26 02/10/93 06/01/16
Page 3 of 9
5.The developer/property owner obtains three (3) bids from
qualified contractors and provides copies of the bids to
the District. The developer/property owner is responsible
for selecting the lowest responsive responsible bidder.
The developer/property owner will be reimbursed only for
the Regional Facility CIP portions of the project based on
the unit prices submitted with the lowest responsive
responsible bid.
6.The cost of addressing environmental issues, such as
burying a reservoir, shall not be reimbursable unless they
are addressed in the District's Master Environmental Impact
Report and CIP.
7.All soft costs, such as engineering, inspection, bonds,
etc., will be included in the reimbursement cost at five
percent of the construction costs.
8.Except as provided below, the District will pay 100 percent
of the reimbursement cost after the General Manager accepts
the project.
9.The District may elect to finance the facilities by
borrowing if, after analysis by the Finance Department, it
is determined that the borrowing fits into the District's
financial plan as outlined in Policy 25.
10.If, for any reason, reimbursement funds are not available
at the time the project is operationally complete, the
District may elect to defer or a portion of the
reimbursement the District determines is due to the
developer/property owner until the General Manager accepts
the dedication of the project and until all liens, claims
and/or bonds, as applicable, have been released in the
manner provided under the Agreement for Construction of a
Water System.
11.Funds for reimbursement shall be carried as a CIP until the
reimbursement is made.
12.Each Reimbursement Agreement requires approval by the
Board. A Staff Report will be prepared and reviewed with
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Policy
Number
Date
Adopted
Date
Revised
Subject
DISTRICT ADMINISTRATION OF
REIMBURSEMENT AGREEMENTS 26 02/10/93 06/01/16
Page 4 of 9
the Finance Department prior to presentation to the Board
for approval.
13.This type of Reimbursement Agreement ends five (5) years
after Board’s original approval. The reimbursement
agreement may be terminated prior to said (5) year term by
the General Manager upon a determination that the
developer/property owner has failed to comply with its
obligations under the Reimbursement Agreement or the
Agreement for Construction of a Water System or Sewer
System.
14.If the Reimbursement Agreement expires prior to the
acceptance of the facilities by the District or prior to
payment of reimbursement, the developer/property owner
shall no longer be entitled to reimbursement. The
Developer may submit new documentation and request that the
District enter into a new Reimbursement Agreement. If the
District agrees to enter into a new Reimbursement Agreement
for the facilities, however, the District may revise the
terms and amounts of reimbursement at its discretion based
on information available at the time of the request.
15.All reimbursement requests shall be submitted to the Board
for consideration and shall not be processed without prior
Board approval.
B.Non-Master Plan Facilities-Reimbursement to Developer by
Future Users: Occasionally, a developer/property owner requests
that the District administer a reimbursement agreement to
collect money from future customers who connect to the facility
built by the developer/property owner. If the District agrees,
the District collects the reimbursement amount from each
customer connecting to the facility, together with any other
District connection fees. The reimbursement portion of the
customer’s payment is forwarded by the District to the
developer/property owner as reimbursement.
The District may administer this type of reimbursement agreement
if the developer/property owner's project meets the following
criteria and guidelines:
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1.The developer/property owner demonstrates that the
facilities to be constructed have adequate capacity to
serve future customers.
2.The developer/property owner requests and executes a
Reimbursement Agreement, which is presented to the Board
for approval in conjunction with the presentation of an
Agreement To Construct.
3.The developer/property owner deposits with the District the
estimated cost for District staff to prepare a nexus study
and obtain Board approval for the Reimbursement Agreement.
District staff will provide a written estimate of the
required deposit to the developer/property owner within 15
days of the developer/property owner’s request.
4.The developer/property owner provides three (3) bids from
qualified contractors for the purpose of establishing the
cost of the facilities and the portion of the reimbursement
amount which is to be allocated to future connections.
5.A nexus study shall be performed by District staff to
identify which property owners may benefit from the
construction of the proposed facility and the amount the
District will reimburse the developer/property owner.
6.An informational staff report will be presented to the
Board before the public notice is sent to those property
owners affected by the Reimbursement Agreement,.
7.The District shall give notice to all property owners who
will be subject to the reimbursement charge. These
property owners will then be responsible to pay their fair
share of the cost of the facilities from the time they
connect to the system. The fair share will be based on
their Assigned Service Unit/Equivalent Dwelling Unit
(ASU/EDU) contribution to the total projected ASU/EDU to
use the system. The reimbursement charge will be in
addition to any other fees a property owner would pay to
the District to obtain service.
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8.Each Reimbursement Agreement requires approval by the
Board. Prior to presenting a Reimbursement Agreement to
the Board, staff must obtain two original Reimbursement
Agreements signed by an authorized representative of the
developer/property owner. In addition, a Staff Report must
be prepared and reviewed with the Finance Department prior
to presentation to the Board for approval.
9.This type of Reimbursement Agreement shall be valid for 10
years from the date of Board approval. After the 10 year
period has lapsed the collection of the reimbursement
amount by the District shall cease.
10.Concurrently with submission of a signed Reimbursement
Agreement, the developer/property owner shall pay an
administrative fee to the District, to defray costs related
to the review of the request and the negotiation and
execution of the Reimbursement Agreement. The amount of
the administrative fee will be calculated at the staff rate
existing at the time of said submission.
11.In addition, concurrently with payment of the fee described
above, developer must pay a fee to defray costs estimated
to be incurred for each connection to be established during
the term of the Reimbursement Agreement. The amount of
this fee will be calculated based on an estimated 5 man
hours of District Permit Technician work per connection.
The staff rate in existence at the time the Reimbursement
Agreement is executed will be used as a base and it will be
projected to change each year to account for changes in the
COLA, as determined by the District’s Finance Department.
12.The District will not distribute any reimbursement funds to
the developer/property owner until the project has been
accepted by the Board. The distribution of reimbursement
funds will occur as the District collects the funds from
new customers who connect to the facility, but not more
frequently than once per year.
13.District staff shall collect the reimbursement amount due
at the same time the standard District capacity fees for
the new service are collected.
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14.If the Reimbursement Agreement expires prior to acceptance
of the facilities by the District or prior to payment of
reimbursement, the developer/property owner shall no longer
be entitled to reimbursement. The developer/property owner
may submit new documentation and request that the District
enter into a new Reimbursement Agreement. If the District
agrees to enter into a new Reimbursement Agreement for the
facilities, however, the District may revise the terms and
amounts of reimbursement at its discretion based on
information available at the time of the request.
15.All reimbursement requests shall be submitted to the Board
for consideration and shall not be processed without prior
Board approval.
C.Non-Master Plan Facilities-Reimbursement to
Developer/Property Owner by the District: Normally the District
would not participate in the cost of facilities which are not
identified in the Master Plan. These facilities are of benefit
only to the adjoining property and should ordinarily be financed
solely by the developer/property owner proposing the new
facility. Nonetheless, there may be circumstances where the
General Manager determines that it is appropriate for the
District to participate in the cost of a non-Master Plan
facility. Typical reasons would be in order to accommodate
future growth or betterment of the system. In these instances,
the District may establish special fees to recover the
reimbursement costs from benefiting property owners as they
connect to the system.
The District may reimburse the developer/property owner for
construction costs if the project meets the following criteria
and guidelines:
1.The General Manager has determined that it is appropriate
for the District's customers to participate in the
construction of the project.
2.The developer/property owner shall obtain three (3) bids
from qualified contractors and provide copies of the
initial bids to the District. The developer/property owner
is responsible for selecting the lowest responsive bidder.
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The developer/property owner will be reimbursed for the CIP
portions of the project based on the unit prices submitted
with the lowest responsive bid.
3.A nexus study will be performed by the District to identify
property owners who may benefit from the construction of
the proposed facility.
4.Prior to the public notice being sent to the property
owners affected by the Reimbursement Agreement, an
informational Staff Report shall be presented to the Board.
5.The District shall provide notice to all property owners
which will be subject to the reimbursement charge. These
properties will then be responsible to pay their fair share
of the cost of the facilities, plus interest, at such time
as they connect to the system.
6.The developer/property owner shall request and execute the
Reimbursement Agreement with the District prior to awarding
any contracts for construction.
7.Each Reimbursement Agreement requires approval by the
Board. A Staff Report shall be prepared and reviewed with
the Finance Department prior to presentation to the Board
for approval.
8.Except as provided below, the District will pay 100 percent
of the reimbursement cost after the General Manager accepts
the project.
9.The District may elect to finance the facilities by
borrowing, if it is determined that borrowing is in the
best interest of the District's customers.
10.If for any reason reimbursement funds are not available at
the time the project is operationally complete, the
District may elect to defer the reimbursement until the
General Manager determines that it is appropriate to make
payments.
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11.Funds for reimbursement shall be carried as a CIP until the
reimbursement has been made.
12.This type of Reimbursement Agreement contains no end date
for the collection by the District of its contributed share
of the cost, and shall be the responsibility of all current
and subsequent property owners.
13.District staff shall collect the reimbursement amount due
at the same time the standard District capacity fees for
the new service are collected.
14.If the Reimbursement Agreement expires prior to acceptance
of the facilities by the District or prior to payment of
reimbursement, the developer/property owner shall no longer
be entitled to reimbursement. The developer/property owner
may submit new documentation and request that the District
enter into a new reimbursement agreement. If the District
agrees to enter into a new reimbursement agreement for the
facilities, however, the District may revise the terms and
amounts of reimbursement at its discretion based on
information available at the time of the request.
15.All reimbursement requests shall be submitted to the Board
for consideration and shall not be processed without prior
Board approval.
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1.0 POLICY
It is the policy of the Otay Water District to invest public funds in
a manner which will provide maximum security with the best interest
return, while meeting the daily cash flow demands of the entity and
conforming to all state statues governing the investment of public
funds.
2.0 SCOPE
This investment policy applies to all financial assets of the Otay
Water District. The District pools all cash for investment purposes.
These funds are accounted for in the District’s audited Comprehensive
Annual Financial Report (CAFR) and include:
2.1) General Fund
2.2)Capital Project Funds
2.2.1) Designated Expansion Fund
2.2.2) Restricted Expansion Fund
2.2.3) Designated Betterment Fund
2.2.4) Restricted Betterment Fund
2.2.5) Designated Replacement Fund
2.2.6) Restricted New Water Supply Fund
2.3) Other Post Employment Fund (OPEB)
2.4) Debt Reserve Fund
Exceptions to the pooling of funds do exist for tax-exempt debt
proceeds, debt reserves and deferred compensation funds. Funds
received from the sale of general obligation bonds, certificates of
participation or other tax-exempt financing vehicles are segregated
from pooled investments and the investment of such funds are guided by
the legal documents that govern the terms of such debt issuances.
3.0 PRUDENCE
Investments should be made with judgment and care, under current
prevailing circumstances, which persons of prudence, discretion and
intelligence, exercise in the management of their own affairs, not for
speculation, but for investment, considering the probable safety of
their capital as well as the probable income to be derived.
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The standard of prudence to be used by investment officials shall be
the “Prudent Person” and/or "Prudent Investor" standard (California
Government Code 53600.3) and shall be applied in the context of
managing an overall portfolio. Investment officers acting in
accordance with written procedures and the investment policy and
exercising due diligence shall be relieved of personal responsibility
for an individual security's credit risk or market price changes,
provided deviations from expectations are reported in a timely fashion
and appropriate action is taken to control adverse developments.
4.0 OBJECTIVE
As specified in the California Government Code 53600.5, when
investing, reinvesting, purchasing, acquiring, exchanging, selling and
managing public funds, the primary objectives, in priority order, of
the investment activities shall be:
4.1)Safety: Safety of principal is the foremost objective of
the investment program. Investments of the Otay Water
District shall be undertaken in a manner that seeks to
ensure the preservation of capital in the overall portfolio.
To attain this objective, the District will diversify its
investments by investing funds among a variety of securities
offering independent returns and financial institutions.
4.2)Liquidity: The Otay Water District’s investment portfolio
will remain sufficiently liquid to enable the District to
meet all operating requirements which might be reasonably
anticipated.
4.3)Return on Investment: The Otay Water District’s investment
portfolio shall be designed with the objective of attaining
a benchmark rate of return throughout budgetary and economic
cycles, commensurate with the District’s investment risk
constraints and the cash flow characteristics of the
portfolio.
5.0 DELEGATION OF AUTHORITY
Authority to manage the Otay Water District’s investment program is
derived from the California Government Code, Sections 53600 through
53692. Management responsibility for the investment program is hereby
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delegated to the Chief Financial Officer (CFO), who shall be
responsible for all transactions undertaken and shall establish a
system of controls to regulate the activities of subordinate officials
and their procedures in the absence of the CFO.
The CFO shall establish written investment policy procedures for the
operation of the investment program consistent with this policy. Such
procedures shall include explicit delegation of authority to persons
responsible for investment transactions. No person may engage in an
investment transaction except as provided under the terms of this
policy and the procedures established by the CFO.
6.0 ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process shall
refrain from personal business activity that could conflict with the
proper execution and management of the investment program, or that
could impair their ability to make impartial investment decisions.
Employees and investment officials shall disclose to the General
Manager any material financial interests in financial institutions
with which they conduct business. They shall further disclose any
personal financial/investment positions that could be related to the
performance of the investment portfolio. Employees and officers shall
refrain from undertaking personal investment transactions with the
same individual with whom business is conducted on behalf of the
District.
7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Chief Financial Officer shall maintain a list of District selected
financial institutions and security broker/dealers authorized and
approved to provide investment services in the State of California.
Investment services include the buying or selling of permissible
investments such as treasuries, government agencies, etc. for delivery
to the custodian bank. These may include “primary” dealers or regional
dealers that qualify under Securities & Exchange Commission Rule 15C3-
1 (Uniform Net Capital Rule). No public deposit shall be made except
in a qualified public depository as established by state laws. All
financial institutions and broker/dealers who desire to become
qualified bidders for investment transactions must supply the District
with the following, as appropriate:
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Audited Financial Statements.
Proof of Financial Industry Regulatory Authority (FINRA)
certification.
Proof of state registration.
Completed broker/dealer questionnaire.
Certification of having read the District’s Investment
Policy.
Evidence of adequate insurance coverage.
An annual review of the financial condition and registrations of
qualified bidders will be conducted by the CFO. A current audited
financial statement is required to be on file for each financial
institution and broker/dealer through which the District invests.
8.0 AUTHORIZED AND SUITABLE INVESTMENTS
From the governing body perspective, special care must be taken to
ensure that the list of instruments includes only those allowed by law
and those that local investment managers are trained and competent to
handle. The District is governed by the California Government Code,
Sections 53600 through 53692, to invest in the following types of
securities, as further limited herein:
8.01)United States Treasury Bills, Bonds, Notes or those
instruments for which the full faith and credit of the United
States are pledged for payment of principal and interest. There
is no percentage limitation of the portfolio which can be
invested in this category, although a five-year maturity
limitation is applicable.
8.02)Local Agency Investment Fund (LAIF), which is a State
of California managed investment pool, may be used up to the
maximum permitted by State Law (currently $75 million). The
District may also invest bond proceeds in LAIF with the same but
independent maximum limitation.
8.03)Bonds, debentures, notes and other evidence of
indebtedness issued by any of the following government agency
issuers:
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Federal Home Loan Bank (FHLB)
Federal Home Loan Mortgage Corporation (FHLMC or "Freddie
Mac")
Federal National Mortgage Association (FNMA or "Fannie Mae")
Government National Mortgage Association (GNMA or “Ginnie
Mae”)
Federal Farm Credit Bank (FFCB)
Federal Agricultural Mortgage Corporation (FAMCA or “Farmer
Mac”)
There is no percentage limitation of the portfolio which can be
invested in this category, although a five-year maturity from the
settlement date limitation is applicable. Government agencies
whose implied guarantee has been reduced or eliminated shall
require an “A” rating or higher by a nationally recognized
statistical rating organization.
8.04)Interest-bearing demand deposit accounts must be made
only in Federal Deposit Insurance Corporation (FDIC) insured
accounts. For deposits in excess of the insured maximum of
$250,000, approved collateral shall be required in accordance
with California Government Code, Section 53652. Certificates of
Deposit (CD) will be made only to the FDIC-insured limit of
$250,000. Investments in CD’s are limited to 15 percent of the
District’s portfolio.
8.05) Commercial paper, which is short-term, unsecured
promissory notes of corporate and public entities. Purchases of
eligible commercial paper may not exceed 2 percent of the
outstanding paper of an issuing corporation, and maximum
investment maturity will be restricted to 270 days. Investment is
further limited as described in California Government Code,
Section 53601(h). Purchases of commercial paper may not exceed 10
percent of the District’s portfolio.
8.06)Medium-term notes defined as all corporate debt
securities with a maximum remaining maturity of five years from
the settlement date or less, and that meet the further
requirements of California Government Code, Section 53601(k).
Investments in medium-term notes are limited to 10 percent of the
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District’s portfolio and no more than 2 percent of the
outstanding medium-term notes of any single issuer.
8.07)Money market mutual funds that invest only in Treasury
securities and repurchase agreements collateralized with Treasury
securities, and that meet the further requirements of California
Government Code, Section 53601(l). Investments in money market
mutual funds are limited to 10 percent of the District's
portfolio.
8.08)The San Diego County Treasurer’s Pooled Money Fund,
which is a County managed investment pool, may be used by the
Otay Water District to invest excess funds. There is no
percentage limitation of the portfolio which can be invested in
this category.
8.09)Under the provisions of California Government Code
53601.6, the Otay Water District shall not invest any funds
covered by this Investment Policy in inverse floaters, range
notes, interest-only strips derived from mortgage pools, or any
investment that may result in a zero-interest accrual if held to
maturity. Also, the borrowing of funds for investment purposes,
known as leveraging, is prohibited.
9.0 INVESTMENT POOLS/MUTUAL FUNDS
A thorough investigation of the pool/fund is required prior to
investing, and on a continual basis. There shall be a questionnaire
developed which will answer the following general questions:
A description of eligible investment securities, and a
written statement of investment policy and objectives.
A description of interest calculations and how it is
distributed, and how gains and losses are treated.
A description of how the securities are safeguarded
(including the settlement processes), and how often the
securities are priced and the program audited.
A description of who may invest in the program, how often,
and what size deposits and withdrawals are allowed.
A schedule for receiving statements and portfolio listings.
Are reserves, retained earnings, etc., utilized by the
pool/fund?
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A fee schedule, and when and how is it assessed.
Is the pool/fund eligible for bond proceeds and/or will it
accept such proceeds?
10.0 COLLATERALIZATION
Collateralization will be required on certificates of deposit
exceeding the $250,000 FDIC insured maximum. In order to anticipate
market changes and provide a level of security for all funds, the
collateralization level will be 102% of market value of principal and
accrued interest. Collateral will always be held by an independent
third party with whom the entity has a current custodial agreement. A
clearly marked evidence of ownership (safekeeping receipt) must be
supplied to the entity and retained. The right of collateral
substitution is granted.
11.0 SAFEKEEPING AND CUSTODY
All security transactions entered into by the Otay Water District
shall be conducted on a delivery-versus-payment (DVP) basis.
Securities will be held by a third-party custodian designated by the
District and evidenced by safekeeping receipts.
12.0 DIVERSIFICATION
The Otay Water District will diversify its investments by security
type and institution, with limitations on the total amounts invested
in each security type as detailed in Paragraph 8.0, above, so as to
reduce overall portfolio risks while attaining benchmark average rate
of return. With the exception of U.S. Treasury securities, government
agencies, and authorized pools, no more than 50% of the District’s
total investment portfolio will be invested with a single financial
institution.
13.0 MAXIMUM MATURITIES
To the extent possible, the Otay Water District will attempt to match
its investments with anticipated cash flow requirements. Unless
matched to a specific cash flow, the District will not directly invest
in securities maturing more than five years from the settlement date
of the purchase. However, for time deposits with banks or savings and
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loan associations, investment maturities will not exceed two years.
Investments in commercial paper will be restricted to 270 days.
14.0 INTERNAL CONTROL
The Chief Financial Officer shall establish an annual process of
independent review by an external auditor. This review will provide
internal control by assuring compliance with policies and procedures.
15.0 PERFORMANCE STANDARDS
The investment portfolio shall be designed with the objective of
obtaining a rate of return throughout budgetary and economic cycles,
commensurate with the investment risk constraints and the cash flow
needs.
The Otay Water District’s investment strategy is passive. Given this
strategy, the basis used by the CFO to determine whether market yields
are being achieved shall be the State of California Local Agency
Investment Fund (LAIF) as a comparable benchmark.
16.0 REPORTING
The Chief Financial Officer shall provide the Board of Directors
monthly investment reports which provide a clear picture of the status
of the current investment portfolio. The management report should
include comments on the fixed income markets and economic conditions,
discussions regarding restrictions on percentage of investment by
categories, possible changes in the portfolio structure going forward
and thoughts on investment strategies. Schedules in the quarterly
report should include the following:
A listing of individual securities held at the end of the
reporting period by authorized investment category.
Average life and final maturity of all investments listed.
Coupon, discount or earnings rate.
Par value, amortized book value, and market value.
Percentage of the portfolio represented by each investment
category.
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17.0 INVESTMENT POLICY ADOPTION
The Otay Water District’s investment policy shall be adopted by
resolution of the District’s Board of Directors. The policy shall be
reviewed annually by the Board and any modifications made thereto must
be approved by the Board.
18.0 GLOSSARY
See Appendix A.
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APPENDIX A: GLOSSARY
ACTIVE INVESTING: Active investors will purchase investments and
continuously monitor their activity, often looking at the price
movements of their stocks many times a day, in order to exploit
profitable conditions. Typically, active investors are seeking short
term profits.
AGENCIES: Federal agency securities and/or Government-sponsored
enterprises.
BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a
bank or trust company. The accepting institution guarantees payment
of the bill, as well as the issuer.
BENCHMARK: A comparative base for measuring the performance or risk
tolerance of the investment portfolio. A benchmark should represent a
close correlation to the level of risk and the average duration of the
portfolio’s investments.
BROKER/DEALER: Any individual or firm in the business of buying and
selling securities for itself and others. Broker/dealers must register
with the SEC. When acting as a broker, a broker/dealer executes
orders on behalf of his/her client. When acting as a dealer, a
broker/dealer executes trades for his/her firm's own account.
Securities bought for the firm's own account may be sold to clients or
other firms, or become a part of the firm's holdings.
CERTIFICATE OF DEPOSIT (CD): A short or medium term, interest bearing,
FDIC insured debt instrument offered by banks and savings and loans.
Money removed before maturity is subject to a penalty. CDs are a low
risk, low return investment, and are also known as “time deposits”,
because the account holder has agreed to keep the money in the account
for a specified amount of time, anywhere from a few months to several
years.
COLLATERAL: Securities, evidence of deposit or other property, which a
borrower pledges to secure repayment of a loan. Also refers to
securities pledged by a bank to secure deposits of public monies.
COMMERCIAL PAPER: An unsecured short-term promissory note, issued by
corporations, with maturities ranging from 2 to 270 days.
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COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual
report for the Otay Water District. It includes detailed financial
information prepared in conformity with generally accepted accounting
principles (GAAP). It also includes supporting schedules necessary to
demonstrate compliance with finance-related legal and contractual
provisions, extensive introductory material, and a detailed
statistical section.
COUPON: (a) The annual rate of interest that a bond’s issuer promises
to pay the bondholder on the bond’s face value. (b) A certificate
attached to a bond evidencing interest due on a set date.
DEALER: A dealer, as opposed to a broker, acts as a principal in all
transactions, buying and selling for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT: There are two methods of delivery of
securities: delivery versus payment and delivery versus receipt.
Delivery versus payment is delivery of securities with an exchange of
money for the securities. Delivery versus receipt is delivery of
securities with an exchange of a signed receipt for the securities.
DERIVATIVES: (1) Financial instruments whose return profile is linked
to, or derived from, the movement of one or more underlying index or
security, and may include a leveraging factor, or (2) financial
contracts based upon notional amounts whose value is derived from an
underlying index or security (interest rates, foreign exchange rates,
equities or commodities).
DISCOUNT: The difference between the cost price of a security and its
maturity when quoted at lower than face value. A security selling
below original offering price shortly after sale also is considered to
be at a discount.
DISCOUNT SECURITIES: Non-interest bearing money market instruments
that are issued at a discount and redeemed at maturity for full face
value, e.g., U.S. Treasury Bills.
DIVERSIFICATION: Dividing investment funds among a variety of
securities offering independent returns.
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FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to
supply credit to various classes of institutions and individuals,
e.g., S&L’s, small business firms, students, farmers, farm
cooperatives, and exporters.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that
insures deposits in member banks and thrifts.
FEDERAL FARM CREDIT BANK (FFCB): The Federal Farm Credit Bank system
supports agricultural loans and issues securities and bonds in
financial markets backed by these loans. It has consolidated the
financing programs of several related farm credit agencies and
corporations.
FEDERAL FUNDS RATE: The rate of interest at which Fed funds are
traded. This rate is currently pegged by the Federal Reserve through
open-market operations.
FEDERAL AGRICULTURAL MORTGAGE CORPORATION (FAMC or Farmer Mac): A
stockholder owned, publicly-traded corporation that was established
under the Agricultural Credit Act of 1987, which added a new Title
VIII to the Farm Credit Act of 1971. Farmer Mac is a government
sponsored enterprise, whose mission is to provide a secondary market
for agricultural real estate mortgage loans, rural housing mortgage
loans, and rural utility cooperative loans. The corporation is
authorized to purchase and guarantee securities. Farmer Mac
guarantees that all security holders will receive timely payments of
principal and interest.
FEDERAL HOME LOAN BANK (FHLB): Government sponsored wholesale banks
(currently 12 regional banks), which lend funds and provide
correspondent banking services to member commercial banks, thrift
institutions, credit unions and insurance companies.
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC or Freddie Mac): A
stockholder owned, publicly traded company chartered by the United
States federal government in 1970 to purchase mortgages and related
securities, and then issue securities and bonds in financial markets
backed by those mortgages in secondary markets. Freddie Mac, like its
competitor Fannie Mae, is regulated by the United States Department of
Housing and Urban Development (HUD).
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
INVESTMENT POLICY 27 09/15/93 05/05/21
Page 13 of 17
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): FNMA, like
GNMA was chartered under the Federal National Mortgage Association Act
in 1938. FNMA is a federal corporation working under the auspices of
the Department of Housing and Urban Development (HUD). It is the
largest single provider of residential mortgage funds in the United
States. Fannie Mae is a private stockholder-owned corporation. The
corporation’s purchases include a variety of adjustable mortgages and
second loans, in addition to fixed-rate mortgages. FNMA’s securities
are also highly liquid and are widely accepted. FNMA assumes and
guarantees that all security holders will receive timely payment of
principal and interest.
FEDERAL RESERVE SYSTEM: The central bank of the United States created
by Congress and consisting of a seven-member Board of Governors in
Washington, D.C., 12 regional banks and about 5,700 commercial banks
that are members of the system.
FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): An independent,
not-for-profit organization authorized by Congress to protect
America’s investors by making sure the securities industry operates
fairly and honestly. It is dedicated to investor protection and
market integrity through effective and efficient regulation of the
securities industry. FINRA is the successor to the National
Association of Securities Dealers, Inc. (NASD).
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): A
government owned agency which buys mortgages from lending
institutions, securitizes them, and then sells them to investors.
Because the payments to investors are guaranteed by the full faith and
credit of the U.S. Government, they return slightly less interest than
other mortgage-backed securities.
INTEREST-ONLY STRIPS: A mortgage-backed instrument where the investor
receives only the interest, no principal, from a pool of mortgages.
Issues are highly interest rate sensitive, and cash flows vary between
interest periods. Also, the maturity date may occur earlier than that
stated if all loans within the pool are pre-paid. High prepayments on
underlying mortgages can return less to the holder than the dollar
amount invested.
INVERSE FLOATER: A bond or note that does not earn a fixed rate of
interest. Rather, the interest rate is tied to a specific interest
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
INVESTMENT POLICY 27 09/15/93 05/05/21
Page 14 of 17
rate index identified in the bond/note structure. The interest rate
earned by the bond/note will move in the opposite direction of the
index. An inverse floater increases the market rate risk and modified
duration of the investment.
LEVERAGE: Investing with borrowed money with the expectation that the
interest earned on the investment will exceed the interest paid on the
borrowed money.
LIQUIDITY: A liquid asset is one that can be converted easily and
rapidly into cash without a substantial loss of value. In the money
market, a security is said to be liquid if the spread between bid and
asked prices is narrow and reasonable size can be done at those
quotes.
LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from
political subdivisions that are placed in the custody of the State
Treasurer for investment and reinvestment.
MARKET VALUE: The price at which a security is trading and could
presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT: A written contract covering all future
transactions between the parties to repurchase/reverse repurchase
agreements that establish each party’s rights in the transactions. A
master agreement will often specify, among other things, the right of
the buyer-lender to liquidate the underlying securities in the event
of default by the seller borrower.
MATURITY: The date upon which the principal or stated value of an
investment becomes due and payable.
MONEY MARKET: The market in which short-term debt instruments (bills,
commercial paper, bankers’ acceptances, etc.) are issued and traded.
MUTUAL FUNDS: An open-ended fund operated by an investment company
which raises money from shareholders and invests in a group of assets,
in accordance with a stated set of objectives. Mutual funds raise
money by selling shares of the fund to the public. Mutual funds then
take the money they receive from the sale of their shares (along with
any money made from previous investments) and use it to purchase
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
INVESTMENT POLICY 27 09/15/93 05/05/21
Page 15 of 17
various investment vehicles, such as stocks, bonds, and money market
instruments.
MONEY MARKET MUTUAL FUNDS: An open-end mutual fund which invests only
in money markets. These funds invest in short term (one day to one
year) debt obligations such as Treasury bills, certificates of
deposit, and commercial paper.
PASSIVE INVESTING: An investment strategy involving limited ongoing
buying and selling actions. Passive investors will purchase
investments with the intention of long-term appreciation and limited
maintenance, and typically don’t actively attempt to profit from short
term price fluctuations. Also known as a buy-and-hold strategy.
PRIMARY DEALER: A designation given by the Federal Reserve System to
commercial banks or broker/dealers who meet specific criteria,
including capital requirements and participation in Treasury auctions.
These dealers submit daily reports of market activity and positions
and monthly financial statements to the Federal Reserve Bank of New
York and are subject to its informal oversight. Primary dealers
include Securities and Exchange Commission registered securities
broker/dealers, banks, and a few unregulated firms.
PRUDENT PERSON RULE: An investment standard. In some states the law
requires that a fiduciary, such as a trustee, may invest money only in
a list of securities selected by the custody state—the so-called legal
list. In other states the trustee may invest in a security if it is
one which would be bought by a prudent person of discretion and
intelligence who is seeking a reasonable income and preservation of
capital.
PUBLIC SECURITIES ASSOCIATION (PSA): A trade organization of dealers,
brokers, and bankers who underwrite and trade securities offerings.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not
claim exemption from the payment of any sales or compensating use or
ad valorem taxes under the laws of this state, which has segregated
for the benefit of the commission eligible collateral having a value
of not less than its maximum liability and which has been approved by
the Public Deposit Protection Commission to hold public deposits.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
INVESTMENT POLICY 27 09/15/93 05/05/21
Page 16 of 17
RANGE NOTE: An investment whose coupon payment varies and is dependent
on whether the current benchmark falls within a pre-determined range.
RATE OF RETURN: The yield obtainable on a security based on its
purchase price or its current market price. This may be the amortized
yield to maturity on a bond the current income return.
REGIONAL DEALER: A securities broker/dealer, registered with the
Securities & Exchange Commission (SEC), who meets all of the licensing
requirements for buying and selling securities.
REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these
securities to an investor with an agreement to repurchase them at a
fixed price on a fixed date. The security “buyer” in effect lends the
“seller” money for the period of the agreement, and the terms of the
agreement are structured to compensate him for this. Dealers use RP
extensively to finance their positions. Exception: When the Fed is
said to be doing RP, it is lending money that is increasing bank
reserves.
SAFEKEEPING: A service to customers rendered by banks for a fee
whereby securities and valuables of all types and descriptions are
held in the bank’s vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of
outstanding securities issues following their initial distribution.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to
protect investors in securities transactions by administering
securities legislation.
SEC RULE 15C3-1: See Uniform Net Capital Rule.
STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises
(FHLB, FNMA, FAMCA, etc.), and Corporations, which have imbedded
options (e.g., call features, step-up coupons, floating rate coupons,
derivative-based returns) into their debt structure. Their market
performance is impacted by the fluctuation of interest rates, the
volatility of the imbedded options and shifts in the shape of the
yield curve.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
INVESTMENT POLICY 27 09/15/93 05/05/21
Page 17 of 17
TREASURY BILLS: A non-interest bearing discount security issued by the
U.S. Treasury to finance the national debt. Most bills are issued to
mature in three months, six months, or one year.
TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities
issued as direct obligations of the U.S. Government and having initial
maturities of more than 10 years.
TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities
issued as direct obligations of the U.S. Government and having initial
maturities from two to 10 years.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission
requirement that member firms as well as nonmember broker-dealers in
securities maintain a maximum ratio of indebtedness to liquid capital
of 15 to 1; also called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans
and commitments to purchase securities, one reason new public issues
are spread among members of underwriting syndicates. Liquid capital
includes cash and assets easily converted into cash.
YIELD: The rate of annual income return on an investment, expressed as
a percentage. (a) INCOME YIELD is obtained by dividing the current
dollar income by the current market price for the security. (b) NET
YIELD or YIELD TO MATURITY is the current income yield minus any
premium above par or plus any discount from par in purchase price,
with the adjustment spread over the period from the date of purchase
to the date of maturity of the bond.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
JOINT USE OF LAND ADJACENT TO AND ABOVE
RESERVOIRS 28 06/21/95 08/10/11
1 of 2
PURPOSE
To establish a policy allowing for joint use of land adjacent to
reservoirs and above buried concrete reservoir roofs, and to establish
the costs for said joint use.
BACKGROUND
The District may be asked by outside parties to allow joint use of land
adjacent to reservoirs or above buried concrete reservoir roofs. The
District has determined that some types of joint uses will require that
the reservoir be designed and constructed to a higher standard which
will increase the cost of the reservoir. It is the intent of the
District to require the party requesting the joint use to pay the
increased costs as partial compensation for the District permitting the
joint use. However, the District Board may elect to "up front" the
cost of design and construction of the reservoir to a higher standard
with the anticipation of receiving a future reimbursement from an
uncommitted or unidentified user. This will be considered on a
project-by-project basis.
The joint use allowed by other agencies and to be considered by Otay
Water District fall into one of the following categories:
1.Court-type recreational uses, such as tennis, basketball,
handball and roller hockey. These facilities may be
constructed directly on top of unburied concrete reservoir
surfaces. Vehicles will not be allowed on top of the
reservoir.
2.Park-type uses, such as picnic areas, sodded sports fields
for baseball and soccer, and landscaped areas for public
enjoyment. These uses can be accommodated and built on the
soil that the District included as part of the reservoir
project. In some cases no traffic loading will be allowed
and in other cases light maintenance-type vehicles will be
allowed.
3.Same as Item No. 2 above, except the joint use will require
the reservoir to be covered with additional soil.
4.Uses for parking and vehicle access, such as parking lots,
equipment storage and residential streets.
The types of use for buried concrete reservoirs are as follows:
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
JOINT USE OF LAND ADJACENT TO AND ABOVE
RESERVOIRS 28 06/21/95 08/10/11
2 of 2
TYPE OF USE
1.Park-type use, court facilities with
grandstands, directly on roof, no vehicle
loading.
2.Park-type use, landscaping of soil to
District design, no vehicle loading.
3.Park-type use, landscaping, 18-inches
additional soil to District design, no
vehicle loading.
4.Park-type use, landscaping of soil to
District design with light vehicle loading.
5.Park-type use, landscaping 18-inches
additional soil to District design, with
light vehicle loading.
6.Light highway, traffic loading, parking,
driveways or roadways.
The total additional costs for these facilities shall be calculated by
a professional engineer and approved by District staff.
POLICY
It is the District's policy that, where possible, the District will
consider designing and constructing reservoirs and buried concrete
reservoirs in a manner to allow joint use of the land adjacent to, and
above the concrete reservoir roof. The user requesting the joint use
will be required to pay the additional design and construction costs to
accommodate the joint use. Actual costs will be determined on a case-
by-case basis as well as consideration of off-sets, such as land.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
CLAIMS HANDLING PROCEDURE 29 09/06/95 03/02/11
Page 1 of 1
PURPOSE
To establish a policy for handling claims filed against the
District.
BACKGROUND
California Government Code Sections 935 et seq. authorize the
District to establish procedures for handling claims and to delegate
to the General Manager the authority to settle or deny claims up to
certain amounts.
POLICY
The Board of Directors authorizes the General Manager, after
consultation with the General Counsel, to allow or reject claims up to
the amount of $10,000.
The General Manager shall report to the Board, as an information
item, all actions taken on claims within his authority at the Board's
next regular meeting.
Page 1 of 1
POLICY 30 REPEALED ON 03/18/98.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
NOTICE OF REQUEST FOR CUSTOMER RECORDS UNDER
THE PUBLIC RECORDS ACT 30 06/18/97
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
ENCOURAGING DISADVANTAGED BUSINESS
ENTERPRISE FIRMS 31 12/17/97 08/10/11
Page 1 of 1
PURPOSE
To encourage Disadvantaged Business Enterprise (DBE) firms to compete
for District professional services and construction contracts.
BACKGROUND
At its meeting on November 16, 1994, the Board of Directors considered
ways in which the District could enhance its program of encouraging
DBE firm participation on District professional services and
construction contracts. The Board approved several Action Items to
assist in this effort. The Action Items were reconsidered at the
Board of Directors meeting on the date indicated above and the seven
Action Items set forth below were re-adopted.
POLICY
It is the Policy of the Otay Water District to encourage participation
of Disadvantaged Business Enterprises (DBE), Emerging Business
Enterprises (EBE), Minority Business Enterprises (MBE), Small Business
Enterprises (SBE), Women Business Enterprises (WBE), Disabled Veteran
Business Enterprises (DVBE) and other historically underrepresented
business enterprises (collectively known for the purpose of this
Policy as DBE firms), on District professional services and
construction contracts.
Board-approved Action Items are as follows:
1.Customize Performance Bond requirements for each project.
2.Customize Liability Insurance requirements for each project.
3.Place project notifications in DBE plan rooms and publications.
4.Attend conferences on encouraging DBE participation.
5.Encourage Prime (General) Contractor use of DBE firms.
6.Train DBE firms on submitting bid documents.
7.Break large projects into smaller projects when practicable.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
EMPLOYEE SUGGESTION CASH AWARD PROGRAM 32 07/01/98 11/07/01
Page 1 of 1
POLICY 32 DELETED ON 06/02/04.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
REDISTRICTING OF DIRECTORS DIVISION
BOUNDARIES
33 04/05/00
Page 1 of 2
PURPOSE
To ensure equal population distribution of the Directors’ Divisions
boundaries by developing a policy that provides the opportunity for
the Board to review this issue at least every three years.
BACKGROUND
In February of 2000, the Board revised the Director’s division
boundaries. This was necessary because the District has experienced
significant growth and will continue to do so into the foreseeable
future. For example, over the last ten years, Otay’s installed meter
base has grown more than 50% between 1990 and February 1, 2000.
Currently Otay has approximately 36,536 separate accounts, which
because of multi-meters (condos, apartments) includes 41,476
households. We have already received plans from developers that
indicate that this growth will continue at a pace equal to or greater
than the last ten years. In addition, the growth is not uniform but
is more likely to occur only in those districts that have large new
developments planned. Therefore, given that significant and unequal
growth is anticipated, the Board wishes to define, via Board policy,
when is the most prudent time to revisit the redistricting of
Director’s boundaries. Consequently, the Board requested that staff
recommend a policy advising the Board as to when and how the Board
should revisit this important issue.
To this end, staff reviewed population trends and sources of data
available to the District concerning population growth. Staff also
surveyed the four fastest growing counties in California (Placer, San
Bernardino, Riverside, and Calaveras counties) as well as Padre Dam,
Sweetwater, South Bay Irrigation District, San Diego County Water
Authority, and Irvine Ranch Water District to determine if there was a
common policy guiding redistricting procedures. Of these agencies,
only Sweetwater had a specific policy for redistricting, and none of
the agencies had specific criteria for when a review should occur,
short of a general sense that review should occur whenever inequitable
growth has occurred. To provide the Board with a reasonable policy for
the timing and procedure for redistricting Director’s boundaries,
staff recommends the following policy.
POLICY
The Board of Directors of Otay Water District will review, and change
if necessary, the boundaries of its divisions every three years
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
REDISTRICTING OF DIRECTORS DIVISION
BOUNDARIES
33 04/05/00
Page 2 of 2
beginning in April 2003. These changes must be completed 120 days
before any general election. In addition, the Board may review and
change the boundaries whenever the Board deems it advisable for the
best interests of the District and the convenience of its voters,
according to Water Code §71541.
The objective of redistricting is to make the five (5) Divisions
within the District as nearly equal in population as may be
practicable. If the Board determines that because of population or
area changes, the Divisions are no 1onger substantially equal, then
the Board can change the boundaries. As population or area within the
divisions shift, modification of the boundaries may be appropriate to
maintain the basic “one person, one vote” standard applicable to
public agencies.
PROCEDURE
The General Manager will present to the Board a report every three
years describing how the residential population within each Division
has changed over the previous three years. This information will be
derived based upon the number, location, type and date of installation
of the water meters. Staff will prepare a recommendation concerning
how the boundaries might be most equitably adjusted. The Board will
have the opportunity to review and change any of these
recommendations.
OTAY WATER DISTRICT
HUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS-RELATED
EXPENSES POLICY 34 5/3/2000 5/3/2023
Page 1 of 9
Purpose
To provide guidelines for compensation, advancement, and
reimbursement of expenses when work duties require Otay Water
District (“District”) staff to conduct District business away from
their regular work site(s) and outside of San Diego County.
Background
District staff are called upon to travel or conduct business-
related meetings, conferences, training, or functions away from
their regular work site(s) and outside of San Diego County, in
conjunction with their job functions. Federal and State laws permit
and provide guidance for reimbursement of expenses and
compensation to staff while traveling outside of San Diego County
on District business.
Policy
The District will reimburse staff for reasonable expenses incurred
while outside of San Diego County attending District business-
related meetings, functions, conferences, training, or while
traveling on District business, including lodging, meals,
transportation, and related incidentals. The District will
compensate non-exempt staff while traveling in accordance with
District policy, applicable Memorandums of Understanding (“MOUs”),
and federal and state laws.
Procedures
A.Pre-approval of Travel Arrangements
Staff’s Department Chief and General Manager shall approve the
“Staff Travel Authorization Request” form prior to making any
travel arrangements. When a Department Chief is traveling, the
General Manager shall approve the authorization form.
B.Advances and Pre-Payment of Otherwise Reimbursable Expenses
Every effort shall be made to process payments using District
funds or a District credit card. Staff may request pre-payment
of registration, transportation, and lodging, and may request
an advance upon expected costs for meals, gasoline for District
OTAY WATER DISTRICT
HUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS-RELATED
EXPENSES POLICY 34 5/3/2000 5/3/2023
Page 2 of 9
or rental vehicles, public ground transportation, taxi, or
ride-sharing service using the “Staff Travel Authorization
Request” form. Pre-payments and advances shall be limited to
staff’s expenses only. Advances for per diem meals shall not
exceed the per diem allowance anticipated for the trip plus
known costs of ground transportation. Advances shall be
requested in a timely manner to allow normal processing through
Accounts Payable.
C.Reimbursement of Expenses
Staff shall be reimbursed for travel expenses incurred while
at authorized District business-related meetings, functions,
conferences, or training outside of San Diego County as
follows:
1.Accountability
Travel expenses shall be budgeted by staff as part of the
annual budget process. Any travel expenses approved with
the budget shall be considered authorized for that fiscal
year only. Travel expenses included in Capital Improvements
Program (“CIP”) budgets are also considered authorized.
Before the District expends any funds for authorized travel
that involves lodging or public transportation expenses,
staff must complete a “Staff Travel Authorization Request”
form.
2.Transportation
The District will pay for reasonable transportation costs.
Staff shall endeavor to use the most appropriate mode of
transportation given the purpose and nature of the trip.
If for personal preference or for non-business-related
reasons staff incurs additional travel expenses, they will
be responsible for the additional expenses.
a.Air Transportation
The District will reimburse staff or pre-pay costs for
economy (coach) class airfares. The District will
endeavor to purchase airline tickets in advance, taking
advantage of discounts and low airfares. Whenever
possible, airline reservations shall be made to permit
OTAY WATER DISTRICT
HUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS-RELATED
EXPENSES POLICY 34 5/3/2000 5/3/2023
Page 3 of 9
travel during normal business hours. Every effort shall
be made to ensure travel arrangements coincide with the
start of the conference, training, or professional
function.
b. Automobile
i.District Vehicle: Whenever travel by vehicle is
most cost-effective or practical, staff shall
endeavor to use a District vehicle. Staff must have
a valid California driver’s license to operate a
District vehicle. The District will reimburse staff
for gasoline purchases with receipts while using a
District vehicle; however, staff should ensure that
the vehicle has sufficient gasoline to reach the
desired destination and return, or a full tank of
gasoline, before departing from District offices.
Staff who are assigned a District vehicle may also
use a District credit card to purchase gasoline.
Staff must comply with the provisions of Board of
Directors Policy No. 14, “Use of District Vehicles
and Car Allowance” whenever they choose to use a
District vehicle while traveling.
If staff will be driving a District or private
vehicle outside of San Diego County on District
business, or will be transporting non-District
staff (excludes contractors/consultants) in a
District or private vehicle while conducting
District business, then they must obtain advanced
approval from the Department Chief by completing
the “Authorization to Drive A District or Private
Vehicle Out of San Diego County or to Transport
Non-District Staff in a District or Private
Vehicle” form.
ii.Personal Vehicle: In situations where staff uses a
personal vehicle for District business, they shall
attest upon hire or as required, to meeting the
California license and minimum automobile insurance
requirements or must make arrangements for a driver
who meets the above requirements. Human Resources
staff will ensure employees maintain a valid
OTAY WATER DISTRICT
HUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS-RELATED
EXPENSES POLICY 34 5/3/2000 5/3/2023
Page 4 of 9
California driver’s license. Staff may not use a
personal vehicle that is not insured according to
this policy.
If a personal vehicle is used, staff will be
reimbursed for mileage at the current maximum
allowable tax-exempt reimbursement rate provided by
the IRS.
Staff who receive a monthly car allowance are not
eligible to receive reimbursement for mileage nor
will they be reimbursed for use of other forms of
transportation (e.g., ride-sharing service) within
the County.
iii.Rental Cars: Staff shall endeavor to use public
transportation, taxi, or a ride-sharing service
whenever possible. In the event that a rental car
is needed for District business, the District will
cover the expenses, including gasoline. The maximum
reimbursement for rental cars shall be based on the
rate provided for a standard mid-sized car unless
there is a clear business need and it is approved
by the General Manager or designee. Rentals for the
use of recreation or sightseeing, and additional
cost features, such as upgrades, are staff’s
responsibility.
c.Miscellaneous Transportation
Whenever practicable, bus, taxi, rail, shuttle, or
ride-sharing service transportation may be used in lieu
of, or in conjunction with, the modes listed above,
unless staff receives a monthly car allowance.
3.Meals and Lodging
a.Meals and Beverages
Whenever travel outside of San Diego County requires
meals, staff may receive the per diem allowance at the
current Meal and Incidental Expenses (“M&IE”) rate for
San Diego as determined by the U.S. General Services
Administration.
OTAY WATER DISTRICT
HUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS-RELATED
EXPENSES POLICY 34 5/3/2000 5/3/2023
Page 5 of 9
i.Per diem:
a. Full Day Allowance
When staff is traveling for a full day and no
meals are provided by other sources, such as pre-
paid registration, the per diem meal allowance
shall be at the current Domestic Per Diem Rate for
M&IE, or an amount that the General Manager deems
reasonable for the occasion or circumstances
(taxes and gratuities are inclusive).
b.Single Meal Allowance
When staff requires an allowance for a single
meal while traveling, the per diem meal
allowance shall be at the current Domestic Per
Diem Rate for M&IE for breakfast, lunch, or
dinner as determined by the U.S. General
Services Administration, or amounts that the
General Manager deems reasonable for the
occasion or circumstances (taxes and gratuities
are inclusive).
c.Partial Day Allowance
When staff will be traveling for a partial day
or where a single meal is provided for by other
sources such as pre-paid registration, the per
diem meal allowance shall be at the current
Domestic Per Diem Rate for M&IE for breakfast,
lunch, or dinner as determined by the U.S.
General Services Administration, or amounts
that the General Manager deems reasonable for
the occasion or circumstances.
d.Receipts do not have to be submitted for per
diem allowances.
b.Lodging
The District will pre-pay or reimburse staff for
accommodations in single occupancy rooms at conference
OTAY WATER DISTRICT
HUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS-RELATED
EXPENSES POLICY 34 5/3/2000 5/3/2023
Page 6 of 9
facilities, or within close proximity when applicable.
In the absence of conference facility accommodations,
single-room occupancy for business, government, or
commercial class accommodation may be obtained. Lodging
will only be reimbursed for the night before a
conference starts or the night after it ends if travel
schedules would require staff to leave home before 6:00
AM or return home after 12:00 AM. With prior
supervisory approval, if staying overnight, an extra
night or over a weekend at a destination allows for a
reduction of travel expenses, and the cost of
accommodations is less than the savings realized by the
documented reduced transportation expenses, the
District may pre-pay or reimburse staff for the extra
night’s lodging. Only lodging expenses will be
reimbursed in these situations.
4.Entertainment
The District will not cover expenses incurred for
recreation or entertainment.
5.Incidental Expenses
Unavoidable, necessary, and reasonable authorized expenses
will be fully reimbursed by the District. Some examples of
allowable expenses are:
a.Reasonable transportation to local restaurants and to
optional functions that are part of conference events.
b.Reasonable gratuities.
c.Conference or hotel parking fees.
d.The following expenses are not reimbursable:
i.Alcoholic beverages;
ii.Parking or traffic violations;
iii.In-room movies;
iv.Laundry service; and
v.Expenses incurred by spouses, family members, or
guests.
OTAY WATER DISTRICT
HUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS-RELATED
EXPENSES POLICY 34 5/3/2000 5/3/2023
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6.Compensation for Non-Exempt Staff
Non-exempt staff traveling and staying overnight are
normally authorized to work only the total number of hours
they were regularly scheduled to work, exclusive of
applicable travel time. However, all staff traveling and
staying overnight are considered by the District to be on
flexible schedules.
During flexible schedules, staff’s starting time, meal
period, rest periods, etc. are adjusted to accomplish work
with minimal overtime, if any.
Should business require non-exempt staff to travel,
function attendance and travel hours are compensable
pursuant to state law. These hours are considered regular
work hours for purposes of calculating overtime. During
all compensable hours, staff is subject to any and all
provisions of District Policies and Procedures.
The following hours are compensable:
a.Actual hours spent at meetings, conferences, or
functions, excluding meals and special events of an
entertainment nature held in conjunction with a
function.
b.Actual hours spent in transit, excluding hours spent
in travel between staff’s residence and the District.
Any time spent in layover at a public transportation
facility is also compensable as transit time, unless
staff chooses to participate in recreational activities
during the layover.
On the other hand, time spent taking a break from travel
in order to eat a meal, sleep, or engage in other personal
pursuits not connected with traveling or making necessary
travel connections, such as sightseeing, visiting friends
and family, or other activities of a recreational or
entertainment nature, are not compensable.
7.Staff’s Responsibility
a.In situations where staff can use petty cash for
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STAFF TRAVEL AND BUSINESS-RELATED
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reimbursement of travel expenses, they may submit a
“Petty Cash Form”. If expenses to be reimbursed are
beyond the scope of petty cash, staff must submit a
detailed “Staff Expense Claim Form”. Petty cash and
staff expense claim forms shall be supported by
itemized receipts of expenditures for which
reimbursement is being requested. Receipts must be
attached for all expenses with the exception of per
diem meal allowance. If a receipt required for
reimbursement is lost, the lost receipt must be noted
on the “Staff Expense Claim Form” and approved for
reimbursement before any payment can be made. Claim
forms must be submitted within 14 calendar days after
expenses are incurred.
b.Expenses will not be reimbursed for meetings that have
been pre-paid and not attended. Staff may be required
to reimburse the District for any pre-paid expenses for
any unexcused absence. The General Manager will
determine if an absence from a pre-paid meeting is
excused or unexcused.
c.When two (2) or more employees combine an expense on
one receipt, the employee requesting reimbursement
shall indicate on the “Staff Expense Claim Form” the
identity of other staff sharing expenses.
d.Expenses incurred by spouses, family members, or guests
are staff’s responsibility.
e.Any misrepresentation in connection with the petty cash
or reimbursement process will be grounds for discipline
up to and including termination of employment.
Attachments:
“Staff Travel Authorization Request” Form and “Instructions for
Preparation of Staff Travel Authorization Request Form”
“Petty Cash Form”
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HUMAN RESOURCES POLICY
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EXPENSES POLICY 34 5/3/2000 5/3/2023
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“Staff Expense Claim Form” and “Instructions for Preparation of
Staff Expense Claim Form”
“Authorization to Drive A District or Private Vehicle Out of
San Diego County or to Transport Non-District Staff in a
District or Private Vehicle” Form
OTAY WATER DISTRICT
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Subject Policy
Number
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Adopted
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MEDICAL RESERVE FUND FOR DISTRICT RETIREES 35 06/07/00 07/06/16
Page 1 of 1
PURPOSE
This policy is intended to provide a guideline for the prudent
management of the District’s medical reserve fund for retired
employees and Board Members. The goal of this policy is to establish
the District’s reserve policy for the funding of the OPEB Reserve and
related CALPERS Trust, which is performed in a manner intended to
reduce the impact of medical expense on the annual operating budget.
OBJECTIVE
The fundamental financial objective of the medical reserve fund is to
establish and receive contributions from the general fund operating
reserves, which will remain approximately at the level necessary to
meet the annual obligation of the District’s existing benefit package.
The medical reserve fund is designed to accurately monitor and
forecast expenditures and revenues to the fullest extent possible.
The District will endeavor to make medical and dental coverage
available for retired individuals and their dependents as described in
the Memorandum of Understanding between the District and the
Employees’ Association. Retired employees will be eligible for
continuation of coverage if they satisfy both the age and years of
service requirements at the point full-time employment ceases.
DELEGATION OF AUTHORITY
Under authority granted by the Board of Directors, the General Manager
will administer the fund.
REPORTING
Every two years, the District will have an actuarial evaluation
completed to determine the financial liability of the fund. A
qualified actuary, in accordance with the principles and
procedures established by the Actuarial Standards Board (ASB),
should perform the actuarial valuation. The Chief Financial
Officer will report the results of the actuarial evaluation to
the Board of Directors. This report should include the fund
assets, projected funding and liability based on the most recent
employee information.
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APPOINTMENT OF TEMPORARY AND CONTRACT
EMPLOYEES
36 11/15/00
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POLICY 36 DELETED ON 05/03/06.
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BILINGUAL PROGRAM 37 02/21/01
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PURPOSE
To establish a policy to provide accurate and efficient implementation
of the District's Bilingual Program.
BACKGROUND
The District receives telephone calls and inquiries from non-English
speaking customers. In an effort to respond to the needs of our
customers, policies and procedures shall be implemented to designate
District positions as bilingual for those positions requiring an
employee to provide bilingual skills while performing their duties.
POLICY
To maximize the effective delivery of service to all communities
within the Otay Water District, it is the District's policy to
recruit, examine and appoint qualified individuals who are proficient
in a second language. To provide and implement policies and
procedures to designate bilingual positions and to certify an
employee's proficiency in a second language.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
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Adopted
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ZERO TOLERANCE FOR VIOLENCE IN THE
WORKPLACE 38 11/07/01
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I. PURPOSE
Otay Water District recognizes that workplace violence has become a
serious problem that affects job performance. Homicides in the
workplace account for the second largest number of employee work related
deaths.
The District is required under California law to maintain a safe and
healthful place of employment for its employees. Each employee has a
responsibility to perform work for the public in a safe, effective and
efficient manner. The District will strive to eliminate acts of
violence, aggression and threatening behaviors in the workplace and
promote respect for all persons. In consideration of the health and
safety of others, this policy establishes a “zero-tolerance” position
towards threats or acts of violence in the workplace.
The District promotes the concept of mutual respect for all persons.
Violence, acts of aggression, sexual harassment, discrimination and
threatening behaviors do not flourish in environments where people
respect each other.
It is the purpose of the Zero Tolerance for Violence in the Workplace
Policy of Otay Water District to establish guidelines to prohibit:
Violence
Acts of aggression
Threatening behaviors against all employees at the workplace
To provide information to all employees regarding violence in the
workplace
To establish a procedure for reporting acts of aggression and
violence
To standardize a procedure for dealing with an act of aggression
and violence
To promote a workplace free of acts of aggression and violence
II. POLICY
Otay Water District is committed to creating and maintaining a work
environment free of any and all types of violence and acts of
aggression. The District recognizes that issues related to violence in
the workplace are enforced by 3203 of the CAL-OSHA General Industry
Safety Orders.
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The District will not tolerate violence in the workplace and will take
preventive, corrective and/or disciplinary action (including criminal
prosecution) against any individual that violates this policy.
Zero-Tolerance Standard – The District establishes a zero-tolerance for
aggressive behavior or acts of violence in the workplace. Incidents of
violence, whether implied or actual, will not be tolerated by any person
under any circumstance. There is no excuse for any type of violent
behavior.
All comments and actions of a violent nature will be taken seriously and
will not be tolerated. While all individuals have the right to self-
expression, expressions of violence or potential violence are strictly
prohibited.
This policy applies to all persons involved in the District’s operation
including, but not limited to: full-time, part-time, vendors and
contractors, temporary and volunteer employees of Otay Water District
and anyone else visiting District property or job sites. It includes
all work areas where an employee is assigned to perform a job function
and/or where the employee is representing or perceived to be
representing the District.
Dissemination of Policy to Employees – Information about the prohibition
of threats or incidents of violence will be provided to all full-time,
part-time and temporary employees at their time of hire, and
periodically thereafter through a communication method determined by the
General Manager. In addition, copies of the policy and/or notices will
be generated to inform contractors, vendors, volunteers and anyone else
visiting District property, of the prohibition against threats or
incidents of violence in the workplace.
III. DEFINITIONS
Definitions of Threats or Acts of Violence – All direct or implied
expressions of an intent to inflict physical harm and/or actions that a
reasonable person would perceive as possibly detrimental to their
physical safety or property will be considered as a threat. Acts of
violence include conduct against individuals or property that is
sufficiently offensive, severe or coercive to alter the District’s
employment conditions or which creates a hostile, abusive or
intimidating work environment for one or more District employees. All
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threats or acts of violence will be taken seriously and immediately
acted upon. While not inclusive, the following are examples of
behaviors that are strictly prohibited under this policy:
A.Threats or acts of physical force and/or assault, such as pushing,
shoving, slapping, hitting, punching or striking.
B.Threatening conduct, such as menacing gestures, stalking,
brandishing weapons, tools or equipment, as if intending to cause
physical harm.
C.Possession of firearms, weapons or any dangerous devices on
District property or District job site. Recreational firearms shall
not be transported in employee’s vehicle on District premises.
D.Inappropriate use of tools or equipment on District property or
District job sites.
E.Verbal or written harassment designed to intimidate or instill fear
in others, including cursing, harassing phone calls, faxes,
letters, memos and electronic communication.
F.Verbal or written harassment devised to provoke a loss of emotional
control in others, such as taunting or demeaning statements,
gestures or sounds.
G.Direct or veiled verbal threats of physical harm to individuals,
their family members, friends, associates, personal property or
District property.
H.Threatening verbal or written jokes about acts of violence.
I.A self-prediction of loss of control.
J.Yelling or profanity that a reasonable person would consider to be
intimidating or demeaning.
Examples of Workplace Violence – General situations of prohibited
violent conduct include, but are not limited to, the following:
A.Threats or acts of violence not occurring on District property, but
involving someone who is acting within the course and scope of
District employment and volunteer service.
B.Threats or acts of violence occurring on District property,
regardless of the relationship between the District and the parties
involved in the incident.
C.Threats or acts of violence not occurring on District property
involving an employee of the District if the threats or acts of
violence adversely impact the District’s best interests.
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IV. PROCEDURE
Employee Responsibilities
All employees must comply with the provisions of this policy. Any
violation of this policy by a District employee shall result in
immediate disciplinary action, which may include referral to the
Employee Assistance Program, written notice, days off or any other
discipline up to and including termination. All oral and/or written
reports required by employees under this policy shall be done without
fear of reprisal and, to the extent possible, on a confidential basis.
A.Employees shall immediately report customers’ actions, or citizen
contacts of threatening behavior, to their supervisor, and when
appropriate to the Police Department.
B.Employees shall immediately report to the appropriate supervisor,
Assistant Chief or Human Resources Manager any incident of threat
or physical harm directed at them, or a co-worker, by another
employee, supervisor, or customer.
C.Employees are responsible for reporting to their supervisor when
they have a restraining order against someone. Employees will
further furnish to their supervisor, identifying information of the
person and information on types of vehicles driven by a party whom
the restraining order against persons who are harassing,
threatening or stalking employees. The supervisor will notify Human
Resources.
D.The employee will furnish a copy of the restraining order to the
Police Department. If available, a photograph is very helpful in
identifying the person whom the restraining order is for.
E.Employees are to report a bomb threat immediately to their
supervisor.
F.Employees must report threatening behaviors from fellow employees
to their supervisor, Assistant Chief, or Human Resources. When
necessary these reports may be made confidentially.
Incidents Involving Members of the Public – This policy recognizes that
employee security applies not only to co-workers’ interactions, but also
to associations with members of the public, including relatives and
friends of employees. Employees are reminded to use caution when
dealing with any angry or intimidating member of the public. If
unsuccessful in getting the person to calm down, the employee should
refer the individual to his or immediate supervisor or Assistant Chief.
OTAY WATER DISTRICT
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It may be necessary to remove all employees from the potential risk and
notify the Police Department via 9-911.
The immediate supervisor and/or Assistant Chief will determine how to
handle future business transactions with an angry or intimidating
individual. Furthermore, if appropriate, legal action may be taken
against any member of the public who violates employee security in any
fashion.
Supervisory and Management Responsibilities:
A.It is the duty of all managers and supervisors to carry out the
enforcement of this policy and to investigate all complaints of
violations of this policy.
B.Managers and supervisors shall take complaints of an employee’s
threatening behavior seriously. At times it may be necessary to
keep confidential the name of the person who has reported a
threatening behavior of a citizen or employee.
C.In cases of restraining orders, managers and supervisors will
advise the Assistant Chief and, when appropriate, the Police
Department will be notified to provide added protection for all
employees. Managers and supervisors have a responsibility to
provide added protection, as deemed appropriate, for all employees.
D.Managers and supervisors have a responsibility to follow the
procedure for dealing with a bomb threat and report it immediately
to their Assistant Chief.
E.Managers and supervisors have the responsibility to encourage or
formally refer employees to use the EAP when deteriorating or
unsatisfactory job performance does not improve with usual
supervisory action. A supervisor should not attempt to diagnose an
employee’s problem. The supervisor’s role is to monitor job
performance.
F.Managers and supervisors have a responsibility to promote respect
among all employees.
G.Managers and supervisors have a responsibility to discipline all
employees who bring unauthorized weapons on any District job site.
H.Managers and supervisors have a responsibility to solicit employee
perceptions of unsafe conditions or situations.
Conducting an Investigation – All alleged threats and incidents of
violence will be investigated in a prompt, thorough, impartial and
confidential matter. The General Manager will designate the applicable
Assistant Chief, Human Resources Manager, other management employee or
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an outside investigator as the assigned investigator of the alleged
incident. The “Threat/Incident Investigation Report” form will be used
in conducting the investigation. The investigation will provide written
notice to the accused employee of the reported allegation(s) in a manner
that allows for the documentation of receipt. The notice will state the
following:
A.The basis for the allegation(s), including the date that the
incident allegedly occurred.
B.The ability to review the materials upon which the allegation(s) is
based.
C.Information concerning the employee’s right to respond to the
allegation(s), orally or in writing, within five (5) working days.
Within five (5) working days after the receipt of the notice, the
accused employee may request a meeting with the investigator to respond
to the allegation(s). The accused employee may utilize this opportunity
to present his or her side in response to the allegation(s). When
appropriate, the employee accused of the threat or incident of violence
may be placed on temporary administrative leave and removed from the
workplace pending completion of the investigation.
If the alleged incident is substantiated, appropriate disciplinary
action will be taken, up to and including termination. In addition, any
legal action may be taken, as appropriate, against employees or members
of the public in verified threats or incidents of violence. If
discipline is warranted the employee will be notified with written
notice, the proposed action, reasons, effective date, etc., the employee
will also be advised of the right to review or appeal any disciplinary
action taken.
Employees who retaliate against any person who has reported an alleged
threat or incident of violence, regardless of whether the retaliation
takes place on District property or District time, will be subject to
disciplinary action up to and including termination.
Employees who falsely accuse a person of a threat or incident of
violence, which is proven to be malicious and intentional, will be
subject to disciplinary action, up to and including termination.
Human Resources will indefinitely maintain all files and records
relating to reports of all incidents of violence.
OTAY WATER DISTRICT
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Assessing the Seriousness of an Incident – Once the threat or act of
violence has been verified, a preliminary assessment of the seriousness
of the incident shall be made in order to respond to the complainant and
the accused. Other actions that may be taken to fully develop an
assessment of the seriousness of a threat or act of violence are:
A.Review the accused’s personnel records for previously documented
threats or acts of violence, work performance issues, disciplinary
actions, related medical conditions, financial problems and/or
other related items.
B.Interview the supervisor, Assistant Chief and/or co-workers of the
accused.
C.As deemed appropriate, notify law enforcement personnel.
D.Obtain, as required, the expertise of specialists such as
psychiatrists or psychologists.
E.Determine if there has been a history of similar incidents to other
employees.
If one or more of these actions are taken, the General Manager shall use
discretion in determining who shall have access to an employee’s records
and will limit the number based on a strict “need-to-know” basis
depending upon the specific situation. Such decision makers might
include the General Manager, the General Counsel, the Human Resources
Manager, the Assistant Chief as well as others the General Manager might
identify as needing the information to protect other employees, the
public and the District.
The records will be kept in a separate locked file under the direct
control of the Human Resources Division and will not be made a part of
employee’s personnel file except when disciplinary action results from
an investigation of the incident. When disciplinary action is taken,
any disciplinary notices and supporting materials regarding the
disciplinary action will be placed in the employee’s personnel file.
Reports maintained in the File will not be available for review or
examination except upon the approval of the Assistant Chief of
Administrative Services or the Human Resources Manager. Reports of
violence will only be reviewed to determine risk or assess complaints of
a threat concerning an employee of the District. Disciplinary action
will be consistent with current District policy.
Assessing the Seriousness of a Potential Threat – Whenever a supervisor
or manager learns of a potential threat, it is that person’s
responsibility to alert their Assistant Chief and Human Resources
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Manager and assess the seriousness of the threat. Examples of potential
threats include but are not limited to the following:
A.An employee tells you that they are breaking up with a significant
other and the significant other has threatened to kill them if they
catch them with someone else.
B.A customer, over the phone, threatens to slash the tires of an
employee’s vehicle unless they receive satisfaction.
C.An employee comes to you and relates concern of a co-worker’s
recent state of mind or apparent depression, which has affected the
co-worker’s productivity and/or attitude at work.
Employee Assistance Program - The District recognizes that employees may
from time to time experience difficulties related to their work,
relationships with co-workers, supervisors, Assistant Chiefs or members
of the public. Employees are reminded that the District has a well-
established voluntary and confidential Employee Assistance Program (EAP)
to assist employees and their families who seek help for problems
causing added stress to their lives. Employees who are concerned about
added stress are strongly encouraged to voluntarily seek assistance
through this program. An employee may schedule an appointment with the
EAP on District release time with the approval of the supervisor. If an
employee requires leave time for additional visits or continuing
treatment, he/she must follow established sick leave procedures.
The EAP provides counseling sessions at no cost to the employee. If
further treatment is needed, the EAP will refer the employee to the
appropriate resource. Most health insurance contains some type of
coverage for treatment; however, the employee assumes the financial
responsibility for all services that are not covered by the EAP or
health insurance.
Supervisors should encourage employees to use the EAP when deteriorating
or unsatisfactory job performance does not respond to usual supervisory
actions or when a specific on the job incident does not respond to usual
supervisory actions or when a specific on the job incident is cause for
concern. While the District will be supportive of those who seek help
voluntarily, the District will be equally firm in identifying and
disciplining those who continue to violate this policy.
All Other Communication – The General Manager will determine the method
of communicating specific information about the threat or incident of
violence to employees and the news media. In the event of an incident,
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every effort will be taken to provide employees in the effected area
with information that will minimize the stress and/or the anxiety
associated with the incident, including on-site post-incident debriefing
and/or referral to the District’s Employee Assistance Program.
OTAY WATER DISTRICT
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Adopted
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ETHICS POLICY 40 11/27/01 11/02/22
Page 1 of 3
PURPOSE
To establish an Ethics Policy to define guidelines and specific
prohibitions to which elected officials of the Board of Directors of
the Otay Water District must conform in pursuit of their assigned
duties and responsibilities to foster public respect, confidence, and
trust.
POLICY
1.Declaration of Policy
The respected operations of democratic government emphasize that
elected officials be independent, impartial, and responsible to
the people. It requires that they conduct themselves in a manner
above reproach. It also imposes an obligation of personal
integrity that will foster public respect, confidence, and trust.
This policy also outlines responsibilities and best practice
recommendations for the use of electronic communication and
social media by the Board and individual Board members in their
capacity as elected officials. The Board of Directors is
committed to open communications with its constituents via the
use of available and online technologies within the limits of the
law and the Brown Act.
This Ethics Policy provides the following general guidelines and
specific prohibitions to which elected Otay Water District
Officials must conform in pursuit of their assigned duties and
responsibilities.
2.Disclosure of Closed Session Matters
No member of the Otay Water District Board shall disclose to any
person, other than members of the Board, General Manager, or
other District staff designated by the General Manager to handle
such matters of confidential District business, the content or
substance of any information presented or discussed during a
closed session meeting unless the District Board President first
authorizes such disclosure by the affirmative vote of three (3)
members or the majority.
3.Disclosure of Confidential Communications
Except when disclosure is mandated by State or Federal law, no
member of the District Board shall disclose confidential or
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privileged communications to any person other than members of the
Board, General Manager, or other District staff designated by the
General Manager to handle such matters, unless the Board of
Directors first authorizes such disclosure by the affirmative
vote of three (3) members or the majority.
4.Conduct During Negotiations/Litigation
The Board of Directors is authorized to provide direction to
specifically identified negotiators in a legally constituted
closed session on matters involving pending litigation, real
estate negotiations and labor negotiations. If the Board of
Directors, in closed session, provides such direction to its
negotiators, all contact with the negotiating party or party’s
representative shall be limited to and made by those individuals
designated to handle the negotiations. During a pending labor
negotiation, no member of the District Board shall have any
contact or discussion with the negotiating party or the party’s
representative regarding the subject matter of the pending
negotiation. In addition, during litigation or real estate
negotiations, no member of the District Board (unless they have
been designated as a negotiator) shall have any contact or
discussion with the litigating or negotiating party or the
party’s representative regarding the subject matter of the
pending litigation or real estate negotiations.
Nothing in this section shall prohibit Board members from
receiving written or electronic communications provided they are
made available to all Board members, the General Manager, or the
District’s designated negotiators on an equal basis.
5.Ex Parte Communications
The purpose of this provision is to guarantee that all interested
parties to any matter before the Board have equal opportunity to
express and represent their interests. Ex parte communications
are those communications members of the Board have with
representatives of only one side of a matter outside the presence
of other interested parties. Any type of communication concerning
only the status of a pending matter shall not be regarded as an
ex parte communication.
Any written, electronic (including social media), or oral ex
parte communication received by a member of the Board in matters
where all interested parties are entitled to an equal opportunity
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for a hearing, shall be made a part of the record by the
recipient.
a.Social Media or Online Technology Communications Definition
“Social Media” are third-party hosted online technologies
that facilitate social interactions and dialogue. These
online technologies are operated by non-District hosted
services and may include, but are not limited to social
networking sites (Twitter, Facebook, LinkedIn, Instagram,
Myspace), micro-blogging tools (Twitter, RSS feeds),
audiovisual networking sites (YouTube, Flickr), blogs, etc.
b.Social Media or Online Technology General Usage
Social media may be used by the Board and/or individual
board members to communicate with the public. Directors
shall make every effort to ensure that their electronic
communications conform to the same standards and protocols
established for other forms of communication (Government
Code Section 54952.2, Assembly Bill 992, Brown Act, District
ordinances, etc.) which includes but is not limited to:
applicable record retention laws; the use of digital icons
and reactions as means of communication; blocking accounts
or access, etc. The content and tenor of online
conversations, discussions, and information posts should
model the same professional behavior displayed during Board
or community meetings. To the extent possible, electronic
communications regarding any district-related business shall
be transmitted through a district approved account. Examples
of business that may not be conducted through unapproved
social media include but are not limited to: making policy
decisions, official public noticing, and discussing items of
legal or fiscal significance that have not previously been
released to the public.
6.Violations and Penalties
Any violation of this Ethics Policy by a member of the Board
shall constitute official misconduct if determined by an
affirmative vote of three (3) members or the majority of the
Board in an open and public meeting. In addition to any criminal
or civil penalties provided by the Federal, State, or other local
law, any violation of the Ethics Policy shall constitute a cause
for censure by the Board of Directors adoption of a Resolution of
Censure.
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EMPLOYEE COMPLIANCE WITH DISTRICT’S
CONFLICT OF INTEREST CODE 41 09/04/02
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PURPOSE
To establish a policy for District employees to comply with all
the applicable disclosure and disqualification requirements of the
District’s Conflict of Interest Code (Chapter 5, Section 6 in the
Code of Ordinances).
POLICY
No District employee shall engage in any employment, activity, or
enterprise for compensation which is inconsistent, incompatible, in
conflict with, or inimical to his or her duties as a District
employee, or with the duties, functions, or responsibilities of his
or her appointing power or the District. Accordingly, all District
employees shall comply with the District’s Incompatible Activities
Policy that is located at Exhibit B to the District’s Conflict of
Interest Code (Chapter 5, Section 6 in the Code of Ordinances).
To the extent that any employee is identified as a Designated
Employee for purposes of the District’s Conflict of Interest Code,
such employee shall comply with all of the applicable disclosure and
disqualification requirements of the Conflict of Interest Code,
including compliance with the Prohibited Transactions Policy located
within the District’s Conflict of Interest Code at Exhibit A.
Legal Reference:
CALIFORNIA GOVERNMENT CODE
Sections 1090, et seq.
Sections 1125, et seq.
Sections 81000, et seq.
CALIFORNIA CODE OF CALIFORNIA REGULATIONS
Title 2, sections 18730, et seq.Provisions of Conflict of Interest
Codes
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PURPOSE
The purpose of this policy is to provide guidance and consistency to
the District’s efforts to enhance its strategic communications and
public policy implementation efforts. The District will, as a regular
business practice, participate in and/or sponsor community events
and/or programs, including those organized by not for profit
organizations. It is important that these sponsorships are implemented
in support of the District’s goals as stated in the District’s
Strategic Plan. The following policy is intended to provide the
direction and support necessary for the General Manager and the Board
to make these decisions in a manner consistent with overall District
objectives.
POLICY
The General Manager shall authorize participation in and/or
sponsorship of community events and programs, including those
organized by not for profit organizations, in accordance with the
General Manager’s authorized expenditure and budget authority. Such
items shall be reported to the Board as part of the General Manager’s
annual District budget process.
Community and Governance - The District recognizes that it exists in a
complex political environment with many important stakeholders,
including ratepayers, community groups, citizen’s groups, and other
local government agencies. Accordingly, the District realizes that it
is critical to maintain active and positive relationships with these
stakeholders to ensure that their concerns are being effectively
addressed. These relationships also serve the important function of
disseminating information about the District, the services provided by
the District and District efforts related to securing water rights,
conservation efforts and water recycling. It also assists in efforts
to improve the overall image of the District, foster trust and
confidence in the District and develop important relationships with
community stakeholders and community leaders.
Therefore, in accordance with the District’s strategic plan, the
District will utilize this policy to:
o Improve District reputation through targeted
communication with the community and local
governments.
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o Improve public relations between the District and
customers/rate payers
o Educate the community about the District.
o Strengthen positive ties to the communities served by the
District
o Engender confidence and trust from customers and rate
payers
o Implement the Government and Public Relations Program
o Broaden communication with key stakeholders
o Foster positive relationship with Board of Directors
PROCEDURE
Requests for participation in and/or sponsorship of community events
or programs must be made in writing to the General Manager. In the
alternative, the General Manager may also identify community events or
programs for which participation with substantially fulfills elements
of the District’s strategic plan. The General Manager shall document
the benefits of participation/sponsorship of the community event or
program and the level of participation.
The General Manager must evaluate the request or event/program in
light of the District’s strategic plan and determine if the request is
consistent with the plan.
Approved requests will be forwarded to the Finance department for
dispersal in accordance with District practices for dispersal of
funds.
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POLICY 43 DELETED ON 08/10/11 BY RESOLUTION 4181.
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PURPOSE
To establish a policy for review of policies, codes, ordinances, and
resolutions related to District Programs.
BACKGROUND
On April 4, 2001, the Board of Directors approved the application of a
Review Policy to routinely and systematically evaluate and reconsider
District Policies and Procedures.
POLICY
It is the policy of the Board of Directors that:
1.The review shall be a cyclical ongoing process applied to all
District Policies and Procedures.
2.Exceptions include:
a.One-time Actions. Resolutions honoring a person or event, or
awarding a contract or a grant, or an ordinance
consolidating elections on a specific date, shall not
require review.
b.Actions to Delete. Formal action to delete a policy, code,
ordinance or resolution.
c.Actions Requiring Extraordinary Processes. Certain
ordinances, if re-enacted, would require extraordinary
processes, such as Environmental Impact Reports or Meet and
Confer processes. These would be unnecessarily costly if the
Board wished simply to continue an existing ordinance,
rather than delete or revise it. Accordingly, the review
shall not be applied to land use (general plan, zoning and
subdivision ordinances, etc.) or personnel related
ordinances.
d.Waivers. The Board of Directors may make exceptions to this
policy and by Board action waive application of review to
specific policies, codes, ordinances and resolutions as
deemed appropriate.
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3.The review of all District policies, codes, ordinances and
resolutions shall be submitted to the Board of Directors for
review and approval periodically. The General Manager, or
Designee, shall establish and maintain the procedures and
scheduling to ensure compliance with this policy.
4.The responsibilities for performing the tasks involved in the
review include the following:
a.General Manager (GM) or Designee. Develops and maintains a
review schedule and assigns coordination of the review to
appropriate Management Groups for completion by their
assigned departments.
b.Chief of Administrative Services. Facilitates the review of
policies, codes, ordinance and resolutions between
departments. Schedules meetings when necessary.
c.Departments. Reviews policies, codes, ordinances and
resolutions as scheduled and recommends to Chief of
Administrative Services deletion or revision.
d.Board of Directors. Determines to continue, delete or revise
each policy, code, ordinance or resolution.
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1.0: POLICY
It is the policy of the Otay Water District to finance the acquisition
of high value assets that have an extended useful life through a
combination of current revenues and debt financing. Regularly updated
debt policies and procedures are an important tool to ensure the use
of the District’s resources to meet its commitments, to provide the
highest quality of service to the District’s customers, and to
maintain sound financial management practices. These guidelines are
for general use and allow for exceptions as circumstances dictate.
2.0: SCOPE
This policy is enacted in an effort to standardize the issuance and
management of debt by the Otay Water District. It also establishes a
standard for internal lending/borrowing between water (potable and
recycled) and sewer funds, either direction. The primary objective is
to establish conditions for the use of debt, to minimize the
District’s debt service requirements and cost of issuance, to retain
the highest practical credit rating, maintain full and complete
financial disclosure and reporting, and to maintain financial
flexibility for the District. This policy applies to all debt issued
by the District including general obligation bonds, revenue bonds,
capital leases, and special assessment debt and loans between water
and sewer funds.
3.0: LEGAL & REGULATORY REQUIREMENTS
The Chief Financial Officer (CFO) and the District’s Legal Counsel
will coordinate their activities to ensure that all securities and
lending/borrowing agreements are issued in full compliance with
Federal and State law.
4.0: CAPITAL FACILITIES FUNDING
Financial Planning
The District maintains a six-year financial projection that identifies
operating requirements and public facility and equipment requirements,
and has developed a Rate Model for funding the District’s 6-Year
Capital Improvement Program (CIP). The District’s CIP Budget places
the capital requirements in order of priority and schedules them for
funding and implementation. It identifies a full range of capital
needs, provides for the ranking of the importance of such needs, and
identifies all the funding sources that are available to cover the
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costs of the projects. In cases where the program identifies project
funding through the use of debt financing, the budget should provide
information needed to determine debt capacity. The Rate Model and the
CIP Budget give the Board part of the data needed to make informed
judgments concerning the possibility of issuing debt.
Funding Criteria
The Chief Financial Officer (CFO) will evaluate all capital project
requests and develop a proposed funding plan. Priority may be given
to those projects that can be funded with current resources (annual
cash flow, fund balances or reserves). Those projects that cannot be
funded with current resources may be deferred or the CFO may recommend
that they be funded with debt financing. However, debt financing will
not be considered appropriate for any recurring purpose such as
current operating and maintenance expenditures. The issuance of
short-term cash-flow instruments is excluded from this limitation.
The General Manager will recommend the funding plan to the Board. The
General Manager may deem it necessary or desirable in certain
circumstances to convene a Finance Committee meeting to evaluate
funding options presented by the Chief Financial Officer.
Funding Sources
The District’s capital improvements can be classified in three
categories: those related to an expansion of the system
(“expansion”), those related to upgrading the existing system
(“betterment”) and those related to repairing or replacing existing
infrastructure (“replacement”). In general, capital improvements for
betterment or replacement are financed primarily through user charges,
availability charges, and betterment charges. Capital improvements
for expansion are financed through capacity fees. Accordingly, these
fees are reviewed at least annually or more frequently as required and
set at levels sufficient to ensure that new development pays its fair
share of the costs of constructing necessary infrastructure.
Additionally, the District will seek State and Federal grants and
other forms of intergovernmental aid wherever possible.
Pay-As-You-Go Projects
The District’s capacity fees are the major funding source in financing
additions to the water system and the recycled water system. Over
time, the fees collected and the cost to construct the capital
projects should balance. However, collection of these fees is subject
to significant fluctuation based on the rate of new development.
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Accordingly, the Chief Financial Officer, in developing the funding
plan for the CIP, will determine that current revenues and adequate
fund balances are available so project phasing can be accomplished.
If this is not the case, the Chief Financial Officer may recommend
that:
1.The project be deferred until funds are available, or
2.Based on the priority of the project, debt be issued to finance
the project.
Debt Financed Projects
If a project or projects are to be financed with long-term debt, the
District should use the following criteria to evaluate the suitability
of the financing for the particular project or projects:
1.The life of the project or asset to be financed is 10 years or
longer and its useful life is expected to exceed the term of the
financing.
2.Revenues available for debt service are deemed to be sufficient
and reliable so that long-term financing can be marketed without
jeopardizing the credit rating of the District.
3.Market conditions present favorable interest rates and demand for
District financing.
4.The project is mandated by State and/or Federal requirements and
current resources are insufficient or unavailable.
5.The project is immediately required to meet or relieve capacity
needs and current resources are insufficient or unavailable.
5.0: DEBT STRUCTURE
General
The District will normally issue debt with a maturity of not more than
30 years. The structure should approximate level debt service for the
term where it is practical or desirable. There will be no debt
structures that include increasing debt service levels in subsequent
years, with the first and second year of a debt payoff schedule the
exception and related to projected additional income to be generated
by the project to be funded. There will be no "balloon" debt
repayment schedules that consist of low annual payments and one large
payment of the balance due at the end of the term. There will always
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be at least interest paid in the first fiscal year after debt issuance
and principal starting no later than the first fiscal year after the
date the facility or equipment is expected to be placed in service.
Capitalized interest will not be for a period of more than necessary
to provide adequate security for the financing.
Limitations on the Issuance of Variable Rate Debt
The District will normally issue debt with a fixed rate of interest.
The District may issue variable rate for the purpose of managing its
interest costs. At the same time, the District should protect itself
from too much exposure to interest rate fluctuations. In determining
that it is in the District’s best interest to issue certain debt at
variable rates instead of fixed rates, at the time of issuing any
variable rate debt, there should be at least a 10% estimated reduction
in annual debt costs by issuing variable rate debt when compared to a
similar issuance of fixed rate debt. If the estimated overall cost
savings from issuing variable rate debt is not at least 10% at the
time of issuance, relatively small fluctuations in rates could
actually increase the District’s financing costs over the life of the
bonds compared to a similar fixed rate financing. By using this 10%
factor at the time of issuance, the District can be relatively assured
that its variable rate financing will be cost-effective over the term
of the bonds.
The comparison will be based on the following criteria:
1.The interest rate used to estimate variable interest costs will
be the higher of the 10-year average rate or the current weekly
variable rate.
2.The variable rate debt costs will include an estimate for annual
costs such as letter of credit fees, liquidity fees, remarketing
fees, monthly draw fees and annual rating fees applicable to the
letter of credit.
3.Any potential reserve fund earnings will reduce the fixed rate
debt service or variable rate debt service as applicable.
Periodically, using the criteria described above, the Chief Financial
Officer will compare the estimated annual debt service costs to
maturity of any variable rate debt with estimated debt service if the
debt was converted to fixed rates. If this analysis produces a break
even in total payments over the life of the issue, the Chief Financial
Officer will recommend converting such variable rate debt to fixed
rate.
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Variable rate debt should not represent more than 25% of the
District’s total debt portfolio. This level of exposure to interest
rate fluctuations is considered to be manageable in an environment of
increasing interest rates. At a higher ratio than this, the District
might be faced with an unplanned water rate increase to meet its Rate
Covenants. Rating agencies use this ratio in their analysis of the
District’s overall credit rating.
Further, Rate Covenants applicable to variable rate debt shall not
compromise the issuance of additional debt planned by the District and
variable rate debt should always contain a provision to allow
conversion to a fixed rate at the District’s option.
6.0: CREDIT OBJECTIVES
The Otay Water District seeks to maintain the highest possible credit
ratings for all categories of long-term debt that can be achieved
without compromising delivery of basic services and achievement of
District policy objectives.
Factors taken into account in determining the credit rating for a
financing include:
1.Diversity of the District’s customer base.
2.Proven track record of completing capital projects on time and
within budget.
3.Strong, professional management.
4.Adequate levels of staffing for services provided.
5.Reserves.
6.Ability to consistently meet or exceed Rate Covenants.
The District recognizes that external economic, natural, or other
events may from time to time affect the creditworthiness of its debt.
Nevertheless, the District is committed to ensuring that actions
within its control are prudent and well planned.
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7.0: COMPETITIVE AND NEGOTIATED SALE CRITERIA
Competitive Sale
The District will use a competitive bidding process in the sale of
debt unless the nature of the issue or specific circumstances warrants
a negotiated sale. The CFO will determine the best bid in a
competitive sale by calculating the true interest cost (TIC) of each
bid.
Negotiated Sale
Types of debt that would typically lend themselves to the negotiated
sale format are variable rate debt and unrated debt. Circumstances
that might warrant a negotiated sale may occur when the issue is of a
limited size that would not attract wide-spread investor interest,
during periods of high levels of issuance by other entities in the
State, or during periods of market volatility or with relatively new
financing techniques. In the event the District decides to use a
negotiated sale, it will pay management fees only to those firms that
place orders for bonds.
If the size of the District’s proposed issue is not cost effective,
the District may also consider issuing its debt by private placement
or through any qualified Joint Power Authority (JPA) in the State of
California whose principal business is issuing bonds.
8.0: REFUNDING DEBT
Purpose
Periodic reviews of all outstanding debt will be undertaken by the
Chief Financial Officer to determine refunding (refinancing)
opportunities. The purpose of the refinancing may be to:
1.Lower annual debt service by taking advantage of lower current
interest rates.
2.Update or revise covenants on outstanding debt issue if a Rate
Covenant appears to be too high, has precluded the District from
implementing its financing plan, or has caused the District to
increase rates to customers.
3.Restructure debt service associated with an issue to facilitate
the issuance of additional debt, usually in order to smooth out
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peaks in total debt service which can occur frequently as one
debt issue is layered on top of existing debt issues.
4.Alter bond characteristics such as call provisions or payment
dates.
5.Pay for conversion costs such as funding a reserve fund or paying
for credit enhancement when converting variable rate debt to
fixed rate debt.
Restrictions on Refunding
Tax-exempt bonds typically have provisions that preclude early
redemption of the bonds for a period of years after issuance. The
ability of issuers to refinance a tax-exempt bond prior to its
Optional Redemption date (known as Advance Refunding) is limited by
the Tax Code. There is no limit in the Tax Code on the ability of
issuers to redeem bonds prior to their maturity date once the Optional
Redemption date has been reached (known as Current Refunding).
Savings Criteria
In cases where an Advance Refunding or Current Refunding is intended
to provide debt service savings, the District may commence the
refinancing process if a minimum five percent (5%) present value
savings net of issuance costs and any cash contributions can be
demonstrated. Since interest rates may fluctuate between the time
when a refinancing is authorized and when the debt is issued,
beginning the process with at least a 5% savings should provide the
District with some level of protection that it can achieve a minimum
of three percent (3%) net present value savings of the refunding bonds
when and if the debt is issued. These minimum standards are intended
to protect the District staff from spending time on refinancings that
become marginally cost-effective after the entire issuance process is
complete.
The savings target may be waived, however, if sufficient justification
for lowering the savings target can be provided by meeting one or more
of the other refunding objectives described above.
9.0: SUBORDINATE LIEN DEBT
The District will issue subordinate lien debt only if it is
financially beneficial to the District or consistent with
creditworthiness objectives. Subordinate lien debt is structured to be
payable second in priority to the District’s other outstanding debt.
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Typically, subordinate lien debt might be issued if the District
desired a more flexible Rate Covenant with respect to its new
obligations and did not want to refinance all of its existing debt to
obtain that less restrictive Rate Covenant.
10.0: FINANCING PARTICIPANTS
The District’s purchasing guidelines provide the process for securing
professional services related to individual debt issues. The
solicitation and selection process include encouraging participation
from qualified service providers, both local and national, and
securing services at competitive prices.
Municipal Advisor: The use of a Municipal Advisor is necessary for
the sale of debt by a competitive bid process and is desirable when
issuing debt through a negotiated sale. The Municipal Advisor has a
fiduciary duty to the District and will seek to structure the
District’s debt in the manner that is saleable, yet meets the
District’s objectives for the financing. The Municipal Advisor will
advise the District on alternative structures for its debt, the cost
of different debt structures and potential pricing mechanisms that can
be expected from underwriters (such as call features, term bonds and
premium and discount bond pricing) and, at the District’s direction,
will write the offering document (preliminary official statement).
With respect to competitive sales, the Municipal Advisor will arrange
for distributing the preliminary official statement, accepting bids
via an internet bidding platform, verifying the lowest bid and provide
detailed instructions for the flow of funds at closing to the winning
Underwriter, the Trustee and the District. In a negotiated sale, the
Municipal Advisor will provide independent confirmation on the
Underwriter’s proposed pricing to ensure that interest rates and
Underwriter’s compensation are appropriate for the credit quality of
the issue and competitive in the overall public finance market in
California.
Underwriter: The Underwriter markets the bonds for sale to investors.
While the District’s preference is to select the Underwriter for the
debt via sale of the debt at competitive bid, there are circumstances
when a negotiated issue is in the best interests of the District.
Negotiated sales are preferable if the security features are
particularly complex or market conditions are volatile. The Chief
Financial Officer will recommend whether the method of sale is
competitive or negotiated based on the type of issue and other market
conditions. In the case of negotiated sales, the Underwriter will be
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required to demonstrate sufficient capitalization and sufficient
experience related to the specific type of debt issuance.
The Underwriter will work in connection with the District’s Municipal
Advisor on structuring the issue and offering different pricing ideas.
Bond Counsel: The District’s Bond Counsel provides the primary legal
documents that detail the security for the bonds and the authority
under which bonds are issued. The Bond Counsel also provides an
opinion to bond holders that the bonds are tax-exempt under both State
and Federal law. All closing documents in connection with an issue
are also prepared by Bond Counsel.
Disclosure Counsel: The District’s Disclosure Counsel provides legal
advice to the District regarding the adequacy of the District’s
disclosure of financial information or risks of investing in the
District’s debt issue to the investing public. The Disclosure Counsel
can prepare the official statement or review the official statement
and gives the District an opinion that there is no information missing
from the official statement of a material nature that would be
necessary for an investor to make an informed decision about investing
in the District’s bonds.
Trustee: The Trustee is a financial institution selected by the
District to administer the collection of revenues pledged to repay the
bonds and to distribute those funds to bondholders.
Letter of Credit Bank: The Letter of Credit Bank is a U.S. or foreign
bank that has issued a letter of credit providing both credit
enhancement (the Letter of Credit Bank will pay the debt in the event
that the District defaults on the payment) and liquidity for a
variable rate bond issue. These banks have their own short-term
credit rating, which can be higher than the District’s short-term
credit rating. Liquidity is needed because variable rate bondholders
are allowed to “put” their bonds back to the District if they do not
like the interest rate currently being offered. The District’s
Remarketing Agent then finds a new buyer for those bonds, but in the
event that no buyer is found, a draw is made under the letter of
credit to purchase the bonds that have been “put.” As soon as the
bonds are remarketed to another buyer, the letter of credit is repaid.
The letter of credit fees are paid annually or quarterly. Letter of
credits are typically issued for not more than 3 years and must be
renewed during the life of the bonds. Credit enhancement is discussed
further under the heading “CREDIT ENHANCEMENT.”
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Municipal Bond Insurer: The Municipal Bond Insurer can be one of
several insurance companies that provide municipal bond insurance
policies securing payment of the District’s debt. These policies
provide that the Municipal Bond Insurer will pay the District’s debt
in the event that the District defaults on its payments. Debt which
is insured carries the Municipal Bond Insurer’s credit rating. The
insurance premium for the bond insurance policy is paid one time at
the issuance of the debt and is non-cancelable for the term of the
debt. Unlike a letter of credit, bond insurance policies do not
provide liquidity and are most typically purchased for fixed rate
debt.
Remarketing Agent: The Remarketing Agent is an investment bank that,
each week, determines the interest rate for the District’s variable
rate obligations. The rate is set at the rate at which the
obligations could be sold on the open market at 100% of their face
value. The Remarketing Agent also finds new buyers for any of the
obligations that are “put” back to the District.
Rating Agencies: Currently, there are three widely recognized rating
agencies that rate municipal debt in the United States: Standard &
Poor’s, Moody’s Investors Service, and Fitch Investors Service.
Rating agencies establish objective criteria under which each type of
financing undertaken by the District is to be analyzed. Upon request,
a rating agency will rate the underlying strength of the District’s
financings, without regard to the purchase of any credit enhancement.
The rating is released to the general public and thereafter, the
rating agency will periodically update its analysis of a particular
issue, and may raise or lower the rating if circumstances warrant.
Investment-grade ratings range from “AAA” to “BBB-.” A rating below
“BBB-” is not investment grade. Many mutual funds cannot buy bonds
that do not carry an investment grade.
Verification Agent: In a refunding, the District will deposit funds
with an escrow agent (usually the trustee) in an amount sufficient,
together with earnings thereon, to pay the debt service and redemption
price of the debt being refunded through and including the call date.
The Verification Agent verifies the mathematical accuracy of
calculation of the amount to be deposited in escrow and the bond
counsel relies on this verification in giving their opinion that the
debt is defeased within the meaning of the indenture and that the lien
of the debt on the revenues pledged to the debt being refunded is
released.
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11.0: CONFLICT OF INTEREST AND STANDARDS OF CONDUCT
Members of the District, the Board of Directors and its consultants,
service providers and underwriters shall adhere to standards of
conduct and conflict of interest rules as stipulated by the California
Political Reform Act or the Municipal Securities Rulemaking Board
(MSRB), as applicable. All debt financing participants shall maintain
the highest standards of professional conduct at all times, in
accordance with MSRB Rules, including Rule G-37. Municipal Advisors
shall also adhere to applicable SEC rules and MSRB Rule G-42. There
shall be no conflict of interest with the District with any debt
financing participant.
12.0: CONTINUING DISCLOSURE
The District acknowledges the responsibilities of the underwriting
community and pledges to make all reasonable efforts to assist
underwriters in their efforts to comply with SEC Rule 15c2-12 and MSRB
Rule G-36. The District will file its official statements with the
MSRB and the nationally recognized municipal securities information
repositories. The District will also post copies of its comprehensive
financial reports on the MSRB’s Electronic Municipal Market Access
(EMMA) website, and will disseminate other information that it deems
pertinent to the market in a timely manner (For bonds issued after
2012, 10 days).
Reporting of Listed Events
While initial bond disclosure requirements pertain to underwriters,
the District will provide financial information and notices of listed
events on an ongoing basis throughout the life of the issue.
The list below (as of the most current SEC amendment effective
February 27, 2019) can change in the future, and any new requirements
added to SEC Rule 15(c)2-12 in the future are deemed to be added to
this section without the need to update the policy.
(a)The District shall give, or cause to be given, notice of the
occurrence of any of the following events with respect to any
bonds (in each case to the extent applicable) in a timely
manner not more than ten business days after the occurrence of
the event:
1.Principal or interest payment delinquencies;
2.Non-payment related defaults, if material;
3.Modifications to the rights of the Holders, if material;
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4.Optional, contingent or unscheduled calls, if material, and
tender offers;
5.Defeasances;
6.Rating changes;
7.Adverse tax opinions or the issuance by the Internal Revenue
Service of proposed or final determinations of taxability,
Notices of Proposed Issue (IRS Form 5701-TEB) or other
material notices or determinations with respect to the tax
status of the Bonds or other material events affecting the
tax status of the Bonds;
8.Unscheduled draws on the debt service reserves reflecting
financial difficulties;
9.Unscheduled draws on the credit enhancements reflecting
financial difficulties;
10.Substitution of the credit or liquidity providers or their
failure to perform;
11.Release, substitution or sale of property securing repayment
of the Bonds, if material;
12.Bankruptcy, insolvency, receivership or similar proceedings
of the District, which shall occur as described below;
13.Appointment of a successor or additional trustee or the
change of name of a trustee, if material;
14.The consummation of a merger, consolidation, or acquisition
involving the District or the sale of all or substantially
all of the assets of the District other than in the ordinary
course of business, the entry into a definitive agreement to
undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant
to its terms, if material;
15.Incurrence of a financial obligation of the District, if
material, or agreement to covenants, events of default,
remedies, priority rights, or other similar terms of a
financial obligation of the District, any of which affect
security holders, if material; or
16.Default, event of acceleration, termination event,
modification of terms, or other similar events under the
terms of a financial obligation of the District, any of
which reflect financial difficulties.
For these purposes, any event described in item 12 is considered to
occur when any of the following occur: the appointment of a receiver,
fiscal agent, or similar officer for the District in a proceeding
under the United States Bankruptcy Code or in any other proceeding
under state or federal law in which a court or governmental authority
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has assumed jurisdiction over substantially all of the assets or
business of the District, or if such jurisdiction has been assumed by
leaving the existing governing body and officials or officers in
possession but subject to the supervision and orders of a court or
governmental authority, or the entry of an order confirming a plan of
reorganization, arrangement, or liquidation by a court or governmental
authority having supervision or jurisdiction over substantially all of
the assets or business of the District.
Whenever the District obtains knowledge of the occurrence of a Listed
Event under item 12 above, the District shall or shall cause the
Dissemination Agent (if not the District) as soon as possible
determine if such event would be material under applicable federal
securities laws and if applicable file a notice of such occurrence
with the MSRB, in an electronic format as prescribed by the MSRB, in a
timely manner not in excess of 10 business days after the occurrence
of the Significant Event.
Notwithstanding the foregoing, notice of Significant Events described
in subparagraph (a)(8) above need not be given any earlier than the
notice (if any) of the underlying event is given to holders of
affected bonds under the applicable indenture securing such bonds.
The events described in subparagraphs (a)(2), (a)(7),(a)(8) (if the
event is a bond call), (a)(10), (a)(11), (a)(13), (a)(14) and (a)(15)
contain the qualifier “if material.” The District shall cause a notice
to be filed with respect to any such event only to the extent that the
District determines the event’s occurrence is material for purposes of
U.S. federal securities law.
13:0 INVESTMENT & ARBITRAGE COMPLIANCE
Tax-exempt bonds are required to meet certain provisions of the
federal tax code in order to maintain their tax-exempt status. In
order to prevent municipal issuers from borrowing money at tax-exempt
rates solely for the purpose of investing the proceeds in higher
yielding investments and making a profit (“arbitrage”), the federal
tax code contains a provision that requires issuers to compare the
interest earned on any bond funds held (such as a reserve fund) with
interest that would theoretically be earned if the funds were invested
at the yield of the bonds, and to “rebate” to the federal government
any interest earned in excess of the theoretical earnings limit.
The Chief Financial Officer shall invest the bond proceeds subject to
the District’s Investment Policy in a timely manner, to ensure the
availability of funds to meet operational requirements. In doing so,
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the CFO will maintain a system of record keeping and reporting to meet
the arbitrage rebate compliance requirements of the federal tax code.
14.0: INTERNAL CONTROL
The District has implemented the following procedure to ensure that
the proceeds of the proposed debt issuance will be directed to the
intended use:
1.A separate Reserve Account shall be maintained for the
proceeds of each bond to ensure that there is no comingling
of funds.
2.All related expenditures charged against the bond proceeds
shall be properly approved by the authorized authority.
3.All related transactions shall be fully documented so that
an undisputable audit trail exists.
4.All related transactions shall be tracked in the District’s
Accounting System. A financial report reflecting all charges
related to the bond shall be prepared and maintained.
5.The District shall establish a retention policy which states
that all supporting documents related to bond proceeds
spending shall be kept indefinitely.
6.The Reserve Account shall be reconciled on a monthly basis.
15.0: TYPES OF DEBT FINANCING
General Obligation Bonds
General obligation bonds are secured by a pledge of the ad-valorem
taxing power of the issuer and are also known as a full faith and
credit obligations. Bonds of this nature must serve a public purpose
to be considered lawful taxation of the property owners within the
District and require a two third’s majority vote in a general
election. The benefit of the improvements or assets constructed and
acquired as a result of this type of bond must be generally available
to all property owners.
The District can issue general obligation bonds up to but not in
excess of 15% of the assessed valuation under Article XVI, Section 18
of the State constitution. An annual amount of the levy necessary to
meet debt service requirements is calculated and placed on the tax
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roll through the County of San Diego. The District also has a policy
that the ad-valorem tax to be used to pay debt service on general
obligation bonds will not exceed $.10 per $100 of assessed value.
Voters within Improvement District No. 27 of the District authorized
$100 million general obligation bonds in 1989. The District issued
$11,500,000 general obligation bonds in 1992 and refinanced the bonds
in 1998 and again in 2009. The District also has approximately $29
million in general obligation bonds authorized between 1960 and 1978
for various improvement districts throughout the District, but
unissued. General obligation bonds can only be issued under these
existing authorizations to the extent necessary to fund the
improvements specified by each ballot measure.
General obligation bonds generally are regarded as the broadest and
soundest security among tax-secured debt instruments. An unlimited-
tax pledge would enable a trustee to invoke mandamus to force the
District to raise the tax rate as much as necessary to pay off the
bonds. General obligation bonds have other credit strengths as well:
the property tax tends to be a steady and predictable revenue source,
and when a vote is required to issue them, bondholders have some
indication of taxpayers’ willingness to pay. General obligation bonds
carry the highest credit rating that a public agency can achieve and
therefore, the lowest interest cost. General obligation bonds
typically are issued to finance capital facilities and not for ongoing
operational or maintenance costs.
The District will use an objective analytical approach to determine
whether it can afford to assume new general obligation debt for the
improvement districts, or in the case of projects not approved by the
original ID 27 vote, prior to any submission of a general obligation
bond ballot measure to voters. This process will compare generally
accepted standards of affordability to the current values for the
District. These standards will include debt per capita, debt as a
percent of taxable value, debt service payments as a percent of
current revenues and current expenditures, and the level of
overlapping net debt of all local taxing jurisdictions. The process
will also examine the direct costs and benefits of the proposed
expenditures. The decision on whether or not to assume new debt will
be based on these costs and benefits, the current conditions of the
municipal bond market, and the District’s ability to "afford" new debt
as determined by the aforementioned standards.
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Revenue Bonds
Revenue bonds are limited-liability obligations that pledge net
revenues of the District to debt service. The net revenue pledge is
after payment of all operating costs. Since revenue bonds are not
generally secured by the full faith and credit of the District, the
financial markets require coverage ratios of the pledged revenue
stream and a covenant to levy rates and charges sufficient to produce
net income at some level in excess of debt service (a Rate Covenant).
Also there may be a test required to demonstrate that future revenues
will be sufficient to maintain debt service coverage levels after any
proposed additional bonds are issued. The District will strive to
meet industry and financial market standards with such ratios without
impacting the current rating. Annual adjustments to the District’s
rate structure may be necessary to maintain these coverage ratios.
The underlying credit of revenue bonds is judged on the ability of the
District’s existing rates to provide sufficient net income to pay debt
service and the perceived willingness of the District to raise rates
and charges in accordance with its Rate Covenant. Actual past
performance also plays a role in evaluating the credit quality of
revenue bonds, as well as the diversity of the customer base. Revenue
bonds generally carry a credit rating one or two investment grades
below a general obligation bond rating.
The District may use a debt structure called “Certificates of
Participation” to finance capital facilities. However, if the
certificates contain a pledge of net revenues and a Rate Covenant,
they are treated as essentially the same as a revenue bond.
Lease/Purchase Agreements
Over the lifetime of a lease, the total cost to the District will
generally be higher than purchasing the asset outright. As a result,
the use of lease/purchase agreements in the acquisition of vehicles,
equipment and other capital assets will generally be avoided,
particularly if smaller quantities of the capital asset(s) can be
purchased on a "pay-as-you-go" basis.
The District may utilize lease-purchase agreements to acquire needed
equipment and facilities. Criteria for such agreements should be that
the asset life is three years or more, the minimum value of the
agreement is $50,000 and interest costs must not exceed the interest
rate earned by the District’s portfolio for the average of the past 6
months. Lease payments of this type are considered operating expenses
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and would reduce net operating income available to pay any District
revenue bonds. There are no coverage requirements or rate covenants
associated with lease/purchase agreements.
State Water Loans
The State Water Resources Control Board makes certain funds available
to water districts throughout the State. These loans typically carry
a below-market rate of interest and are short term in nature. While
State loans should be incorporated into the District’s debt portfolio
for the financing of capital improvements, the payment of the loan
should not compromise the District’s ability to issue other planned
debt or cause the District to violate its rate covenants or make it
necessary for the District to increase rates to maintain existing rate
covenants.
Land Based Financing
The District may consider developer or property owner-initiated
applications requesting the formation of community facilities or
assessment districts and the issuance of bonds to finance eligible
District facilities necessary to serve newly developing commercial,
industrial and/or residential projects. Facilities will be financed
in accordance with the provisions of the Municipal Improvement Act of
1913 and the Improvement Bond Act of 1915, or the Mello-Roos Community
Facilities Act of 1982.
Typically, the bonds issued would be used to prepay, in a lump-sum,
the District’s capacity fees with respect to a large tract of land
under development, or to finance in-tract infrastructure that will
eventually be dedicated to the District. The bonds are secured by a
special tax or assessment to be levied on property within the
boundaries established for the community facilities district
(sometimes known as a “Mello-Roos” district) or the assessment
district. If the District becomes the sponsoring public agency for
such financing district and the issuance of debt, the District will be
required to enter into a Funding, Construction and Acquisition
agreement for any of the facilities to be dedicated to the District
upon completion. This agreement governs the type of facilities to be
constructed with bond proceeds and how the facilities will be accepted
by the District.
In some cases, the District may not be asked to be the sponsoring
agency for the formation of a financing district, rather, the
developer or property owner may approach a school district or a city
to be the sponsoring agency. Nonetheless, the property owner may want
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to include lump-sum payment of District fees in the financing or
construction of certain facilities to be dedicated to the District
upon completion. In this case, if the District desired to
participate, the District would enter into a Joint Financing Agreement
with the sponsoring agency, again governing the type of facilities to
be constructed with bond proceeds and how the facilities will be
accepted by the District.
On a case-by-case basis, the Board shall make the determination as to
whether a proposed district will proceed under the provisions of the
Assessment Acts or the Mello-Roos Community Facilities Act. The Board
may confer with other consultants and the applicant to learn of any
unique district requirements, such as long-term development phasing,
prior to making any final determination.
All District and District consultant costs incurred in the evaluation
of new development, district applications and the establishment of
districts will be paid by the applicant(s) by advance deposits in
those instances where a party or parties other than the District have
initiated a proposed district. Expenses not legally reimbursable by
the financing district will be borne by the applicant. The District
may incur expenses for analyzing proposed assessment or community
facilities districts where the District is the principal proponent of
the formation or financing of the district.
Prior to the issuance of any land secured financing and in accordance
with State law, the Board will adopt policies and procedures with
criteria to be met before any special tax bonds or assessment district
bonds may be issued. These criteria include the qualifications of the
appraiser, the minimum value to lien ratio to be achieved prior to
issuing the land secured debt and the maximum tax to be levied on
different categories of property.
Internal Lending/Borrowing
Internal Lending/Borrowing allows the lending and/or borrowing of
funds between the Water (Potable and Recycled) and the Sewer Funds,
either direction to meet financial needs in lieu of the borrowing fund
obtaining outside debt.
Upon recommendation by the Chief Financial Officer, the Board may
adopt a resolution allowing lending/borrowing arrangements between
Water and Sewer funds. To the extent any inter-fund lending/borrowing
is undertaken in anticipation of long-term financing, the District
shall adopt a Resolution of its intention to repay such funds out of
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tax-exempt debt proceeds so as to meet the requirement of federal tax
law for such borrowing.
If the funds being loaned are restricted, prevailing law requires that
the Resolution that the Board adopts must include a finding by the
Board that the lending fund has sufficient money to lend and that the
borrowing fund can repay the loan without adversely affecting the
District’s credit ratings.
Internal Lending/Borrowing arrangements will be recorded in accordance
with GASB reporting requirements. The arrangement will include the
purpose, a debt repayment schedule and a periodic interest charge that
is equal to the District’s investment rate of return for that same
period. This ensures that the lending fund is recapturing earnings
that would have been otherwise realized had these funds been invested
in the District’s investment portfolio.
16.0: RATING AGENCY APPLICATIONS
The District may seek one or more ratings on all new issues that are
being sold in the public market. These rating agencies include, but
are not limited to, Fitch Investors Service, Moody’s Investors
Service, and Standard & Poor’s. When applying for a rating on an
issue over $1 million or more, the District shall make a formal
presentation of the finances and positive developments within the
District to the rating agencies. The District will report all
financial information to the rating agencies upon request. This
information shall include, but shall not be limited to, the District’s
Comprehensive Annual Financial Report (CAFR), and the Adopted
Operating and Capital Budget.
17.0: USE OF CREDIT ENHANCEMENT
Credit enhancement is a generic term that means any third-party
guarantee of debt service. Credit enhancement providers include
municipal bond insurance companies or financial institutions. The
purchase of credit enhancement allows the District’s bond issue to
carry the same credit rating as the credit provider. The District will
seek to use credit enhancement when such credit enhancement proves
cost-effective. Selection of credit enhancement providers will be
subject to a competitive bid process using the District’s purchasing
guidelines, if applicable.
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Fixed Rate Bonds
Credit enhancement for fixed rate bonds is obtained by the purchase of
bond insurance. If a commitment for bond insurance is obtained for a
particular issue, the District will estimate the annual debt service
for the issue based on current interest rates applicable to the credit
rating of the bond insurer. If the estimated debt service on this
basis is less than or equal to estimated debt service for the issue
based on interest rates for bonds with the District’s underlying or
stand-alone credit rating, the District will purchase the bond
insurance. Any intention of the District to prepay the debt ahead of
its scheduled maturity will be taken into account in the analysis.
Credit enhancement may be used to improve or establish a credit rating
on a District debt obligation even if such credit enhancement is not
cost effective if, in the opinion of the Chief Financial Officer, the
use of such credit enhancement meets the District’s debt financing
goals and objectives, such as, funding of a reserve fund for the
bonds.
Variable Rate Bonds
Credit enhancement for variable rate bonds is comprised of two
components: credit support and liquidity. The interest on variable
rate bonds is based on a short-term investment rate (usually 7 days).
Any investor can tender their bonds back to the District to be
repurchased on short notice (usually 7 days). Because of the short-
term nature of the investment, the securities that the District is
“competing” with for investors are AA-rated mutual funds. Therefore,
variable debt needs to have credit enhancement to achieve a comparable
AA rating, as well as liquidity support to provide the District with a
mechanism to purchase any bonds that are tendered before they can be
remarketed to new investors. A limited number of financial
institutions offer letters of credit that combine both credit support
and liquidity for one fee. An alternative is to purchase bond
insurance to provide credit support and enter into a separate purchase
agreement with a financial institution to provide liquidity. The
difference in cost between the two structures will be analyzed before
either alternative is selected for variable rate debt.
18.0: GLOSSARY
Ad Valorem Tax: A tax calculated “according to the value” of
property. Such a tax is based on the assessed valuation of tangible
personal property. In most jurisdictions, the tax is a lien on the
property enforceable by seizure and sale of the property. General
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restrictions, such as overall restrictions on rates, or the percent of
charge allowed, sometimes apply. As a result, ad valorem taxes often
function as the balancing element in local budgets.
Advance Refunding: A procedure whereby outstanding bonds are
refinanced by the proceeds of a new bond issue prior to the date on
which outstanding bonds become due or are callable. Typically, an
advance refunding is performed to take advantage of interest rates
that are significantly lower than those associated with the original
bond issue. At times, however, an advance refunding is performed to
remove restrictive language or debt service reserve requirements
required by the original issue.
Amortization: The planned reduction of a debt obligation according to
a stated maturity or redemption schedule.
Arbitrage: The gain that may be obtained by borrowing funds at a
lower (often tax-exempt) rate and investing the proceeds at higher
(often taxable) rates. The ability to earn arbitrage by issuing tax-
exempt securities has been severely curtailed by the Tax Reform Act of
1986, as amended.
Assessed Valuation: The appraised worth of property as set by a
taxing authority through assessments for purposes of ad valorem
taxation.
Basis Point: One one-hundredth of one percent.
Bond: A security that represents an obligation to pay a specified
amount of money on a specific date in the future, typically with
periodic interest payments.
Bond Counsel: An attorney (or firm of attorneys) retained by the
issuer to give a legal opinion concerning the validity of the
securities. The bond counsel’s opinion usually addresses the subject
of tax exemption. Bond counsel may prepare, or review and advise the
issuer regarding authorizing resolutions or ordinances, trust
indentures, official statements, validation proceedings and
litigation.
Bond Insurance: A type of credit enhancement whereby a monocline
insurance company indemnifies an investor against a default by the
issuer. In the event of a failure by the issuer to pay principal and
interest in-full and on-time, investors may call upon the insurance
company to do so. Once assigned, the municipal bond insurance policy
generally is irrevocable. The insurance company receives an up-front
fee, or premium, when the policy is issued.
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Call Option: A contract through which the owner is given the right
but is not obligated to purchase the underlying security or commodity
at a fixed price within a limited time frame.
Cap: A ceiling on the interest rate that would be paid.
Capital Lease: The acquisition of a capital asset over time rather
than merely paying rent for temporary use. A lease-purchase
agreement, in which provision is made for transfer of ownership of the
property for a nominal price at the scheduled termination of the
lease, is referred to as a capital lease.
Certificate of Participation: A financial instrument representing a
proportionate interest in payments such as lease payments by one party
(such as the District acting as a lessee) to another party (often a
trustee).
CIP: Capital Improvement Program.
Competitive Sale: The sale of securities in which the securities are
awarded to the bidder who offers to purchase the issue at the best
price or lowest cost.
Continuing Disclosure: The requirement by the Securities and Exchange
Commission for most issuers of municipal debt to provide current
financial information to the informational repositories for access by
the general marketplace.
Debt Service: The amount necessary to pay principal and interest
requirements on outstanding bonds for a given year or series of years.
Defeasance: Providing for payment of principal of premium, if any,
and interest on debt through the first call date or scheduled
principal maturity in accordance with the terms and requirements of
the instrument pursuant to which the debt was issued. A legal
defeasance usually involves establishing an irrevocable escrow funded
with only cash and U.S. Government obligations.
Derivative: A financial product that is based upon another product.
Generally, derivatives are risk mitigation tools.
Discount: The difference between a bond’s par value and the price for
which it is sold when the latter is less than par.
Municipal Advisor: A person that provides advice to or on behalf of a
municipal entity or obligated person with respect to municipal
financial products or the issuance of municipal securities, including
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advice with respect to the structure, timing, terms, and other similar
matters concerning such financial products or issues.
Financial Obligation: A debt obligation, lease, guarantee, derivative
instrument, or monetary obligation resulting from a judicial,
administrative, or arbitration proceeding, but not including municipal
securities as to which a final official statement has been provided to
the MSRB.
General Obligation Bonds: Debt that is secured by a pledge of the ad
valorem taxing power of the issuer. Also known as a full faith and
credit obligation.
Internal Lending/Borrowing: An Inter-fund lending arrangement between
Water and Sewer funds.
Municipal Securities Rulemaking Board (MSRB): The MSRB, comprised of
representatives from investment banking firms, dealer bank
representatives, and public representatives, is entrusted with the
responsibility of writing rules of conduct for the municipal
securities market.
Negotiated Sale: A sale of securities in which the terms of sale are
determined through negotiation between the issuer and the purchaser,
typically an underwriter, without competitive bidding.
Official Statement: A document published by the issuer that discloses
material information on a new issue of municipal securities including
the purposes of the issue, how the securities will be repaid, and the
financial, economic and social characteristics of the issuing
government. Investors may use this information to evaluate the credit
quality of the securities.
Option: A derivative contract. There are two primary types of
options (see Put Option and Call Option). An option is considered a
wasting asset because it has a stipulated life to expiration and may
expire worthless. Hence, the premium could be wasted.
Optional Redemption: The redemption of an obligation prior to its
stated maturity, which can only occur on dates specified in the bond
indenture.
Overlapping Debt: The legal boundaries of local governments often
overlap. In some cases, one unit of government is located entirely
within the boundaries of another. Overlapping debt represents the
proportionate share of debt that must be borne by one unit of
government because another government with overlapping or underlying
taxing authority issued its own bonds.
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Par Value: The face value or principal amount of a security.
Pay-as-you-go: To pay for capital improvements from current resources
and fund balances rather than from debt proceeds.
Put Option: A contract that grants to the purchaser the right but not
the obligation to exercise.
Rate Covenant: A covenant between the District and bondholders, under
which the District agrees to maintain a certain level of net income
compared to its debt payments, and covenants to increase rates if net
income is not sufficient to meet such level.
Refunding: A procedure whereby an issuer refinances an outstanding
bond issue by issuing new bonds.
Revenue Bonds: A bond which is payable from a specific source of
revenue and to which the full faith and credit of an issuer with
taxing power is not pledged. Revenue bonds are payable from
identified sources of revenue, and do not permit the bondholders to
compel a jurisdiction to pay debt service from any other source.
Pledged revenues often are derived from the operation of an
enterprise. Generally, no voter approval is required prior to
issuance.
Special Assessments: A charge imposed against property or parcel of
land that receives a special benefit by virtue of some public
improvement that is not, or cannot be enjoyed by the public at large.
Special assessment debt issues are those that finance such
improvements and are repaid by the assessments charged to the
benefiting property owners.
Swap: A customized financial transaction between two or more
counterparties who agree to make periodic payments to one another.
Swaps cover interest rate, equity, commodity and currency products.
They can be simple floating for fixed exchanges or complex hybrid
products with multiple option features.
True Interest Cost (TIC): A method of calculating the overall cost of
a financing that takes into account the time value of money. The TIC
is the rate of interest that will discount all future payments so that
the sum of their present value equals the issue proceeds.
Underwriter: The term used broadly in the municipal market, to refer
to the firm that purchases a securities offering from a governmental
issuer.
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Yield Curve: Refers to the graphical or tabular representation of
interest rates across different maturities. The presentation often
starts with the shortest-term rates and extends towards longer
maturities. It reflects the market’s views about implied
inflation/deflation, liquidity, economic and financial activity, and
other market forces.
Page 1 of 5
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Policy
Number
Date
Adopted
Date
RevisedSubject: MEDIA RELATIONS POLICY
46 9/01/04 5/3/23
PURPOSE
To establish procedures to better inform the public, Otay Water District
(District) customers, businesses and other stakeholders on water, sewer,
and recycled water service, and other District-related matters by
engaging in a defined and proactive media relations program.
BACKGROUND
The District recognizes an effective and expeditious way to communicate
District policies and activities is by working in partnership with the
news media. This policy requires that news media inquiries regarding the
District and the District’s position on matters should be given high
priority and should be responded to as promptly and efficiently as
possible. Every effort should be made to reasonably meet media deadlines
and to ensure that all information released is accurate and is in
compliance with laws and regulations concerning individual privacy and
confidentiality.
POLICY
The General Manager’s office is responsible for the District's media
relations program. To assist with this critical function, the District’s
General Manager’s staff provides media relations assistance and public,
community, governmental relations, and other outreach services.
Before responding to any media inquiries, all District staff should
notify the General Manager, their department’s Chief, and/or the
Communications Officer about media inquiries. Regarding District media
requests, if possible, all District staff shall direct the news media
reporter/representative to contact the General Manager and/or the
Communications Officer who is authorized to speak on behalf of the
District. Because the media often work on deadlines, all departments
should respond as soon as reasonably possible when the General Manager,
Communications Officer, or Communications Assistant requests department
information via a news media reporter/representative. Specific
guidelines for responding to media requests regarding the District’s
position on matters are as follow:
Page 2 of 5
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Policy
Number
Date
Adopted
Date
RevisedSubject: MEDIA RELATIONS POLICY
46 9/01/04 5/3/23
DISTRICT SPOKESPERSONS
All spokespersons noted below should have discussions orally or written
with the General Manager’s office and/or General Manager's designated
staff to obtain the appropriate, accurate, and approved District-related
facts and information about the topic or issue at hand before acting as
a spokesperson to the media.
Unless otherwise authorized, the District's only designated
spokespersons to speak on behalf of the District are the following:
President of the Board of Directors or Board members as assigned
General Manager
Communications Officer
Other designees authorized by General Manager as noted by General
Manager in writing.
MEDIA INQUIRIES
Any media inquiry received by other District staff regarding the District
or the District’s position on a matter should be referred immediately to
the General Manager through the Department Chief. An appropriate response
to the media is: "I'm sorry; I don't have the full information regarding
that matter. I will give your request to District management, and someone
from the District will respond to you as soon as they are available."
Any staff member should obtain the reporter's name, media organization,
phone/cell number, email address, topic of the story, and the deadline.
Staff in the General Manager’s office will make all reasonable efforts
to coordinate a response with the General Manager and appropriate
District staff.
LITIGATION, PERSONNEL AND DISTRICT ELECTION ISSUES
Generally, the business conducted by the District is public, and
therefore, is public information. Inquiries regarding pending
litigation, matters involving a significant exposure to litigation,
Page 3 of 5
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Policy
Number
Date
Adopted
Date
RevisedSubject: MEDIA RELATIONS POLICY
46 9/01/04 5/3/23
certain personnel related information, and District election information
may be exceptions. If unknown, staff shall always verify with the General
Manager’s Office.
Known inquiries regarding pending litigation or exposure to litigation
and District election issues should be referred to the General Manager’s
office.
GENERAL OR ROUTINE ISSUES
Calls from the media should always be referred immediately to the General
Manager’s office through the employee's Department Chief or supervisor.
The General Manager’s office will coordinate a response with designated
staff and/or Board members, including designating a spokesperson. The
General Manager’s office shall be informed of the topic, the name of the
reporter, news media organization, media/reporter contact information,
and the proposed date of airing or publication, either before or
immediately following any interviews.
DISTRICT-INITIATED INFORMATION
The District also makes its own efforts to contact the media. For the
most part, this proactive media contact is initiated through the General
Manager’s office. This includes issuing news releases and media
advisories and contacting reporters and editors directly for stories and
other coverage. Departments seeking publicity for events or activities
shall not contact the media or reporters directly. Rather, department
staff shall contact the Communications Officer in the General Manager’s
office as soon as possible to ensure the best media coverage of their
activities.
Department staff members shall not initiate any news media contacts on
behalf of the District. Staff shall first notify the General Manager’s
Office and/or Department Chief. If approved by the General Manager’s
Office, the Communications Officer or General Manager’s designee, will
then contact the media directly.
CRISIS MANAGEMENT AND EMERGENCY/SERVICE OUTAGE ISSUES
Because Operations Department staff may be called upon to restore service
due to outages, breakages, or in other critical situations, their work is
Page 4 of 5
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Policy
Number
Date
Adopted
Date
RevisedSubject: MEDIA RELATIONS POLICY
46 9/01/04 5/3/23
fundamental to the overall mission of the District. As a result,
Operations personnel may be the only staff at the scene of an incident
and may be called upon to address service restoration questions by the
media.
In these situations, all such inquiries will be immediately referred to
the Chief of Operations who will make every effort to ensure that all
information released is accurate, relevant, and appropriate. Operations
staff should notify the Chief of Operations immediately of any such media
inquiry. The Chief of Operations will then take the lead for follow-up
media communications and contact the General Manager and Communications
Officer. If possible and time permits, the Operations Chief and/or
Operations staff should coordinate messaging with the Communications
Officer first, but if time does not allow, the Communications Officer
should be notified as soon as possible.
Any media calls to other District staff regarding Operations matters
should be referred immediately to the Chief of Operations and
Communications Officer. All information released directly to the media
by Operations should be provided immediately to the Communications
Officer.
During a crisis or major emergency, the District’s Standardized Emergency
Management Plan Section 5.1-1 assigns responsibilities and procedures for
handling media and customer information.
To manage a crisis or a major emergency that may or may not consist of
a service outage, the Communications Officer will work with the General
Manager and designated Department Chiefs to assess if the situation
requires outside services to assist with and/or manage the crisis. Each
situation is unique and will be discussed on an as-needed basis.
CONCLUSION
Nothing in this policy should be construed as to restrict or preclude
District staff, or a representative of the Otay Water District
Employees’ Association (OWDEA) or other bargaining unit, from
communicating with the press on matters of public concern or on matters
related to the association and/or union activities. However, such
communications should not be made during on-duty time, nor be disruptive
Page 5 of 5
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Policy
Number
Date
Adopted
Date
RevisedSubject: MEDIA RELATIONS POLICY
46 9/01/04 5/3/23
to the District’s operations, and should be clearly understood as not
being made on behalf of the District or representing the District’s
official position on such matters.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject:Policy
Number
Date
Adopted
Date
Revised
POLICY AGAINST DISCRIMINATION,
HARASSMENT, RETALIATION, AND COMPLAINT
PROCEDURE
47 10/11/05 05/01/19
Page 1 of 7
PURPOSE
The Otay Water District (“District”) disapproves of and will not
tolerate unlawful discrimination or harassment of its employees,
members of the Board of Directors, unpaid interns, volunteers, job
applicants or persons providing services pursuant to a contract with
the District, or retaliation against those who report such behavior.
This policy sets forth a procedure for investigating and resolving
internal complaints of discrimination, harassment, or retaliation.
DEFINITIONS
Discrimination – Any decision or action that is based on a District
employee’s, unpaid intern’s, volunteer’s, job applicant’s, or person
providing services pursuant to a contract with the District’s status
as a member of a protected class that adversely affects the
employee, unpaid intern, volunteer, job applicant, person providing
services pursuant to a contract with the District, or his/her work
conditions, terms of employment, or work environment.
Harassment – Any decision or action that is based on a District
employee’s, unpaid intern’s, volunteer’s, job applicant’s, or person
providing services pursuant to a contract with the District’s status
as a member of a protected class, made for the purpose or having the
effect of adversely affecting that employee’s, unpaid intern’s,
volunteer’s, job applicant’s or person providing services pursuant
to a contract with the District’s terms of employment, work
conditions, or work environment. Harassment may include, but is not
limited to:
Verbal conduct such as epithets, derogatory jokes or
comments, slurs, or unwelcome invitations or comments;
Visual displays such as derogatory posters, photography,
cartoons, drawings or gestures;
Physical conduct including assault, unwanted touching,
intentionally blocking normal movement or interfering with
work.
Such conduct constitutes harassment when (1) submission to the
conduct is made as either an explicit or implicit condition of
employment; (2) submission or rejection of the conduct is used as
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject:Policy
Number
Date
Adopted
Date
Revised
POLICY AGAINST DISCRIMINATION,
HARASSMENT, RETALIATION, AND COMPLAINT
PROCEDURE
47 10/11/05 05/01/19
Page 2 of 7
the basis for an employment decision; or (3) the harassment
interferes with work performance or creates an intimidating,
hostile, or offensive work environment.
Sexual Harassment – Sexual harassment consists of unwelcome sexual
advances, requests for sexual favors, or verbal, visual, or physical
conduct pertaining to a person’s sex (including pregnancy,
childbirth, breastfeeding or related medical conditions) and/or of a
sexual nature, when submission to such conduct is committed by a
supervisor, co-worker, or a non-employee, in the work setting, under
any of the following conditions:
1.Submission to the conduct is explicitly or implicitly made a
term or condition of employment, progress, or participation
in a District employment activity; or
2.Submission to, or rejection of, the conduct by the individual
is used as the basis of employment decision(s) affecting the
individual; or
3.The conduct has the purpose or effect of having a negative
impact upon the individual's work performance or of creating
an intimidating, hostile, or offensive work environment.
Examples of actions that might constitute sexual harassment, include
but are not limited to:
1.Unwelcome verbal conduct such as sexual flirtations or
propositions; graphic comments; overly personal
conversations; pressure for sexual activity; sexual jokes or
stories; unwelcome sexual slurs; epithets; threats;
innuendoes; derogatory comments; sexual descriptions;
degrading comments; or the spreading of sexual rumors.
2.Unwelcome visual conduct such as sexually explicit drawings,
pictures, photographs, gestures, emails, text messages and/or
communications via social media; display of sexually explicit
or suggestive objects.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject:Policy
Number
Date
Adopted
Date
Revised
POLICY AGAINST DISCRIMINATION,
HARASSMENT, RETALIATION, AND COMPLAINT
PROCEDURE
47 10/11/05 05/01/19
Page 3 of 7
3.Unwelcome physical conduct such as massaging, rubbing,
grabbing, fondling, stroking, brushing of the body; touching
in an unwanted and/or sexual manner; cornering, blocking,
leaning on or over, or impeding normal walking, movements, or
standing.
4.Threats and demands to submit to sexual requests as a
condition of continued employment, condition for advancement
in pay, position or authority or to avoid an adverse
consequence, and offers of employment benefits in return for
sexual favors.
Two general categories of sexual harassment exist: (1) Quid pro quo,
meaning "this for that" such as submission to sexual conduct as a
condition of employment, benefits or terms and conditions of
employment, and (2) Hostile work environment, meaning the sexual
conduct is so severe, or pervasive that it creates an intimidating,
demeaning, hostile, or offensive environment that unreasonably
interferes with an employee’s job performance.
Protected Class – Any class of persons who share a common sex, race,
color, religious creed including religious dress and grooming
practices, national origin, ancestry, physical or mental disability,
medical condition, genetic information, marital status, age, sexual
orientation, military or veteran status or any other “protected
class” recognized by federal or state laws. For purposes of this
definition, “sex” includes gender, gender identity, gender
expression, sex stereotype, transgender, pregnancy, childbirth,
breastfeeding, or a pregnancy-related or childbirth-related medical
condition.
Retaliation – Any decision or action that is based on the fact that
a District employee, unpaid intern, volunteer, job applicant, or
person providing services pursuant to a contract with the District
has previously complained of Discrimination, Harassment, or
Retaliation prohibited by this Policy (regardless of whether a
formal complaint has been made) or has provided evidence in the
investigation of another District employee’s, unpaid intern’s,
volunteer’s, job applicant’s or person providing services pursuant
to a contract with the District’s complaint under this Policy, made
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject:Policy
Number
Date
Adopted
Date
Revised
POLICY AGAINST DISCRIMINATION,
HARASSMENT, RETALIATION, AND COMPLAINT
PROCEDURE
47 10/11/05 05/01/19
Page 4 of 7
for the purpose of adversely affecting the employee’s, unpaid
intern’s, volunteer’s, job applicant or person providing services
pursuant to a contract with the District’s conditions of employment,
terms of employment, or work environment.
POLICY
The District is committed to providing a work environment free of
unlawful Discrimination, Harassment, or Retaliation against those
who report Discrimination or Harassment. Discrimination or
Harassment based on sex (including gender, gender identity, gender
expression, sex stereotype, transgender, pregnancy, childbirth,
breastfeeding, or related medical condition), race, color, religious
creed including religious dress and grooming practices, national
origin, ancestry, physical or mental disability, medical condition,
genetic information, marital status, age, sexual orientation,
military or veteran status, or any other basis protected by federal
or state law, is prohibited. Discrimination or Harassment based on
the perception that a person has any of the aforementioned
characteristics, or is associated with a person who has or is
perceived as having any of the aforementioned characteristics, is
prohibited. Retaliation against any person who complains of
unlawful Discrimination or Harassment or who provides evidence
relating to such a complaint, is prohibited.
This Policy applies to all terms and conditions of employment
including, but not limited to: hiring, placement, advancement,
promotion, disciplinary action, layoff, recall, transfer, leave of
absence, compensation and training. It applies to every District
employee including management, regular, temporary or contract
employees, members of the Board of Directors, unpaid interns,
volunteers, job applicants and to persons providing services
pursuant to a contract with the District. Similarly, the District
will not tolerate Discrimination or Harassment by its employees,
unpaid interns, volunteers, or non-employees with whom the District
has a business, service or professional relationship. The District
will also take reasonable steps to protect employees, unpaid
interns, and volunteers from Harassment by non-employees in the
workplace. Training will be provided to all supervisory and
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject:Policy
Number
Date
Adopted
Date
Revised
POLICY AGAINST DISCRIMINATION,
HARASSMENT, RETALIATION, AND COMPLAINT
PROCEDURE
47 10/11/05 05/01/19
Page 5 of 7
nonsupervisory employees, management, and the Board of Directors as
required by law.
COMPLAINT PROCEDURE
An employee, unpaid intern, volunteer, job applicant, or person
providing services pursuant to a contract with the District, who
believes he or she has been the victim of Discrimination,
Harassment, or Retaliation by a District employee, a member of the
Board of Directors, or a person providing services pursuant to a
contract with the District may make a complaint verbally, or in
writing by completing the District’s Discrimination, Harassment, and
Retaliation Complaint Form. An employee, unpaid intern, or volunteer
may make a complaint to any of the following:
Human Resources;
Any Supervisor, Manager, Department Assistant Chief,
Department Chief, or General Manager;
Complaints against the General Manager should be directed to
the President of the Board of Directors.
Job applicants, or persons providing services pursuant to a contract
with the District may make a complaint to any of the following:
Human Resources or;
General Manager.
Any person described above shall forward each written
Discrimination, Harassment, and Retaliation complaint to the General
Manager or designee, immediately upon receiving the complaint or
having knowledge of the complaint. If a complaint is made verbally,
the person receiving the complaint shall notify Human Resources
immediately.
Every reported complaint of Discrimination, Harassment or
Retaliation will be investigated in a fair, timely and thorough
manner. If any Manager, Supervisor, Department Assistant Chief, or
Department Chief becomes aware of or suspects Discrimination,
Harassment, or Retaliation against a District employee, unpaid
intern, volunteer, job applicant, member of the Board, or person
providing services pursuant to a contract with the District, he/she
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject:Policy
Number
Date
Adopted
Date
Revised
POLICY AGAINST DISCRIMINATION,
HARASSMENT, RETALIATION, AND COMPLAINT
PROCEDURE
47 10/11/05 05/01/19
Page 6 of 7
must immediately notify the Human Resources Manager of the relevant
facts and circumstances.
The General Manager or designee may conduct an investigation of
alleged Discrimination, Harassment, or Retaliation, or may delegate
responsibility for the investigation to another District management
employee or an outside investigator. If the complaint is against the
General Manager, the President of the Board of Directors shall be
responsible for conducting an investigation, assigning the
investigation to another management employee or outside
investigator, and overseeing the investigation. If the complaint is
against the Board of Directors or one of its members, the General
Manager shall be responsible for contracting with an outside
investigator to conduct the investigation. The Board will take
appropriate action based on the findings.
During its investigation, the District shall take appropriate steps
to protect the privacy of all parties involved and confidentiality
will be maintained to the extent possible. However, this shall not
be construed to justify refusing to inform a person who has been
accused of violating this Policy of the identity of the complainant
and witnesses against him/her. Reports of Discrimination,
Harassment, or Retaliation may not be made anonymously, but
information regarding any report and subsequent investigation will
be disseminated on a “need to know” basis.
If a finding is made that Discrimination, Harassment, or Retaliation
has occurred, the District shall take remedial action appropriate to
the circumstances, which may include disciplinary action up to and
including termination for an employee, separation from the
internship or volunteer opportunity for an unpaid intern or
volunteer who has violated this Policy, or sanctions for a person
providing services pursuant to a contract with the District, who has
violated this Policy.
Every District employee, unpaid intern, volunteer, job applicant,
member of the Board of Directors, and person providing services
pursuant to a contract with the District, has a duty to participate
in good faith in any investigation conducted under this Policy.
Failure to participate in good faith is a ground for disciplinary
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject:Policy
Number
Date
Adopted
Date
Revised
POLICY AGAINST DISCRIMINATION,
HARASSMENT, RETALIATION, AND COMPLAINT
PROCEDURE
47 10/11/05 05/01/19
Page 7 of 7
action appropriate to the circumstances. All employees, unpaid
interns, volunteers, job applicants, members of the Board of
Directors and persons providing services pursuant to a contract with
the District are encouraged to report, in good faith,
Discrimination, Harassment, or Retaliation. The District will not
tolerate Retaliation against any employee, unpaid intern, volunteer,
job applicant, member of the Board of Directors, or person providing
services pursuant to a contract with the District who makes a good
faith complaint of Discrimination, Harassment or Retaliation, or
cooperates in an investigation. However, reports made maliciously
or in bad faith may subject an employee, unpaid intern, volunteer,
job applicant, member of the Board of Directors, or person providing
services pursuant to a contract with the District, to disciplinary
action appropriate to the circumstances up to and including
termination for an employee, separation from the internship or
volunteer opportunity for an unpaid intern or volunteer, or
sanctions for a member of the Board of Directors or a person
providing services pursuant to a contract with the District.
The action of filing a complaint with the District does not preclude
a complainant from filing a complaint with the appropriate State or
Federal agency. An employee, unpaid intern, volunteer, job applicant
or a person providing services pursuant to a contract with the
District may contact the Equal Employment Opportunity Commission at
www.eeoc.gov or (213) 894-1000, or the Department of Fair Employment
and Housing at www.dfeh.ca.gov or (800) 884-1684 to file a
complaint, or for information relating to discrimination complaint
procedures and requirements.
POLICY HISTORY
Human Resources Policy and Procedure, Effective August 4, 1993.
Board Policy adopted October 11, 2005.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject: Policy
Number
Date
Adopted
Date
Revised
ADA/FEHA Disability Policy 48 05/03/06 01/04/17
Page 1 of 2
PURPOSE
To provide policies to encourage a bias free environment for disabled
employees or for disabled persons who seek employment with the Otay
Water District (District).
STATEMENT OF POLICY
It is the policy of the District not to discriminate on the basis of
disability for employment or the provision of services. It is the
intent of the District to provide disabled employees a bias free work
environment, including prompt and equitable resolution of complaints
alleging discrimination on the basis of a disability. The District will
provide reasonable accommodation in compliance with the Americans with
Disabilities Act (“ADA”) and the Fair Employment and Housing Act
(“FEHA”) provided the requested accommodation does not create an undue
hardship for the District or pose a direct threat to the health or
safety of others in the workplace or to the requesting employee.
POLICY
General Provisions
The District has a commitment to ensure equal opportunities for
disabled District employees. Every reasonable effort will be made to
provide an accessible work environment. The District will not
discriminate against disabled employees or job applicants in its
employment practices (e.g. hiring, training, testing, transfer,
promotion, compensation, benefits, discipline, termination).
Interactive Process
When the District becomes aware of a possible need for accommodation,
the District will engage in the interactive process, as defined by the
ADA and the FEHA, to determine whether an employee or job applicant is
able to perform his/her essential functions. As part of the interactive
process, the District may invite the employee or job applicant and, if
necessary, the employee or job applicant’s health care provider, to
meet. The employee may choose to have a third party present for support
as an observer. However, this person may not act as a representative or
attempt to negotiate on behalf of the employee. During the interactive
process the District will examine possible reasonable accommodations
that would allow the employee or job applicant to continue to perform
the essential functions in his/her position or, if appropriate, be
otherwise employed by the District.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject: Policy
Number
Date
Adopted
Date
Revised
ADA/FEHA Disability Policy 48 05/03/06 01/04/17
Page 2 of 2
Complaints
Any District employee who believes that he/she has been discriminated
against because of a physical or mental disability may file a
discrimination complaint pursuant to the District’s Policy 47, entitled
“Policy Against Discrimination, Harassment, Retaliation and Complaint
Procedure”.
Any job applicant who believes that he/she has been discriminated
against because of a physical or mental disability may file a
discrimination complaint by writing a formal letter to the District’s
Human Resources Manager.
The action of filing a complaint with the District does not preclude a
complainant from filing a complaint with the appropriate State or
Federal agency. An employee or job applicant may contact the Americans
with Disability Act at www.ada.gov or (800)514-0301, or the Department
of Fair Employment and Housing at www.dfeh.ca.gov or (800) 884-1684 to
file a complaint, or for information relating to discrimination
complaint procedures and requirements.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
BUDGET POLICY 49
Page 1 of 1
PENDING
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
ANTIFRAUD POLICY 50 10/03/07 01/04/12
Page 1 of 5
PURPOSE
The purpose of this policy is to establish guidelines and assign
responsibility for the development of controls and conducting of
investigations to aid in the prevention, detection and reporting of
fraud against the District.
SCOPE
The District has zero tolerance for fraud and will investigate any
fraud or suspected fraud without regard to the length of service,
position / title, or relationship to the District of the suspected
wrongdoer(s). Violation of this policy is an act of misconduct
meriting dismissal without prior warning or disciplinary action in
accordance with the District’s Discipline Policy and Procedures.
Further, an employee who directly observes or otherwise knows of
fraudulent activity and fails to report it is in violation of this
policy and may be subject to discipline as a result of this failure to
act, up to and including termination of employment.
BACKGROUND
The Otay Water District’s Pre-Employment Policies require a through
background investigation which includes fingerprinting to ascertain a
candidate’s criminal history. The Employee Standards of Conduct
requires all personnel to observe high standards of business and
personal ethics in the conduct of their duties and responsibilities.
As employees and representatives of the District, we must practice
honesty and integrity in fulfilling our responsibilities and comply
with all applicable laws and regulations. This policy applies to all
directors, officers, employees, volunteers, and agents of the
District.
POLICY
1.Definition of Fraud:
Fraud is defined as the intentional deception, false
representation or concealment of a material fact,
misappropriation of resources, or manipulation of data to the
advantage or disadvantage of a person or entity. Fraud is not
restricted to instances in which monetary or material benefits
are received or denied, but may include intangible benefits such
as status, power, position, and avoiding discipline.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
ANTIFRAUD POLICY 50 10/03/07 01/04/12
Page 2 of 5
2.Actions Constituting Fraud:
Examples of fraud include, but are not limited to, the following:
Forgery, falsification or alteration of documents or
instruments such as, but not limited to, timesheets, payroll
records, travel and expense claims, checks, bank drafts,
promissory notes, securities, invoices, purchase orders,
receipts, other financial documents, contracts, vendor
agreements, electronic files, etc.
Misappropriation of funds, securities, supplies, inventory, or
any other assets achieved through the use of deception or
willful concealment.
Impropriety in the handling or reporting of money or financial
transactions.
Profiteering as a result of insider knowledge of District
activities.
Bribery and corruption.
Authorizing or accepting payments or payments in kind for goods
or services not performed, or for hours not worked.
Destruction, removal, theft or inappropriate use of records,
furniture, fixtures, equipment, or any other assets achieved
through the use of deception or willful concealment.
Any violation of Federal, State, or local laws related to fraud
or dishonest activities.
Any similar or related irregularity or action.
3.Management Responsibilities:
The General Manager’s Office is responsible for the prevention
and detection of fraud, misappropriations, and other
irregularities. District management shall identify the risks to
which systems, operations and procedures are exposed, and
develop, maintain and ensure compliance with an appropriate and
effective internal control system to provide reasonable assurance
for the prevention and detection of fraud. Each member of
management shares in this responsibility and shall familiarize
themselves with the risks and exposures inherent in their area of
responsibility and be alert for any indication of irregularity.
4.Reporting Responsibilities:
Employees who know, or should reasonably suspect under the
circumstances before them, that another employee is committing
fraud, have a duty to report such knowledge or suspicion to
District management, including the facts and/or observations upon
which such knowledge is based. Failure to so report may result
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
ANTIFRAUD POLICY 50 10/03/07 01/04/12
Page 3 of 5
in disciplinary action, up to and including termination of
employment. In most cases, an employee’s immediate supervisor is
in the best position to address an area of concern. However, if
an employee is not comfortable speaking with their supervisor or
is not satisfied with their supervisor’s response, they should
speak with the Manager of Human Resources or anyone in management
whom they feel is more appropriate, including District’s Legal
Counsel.
Employees must not attempt to personally conduct
investigations/interviews/interrogations, or discuss any details
of the suspected fraudulent act with unauthorized personnel.
5.Acting in Good Faith:
Anyone filing a complaint concerning suspected fraudulent
activity is presumed to do so in good faith and have reasonable
grounds for believing the information disclosed indicates
improper or illegal activity. However, based on the totality of
the circumstances, any allegations found to be unsubstantiated
and made in bad faith or for malicious reasons may constitute
grounds for disciplinary action under the District’s Discipline
Policy and Procedures against the person filing the complaint.
6.No Retaliation:
No executive, manager, supervisor, or employee who in good faith
reports suspected fraudulent activity shall suffer harassment,
retaliation or adverse employment consequences. An employee who
retaliates against a person who has reported a violation in good
faith is subject to disciplinary action under the District’s
Discipline Policy and Procedures.
7.Confidentiality:
Violations or suspected violations may be submitted on a
confidential basis by the complainant. Reports of violations or
suspected violations will be kept confidential to the extent
possible, consistent with the need to conduct an adequate
investigation. Information pertaining to the investigation shall
not be disclosed or discussed with anyone other than those who
have a legitimate need to know for the proper discharge of their
duties.
8.Investigation:
The General Manager, or designee, shall investigate all
fraudulent or suspected fraudulent acts. Based on the severity
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of the allegations, an immediate decision will be made concerning
coordinating the investigation with the appropriate law
enforcement officials. District legal counsel may also be
involved in the process, as deemed appropriate. The
investigator(s) shall take immediate steps as needed to secure
statements, physical assets including computers and any records
thereon, and all other potentially evidential documents.
Affected employees shall cooperate fully with investigators,
including regulatory or law enforcement personnel.
Where an initial investigation reveals that there are reasonable
grounds for suspicion and to facilitate the ongoing
investigation, the suspected wrongdoer(s) may be suspended in
accordance with District policies and procedures.
9.Reporting:
The investigator is responsible for keeping the General Manager
informed of the status of all investigations and findings. Upon
completion of the investigation the General Manager will then, as
deemed appropriate, report the findings to the President of the
District’s Board of Directors. If an investigation substantiates
that fraudulent or illegal activity has occurred, decisions to
prosecute and/or refer the investigation results to the
appropriate regulatory agencies for independent investigation
will be made in conjunction with legal counsel.
10.Corrective Action:
The District will take the necessary steps, including legal
action, to recover any losses arising from fraud or attempted
fraud. This may include action against third parties involved in
the fraud whose negligence contributed to the fraud. Management
is responsible for taking the appropriate corrective action to
ensure adequate controls exist to detect and prevent a recurrence
of fraudulent activity.
11.Waste and Abuse:
Nothing in this policy shall preclude the District from
investigating alleged or possible waste or abuse of District
property, funds, or resources, regardless of whether the actions
investigated constitute fraud or arise from an investigation of
alleged or possible fraud. Nothing in this policy shall preclude
the District from taking disciplinary action, where appropriate,
for substantiated waste or abuse, regardless of whether the
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discovery of the waste or abuse arose from an investigation of
alleged or possible fraud.
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IDENTITY THEFT RED FLAGS POLICY 51 05/13/09
Page 1 of 5
PURPOSE
This policy is established to comply with regulations issued
by the Federal Trade Commission (FTC), 16 CFR Part 681, as
part of the implementation of the Fair and Accurate Credit
Transaction Act of 2003 (FACTA). The FACTA requires that
“financial institutions” and “creditors” with “covered
accounts” implement written programs which provide for
detection of and response to specific activities (“red flags”)
that could be related to identity theft. An FTC rule notice
states that creditors include “utility companies,” and
provides that “utility accounts” are covered accounts.
SCOPE
The FTC regulations require the establishment of an Identity
Theft Prevention Program (“Program”) that includes reasonable
policies and procedures to:
1.Identify relevant red flags and incorporate them into the
Program.
2.Detect red flags.
3.Include appropriate responses to red flags.
4.Address new and changing risks through periodic Program
updates.
5.Include a process for administration and oversight of the
Program.
BACKGROUND
Identity thieves use other person’s identifying information to
open new accounts and misuse existing accounts, creating havoc
for consumers and businesses. The FTC, the federal bank
regulatory agencies, and the National Credit Union
Administration (NCUA) have issued regulations (the Red Flags
Rules) requiring financial institutions and creditors to
develop and implement written Identity Theft Prevention
Programs as part of FACTA. The Programs must provide for the
identification, detection, and response to patterns,
practices, or specific activities – known as “red flags” –
that could indicate identity theft.
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POLICY
1.Relevant Red Flags
Red flags are warning signs or activities that alert a
creditor to potential identity theft. The guidelines
published by the FTC include 26 examples of red flags which
fall into the five categories below:
Alerts, notifications, or other warnings received from
consumer reporting agencies or service providers.
Presentation of suspicious documents.
Presentation of suspicious personal identifying
information.
Unusual use of, or other suspicious activity related
to, a covered account.
Notice from customers, victims of identity theft, or
law enforcement authorities regarding possible
identity theft in connection with customer accounts.
After reviewing the FTC guidelines and examples, staff
determined that the following red flags are applicable to
customer accounts. These red flags, and the appropriate
responses, are the focus of this Program.
Suspicious Documents and Activities:
o Documents provided for identification appear to
have been altered or forged.
o The photograph, physical description, and/or
other information on the identification is not
consistent with the physical appearance of the
person presenting the identification.
o Information on the identification is not
consistent with readily accessible information
that is on file with the District.
o The customer does not provide required
identification documents when attempting to
establish a utility account.
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o A customer refuses to provide proof of identity
or appropriate security code information when
discussing an established utility account.
o A person other than the account holder or co-
applicant requests information or asks to make
changes to an established utility account.
o Mail sent to the customer is returned repeatedly
as undeliverable although transactions continue
to be conducted in connection with the account.
A customer notifies the District of any of the
following activities:
o Utility statements are not being received.
o Unauthorized changes to a utility account.
o Unauthorized charges on a utility account.
o Fraudulent activity on the customer’s bank
account or credit card that is used to pay
utility charges.
The District is notified by a customer, a victim of
identity theft, or a member of law enforcement that a
utilities account has been opened for a person engaged
in identity theft.
2. Detecting Red Flags
Red flags may be detected as employees interact with
customers during the routine handling of new and/or
existing accounts. The following is a list of detection
methods that the District may use to prevent identity
theft.
Require customers to present government-issued
identification information to open a new account.
Types of necessary information include:
o Name
o Address
o Phone number
o Photo identification
Independently contact the customer (in the case of
phone or internet setup of new accounts).
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When fielding a request to access and/or modify an
existing account, verify identity of the customer by
requesting specific pieces of personal identifying
information (identification similar to that used to
open the account that matches information on the
Customer Information System).
For online or automated phone system access of
customer accounts, require the establishment of
security codes and/or questions during the initial
set-up of the account.
3. Responses to Red Flags
If personnel identify a red flag associated with a new or
existing customer account, one or more of the following
actions will be taken to rectify the situation.
Do not establish the utility account or make changes
to an existing account until the customer’s identity
has been confirmed.
For an existing account, the District may discontinue
the services associated with that account and/or:
Attempt to contact the customer independently, using
information already on the Customer Information
System.
Continue to monitor the account for evidence of
identity theft and contact the customer to discuss
possible actions.
o Change the passwords, security codes, or other
security devices that permit access to an
existing account.
o Reopen an existing account with a new account
number.
o Close an existing account.
Notify local law enforcement and provide them with all
the relevant details associated with the event.
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4. Periodic Program Review and Updates
The Finance Department staff is required to prepare an
annual report which addresses the effectiveness of the
Program, documents significant incidents involving identity
theft and related responses, provides updates related to
external service providers, and includes recommendations
for material changes to the Program. Recommendations for
changes will be based on the following:
Experience with identity theft.
Changes to the types of accounts and/or programs
offered.
Implementation of new systems and/or new vendor
contracts.
5. Administration and Oversight of the Program:
Specific roles are as follows:
The Customer Service Manager will oversee the daily
activities related to identity theft detection and
prevention, ensure that all members of the customer
service staff are trained to detect and respond to red
flags, and provide ongoing oversight to ensure that
the Program is effective.
The Chief Financial Officer will prepare the annual
report, which reviews all aspects of the Program as
described above, and submit the report to the General
Manager.
The General Manager will review the annual report and
approve any recommended changes to the Program, both
annually and on an as-needed basis.
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DISTRICT ADMINISTRATION OF RECYCLED
WATER RETROFIT PROGRAM 52 09/02/09
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PURPOSE
This policy establishes guidelines for how the District will
administer The Recycled Water Retrofit Program. It also
describes when and how the District will reimburse the
participants in the cost of such facilities.
BACKGROUND
Policy 52 establishes guidelines on the administration of the
Recycled Water Retrofit Program. The District, in an effort to
conserve potable water and encourage the use of recycled water
where practical, will assist qualified applicants in the form of
a grant.
POLICY
A.For projects accepted into the Recycled Water Retrofit
Program, the District may reimburse the applicant for
construction and design costs if the project meets the following
guidelines:
1.The project shall be in an area with an existing recycled
water main or where an installation of an extension is
economically feasible to the District.
2.The interested party submits and the General Manager or
designee approves the application for participation in the
program.
3.The applicant shall enter into an Agreement with the
District for Retrofit of Existing Irrigation Systems.
4.The applicant obtains three (3) bids from qualified
contractors and provides copies of the bids to the
District. The applicant is responsible for selecting the
lowest responsive responsible bidder. The applicant will
be reimbursed for the recycled water retrofit portions of
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the project based on the unit prices submitted with the
lowest responsive responsible bid.
5.Design and engineering costs are covered by the applicant,
and plan checking and inspection costs are covered by the
District.
6.The reimbursement amount will be 50 percent of on-site
construction costs of the conversion, as approved by the
District.
7.Funds for reimbursement shall be carried as a CIP project
until the reimbursement is made.
8.All reimbursement agreements will require approval by the
Board. A Staff Report will be prepared and reviewed with
the Finance Department prior to presentation to the Board
for approval.
9.This reimbursement agreement terminates upon acceptance of
the General Manager. The reimbursement agreement may be
terminated prior to acceptance by the General Manager upon
a determination that the applicant has failed to comply
with its obligations under the reimbursement agreement
10.If the applicant defaults, and the District terminates the
agreement, the applicant will be required to reimburse the
District any and all costs incurred by the District up to
the date of termination, and the District will no longer
have an obligation under the agreement.
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INFORMAL BIDDING PROCEDURES UNDER THE UNIFORM
PUBLIC CONSTRUCTION COST ACCOUNTING ACT
(Section 22000 et seq. of the Public Contract
Code)
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PURPOSE
To establish a policy for informal bidding procedures under the Uniform
Public Construction Cost Accounting Act (“Act”).
BACKGROUND
The District elected to become subject to the Act by Resolution No. 4315
approved by the Board of Directors at a regular Board meeting held
September 7, 2016. In accordance with Section 22034 of the Public
Contract Code, the District hereby establishes an informal bid policy to
govern the selection of contractors to perform public projects pursuant
to the subdivision (b) of Section 22032 of the Public Contract Code.
POLICY
A.Informal Bid Procedures. Public projects, as defined by the Act and
in accordance with the limits listed in Section 22032 of the Public
Contract Code, may be let to contract by informal procedures as set
forth in Section 22032, et seq., of the Public Contract Code.
B.Contractors List. A list of contractors (“List”) shall be developed
and maintained in accordance with the provisions of Section 22034 of
the Public Contract Code and criteria promulgated from time to time
by the California Uniform Construction Cost Accounting Commission.
C.Notice Inviting Informal Bids. Where a public project is to be
performed which is subject to the provisions of the Act, a notice
inviting informal bids may be mailed or sent by electronic means, not
less than ten (10) calendar days before bids are due, to all
contractors for the category of work to be bid, as shown on the List;
and/or may be mailed or sent by electronic means not less than ten
(10) calendar days before bids are due to all construction trade
journals, as specified by the California Uniform Construction Cost
Accounting Commission in accordance with Section 22036 of the Public
Contract Code. Additional contractors and/or construction trade
journals may be notified at the discretion of the department/section
soliciting bids, provided however:
1.If there is no list of qualified contractors maintained by the
District for the particular category of work to be performed, the
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INFORMAL BIDDING PROCEDURES UNDER THE UNIFORM
PUBLIC CONSTRUCTION COST ACCOUNTING ACT
(Section 22000 et seq. of the Public Contract
Code)
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notice inviting bids shall include the construction trade journals
specified by the Commission.
2.If the product or service is proprietary in nature such that it
can be obtained only from a certain contractor or contractors, the
notice inviting informal bids may be sent exclusively to such
contractor or contractors.
The notice inviting informal bids shall describe the project in general
terms and how to obtain more detailed information about the project,
and state the time, place and manner for the submission of bids.
D.Award of Contracts. The General Manager is authorized to award informal
contracts pursuant to the limits set forth by Section 22032 of the
Public Contract Code.
E.Bids Exceeding Informal Bid Limit. If all bids are in excess of the
informal bid limit as set forth by the Act, and if it is determined
that the cost estimate obtained by the department/section soliciting
the bid was reasonable, the Board of Directors may, by four-fifths
vote, award the contract to the lowest responsible bidder pursuant to
subdivision (f) of Section 22034 of the Public Contract Code.
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DISCONTINUATION OF WATER SERVICE FOR
DELINQUENT ACCOUNTS
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I.PURPOSE
This Discontinuation of Water Service for Delinquent Accounts Policy
(Policy) has been established to adhere to the laws regarding
discontinuation of water service for residential customers due to non-
payment of their water bill as required by Government Code § 60370 et
seq. and Health & Safety Code § 116900 et seq. (California Senate Bill
No. 998).
II.BACKGROUND
California Senate Bill No. 998 requires an urban or community water
system, that supplies water to more than 200 service connections, to
have a written policy that provides for discontinuation of residential
water service for nonpayment. In the event that a water bill becomes
delinquent, the District will apply this Policy for the collection of
delinquent accounts, including notifications, fee assignments, and
discontinuation of service. The District can be contacted by phone at
(619)670-2222 to discuss options for avoiding discontinuation of water
service for nonpayment under the terms of this policy.
III.POLICY
A.ISSUANCE, DUE DATE, AND FINAL PAYMENT DATE OF STATEMENT OF CHARGES
FOR SERVICE
1.Issuance of Statements. Statements for water service or
other charges will be mailed or presented as soon as
practicable after the water meter has been read and the
applicable charges have been determined.
2.Due Date. Each statement issued by the District for such
charges shall be due and payable on the date of mailing or
other presentation to the customer.
3.Final Payment Date. All charges in each statement must be
paid on or before the final payment date shown on the
statement, which shall be at least 20 calendar days
following the date of mailing or presentation of the
statement.
4.Payment of Charges.
a.Place of Payment. Payments shall not be credited to a
customer's account until cash, check, credit card, draft,
electronic funds transfer, money order, or any other
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acceptable form of payment that will be honored by a bank,
has been received by the District at the District business
office during regular office hours. Deposit of payment in
the mail or at a location other than the District business
office shall not be credited to a customer's account until
it is received at the business office.
b.Returned Check Charges. A returned payment charge (see
Appendix A, 34.01 D.2. for charge) shall be added to a
customer's account in each instance where payment has been
made to the District with a check, draft, credit card, or
any other acceptable form of payment that has not been
honored upon presentment to the bank upon which it is drawn.
B.DELINQUENT ACCOUNTS
1.For Non-Payment of Charges. If full payment of a statement
for a water service account is not received at the District
business office on or before the final payment date, the
account shall become delinquent on the day following the
final payment date.
2.Late Payment Charge. A late payment charge (see Appendix A,
policy 54 for charge) shall be added to a delinquent account
as of the date the account becomes delinquent, and such
charge(s) shall become an inseparable part of the amount due
as of that time. A late payment charge shall not be added
to any account that has no outstanding delinquencies.
3.Notice of Delinquency. A Delinquency Notice shall be mailed
to each customer whose account is delinquent. The
Delinquency Notice shall notify the customer that service
will be turned off and discontinued unless payment is made.
The Delinquency Notice shall indicate the amount due,
including late payment charges, and that the total amount
must be paid within thirty (30) calendar days from the date
of mailing or presentation of the Delinquency Notice to the
customer, or service will be discontinued.
4.Record of Delinquent Accounts. The District maintains
records of delinquent accounts. Each year one delinquency
shall be removed from the record of each account that has
one or more delinquencies.
5.Partial Payment on Delinquent Account. A partial payment on
a delinquent account may be accepted and credited to a
customer's account. However, the partial payment shall not
cause removal of the account from a delinquent status and
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furthermore, the partial payment shall not preclude the
meter from being turned off for delinquency.
6.Financial Arrangements for Delinquent Accounts.
a.Continuation of Service. The General Manager, Chief
Financial Officer, or any person delegated by the General
Manager, may authorize continuation of service for a
delinquent account if financial arrangements, satisfactory
to the District, have been established.
b.Requirement of Deposit Due to Repeated Delinquencies.
If payments on a customer account have become delinquent
five or more times, or if a meter has been turned off three
or more times for non-payment of charges, the General
Manager, Chief Financial Officer, or any person delegated by
the General Manager, shall be authorized to require the
customer to make a deposit with the District in cash, or any
other form satisfactory to the General Manager. The deposit
amount shall be established at the discretion of the General
Manager and the Chief Financial Officer but shall not exceed
two times the highest monthly bill during the twelve (12)
months preceding the date of demand for a deposit.
i.Handling of Deposit. A deposit for a delinquent
account shall not earn interest and shall only be
applied to reduce or satisfy amounts due the
District in the event of termination of service.
A deposit does not constitute payment for service
bills and the customer shall be required to comply
with bill payment requirements to continue
receiving service.
ii.Refund of Deposit. A deposit required under this
Section shall be refunded to the customer as
provided in Section 25.04.A.
7. Liens against Property for Delinquent Charges
Upon written notice to the property owner, a lien against the
property may be secured for unpaid bills. One or both of the
following lien procedures may apply:
a.Judgement Lien. In case any charges for water or other
services remain unpaid, the amount of the unpaid charges may
in the discretion of the District be secured at any time by
filing for recording in the office of the county recorder, a
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certificate specifying the amount of such charges and the
name and address of the person liable therefor. The lien
acquired thereby shall attach to all property within the
County that is owned or thereafter acquired by the person
with the delinquent account. Such lien shall have the force,
priority, and effect of a judgment lien, and shall continue
for 10 years from the filing date, unless released or
discharged sooner. The lien may be extended, within 10 years
from the filing of the certificate or within 10 years from
the date of the last extension of the lien, by filing a new
certificate in the office of the county recorder. A lien
processing fee will be applied to any account against which
a lien is filed (see Appendix A, policy 54 for charge).
b.Tax Lien. Any unpaid charges or fees that are at least
60 days past due on July 1, may become part of the annual
taxes levied upon the property upon which service is
provided. In addition, if the charges remain unpaid by July
1, the outstanding charges, plus a delinquent tax roll fee
(see Appendix A, policy 54 for the charge) will be added to
the “secure tax roll” of the County of San Diego for
collection.
These lien procedures shall be in addition to any termination of
service procedures.
8.Termination and Reinstatement of Water Service for Delinquent
Accounts
a.Termination of Service. If payment is not made in
accordance with a Delinquency Notice, and the account
remains unpaid for at least 60 days, residential service may
be discontinued. The water meter or meters for said
delinquent account may be turned off and locked.
i.The District shall contact the customer(s) named
on the account by telephone or written notice no
less than seven (7) business days before
discontinuation of termination service. A mailed
delinquency notice fee will be charged(see
Appendix A, policy 54 for charge)to the bill for a
written notice mailed to the customer.
ii.The District shall make a reasonable, good faith
effort to contact an adult person residing at the
premises identified on the account by telephone or
in person, at least 48 hours prior to any
termination of service. A delinquency tag fee
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will be charged (see Appendix A, policy 54 for
charge) to the bill for a contact made in person.
b.Procedures for Occupants or Tenants to Become Customers
of the District
i.Scope. This section only applies when a property
owner, landlord, manager, or operator of a
residential service address is listed as the
customer of record and has been issued a notice of
intent to discontinue water service due to
nonpayment.
ii.Where an owner or manager is listed by the Dis-
trict as the customer of record of the service,
the District shall, in good faith, make every
effort to inform the actual users of the services
when the account is in arrears by means of a
Notice of Termination of Service that service will
be terminated in ten days.
iii. Agreement to District Terms and Conditions of
Service. The District will make service available
to the actual residential occupants if each
occupant agrees to the terms and conditions of
service and meets the requirements of the
District’s rules and regulations. Notwithstanding,
if one or more of the occupants are willing and
able to assume responsibility for the subsequent
charges to the account to the satisfaction of the
District, the District will make service available
to the occupants who have met those requirements.
iv. Verification of Tenancy. In order for the amount
due on the delinquent account to be waived, an
occupant who becomes a customer will verify that
the delinquent account customer of record is or
was the landlord, manager, or agent of the
dwelling. Verification may include, but is not
limited to, a lease or rental agreement, rent
receipts, a government document indicating that
the occupant is renting the property, or
information disclosed pursuant to Section 1962 of
the Civil Code, at the discretion of the District.
c. Residential water service shall not be terminated for
non-payment in any of the following situations:
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i.During an investigation by the District of a
customer dispute or complaint. Any residential
customer who has initiated a complaint or
requested an investigation within five days of
receiving the disputed bill or who has, within 13
days of the mailing of the notice that the
customer's service will be terminated for non-
payment, or made a request for extension of the
payment period of a bill asserted to be beyond the
means of the customer to pay in full during the
normal period for payment, shall be given an
opportunity for a review by the General Manager,
Chief Financial Officer, or any person designated
by the General Manager. The review shall include
consideration of whether the customer shall be
permitted to amortize the unpaid balance of the
account over a reasonable period of time, not to
exceed 12 months. No termination of service shall
be affected for any customer who complies with an
amortization agreement, if the customer also keeps
the account current as charges accrue in each
subsequent billing period.
Any customer, whose complaint or request for an
investigation has resulted in an adverse
determination by the District, may appeal the
determination to the Board.
ii.When a customer has been granted an extension of
the period for payment of a bill.
iii.In addition, the District will not terminate water
service if all the following conditions are met:
1.The customer, or a tenant of the customer,
submits certification from a primary care
provider, as that term is defined in
subparagraph (A) of paragraph (1) of
subdivision (b) of Section 14088 of the Welfare
and Institutions Code, that discontinuation of
water service would be life threatening or pose
a serious threat to the health and safety of a
resident of the premises; and
a.The customer is financially unable to pay
within a normal billing cycle. This can be shown
by either:
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Demonstrating that someone in the household is
a recipient of one of the following programs:
CalWorks
CalFresh
General assistance
Medi-Cal
Supplemental Security Income/State
Supplementary Payment Program
California Special Supplemental Nutrition
Program for Women, Infants, and Children
Or declaring under penalty of perjury that
household income is less than 200% of the
federal poverty level; and
b.The customer is willing to enter into an
alternative payment arrangement, including an
extension, amortization, or alternative payment
schedule with respect to the delinquent charges.
c.For customers who meet conditions a. and b.
above, the District will offer one of the
following options, to be selected by the
District in its discretion: (i) an extension for
payment, (ii) amortization of the outstanding
balance or (iii) an alternative payment
schedule.
d.Termination of service.
1.If the customer fails to comply with an
amortization agreement, alternative payment
schedule, payment extension for 60 days or
more, or if the customer does not pay his or
her current residential service charges for
at least 60 days, residential service may be
discontinued no sooner than five (5) business
days after the District posts a final notice
of intent to disconnect services in a
prominent and conspicuous location at the
property. A delinquency tag fee will be
charged (see Appendix A, policy 54 for
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DISCONTINUATION OF WATER SERVICE FOR
DELINQUENT ACCOUNTS
54 11/06/19 7/5/2023
Page 8 of 8
charge) to the bill for a contact made in
person.
2.Termination of service shall not occur
on any Friday, Saturday, Sunday, legal
holiday, or at any time during which the
business offices of the District are not open
to the public.
d.Reinstatement of Service. Reinstatement of service
will occur during normal business hours of Monday through
Friday 8:00am and 5:00pm. Water service terminated for
delinquency may not be reinstated until all amounts due and
payable, including late payment charges and lock charges,
have been paid at the District business office, or unless
credit arrangements satisfactory to the District have been
made. Accounts that have payments received at the District
office after 4:30pm may not have service restored until the
next business day.
e.Meter Lock Charge. A lock charge will be assessed to
any account that has been terminated for non-payment. The
charge to terminate service is set forth in Appendix A,
34.02 C.
References
A. California Water Code div. 1, ch. 1, § 106.3
B. California Health & Safety Code, div. 104, part 2, ch. 6,
§ 116900 et seq. (SB 998 [2018])
C. California Government Code, tit. 6, div. 1, § 60370 et seq.
D. California Civil Code div. 3, part 2, title 2, § 1632